In the world of MLMs, Team Beachbody is a fairly new player in the game. Initially selling fitness videos and instruction to help their audience meet their fitness goals, their lineup has expanded to include nutrition supplements, meal replacements, and apparel.
Their distributors are called “coaches,” and they market their products through various channels. As is the recurring theme with most MLM companies, Team Beachbody is not immune to the pyramid scheme accusations.
Team Beachbody Company Overview
History of Beachbody
Beachbody LLC was founded over 20 years ago, in 1998, by Carl Daikeler and Jon Congdon. Beachbody is the creator of several popular fitness videos and workout program series, such as P90X, INSANITY, and 21-Day Fix. Almost everyone has at least heard of one of these Beachbody programs.
The company expanded from instructional videos and diet guidelines on how to lose weight into nutrition supplements. They developed and released their flagship nutrition supplement, Shakeology, in 2009, which is considered a superfood nutrition shake. The Shakeology product is still one of their top sellers.
As the Beachbody program grew, the company began to grow its distributor network. It adopted the “Team Beachbody” name to signify that all the distributors were part of the same team. These individual distributors are called coaches and are expected to provide advice, accountability, and motivation to their customers. Today, Team Beachbody consists of over 350,000 independent coaches.
Unlike many MLMs, the company has stayed relatively clean regarding fines and investigations of pyramid schemes. There is still a fair amount of scrutiny from the public about the company and its practices, but no real formal penalties have been imposed on the company from those allegations. The main complaint still revolves around the fact that most coaches do not make a profit, and many are misled into signing up by promises of false earning potential.
Even though the company has avoided major investigations around its structure, that is not to say it has avoided all trouble. In 2016 Beachbody settled a lawsuit with the City of Santa Monica, CA, for $3.6 million. In the settlement, the company agreed to stop making bold claims about its Shakeology product. The State of California now bars the company from making any claims not backed by scientific evidence.
In addition to the claims about its Shakeology product, the company also took a hit over its auto-renewal policies. It was forced to change how it handled auto-renewals for customer subscriptions. The City of Santa Monica felt that it was too difficult for customers to cancel subscriptions, and customers were being charged even after they had decided to quit the programs or not renew their annual membership.
Current Company Structure
The company boasts that they have a network of over 350,000 coaches today. However, this number is down from the 450,000 that was part of the organization in 2016. The number of coaches and sales revenue has declined over the past few years. Carl Daikeler, one of the founders, is still the company’s CEO.
Despite the decline in coaches, the company still has over $1 billion in annual revenues. Daikeler continues to evolve and expand the company’s product line to keep it a successful business. While DVDs were once the company’s top seller, they now sell “Beachbody On Demand.” This is an online library of videos that customers can access anywhere via a subscription service.
Beachbody Product Lines
While DVDs were once king of the Beachbody product line, today, their fitness programs are offered on-demand through their website. The company offers approximately 40 different Beachbody workouts and associated nutritional offerings.
These workout programs range from familiar products like P90X and INSANITY to new products like Hip Hop Abs and Turbo Jam. They are designed to help people reach their health and fitness goals and get their dream beach body.
In addition to fitness programs, the company also sells nutrition programs. These aren’t simply supplements or meal replacements; they are programs designed to help customers develop healthy habits, reach a new fitness level, and look at nutrition in a whole new way. The 2B Mindset and the Ultimate Portion Fix are two of their most popular nutrition programs.
The company also offers physical products such as its popular Shakeology product and other supplements. Their BEACH BARz snack bars are a new product that has become quite popular, and they also sell apparel and accessories like resistance bands and chin-up bars.
While all these Beachbody products are sold individually, the company pushes bundles. They often refer to these bundles of products as “challenges” and encourage their customers to complete them. For example, a customer can purchase a 21-day challenge with workouts, a diet plan, and nutrition supplements for the entire challenge duration. These challenge groups are big money-makers for the company’s coaches.
How Does Beachbody Work?
Beachbody offers a demand membership/demand program. The exercise program and meals are designed to help people achieve their weight loss goals faster. There are so many workouts to choose from, like dancing, yoga, cardio, etc.
When users sign up with the Beachbody app, they get connected with a coach who will help them start building a healthy lifestyle. Users can also be part of a coach’s group or challenge group with the same goal. Users can download classes and join the annual Beachbody challenge.
Note that some Beachbody weight loss programs require equipment. So, depending on the Beachbody on-demand workouts you signed up for, you can get a yoga mat, dumbbells, or a resistance band.
Users can subscribe quarterly ($74.97), half-yearly ($89.94), or yearly ($119.88) for unlimited access to all their content. Those who want to use their streaming platform will pay $159.95 for the Total Solution Pack.
Company Marketing Practices
In the company’s early days, infomercials were nearly the sole marketing technique used. However, that has changed dramatically over the years. While the company does market its products through traditional advertising, social media has become its most significant push.
Coaches are encouraged to lead by example and document their fitness journeys on social media so that customers can see the results and benefits of the company’s products. The coaches who earn the most money have substantial social media followings, and they use network marketing to sell products and recruit other coaches. The purchase of products takes place mainly through the company’s website, which means that coaches no longer must deal with the physical distribution of products.
Making Money With Beachbody
Most people have questions about every MLM out there and whether they can make money selling that company’s products. The answer also seems to be the same for most MLMs. The answer is that it is possible to make a lot of money; however, the average person makes very little.
According to Beachbody’s Statement of Earnings, the average coach during 2018 earned just over $3,000. Other data suggests that over half of active coaches made zero profit with the company. On the high end, the company’s report shows that their top earners made over $3 million in 2018.
So if you are looking for supplemental income or to create passive income stream, you can consider working as a coach. However, if you are looking to have your own business with a decent monthly income, Beachbody MLM may not be the best option.
How Does Beachbody Coaching Work?
Becoming a coach is easy, unlike other programs. Go to the Beachbody website and click the button to enroll. The signup fee is $39.95, which includes a welcome book and online support tools to help manage your business.
After 30 days, there is a monthly fee of $15.95 to continue operating your coaching business. New coaches are encouraged to purchase a Challenge Pack, but this is not mandatory. Also, you may have to pay a business service fee.
At its base, the compensation plan for selling products is straightforward. Coaches earn a 25% commission on the sale of retail products like Shakeology or other nutrition products. A 35% commission is earned on Challenge Packs, and the coach makes 40% for Beachbody On Demand subscription purchases.
The recruiting portion is where things get a little more complicated. The coach recruits and earns money from their downline sales, and they can also earn commission from the sales of their “personally sponsored coaches.” Coaches can earn both weekly and quarterly bonuses from these sales based on their tier level and the sales volume.
Sales and Marketing Techniques
Social media is the best way to become a successful Beachbody coach and earn a high income. The company thinks of its coaches as walking billboards, and having a significant social media presence is the best way for coaches to tout the benefits of the company’s products. An effective social media presence also creates the largest audience to which the coach can market products and recruit new coaches.
Comparison to Other MLMs
There are a lot of MLMs out there. Team Beachbody has a higher earning potential than many other MLMs, and the average earnings of nearly $300 per month are higher than most MLMs. However, like many other companies, about half of Beachbody’s coaches produce zero income from their business. The company is wholly focused on the health and fitness niche, so its products are limited to this space.
Conclusion: Team Beachbody Review
Even though Beachbody is still considered a young company, the earning potential for a new coach is relatively high compared to other MLMs. However, to be successful, coaches must live the lifestyle they are trying to sell.
Beachbody makes it easy to sign up as a coach, providing startup materials to help their coaches succeed. This is a legitimate opportunity, but hard work and dedication are required to make money through the program.