Is 5LINX a Fraud Scam Company?
Today I’d like to expose whether this MLM business is (or was) legitimate. MLM companies are generally designed to meet the needs of everyday life especially in areas like health and wellness, but this also extends to services such as energy, internet, finance and even travel.
The problem is that they are not easy to promote and generally provide very little returns. 5LINX is a great example of an MLM that is tough to promote and in this article I’ll take you through everything you need to know, if you’re considering signing up to this program or some other version of it…
The fact that you’ve taken a moment to scrutinize this product before buying it should be applauded. You’ve done yourself a huge favour. Your due diligence will save you from wasting money and time.
A good bit of research always goes a long way in the fight against online scams. Creating a sustainable full-time online business is not difficult. You just need to know where to look.
Before we proceed I’d like to let you know that I’m not linked to 5LINX in any sort of way and I’m not trying to sell you this product.
Instead, I’d like to show you the truth behind this company and what they are (used to be) about…
5LINX Product Review
- Name of Product: 5LINX
- Owners: Jason Guck, Jeb Tyler, Craig Jerabek
- Type of Product: MLM Business In Services Industry
- Cost of Product: $249 to sign up + several other costs
- Who Is This Product Best For? NOBODY!
5LINX Product Summary
As far as MLM (multi-level marketing) businesses go 5LINX is a company that claims to provide several personal and corporate services. The problem is, they are not as authentic as they make out to be. If you don’t already know, the founders of 5LINX were jailed recently for various crimes. The program doesn’t have much to offer, therefore, would be a tough gig to promote.
Product Rating: 10/100
Would I Recommend This Product: Hell No!
5LINX Explained
5LINX, also referred to as 5Linux, is an MLM business which focuses on both personal and corporate services including but not limited to health insurance, telecoms, utilities, health and wellness. Below is one of the banners featured on their website. It seems like this company has its fingers in many pies.
The business was established nearly 2 decades ago by Jason Guck, Jeb Tyler and Craig Jerabek and is (was) based in Rochester, NY.
Nonetheless, 5LINX is a controversial company with a questionable business model which I’m going to discuss straightaway.
5LINX Product Range
The product range for 5LINX is contained within 3 categories (as shown below):
- Business
- Wellness
- Home
The Business Category
The services found under this category are designed to assist with minimizing the daily expenses involved in running a business and help to maximize profits.
Below is a list of services that you can expect to receive-
- Business Elite Services: an assortment of services specifically designed to automate your business.
- Chroma Digital Marketing: this product focuses on digital marketing and helps users stay ahead of the competition.
- Linx Energy: This energy service provider offers energy-saving plans for your business to benefit from reduced utility costs.
- Corporate Security: this one is self explanatory. It’s essentially a product that beefs up the security of your business and protects it from numerous threats.
- Payment Solution: This service is provided by a 3rd party to enable payment processing for transactions on your website/ e-commerce store.
- 5LINX TextAlertz: This is a text message service that lets you send mass messages to your clients or customers and is commonly used for promotions and business updates.
The Personal Products Categories
The products and services found within these sections are focused on helping you with daily activities and individual health and wellness. Below is a list of a few products offered within these categories:
- CaptaVida: This is a diet supplement that assists with managing diabetes and glucose levels in diabetic sufferers.
- Chroma Credit: A service designed to help keep track of and improve your credit score.
- Daily Dimes: a cost-saving service that provides the users with pre-clipped coupons from reputable manufacturers.
Is 5LINX a Useful Product?
To be honest I don’t think 5LINX provides any value. Think about it, they are so many companies out there offering most of the above services either for free, next to nothing or as part of a comprehensive package, therefore, why would customers buy something they can get for free, can get much cheaper or already comes as part of an existing service that they use?
Furthermore, there’s better higher-quality products and services elsewhere compared to the stuff that 5LINX is trying to sell, rendering it useless.
The only unique selling point of joining their program is that it’s a one-stop shop for various services, however, this wouldn’t be a compelling enough reason to convince customers to switch services from existing suppliers.
Another point worth noting is, why would customers need such services when they are already benefiting from their current suppliers?
- I already receive a free service to monitor my credit score and get suggestions on how to improve it.
- All of my banking transactions can be done seamlessly online via my banking apps which come as part of the service.
- It seems contradictory to offer business owners a cost-saving service when the service itself is going to come at an extra cost.
