5LINX: Moving at the Speed of Sound

5LINX: Moving at the Speed of Sound

With a stated goal of creating a premiere VoIP (voice over IP) telecommunication company, 5LINX claims to offer cutting-edge technology, and focuses on their distribution channel through their own home-based reps.

5LINX provides telecommunications products internationally in 20 countries as well as the United States. Their primary product is VoIp, with service to global residential customers as well as business customers, through their subsidiary GLOBALINX. This offers customers a product that is developed by and wholly owned by 5LINX, thus insuring a greater profit margin as well as more direct control.

5LINX was founded in 2001 by three telecommunications executives, and the company has appeared on Inc. magazine’s Fastest Growing Private Companies in America list in 2006, 2007, and in 2008. Their company revenue grew from $3 million in 2004 to an astonishing $25 million in 2007. The telecommunications industry overall is a $400 billion-a-year business. 5LINX products are sold through their network of approximately 30,000 independent sales representatives.

For support to their reps, 5LINX provides all the usual: flyers, product sheets, brochures, DVDs, carrying cases, business cards, and a company magazine. These materials, while great at describing the products and giving information on the company, are not really suited to having an impact on realizing sales or signing more reps. Plus, usually the rep has to pay out-of-pocket for these additional materials.

Quarterly national training events are held at various large cities across the country. These are fun, motivational events geared to pump up the energy, get across the company’s vision, and hear testimonials. Again, the rep has to front the cost of admission (over $100), as well as travel and lodging expenses. Will all this help the rep get new leads that will result in closes? Probably not. Most company training is still focused on approaching friends, family and colleagues: the “warm market.”

How can 5LINX reps capitalize on the opportunities in the telecommunications home-based sales industry?

First, move beyond the warm market. Friends and family will only go so far. The short-term gains of the “warm market” are offset by a 97% long-term failure rate. To move beyond this “low-hanging fruit” level, a rep needs a more sophisticated and detailed approach. Sourcing leads with a pre-disposition to buy is of key importance.

Second, many reps get to a point where they’ve been through all the company training and want more. Perhaps they’ve followed up on all their friends and family leads, and need new sources; or maybe their efforts are just not producing any closes. At this point, a rep needs to look outside the company for additional training and mentors.

Third, marketing skills must be kept continually up-to-date. This is a competitive world, and the skill sets needed are constantly changing.