5LINX FRAUDULENT AND SCAM ACTIVITIES FINALLY EXPOSED

What Is 5Linx? Is It A Scam? 5LINX FINALLY EXPOSED

READ ON TO UNDERSTAND WHAT 5LINX IS==>THEIR FRAUDULENT SCAM ACTIVITIES HAVE FINALLY BEEN EXPOSED!!

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INTRODUCTION

Welcome to my article which elaborates on what 5Linx is and whether or not it is a scam.

These MLM companies will not stop extorting from the weak, and you wouldn’t believe how quickly they bounce back following legal sanctions. Who could even guess that the executives of this 18-year-old company were secretly enriching themselves, including their very own president, Craig Jerabeck? You will no longer find his name (as well as those of his complices) listed under the new company settings. That’s right. The company still continues to function, as if nothing ever happened, but under new management. So What Is 5Linx? Is It A Scam? Read on to find answers and facts to corroborate my findings.

TABLE OVERVIEW

Name Description
Product Name: 5LINX, FORMERLY ENTERPRISES INC, NOW HOLDING
Product Price $698.88 Minimum Yearly Cost
Product Owner/President Craig Jerabeck (Supposed to be in jail),new board chairperson Nelson Gerard
Launch Date 2001, but new corporation (5Linx Holding) launch date is 2018
Category MLM TELECOMMUNICATION
Overall Score

3/10

VERDICT

NOT RECOMMENDED

MY TAKE

I do not recommend 5linx to build a home-based business, because of the fraudulent activities that were exposed only last year in 2018, after being in business for 17 years.

While the final decision is yours to make, I would recommend that you stay away from companies that pleaded guilty in court to the crimes they committed. Had it not been for their recent exposure, their mischief would have certainly continued.

If you are serious about creating a home-based business with a significant potential of generating huge passive and residual income in the long run:

 

Read on to learn more about what 5Linx is, and whether or not it’s a scam.

 

 

 

 

 

#1. 5LINX OVERVIEW

What Is 5Linx? Is It A Scam? 5LINX FINALLY EXPOSED
What Is 5Linx? Is It A Scam? 5LINX FINALLY EXPOSED
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You are about to discover more about what 5Linx Is or is 5Linx actually a scam? I know one thing for sure: the truth will always prevail no matter what, and unfortunately, 5Linx has been exposed after being in business for close to 20 years.

What is even more embarrassing? The company quickly switched executives within a couple of months following the exposure of their fraudulent activities (more on this further down) and is hoping everything will go back to normal. Their enormous efforts to continue to keep the reputation of 5Linx shinning might eventually pay off as they continue to prey on unsuspecting and innocent people trying to build an honest home-based business.

You should not be one of them, and you will not be. Why am so certain? Because you are here carrying out your due diligence. Congratulations by the way.

Only make sure you read right to the end of this article to understand why you should stay away from 5Linx as much as possible.

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#2. WHAT 5LINX IS

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5Linx is a telecommunications company that offers solutions categorized under two main types:

1 Personal Products

These include products provided in the energy, security and tech support specialties. Their core products include the following:

Captavida

ID Guard

Platinum Discount Network

Tech 24/7

Chroma Credit

Internet, Fiber Video and Cable TV

Presidential Energy Program

Teevee

Daily Dimes

Montavida

Safeguard Services

Telemed

Home Security

Oxygen

Safescore

2 Business Products

These are purely business-related products designed to decrease costs and increase profits.

Business products would include the following items:

Business Elite Services

Payment Solutions

Chroma Digital Marketing

Textalertz

Commercial Energy Program Commercial Security Systems

You can follow this link to learn more about 5Linx Products and Services.

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#3. GETTING STARTED AS A 5LINX REPRESENTATIVE

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Becoming A 5Linx Representative

5Linx offers two entry levels:

  • Customer Representative with an entry fee of $99
  • Independent Marketing Representative, with a startup cost of $499.

You would be required to pay monthly dues of $49.99 every single month to access the following services:

  • your personal website which gives you access to all the products 5Linx offers,
  • your back office which you can use to organize your team, access corporate info, 5Linx Unversity, 5Linx TV, and other websites provided by 5Linx;

Your membership is paid as well. Be prepared to pay an annual membership of $99 every year.

