What Is The 5linx Scam? (Red Flags You Need To Know!)

As we step into 2023, a lot has evolved in the landscape of online employment and business opportunities.

Three years ago, I shared insights on how people should exercise caution with online jobs touting substantial earnings.

Today, this vigilance is more pertinent than ever. The internet is a vast sea of opportunities, but it’s also riddled with deceptive undercurrents.

One area that exemplifies this complexity is Multi-Level Marketing (MLM). MLM has been a pathway to financial success for many, yet it’s equally notorious for being misused in scams, notably pyramid schemes.

Tragically, some businesses begin with noble intentions, climbing towards peaks of success, only to veer off course into the realm of deceit.

In this context, 5linx stands out as a notable example. Over the past decade, 5linx emerged as a burgeoning company, garnering accolades and positive reviews.

But as we’ll explore, the journey of this company is a testament to how quickly success can take a wrong turn.

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 in 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?

Originally established in 2001 by Jeb Tyler, Jason Gluck, and Craig Jerabeck, 5linx is an MLM company headquartered in Rochester, New York.

This company, once lauded for its rapid growth between 2006 and 2009, has navigated through two decades in the MLM landscape.

However, it’s the twists and turns in its journey that have attracted attention, particularly in recent years.

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 a 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 5linx work?


Like what I mentioned a while back, they focus on three niches where 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 an affiliation with Protect America Inc.

2. Health Care/ Wellness

These are products that include supplements, beverages, and herbal drinks. They do not own these products.

They connect you to physicians for assistance through calls or live video.

  • Enhanced Care 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. 

3. 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 which I will talk about more in the latter parts of this review. 

Who Is Craig Jerabeck?

Craig Jerabeck, alongside Jeb Tyler and Jason Guck, was one of the pioneering minds behind 5Linx, launched in the early 2000s.

Their vision guided the company’s initial trajectory, leading to significant growth and recognition.

However, the company’s leadership underwent a notable shift in 2016, when Nelson Gerard assumed the role of the primary shareholder.

The current leadership includes:

  • Nelson Gerard, Chairman of the Board
  • Michael Gilbert, Chief Operating Officer
  • Denise Nowak, Vice President
  • Larry Harper, Chief Sales Officer

This change in the guard marked a new chapter for 5Linx, steering it away from its founders’ influence and towards potentially new horizons.

What is the MLM Business Model?

MLM business model in 5linx

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

You get paid in two possible ways. First, you earn commission from your sales with the products that you can 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 salespersons or distributors as well.

How Does One Generate Revenue with 5linx?

Growth business success up arrow goal development background of financial investment profit graph or increase chart marketing diagram and leadership motivation strategy achievement on growing target.

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 within your first 30 days to be able to avail of 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.

What Is The Reputation Of 5Linx?

In a dramatic turn of events, 2017 marked a tumultuous phase for 5Linx. The co-founders faced federal fraud charges, including wire fraud and money laundering.

Admitted to defrauding investors of millions and misappropriating company funds, they faced legal repercussions in 2018.

This scandal pierced the core of 5Linx, challenging its reputation and operational integrity.

Despite these setbacks, 5Linx continues to operate, albeit under new management.

This transition poses questions about the company’s future direction and the impact of its troubled past on potential success.

From my perspective, the shadows cast by these events make 5Linx a questionable investment.

Caution and thorough research are advised before considering any involvement with the company.

What are the Reviews Saying About 5linx?


Reviews about 5linx present a mixed bag of sentiments. In a notable review from glassdoor.com, a customer service employee highlighted some positive aspects, such as a supportive team, but criticized the company’s upper management.


Meanwhile, another review on Indeed.com praised the flexible work environment and shared team goals, earning a full five-star rating.

These diverse perspectives shed light on the internal workings at 5linx, suggesting both strengths and areas needing improvement.

My take is that 5linx, amidst fluctuating reviews, should focus on rectifying management issues and rebuilding its tarnished reputation.

Is 5linx Still in Business?

Despite the legal woes of its founders, who have been incarcerated since December 2018, 5Linx continues its operations.

However, the company’s future remains clouded in uncertainty. The new vision under the current leadership is yet to be clearly defined, rendering 5Linx a precarious business venture.

In light of this, my advice to potential investors or partners is to proceed with caution.

In the ever-evolving business landscape, certainty is a luxury, and due diligence is essential before embarking on any new business venture.

Navigating the Pitfalls of 5linx


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 grounded in reality!

Third-party Products and Services

MLM companies usually have created or produced their products which makes them a cut above the rest.

But for the case of 5linx, they only have a partnership with the creators of the product.

This 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 them without paying for unnecessary expenses.

Also, this makes it harder for you to sell it to other people because they can get it for a cheaper price and a more convenient way.

This lowers your chances of earning big and is 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. 


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.


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 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 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 like to build your brand and business, and still be a part of the marketing industry then Affiliate Marketing is the best for you!

You can get the same benefits at 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.

The 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 spot obvious differences between 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.

2. 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 on your website and own accounts where your niche can access them.

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 sell.

3. Passive Income

You gain even if you are sleeping or doing another extra job. Once you can 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.

4. 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 partner 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 secure system to save and have income.

5. Inclusive

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 webinars for the updates. They also have comprehensive tools for building your website and 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 fraud and scams on website traffic. 

They have thousands of legit merchants that you can choose from depending on your interests 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! 

Disclaimer: The information provided in this article is based on our research and analysis. However, we are not liable for any inaccuracies or errors, and readers are encouraged to conduct their own investigations. If you have concerns about the legitimacy of a website, feel free to reach out to us via our contact form to initiate a discussion.

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