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A Skeptic's Review Of The 5Linx Opportunity

By: David Wood A

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What is 5Linx?

5Linx is a MLM company that started in 2001 in the internet telecom industry. Even though 5Linx is past it's initial growth phase, occasionally they still enter the online scene with a new product idea or compensation plan enhancement.

As a brief introduction to 5Linx and their product line - they offer wholesale pricing on VOIP technology as well as a short list of other internet based communications products.

Is 5Linx the best opportunity in the world?

Although I am a strong proponent of the MLM profession, I would not recommend getting involved with 5Linx.

Before you leap through the computer screen, ranting and raving about how great the opportunity is - let me share with you my reasons why.

Why I would never join 5Linx:

Simply put, I would spend any significant time or energy on any company that relied solely on technology products. There are a LOT of reasons for this, but let me share my top two:

If you've watched MLM for as long as I have, you'll have noticed that technology based products never last very long in the Network Marketing profession because of the negative price pressure from the market. For example - let's say your company develops the first phone capable of intergalactic instantaneous transmission. Let's call the new, fabulous phone the 'iGalaxy'.

Well, when you first launch iGalaxy - the response is phenomenal - not only do you have the only product that offers sub-space instantaneous communications, but you have a 75% profit margin because of lack of any real competition. Just because your profits are so huge and glorious, you've got MLM distributors on 17 different planets all earning million plus monthly incomes.

The stories don't keep coming, though, because 10 months later China decides to step into the intergalactic communications scene with a new product that behaves exactly the same - only they're willing to get by with a 5% profit margin - making all of your customer swarm to the cheaper, better product.

So in a panic to stay competitive with people who are willing to work twice as hard for a tenth of your pay, you reduce the price of iGalaxy by 75%, causing a 95% reduction in the monthly commissions of your entire downline, and...

...Bamb! You have to start over from square one, which brings us to the second reason why I won't join technology companies:

Look at MLM history - can you name one company that has ever succeeded long term with any kind of technology based product? Eventually they all fall apart with pressure from their competitors. Remember Excel Communications? They had some people earning some of the biggest checks in MLM history. NOBODY thought that they would ever go out of business. Yet the pricing pressure of the marketplace forced them out of business. An example of this is that the average earnings of 5Linx representatives dropped by 50% over ONE YEAR - from 2006-2007 according to 5Linx official income statistics.

On a strictly basic level, when the cost of phone technology goes down from negative market price pressure - all the distributors checks go down along with it. ACN is the closest company in the MLM profession that I've ran across that has a chance of long term success, and I don't think that they'll last, either.

All of this being said - I want you to realize that success in 5linx has more to do with your own personal marketing ability than it does with the success or growth of the company.

If you want to make money with 5Linx or any other real Network Marketing company, learn how to create endless prospects and influence offline through the power of Attraction Marketing. That way, it won't matter if 5Linx goes out of business or all of your distributors start earning tiny checks - anyone who is worth his salt and understands Attraction Marketing knows how to instantly create a loyal organization in any company they choose.

Article Source: http://depositarticles.com/

David Wood has helped hundreds of people who have read this 5Linx Review to achieve a higher level of prosperity in MLM. To learn how you can takeover your MLM company and dominate this industry online, visit David Wood's MLM Prosperity Secrets.

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