What is the 5linx Scam? (Red Flags You Need to Know!)

What is the 5linx Scam? (Red Flags You Need to Know!)

People are more careful now when it comes to online jobs that promise hundreds of dollars as an income. And you are also wise enough to research first about a product or a service before joining or buying them.

Multi Level Marketing or MLM brings money to a lot of people yet it can be thwarted into a scam like pyramiding schemes. Sadly for some businesses, they actually started right and are on their way to the top of greater success. However, they turn into a scam for different reasons.

One of the rising and growing companies in the last decade is 5linx. It has received awards and reviews because of it.

However, the question still rises, “Is 5linx legit or a scam?”


5Linx Review Summary

Product Name: 5Linx

Product Type: Network Marketing

Creator: Jeb Tyler, Jason Gluck and Craig Jerabeck

Summary: 5Linx is an MLM business that is based on New York. 5 in the company name “5linx” stands for Freedom, Integrity, Vision, Success and Opportunity. It focuses on three niches — home, business and health care.

Price: $249 sign up fee and $49.95 monthly for add-ons

Rating: 2 out of 10

Not Recommended


What is 5linx?

5linx is a Multi-Level Marketing (MLM) company founded by three men named Jeb Tyler, Jason Gluck and Craig Jerabeck. It is based in Rochester, New York. The business has been running since 2001 and was regarded as one of the fastest growing companies from 2006-2009.

5 in the company name “5linx” stands for Freedom, Integrity, Vision, Success and Opportunity. It focuses on three niches — home, business and health care. 

If you are interested in joining, you have to pay a base price of $249. This already includes starter kit:

  • Personal Starter Kit and Marketing Website
  • Live Phone, Email SUpport and 5Linx Access
  • Residual Income
  • Earn Customer and Promotional Bonuses
  • Build Team and Earn Overrides

There is an optional $49.95 monthly payment if you are availing other services.

How does it work?


Products

Like what I mentioned a while back, they focus on three niches where they in each niche or category are various products that you can sell.

  1. Home

Their products under these are usually energy, telecommunications, technological support and security (alarms, videos and the like).

  • VOIP/ Globalinx Mobi
  • PowerPlay with mobile powerpack and speakers
  • Satellite TV (DISH Network and DirecTV)
  • Internet services for both fiber and cable are offered through third-party provider
  • Online cloud backup data vault, SafeScor and ID Guard. For home security, they have affiliation with Protect America Inc.
  1. Health Care/ Wellness

These are products that include supplements, beverages, herbal drinks. They do not own these products. They connect you to physicians for assistance through calls or live video.

  • Enhancedcare MD – health care plan which is different from health insurance
  • Hi5 products (Challenge Kit, Boost, Lean and Edge). These products aim to help you achieve your fitness goals. It has properties that are appetite suppressant, vanilla shake mix and dietary supplements for endurance, metabolism, cognitive function, anti-again and cholesterol. 
  1. Business

These aim to aid you in your businesses like saving money, profits and earnings.

For a more complete list of their products, you can visit their website. Initially, you can already see that almost all of their products and services are their affiliate products or third-party providers.

This tells a lot about their company and which I will talk about more in the latter parts of this review. 

MLM Business Model


5linx follows a MLM business model to earn income and create jobs. It is a form of network marketing which basically grows because of its multiple levels of distributors and recruits forming the shape of a pyramid.

You get paid through two possible ways. First, you earn commission from your sales with the products that you are able to sell. Secondly, you get payouts from the commissions from the wholesale buying of the distributors that you were able to recruit into your team or your downline distributors.

This means you are expected to sell their products to other people and recruit people to become salesperson or distributors as well.

Income

They pay their distributors a good commission for their first 30-days. You get a quick start bonus.

In the compensation plan that they have, you get $250 for two people, $400 for 4 people and $1000 for 5 people. However, it wasn’t clear if this will continue after 30 days.

You have to be able to recruit at least 5 people to within your first 30 days to be able to avail their quick bonus. Otherwise, you will have to stick with their basic commission. 

This even gets harder because in your team, you have to be able to reach a certain quota each to be able to get a residual income. If one of you fails to do so, then, you are not qualified for it. You simply get the commission from the sales you were able to get.

They also promise you to enjoy certain advantages like their Car Program. The company will provide the monthly lease payment. In addition to this are annual vacations worldwide and their corporate events. 

Cons!