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#4. DETAILS OF THE 5LINX COMPENSATION PLAN

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The 5Linx Compensation Plan outlines and explains 8 different ways you can make money as a 5Linx representative. Let’s check them out below:

  1. Quick Start Bonus
  2. Earned Position Bonuses
  3. Customer Acquisition bonuses
  4. Open-Line Bonuses
  5. Customer Mile Stone Bonuses
  6. Commission on product sales
  7. Residual commission on personal referred and team sales
  8. Platinum Pool

Follow this link for more details of the compensation plan.

#5. PROS OF 5LINX

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1. A Variety Of Services Is Available 

As a representative of 5Linx, you can promote as many as you want and increase your earnings.

2. Several Tools Are Available To Help You Build Your Business

5Linx is one of the few MLM that has included a vast list of resources to help their representatives. I’m talking about:

Personal website

5Linx Promote

Virtual Office

5Linx Store

5Linx Legacy App

Customer Support

Training Videos

I particularly love the website feature because it will render your business as a 5Linx representative more flexible. If you learn YouTube or Content marketing with SEO, then your potentials with this business opportunity could really multiply, as compared to others who rely solely on direct sales.

3. Additional Incentives Are Even More Fascinating

Besides the 8 different ways, you can make money with 5Linx as a presentative, there are additional incentives you can also take advantage of. They include:

  • The Car Program which can literally finance your dream car if you qualify for it;
  • Annual vacations;
  • Corporate Events.

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#6. CONS OF 5LINX

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1. 5Linx Is Relatively More Expensive Compared To Other MLMs

Your expenses are inflated at the following levels:

  • Your annual membership is worth $99 you must renew every year;
  • In order to equally continue to have access to your representative resources i.e. website, back office, etc, you would have to pay monthly installments of $49.99

That is way too expensive. Let me do the math so that we both understand better. Your yearly budget with 5Linx would be $698.88

I know of other MLMs that offer website services for your business and demand a monthly payment of $10. The fee you pay with 5Linx could actually help you build a fully operational website that can generate over $10, 000 on a monthly basis.

This is no joke.

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2. The Products And Services Offered By 5Linx Are Not That Popular Online 

I know that everyone is into, or is more likely going to start an online business. This company offers some business solutions which I decided to check out online to find out what others are actually saying about them.

Nothing found about their Chroma Digital Marketing solution, safe the official website. Same thing with the Business Elite Services, and Textalertz.

You can, however, find some information about their Montavida coffee. I guess when it comes to food, everything you propose out there will have a market.

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3. Low Average Success Rates 

Their most recent income disclosure dates as far back as 2015. Nothing has been released since then. And just like other MLM companies, they were a total disappointment.

Check out the image below for 5Linx 2015 income disclosure statement:

 

First things first. We can clearly see that a significant portion of representatives, 37%, fall within the category of the Non-Leadershop Position.

You can also see that 2 sets of information have been provided to capture annual earnings. One is annual income high, and the other is annual income low.

If my interpretation is not erroneous, this means that the highest annual revenue that was ever attained for this category in 2015 was $3,709. Same applies to the annual income low as well.

==> A Piece Of Vital Information Is Missing Here

We don’t know how many of those representatives actually earned up to $3,700, and how many earned $15. How would we know if the majority of the 5 756 representatives were earning only $50/year, and only 1 earned $3,700?

Well, we’ll analyze the information provided.

The best annual earning potential for a non-leadership representative was only at $3,700. We can correctly assume that monthly earnings stood at $309. I strongly believe that this figure is not impressive, neither is it sufficient for a company that has been existing since March 2001.

There are other business models that will help you earn way more than $13,000/mo once you are determined to make it work and in just a couple of years, you would be generating an insane amount of passive income.

The success rate is way much higher with my #1 recommended business model than with MLMs. Your ROI would be way far better, with the same amount of time you put in building an MLM team, one which will most probably not last long.

==> These Figures Have Not Taken Into Account Your Expenditures To Make Those Sales

Remember that you have to host parties to make sales. The figures you see on the table above are only sales, the expenditures encured to achieve those results have not been taken into account.

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4. The MLM Industry Has An Overwhelming Low Success Rate As A Whole 

If the MLM industry had an encouraging success rate, one could reasonably conclude that the individuals concerned are not putting in that much effort. But that is not the case at all.