How Do You Profit With 5LINX?
There’s just 2 techniques that can be used to profit from 5LINX-
- Commissions earned when you sell the 5LINX membership.
- You can earn bonuses and commissions whenever you recruit a new member, build your own team and sell more of 5LINX’s products.
Getting Started with 5LINX
If you decide to join 5LINX there are various costs you need to be aware of-
- $249: There’s a one-off payment to be an Independent Marketing Representative. For this, you get a website, starter kit and various tools.
- $99: Another one-off payment to be a 5LINX customer representative.
- $49.95: Recurring fees to renew your website and other reporting features.
The lowest amount you can pay is $99 so that you can be a customer representative and receive commissions for selling products.
What Is The Compensation Plan at 5LINX?
The Compensation Plan at 5LINX is dependent on where you are in the ranking order. Obviously, the higher up you are, the more profit you can earn. You’re also awarded more profits by receiving entry into rank-restricted bonuses.
Below is a brief summary of their compensation plan-
- Quick Start Bonus: You will be rewarded with a bonus of $250 if you achieve a minimum of 12 customer points and convert 2 qualified IMRs in your initial month.
- Customer Acquisition Bonus: You’re awarded a bonus if your downline recruits another member within the first month of them joining the program.
- Residual Commissions: You will also make money from your own sales as well as referred and team sales. The percentage of commission from each sale depends on your ranking position at the time the sale is processed.
If you want to read more information about 5LINX’s compensation plan you can find it by clicking this link.
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5LINX Exposed!
1). The Owners Were Jailed
If you didn’t already know, 5LINX is owned by group of individuals that were locked up for fraudulent activities. Do you really want to deal with a company that holds such a bad reputation?
According to the information online, the 3 owners Jason Guck, Jeb Tyler and Craig Jerabek were involved in wire fraud and conspiracy and arrested in 2017. Jason is currently waiting to be sentenced. Jeb and Craig have already been sentenced and jailed.
Above are the details that can be found online if you look on Google.
Did the crimes have something to do with 5LINX? Supposedly.
2). The Products Don’t Belong To Them!
After all the hassle of joining the 5LINX program and paying the various fees, they will come a time where you will realize that the products you’re working hard to promote don’t actually belong to them! 5LINX is simply partnered up with 3rd party companies to provide these services, which is a similar practice that we’ve seen with other MLM companies in the services industry.
Essentially, 5LINX does not have any of its own services or products. It’s a huge warning sign that often leads to unannounced price hikes and the workings of a pyramid scheme.
3). Very Little Profit
It doesn’t come as a surprise that the money-making potential here is extremely low based on their income disclosure statement. High performing members make an about $400 in 12 months and at a push, a small number of them make a few thousand dollars with a lot of hard work. It hardly seems worth it.
The above image is an income disclosure statement from 2015.
The whole model is setup to encourage and reward people that recruit more members under them (downline), therefore, you will only make a decent amount of profit if you’re higher up the rank.
The rewards for higher ranking members are generous, however, it would be very difficult to achieve such a ranking and very few people ever get there.
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What Are The Benefits Of Joining 5LINX?
I’m struggling to find any real advantages of signing up to 5LINX. You’re better off saving your hard-earned money and placing your efforts into something worthwhile (I’ll discuss this in a second).
Is 5LINX a Scam or a Legitimate Business?
5LINX is a genuine business, however, you will get very little value in return for signing up to them and paying for their services. I wouldn’t recommend them as a viable profitable work from home business.
To Summarize:
- The 3 owners were jailed for fraudulent activities and according to a few sources, the company is no longer operational. This hasn’t been confirmed yet, however, I would tread carefully.
- The income disclosure statement doesn’t look great. Hardly anyone is earning decent profits. A few hundred dollars in 12 months hardly seems worth it.
This company might have thrived back in the day but today’s services are far too competitive for the 5LINX program to be a profitable venture.
How Do I Use The Internet to Make a Full-Time Salary?
I’m not a big fan of get-rich-quick schemes or MLM programs, let’s just say that I’ve been caught short a few times.
Instead, an Amazon FBA Business is my leading recommendation for people that want to build a thriving full-time online business working from home.
Here are my reasons why…
- There’s no pressure to recruit family and friends, or anyone else for that matter.
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- You don’t need to sell hundreds of different products to create lucrative profits with this fresh, exciting business model.
An Amazon FBA business can help you to…
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