Welcome to my 5LINX Review!
Is 5LINX a scam? If you haven’t heard about this company before, you’re on the right page. This multi-level marketing company was once a multimillion-dollar business dropped after founders’ indictment.
Have you wondered where 5LINX is now after sentencing the 3 founders? It’s now owned under Birch Communications, which reportedly dropped its revenue by 30%. Does this mean anything to you now?
Not yet. We’ll find more about this interesting network marketing company in our review today. But before that, let me first remind you that we don’t recommend this kind of income opportunity because most members lose their money.
If you don’t want to become a victim or trapped in a financial situation, stay towards the end of the post and I’ll show you the #1 recommended strategy you can do to make money without leaving your home.
Are you ready? Let’s dive into it. Shall we?
5LINX Review - Quick Summary
Name: 5LINX Enterprises, Inc.
Founders: Craig Jerabek, Jeb Tyler, & Jason Guck
Type: Multi-Level Marketing Company
Price: $249 one-time fee + $49.99/mo.
Best for: Nobody.
Summary: In 2001, the trio, Craig Jerabek, Jeb Tyler, and Jason Gluck, founded a multi-level marketing company called 5LINX. Its services are concentrated on providing security systems, telecommunications, electric power, and healthcare (not insurance). The company grew into a multimillion-dollar business until 2017 when the founders were indicted for a series of federal fraud charges, resulting in imprisonment.
Is 5LINX Recommended? No. We don’t recommend network marketing companies as the best solution for your financial health. It’s best to search for something that’s proven to work. Click the green button below to get started.
What Is 5LINX?
Before we go to its federal violations a few years ago, let’s take a look at 5LINX history and how it became a multimillion-dollar business since its establishment in 2001.
The trio, Craig Jerabek, Jeb Tyler, and Jason Gluck, founded a multi-level marketing company called 5LINX.
Its products range from home security systems, identity theft protection, electric power, data storage, and supplemental healthcare.
According to its official website, this MLM categorized its products as personal and business.
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Its personal products include:
- Chroma Credit
- Home Security
- ID Guard
- Internet, Fiber Video, & Cable TV
- Platinum Discount Network
- Residential Energy Program
- Safeguard Services
- Tech 24/7
On the other hand, its business products comprise the following:
- Commercial Energy Program
- Commercial Security Systems
- Payment Solutions
In both of these areas, 5LINX acts as a consultant providing you strategies to remain competitive in the market. Its personal products vary from health and wellness to financial health.
The company’s target is wide that it caters to almost everything. For instance, it provides advice on restoring your credit and aiming to reform spending habits by referring to the credit scores.
At the same time, 5LINX claims to help you in your application for a new car loan or home mortgage as well.
Other businesses could also partner with 5LINX on a bigger scale through its business products which concentrate on providing the best strategies to remain competitive in an unpredictable global market.
While they provide advice, 5LINX claims that their strategies help businesses, big and small, to save annual costs to run their respective companies.
For example, 5LINX Energy helps in saving as much as 10% to 30% annually by knowing the price stability, true budget certainty, and price protection.
At first glance, it appears this multi-level marketing company has a lot of services to offer to its stakeholders, although it’s too varied that it starts to lose identity.
For instance, if the majority of its programs are consultancy-based, why would they include Captavida, which is a supplement? What does it do to the majority of its programs?
Who Is 5LINX For?
At this point, if you think investing more than $200 for 5LINX membership is a good move, no. It’s not. Besides, the company has no longer continued its business after it faced a series of federal law violations.
But how did this network marketing company run its business?
5LINX caters to a lot of markets from health and wellness to home security systems to credit points. They almost have everything you need to save money and to be strategic with your business.
As for the most part, this multi-level marketing company provides consultancy services giving the best strategies for businesses to keep up with the market. Its claims point out their strengths in giving the exact figures needed to determine the best move.
If you opt to take care of your financial health, 5LINX has Chroma Credit, which is a service to give you the best credit options as well as advice to maintain a good credit score.
At first glance, you would be convinced to join as one of its members and earn a designated compensation. This is why they opened a business opportunity, not only for its clients and business partners but anyone can promote and earn.
To join, you need to spend $249 to get access to the necessary starter materials to begin your business and thrive as a 5LINX member.
And because this is a multi-level marketing company like Mary Kay, it follows a compensation structure common to this business model.
Democrat & Chronicle wrote in a published article entitled "How Far 5Linx Has Fallen" revealed the benefits you get once you sign-up.
You will get a starter kit, a personal website, phone, and email and chat support, as well as various training resources to prepare you for what's coming to you once you commence your business with 5LINX.
As I mentioned earlier, its business model pushes its members to recruit members and generate product sales according to the minimum threshold that corresponds to the bonuses and other returns they can get.
The same source also noted the luxurious rewards 5LINX can give to its higher-ranking members such as high-end cars and paid travel vacations.
Consequently, the number of members grew until some developed suspicions from some of its dissatisfied customers, members, and contractors.
Afterward, they filed an FTC complaint against 5LINX, which led to an unprecedented investigation and 5LINX fall.
So, how can you make money as a 5LINX member? And why was the multi-level marketing company controversial enough to create a nationwide hype?
Alecia Stringer, who I assume is affiliated with the company, wrote on her blog the detailed compensation plan and how to become a 5LINX member aka Independent Marketing Representative (IMR).
Purchasing its Platinum services worth $249 one-time fee will be the first step. But that's not it.
You have to pay a recurring monthly membership fee worth $49.99. Another option will be $99 per month with an unclear distinction of its differences with the $49.99 option.
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To become eligible for bonuses, you have to generate 10 customer points which are claimed to be achievable depending on the products purchased.
If you are one of the 5LINX members, you can take advantage of the special promotions randomly announced.