The entire MLM industry has a record-breaking failure rate of 99.05% to 99.99%, with an average of 99.71% of participants losing money in an MLM. It’s clearly obvious that the MLM opportunity as a whole has a very serious problem right from its conception.

Knowing these facts in the very beginning will help you save a lot of time and resources, and prevent heart failures down the road. That’s right. Once you discover you cannot get back your money, especially your time, your health conditions start degrading.

That same period of time you are planning to invest in MLM, which has an overall failure rate of 99%, could be invested in another alternative that will make you see better results in relatively less time.

I hope that you choose wisely.

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5. Be Prepared To Invest Further To Reach Your Prospects 

Budget extra, besides the $49.99 you will be paying every month, and $99 membership fee, to host your parties and advertise your business. Excluding promotional strategies, your yearly budget just by being a 5Linx representative is $698.88.

This is insane.

Why then would you expect someone who made an annual revenue of less than $600 to continue? They are literally operating at a loss.

Imagine for a second that you have to take advantage of online advertisement technics to get prospects and drive leads to your 5Linx website, prepare another extra yearly budget of at least $500 to learn the relevant strategies (content marketing, SEO, YouTube, SEO, etc). We both know that the figure I stated is very modest.

Do you still want to be a 5Linx representative? Please be my guest. But when I started out online, I didn’t have a yearly budget of close to $2,000. If that’s the situation you find yourself, then this is where you should go instead, to find a much better and cost-effective alternative to build a lucrative business today working from home.

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6. Writing A List Of Names Of People To Sell To Does Not Work Today

I was checking out the 5Linx homepage to understand a little bit about their business opportunity. One of the strategies they were recommending, was to write down a list of about 200 names. These people would be your potential recruits.

The question I have here is this:

What if you don’t know up to 200 people??

And the majority of people you are going to include in your list would be mostly family members, friends and loved ones. Seriously, I thought that this particular method was already archaic. How come it is still being recommended?

Targetting your family members and harassing them to become your recruits is not cool you know.

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#7. 5LINX FRAUDULENT AND SCAM ACTIVITIES FINALLY EXPOSED!!

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MLM companies have been getting hit lately. Here are some of them:

  • Herbalife was struct by a $200Million fine levied in 2016;
  • MOBE was completely shut down by the FTC in 2018;
  • The executives of 5Linx pleaded guilty for fraud in 2018, and have been sentenced to prison and addition fines;
  • AdvoCare completely switched marketing strategies after confidential discussions with FTC from being an MLM to being only a direct sales company. All MLM distributor attributes and bonuses were canceled. It happened this July 2019.

5Linx is only fortunate that the artists behind were served with individual justice, and that the company can still continue to function without being shut down. That appears to be fair since the co-founders, Craig Jerabeck, Jason Guck, and Jeb Tyler conspired among themselves to adopt irresponsible and unethical practices which have led to their prison sentences.

They actually stole from the investors of 5Linx, by receiving money from one of the company’s vendors, and not reporting it to 5Linx shareholders, coupled with other tax frauds;

Here are some facts of the case according to the United States Department Of Justice:

  • Craig Jerabeck, Jason Guck and Jeb Tyler, founders of 5Linx Enterprises Inc pleaded guilty to  wire fraud and filed false tax returns on July 23, 2018
  • They are expected to serve time in prison ranging from 51 to 63 months,
  • They would also have to pay a fine, ranging from $20,000 to $200,000
  • It doesn’t end there. Once they get released, they would serve a period of supervised release of 1 to 3 years.
  • They are equally going to pay restitution in the amount of $2,310,510.
  • Guck has to pay $780 000 on account of the tax losses that the government has suffered. He has equally been sentenced to 7 months in prison.
  • Tyler and Jerabeck will server 14 months in prison.

It’s rather unfortunate that a reputable company like 5Linx had to deal with these fraudsters for close to 18 years. Now they have to deal with fixing their reputation once again.

I wouldn’t be surprised if the name ”scam” starts being associated with 5Linx, even though they might not be. By the way, if these 3 fraudsters were able to siphon $2.3 million into their very pockets, how much more has been stolen from the MLM compensation plan itself?

