| 5LINX: Moving at the Speed of Sound | | | | out-of-pocket for these additional materials. |
| With a stated goal of creating a premiere VoIP (voice | | | | Quarterly national training events are held at various |
| over IP) telecommunication company, 5LINX claims to | | | | large cities across the country. These are fun, |
| offer cutting-edge technology, and focuses on their | | | | motivational events geared to pump up the energy, get |
| distribution channel through their own home-based reps. | | | | across the company's vision, and hear testimonials. |
| 5LINX provides telecommunications products | | | | Again, the rep has to front the cost of admission (over |
| internationally in 20 countries as well as the United | | | | $100), as well as travel and lodging expenses. Will all |
| States. Their primary product is VoIp, with service to | | | | this help the rep get new leads that will result in |
| global residential customers as well as business | | | | closes? Probably not. Most company training is still |
| customers, through their subsidiary GLOBALINX. This | | | | focused on approaching friends, family and colleagues: |
| offers customers a product that is developed by and | | | | the "warm market." |
| wholly owned by 5LINX, thus insuring a greater profit | | | | How can 5LINX reps capitalize on the opportunities in |
| margin as well as more direct control. | | | | the telecommunications home-based sales industry? |
| 5LINX was founded in 2001 by three | | | | First, move beyond the warm market. Friends and |
| telecommunications executives, and the company has | | | | family will only go so far. The short-term gains of the |
| appeared on Inc. magazine's Fastest Growing Private | | | | "warm market" are offset by a 97% long-term failure |
| Companies in America list in 2006, 2007, and in 2008. | | | | rate. To move beyond this "low-hanging fruit" level, a |
| Their company revenue grew from $3 million in 2004 | | | | rep needs a more sophisticated and detailed approach. |
| to an astonishing $25 million in 2007. The | | | | Sourcing leads with a pre-disposition to buy is of key |
| telecommunications industry overall is a $400 | | | | importance. |
| billion-a-year business. 5LINX products are sold through | | | | Second, many reps get to a point where they've been |
| their network of approximately 30,000 independent | | | | through all the company training and want more. |
| sales representatives. | | | | Perhaps they've followed up on all their friends and |
| For support to their reps, 5LINX provides all the usual: | | | | family leads, and need new sources; or maybe their |
| flyers, product sheets, brochures, DVDs, carrying | | | | efforts are just not producing any closes. At this point, |
| cases, business cards, and a company magazine. | | | | a rep needs to look outside the company for additional |
| These materials, while great at describing the products | | | | training and mentors. |
| and giving information on the company, are not really | | | | Third, marketing skills must be kept continually |
| suited to having an impact on realizing sales or signing | | | | up-to-date. This is a competitive world, and the skill |
| more reps. Plus, usually the rep has to pay | | | | sets needed are constantly changing. |