For instance, the company may offer $500 to as much as $1,000 for sponsoring, enrolling, and qualifying 3 new Independent Marketing Representatives (IMR).
Pros & Cons of 5LINX
Despite its negative reputation after years of being at the top of the world, it’s a good thing to point out positive notes. On the other side of the coin, you can’t deny the obvious.
1. Diverse Products
As far as the products are concerned, 5LINX created a variety of services, programs, and items for its clientele and its IMRs.
If you go back to the list of products categorized into personal and business items, they have a lot to offer.
But what impressed me is that it aids small businesses and other companies to be extra-tactical with its business marketing strategies.
Aside from that, it caters to the financial needs of every person to keep themselves at a healthy credit score.
However, it all becomes suspicious when they disclose the “best” way to partner with some of its programs and benefit from them. It mentioned meeting any of its members, which indirectly points out recruitment.
Because of this, it encourages members to invite people and earn bonuses aside from the sales generated by an IMR.
The disappointing part is that the compensation plan isn’t detailed enough to show how each IMR is paid.
1. Multiple Federal Lawsuits
5LINX founders, the trio, faced a series of fraud violations and pocketed millions of dollars from the investors and some percentages from its members.
The collapse occurred when an insurmountable number of complaints filed against the company reaching the FTC’s attention.
Further, the founders also face multiple federal fraud charges, wire fraud, and money laundering worth $2.3 million.
They also faced charges from illegally depositing company revenues and the inability to pay its IMRs as well as $100,000+ worth of taxes.
The three 5LINX key persons faced their respective sentences from 7 months to 14 months and were ordered to return the money they took worth millions of dollars.
2. BBB Alerts
According to reports, the Better Business Bureau (BBB) initially gave a high rating for 5LINX because of its incredible customer service and a high number of positive responses from its IMRs and customers.
When the FTC received a continuously rising number of complaints, the said reputable company review site retracted its rating and gave No Rating for the company as you can see below.
3. Fake Testimonies
Many people reported their successes as an entrepreneur with 5LINX. Due to the number of complaints, you start to feel disbelief from people’s positive feedback whether they are faking their testimonies for the sake of recruitment or not.
One satisfied customer named Michael said on the BBB that he loves 5LINX so much that he stayed as an IMR since 2013.
He pointed the top-notch support and leadership from the top-levels towards its new IMRs and its customers.
"I love 5LINX. [I've] been a member since July 2013. I love the support, leadership. I have never been a part of a company nor worked for a job where so many people want to help you become successful," he wrote.
4. Business As Usual Despite Charges
Once a company faces trouble with the federal law, especially with the number of complaints and pieces of evidence, it’s normally advised to close its business.
In this case, the three founders were indicted and ordered to pay a big amount of money to pay back.
However, despite the guilty charges, everything seems to be going back to normal. Many assumed IMRs continue to promote 5LINX and lure more people to sign-up via a promise of big returns.
Is 5LINX a Scam?
There’s no doubt that 5LINX is a scam for several reasons. It’s good to point out that this multi-level marketing company should stop its business once and for all. This means calling out the IMRs who continue to scam people despite the charges.
In mid-2018, the founders faced multiple fraud charges and other federal violations. From here, you already know why you should stay away from this network marketing company.
Despite its ambitious business model, catering to almost everything a person needs to survive and to keep safe, 5LINX faced an unprecedented event that led to its collapse.
Given the circumstances, it’s good to realize that your investment worth of $249 for a one-time fee plus the recurring monthly fee to keep your member will not lead you anywhere.
Reports mentioned that, at some point, the top-levels, particularly the three key persons, have taken advantage of the revenue and pocketed it, leaving the other IMRs unpaid.
Even if they haven’t faced terrible charges, 5LINX remains a bad business opportunity because of its business model. It’s a multi-level marketing company; therefore, you can’t guarantee you’re getting your returns.
In addition to that, you’re pushed to invite more members to be eligible for certain bonuses that correspond to your rank. Little did you know that your investment has been used illegally and laundered.
With that being said, it’s best to stay away from this company if ever you meet someone who promotes 5LINX as a good business opportunity.
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Conclusion - Is 5LINX Worth It?
No. 5LINX isn’t going to be worth your time. It’s nice to learn how their system works and gain insights into how they do their business with its investors and its members. But, it’s not a good investment.
Given the nationwide buzz about the once-unreachable-empire in 2014, 5LINX’s reputation is bad enough to convince many people to avoid the company at all costs. However, some IMRs continue their business despite its order to stop.
Another factor you need to consider is the expensive business starter kit worth $249, which is also an indication that it’s not for everybody.
The range itself competes with big MLMs like Amway and Herbalife which have the same price range.
These reasons give you doubt if you invest in opportunities like this, given the circumstances. Additionally, it’s just a one-time fee excluding the recurring monthly fees you need to pay.
Because of these, it pushes you to invite more and generate more product sales to at least gain your returns. Yet, with its reputation today, it’s difficult to promote any of its services in spite of its variety and attractive benefits.
Overall, 5LINX is a scam and shouldn’t be included in your opportunities list. If you want to make money online without dealing with shady tactics from random affiliated members, click the button below to get started.
It’s up to you if you take action today or opt for other business opportunities. In general, joining an MLM isn’t a good option. Period.
Now that I shared my thoughts on my “Is 5LINX A Scam?” post, it’s time to turn the table and ask about your experience, in general.
What kinds of experiences do you have with making money with 5LINx? Is it worth your time, money, and effort?
Do you prefer to begin earning your first passive income through affiliate marketing or you instead invest your time, money, and effort into income-generating opportunities like this?
Let me know in the comments below! 🙂
If you need any help to get started making money online, don't hesitate to ask in the comments below and we'll be happy to help you out!