Was this the only act of theft during the 18 years they served 5Linx? I wonder, but I wouldn’t really feel comfortable to recommend anybody to have any business dealings with 5Linx anymore, especially if you are looking to get started as a representative.

Just saying.

For the record, 5Linx Enterprises Inc has been dissolved, and a new one created. The new company is known as 5Linx Holdings Inc, and is only 1 year old, according to Better Business Bureau about 5Linx.

Check it out below:

 

What does this mean for you?

You now have to understand that the ton of positive reviews existing online today is no longer relevant because they are referring to the old and fraudulent 5Linx Enterprices Inc, which does not exist anymore.

So I would be very careful if I were you when it comes to deciding to join this new company as a 5Linx representative. In fact, I don’t recommend it, but the choice is yours to make as usual.

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#8. MORE MLMS YOU SHOULD AVOID

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Are you a big fan of MLMs? While searhing online, make sure to avoid the following MLMs as much as possible:

You can check out the other MLMs I recommended below with a lot of reserves:

I hope you find these resources useful with your MLM jouney to financial freedom.

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#9. START A PROFITABLE HOME-BASED BUSINESS HERE

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Affiliate marketing is profitable, sustainable, available to everyone. In fact, check out some of the advantages of this business model below:

  • The business would be 100% yours to deal with as you please. You can even resell it if you want to.
  • Relatively low startup costs. MLMs entice you and lure you to believe that you need only $30 to start for instance (unfortunately it’s much higher for 5Linx). But when you bring together all the parties you have to host, the phone calls you have to make, the people you have to feed when they attend your parties, it boils down to well over $30.
  • You don’t run after your potential prospects, they come to you instead;
  • All you need in affiliate marketing is a laptop and fast internet. Your business is 100% mobile, meaning you can work from anywhere on the planet: on the plane, in your bedroom, in your office, at the beach, from your mobile device, etc… You decide.
  • You don’t need a team, and your efforts will determine how much success you can accomplish as an affiliate marketer. With MLM, if you are unfortunate to recruit only the lazy type, those who are not yet fired up to become financially independent as soon as possible, they will definitely pull you down. No such thing as an affiliate marketer. You can truly spread your wings and fly.

And so much more.

Follow this link to learn more about affiliate marketing, and a complete solution for newbies to get started.

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#10. CONSLUSION==>IS 5LINX A SCAM?

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5Linx is not a scam, but here is my take:

ABSOLUTELY NOT RECOMMENDED

There is nothing here like ”recommended with reserves” for the following reasons:

  • Not many people are succeeding with 5Linx. Their income statement of 2015 says so. I can’t explain why there are no updates after that. Perhaps the figures are worse. Who knows?
  • It is insanely expensive to run your business with 5Linx as a representative. More details disclosed in the article above;
  • Weak internal control, that has led to fraudsters being able to directly control the proceeds from company vendors. How is it that these thieves have managed to rule this company for over 15 years? I bet if you start digging deeper and going backward, more interesting facts would be uncovered;
  • Your earnings and bonuses as a 5Linx representative would not be safe. Their compensation plan, like many others, is difficult to understand. How would you know if you are receiving accurate compensation?
  • There is no guarantee the new leaders would be different.

You see, it’s 100% correct that 5Linx is the victim here, so this company is absolutely not a scam. That said, you be the judge to decide whether you can take the risk of investing in a company that is less than a year old

If you want to build a real home-based business, one that would require only fast internet and a laptop, no recruiting whatsoever, no quotas to meet, relatively low startup cost, and a solution that will increase your chances of building a huge and sustainable passive income in the long run, then:


I hope you found my review informative. Don’t hesitate to leave a comment below if you need more clarifications with regards to my article about whether or not  5Linx is a scam.

✌✌Thanks for reading.✌✌


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StunningBell

''Stunning Bell'' is a Digital Entrepreneur with 10 years of experience in the financial sector. She's now earning full-time online thanks to a world-class training platform she accidentally stumbled upon. Connect with her personally at Wealthy Affiliate, where, as an Affiliate Marketer of this university,she was able to make her first dollar online, which eventually transformed into a full-time income.??

5LINX

$698.88 Minimum Yearly Cost
3

Overall Performance

3.0/10

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