Is Team Beachbody A Pyramid Scheme

Being involved in Team Beachbody, I get a lot of questions about the Network Marketing aspect of the business. I have had people who I have spoken to about the Coaching opportunity ask, “So, Is this some kind of a pyramid scheme?” The simple answer is No. But if you are not aware of the difference of a pyramid scheme and a business such as Beachbody, that answer may not be as clear to you.

I will explain why.

Pyramid schemes are illegal. The network marketing business model has been around over 60 years and and has helped create profitable companies as well as financially independent business owners. The main characteristic of a pyramid scheme is that participants only make money by recruiting more members.

Team Beachbody Coaches are actually "distributors" of the company, meaning we actually have customers and products. Companies such as Beachbody support networks of independent representatives who are called independent business owners. We have our own legitimate business and work from home. If a person signed up as a Coach and did not want to take part in the network marketing aspect, they could still make an income from selling products to customers, although they would never make team bonuses or be able to have customers given to them. Team bonuses are also generated from the sales of products -- anyone in your downline who sells a product (P90X, Shakeology, Results and Recovery Formula, Body Beast, ect.), you get a cut of that. This does not in any way include sign up fees.

A pyramid scheme is non-sustainable business model that involves the exchange of money primarily for enrolling people into the scheme, without any products or services being offered. It is not possible for anyone to out rank or out earn anyone in their up-line. If you have a weak leader as your up-line in a pyramid scheme, You wouldn't make any money (not to mention that it would probably get shut down pretty quickly)! As a Team Beachbody Coach, you can have an up-line Coach that is an Emerald Coach and you can be a 5 Star Diamond Coach. You are paid and ranked on your OWN efforts, not the efforts of the person who is above you. Having a strong up-line Coach will help you, since they will also be adding to your team and generating you higher team bonuses... but it will not HURT you to have a weak up-line (besides not getting good training and support). You can still be successful.

Beachbody operates from profits from a product - Not the investment of new coaches. Coaches DO NOT pay their dues to those above them, but to the company itself for their websites to be set up and website hosting.. Just like any other online business owner would pay websites such as GoDaddy or Wix or any other website designer and hosting company. The difference is that we get millions of dollars in advertising and brand-name products to promote. Coaches do not make income in any way from the $39.99 website fee that their personally sponsored Coaches pay. We do make a commission if the Coach we sign up starts with a Shakeology or Challenge Pack, but that commission is from the fitness product or Shakeology, not from the sign up fee.

Beachbody gets a greater profit from the customers (around 30,000 to 70,000 customers per week), not from new Coaches. You're income is not based solely on what a personally sponsored coach purchases. Each coach has the potential to outrank or out earn anyone in their upline or downline. People who just started Coaching can work their way to TOP COACH!

From Carl Daikeler’s, (founder and CEO of Beachbody) Blog:

Carl Daikeler wrote -

So when people ask me “Why Network Marketing”, I respond that it is an imperative. Growth is one thing, contribution is another. This business model has both, and instead of one giant company, we’re going to be a company of a million coaches, each their own independent company, helping 100 million people get healthy and fit. That’s what we will achieve, and that’s why network marketing is a priority!

Anonymous said…

Though there may be certain benefits of the coach network, I think it’s a net loser for Beachbody. Even for die hard, loyal customers like me, the whole coach thing wreaks of a multi-level marketing scam. I believe you’re well-intentioned, but the coach set-up appears unscrupulous from the outside. In the end, I think it leads to people doubting the integrity of your fitness programs, and that’s too bad because they are absolutely the best DVD workouts available. If I were you, I’d ditch the coach network and put more resources into keeping your customers happy by improving customer service and shipping.

