Why Does Beachbody Use Network Marketing?
Being involved in Network Marketing I’ve found that many people have negative preconceived notions about this business model. Many people say, “it’s a pyramid scam”. I still can’t figure out how it could be considered a “pyramid scam”. First of all, pyramid scams are illegal and I doubt a profitable multi million dollar company, such as Beachbody, would want to get involved in something like that. The network marketing business model has been around over 60 years and and has helped create huge, profitable companies. The top 2 cosmetics companies, Mary Kay and Avon, both use the Network Marketing business model. Tupperware was on of the first companies to use this business model nearly 60 years ago. Amway still is the top online global seller of supplements. Sprint, MCI and AT&T make their long distance phone service available through Network Marketing companies. The A.L. Williams Company utilized Network Marketing and astounded the insurance industry by outselling Prudential, a giant in the industry, in four short years.
Network Marketing is the new way to financial freedom. You’ll never create residual income and freedom from the traditional job. Even professionals are trading their time for money; if they are not seeing clients or patients, they are not getting paid. Most income is temporary and it is easy to determine if your income is temporary – just stop working for 90 days. If your income stops or slows down, you have temporary income. With Beachbody, you’re able to make sales, generate team volume, and make money while you are asleep, on vacation, or at your kid’s soccer game.
I’ve taken the below right 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!
I also found this on Carl’s Blog in the comments section:
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 P90Xinfomercial. 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 the 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.
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Good post, Marcus. The thing about Beachbody is that they have been around for years selling their products before they even offered the Coach business opportunity. The only thing that did change is the fact that they are now contributing a large percentage of their profits to their distributors.
Ponzi and pyramid schemes came about in the early 70′s when the MLM business model became an instant success with companies like Amway and Shaklee. These ponzi/pyramid scam artists did not have a product to sell, so instead they offered promises of income for recruiting others who did the same.
Unfortunately, the bad press spilled over and was linked to the legitimate network marketing companies because of their structure (which the scammers copied). This is no different than the credit repair, loan modification companies and sub-prime lenders of today. There are legit companies out there, but there are also greedy, opportunistic scam artists that make a bad name for each industry.
If anyone has ever started their own product related business, they are fully aware of all the middle-men that cut into their profits. Network marketing simply cuts out all the needless middle-men and instead, passes commission on to the direct sellers of their products instead.
And unlike the corporate world, in this business you do not get ahead by beating out other people. Rather, the more people you help be successful, the more successful you become.
In the corporate world, there is only so much room at the top. In network marketing, everyone has the same opportunity to reach the top of the company. it is wide open for anyone who wants to be there.
Here’s how easy it was for me to decide to join Beachbody. All I had to do is ask myself this question:
If there was no business opportunity involved, would I still buy and use these products?
The answer for me was an astounding “yes.” I used P90X before becoming joining the company. And the fact that Beachbody has sold millions of copies of Power 90 and millions of copies of P90X to people that are not involved in the business side of Beachbody shows that there is genuine interest in these products.
Dealing with a company that has products that have become household names like P90X, Insanity, etc gives you instant credibility in this business and it dramatically reduces skepticism.
For less than a $40 investment and a real opportunity to make unlimited earnings, this is really a “no brainer”
Well said Brian, you made some excellent points. I agree 100%.