Scam-Alert

They offer different opportunities to earn a commission and they have great and luxurious bonuses. It is really exciting and luring at first because they present it to be easy and achievable.

However, here are the things that will keep you ground in reality!

Third-party Products and Services

MLM companies usually have created or produced their own products which make them a cut above the rest. But for the case of 5linx, they only have partnership with the creators of the product. Which means that you can actually buy or get the products directly from the sellers of the product.

This can save you from registering to 5linx and paying the sign-up and monthly extra charges.

Opting this could mean that you can sell the products on platforms like Amazon or directly sell it without paying for unnecessary expenses.

Also, this makes it harder for you to sell it to other people because they can actually get it for a cheaper price and a more convenient way. This lowers your chances of earning big and is actually a sign of high competition in the market.

Expensive Sign-up

Not all people can afford $249 and a monthly $49 and even if you can afford there is a low guarantee to experience ROI. Most MLM businesses fail after a while after its peak because it is not a sustainable business model. 

Income

The reality in any MLM model, it is the top member that benefits not the downlines. This is why you are motivated to keep on recruiting people because this is the primary way of earning big and being successful in this area.

The commissions are too small and it is not even a decent income to begin with.

FRAUD!!!

The three founders of 5Linx admitted to defrauding and money laundering. Last 2017 they were indicted on multiple federal fraud charges. The money they laundered amounts up to $2.3 million. They illegally deposited company revenues into their personal accounts. They also failed to pay hundreds of thousands of dollars in taxes.

So, what’s a better and safer option?

In MLM, some people have made it to the top. You see it and maybe you know people personally who are experiencing the benefits of MLM. But it is a complicated and tricky business to play.

It is actually one of the most not recommended kinds of business because of its instability and vulnerability to scams and frauds which happened to 5linx.

If you really like to build your own brand and business, and still be a part of the marketing industry then Affiliate Marketing is the best for you! You can actually get the same benefits at to what MLM and even more!

Another thing why you should try it is because it is safe. To make it a lot safer, I will be recommending accredited platforms that you can use to start.

Affiliate Marketing is a growing business online that focuses on promoting products from merchants and earning from commission. Great thing about it is that you get to choose what kind of niche you want to focus on and promote.

Where can you start doing this?

One of the effective ways that people use to succeed in Affiliate Marketing is being connected to an Affiliate Network. Wealthy Affiliate is one of the most recommended because of the brilliance behind its services.

How different is it from MLM?

You can actually spot obvious differences from MLM and Affiliate Marketing. These differences only show that the latter is safer and gives lesser risks to the clients. 

Here are some important differences that you need to take note of:

  1. No cash-out

You do not need to buy anything or try anything to start your online business. All you need to do is choose your merchant and get an affiliate link from them for your sales.

  1. No face to face selling

If you are not comfortable with talking to people or you get tired easily from doing it then you should also try Affiliate Marketing!

You can promote the products in your website and own accounts where you niche could access it.

This is made easy with a Wealthy Affiliate! They have a customizable setting and easy to use tools that will help you build your content and platform where you can actually sell.

  1. Passive Income

You gain even if you are sleeping or doing another extra job. Once you were able to establish your website and affiliate link then you just have to wait for your commission to enter your accounts!

The commissions differ depending on the merchants but what makes it exciting is that you can partner with as many merchants as you want.

Wealthy Affiliate has thousands of partners you can choose from.

  1. No Recruitment

You do not need to recruit anyone to earn more in this area. You can honestly gain from the commission you get from the merchants you partnered with.

Unlike in MLM where it would be hard to gain from selling alone, Affiliate Marketing gives you more opportunities, higher income and a more secured system to save and have income.

  1. Inclusives

With the Wealthy Affiliate you can already start your business for free. Training and tools come with their free sign-up! These are the basic and important things that you need to learn and have when starting or growing your business.

You have one on one mentoring and weekly webinar for the updates. They also have comprehensive tools for building your website and in writing a good article. Included in the training is learning how to use the tools to make your website and articles a better one.

Also they have keyword search and SEO tools that can help you build and increase traffic to the website. This will spare you from the fraud and scams on website traffic. 

They have thousands of legit merchants that you can choose from depending on your interest and likes!

There is a promising future for you and these are not empty words but verified by their millions of members who did not simply earn thousands of dollars but also grew in their skill! Visit Wealthy Affiliate and see it yourself! 

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