Carl Daikeler said…

“First, thanks for your business. As far as looking like a scam goes, that’s what they said about infomercials… but we’ve shown that a marketing medium of ill-repute isn’t what’s guilty, it’s simply misused by unscrupulous people. Look at the P90X infomercial. It’s more entertaining than most of the stuff I see on TV! And it’s promoting a product that’s getting people into incredible shape. Network marketing as a business model has been abused for decades. But the power of people-helping-people is undeniable. The last thing society needs is a giant “Wal-Mart of fitness”. What I think is needed is a million people with an incentive to help those around them incorporate fitness and portion control into their lives. We’ve created that incentive. And that incentive, combined with “absolutely the best DVD workouts available” (thank you!) plus constant improvements in customer service and shipping equals a revolution in health and fitness. All I know for sure is, many of the people who get involved are making money helping people succeed where they failed with fitness and weight loss for years. That’s a win worth perpetuating. And that’s why this is so important to see through. My prediction is that in five years, people will look at this business model and wonder why gyms were ever so popular in the first place.”

To me, This is what a real pyramid scheme looks like: One person at the top reaping all of the benefits, while the people below are struggling to pay their bills, working non stop, without being any closer to their own personal dreams. That is what I did for the majority of my life, and I hated being on the bottom working my a** off while my GM who didn't even know how to use the POS System sat there and looked at the ceiling then screamed at me for not picking up a plate while I was already carrying 76 glasses.

Most people who work a regular job will never create financial freedom, or residual income. Think about it, if you stop working for 90 days, would you get a paycheck during that time? As a Team Beachbody Coach, we are able to make money while we are out for the day, or while we are on vacation, because we can make sales through our websites and make team bonuses without being in our online office working.

Becoming a Beachbody Coach does require a small investment, and they also give us quite a bit of training, weekly team calls with successful coaches, tons of training videos in our online office, and 12 different ways to make an income. Beachbody products help people, and Coaches help people. As a coach, your up-line coaches WANT YOU to succeed, and will do whatever they can to help you reach your goals. For running our own businesses, we have a very supportive team who is always keeping in touch with one another and sharing tips and stories. Coaches help people reach their health and fitness goals and help people reach their financial goals.

It is easy as a Coach to tell other people how amazing this business is, because we all believe in it. Instead of having Corporate hire a bunch of people to coach and motivate their customers, who may or may not stay with the company, Network marketing allows us, as coaches, to share our business with others and tell them our stories of how Beachbody has helped and for some completely changed our lives. We are able to see who is really interested in this business and help them build their business. We are able to help motivate not only the customers but other coaches.This business is VERY rewarding. I am extremely proud to associate myself with a business that is so inspirational and does everything they can to HELP people, Not SCAM people.

I know from personal experience that if you want to be your own boss, set your own hours, and work from home, You will have to invest. Not only because I invested in my business but because almost a year before I started working with Team Beachbody my fiance started his own online business which has been very successful as well. He spent quite a bit more on his business to start out (well over $1,000), and I was shocked that it was so cheap to build an online business with Beachbody. The investment is a small one, especially when you consider the fact that your investment can be refunded within 30 days.

I understand that there are thousands of company’s that are “work from home” and are complete scams, I get e-mails about them constantly. “You can make $4,000 a day by doing NOTHING! It's only $45.00 to start! All you have to do is log in and watch your income grow!!!”..... No, You can't. I feel very blessed that I found a company that pays commission and team bonuses weekly, I DO have to work for it, and I don't make $4,000 a day.. But the best part is that it IS possible to make six figures a year if I actually WORK for it and put in the time and dedicate myself to my business. And why wouldn't I WANT to do that? It is completely worth it when you see that first sale in your online office or when your first sponsored coach signs up and you know that you are going to move up in the business and you are getting closer to your goals.

I can move up in the company every few months if I want to, make more money every month, and be financially independent (six figures) after just a few years of working, or I can put in 40 years of hard work at a company working 9-5 that I hate starting out at $10.50 an hour and eventually make $15.00/hour. Team Beachbody is the BEST thing that could of happened to me as far as my career goes, And I am 100% sure I would not be that excited about a company that was involved in a pyramid scheme that I was wasting my time with.

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