Many people are wondering, is Beachbody a MLM (a multi-level marketing business)?
And many people have negative preconceived notion on this particular business model.
Yes, some MLMs are bad, maybe even most… but not ALL are bad. It’s important to have an open mind and do some research.
To answer the question, is Beachbody a MLM… Yes it is.
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.
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’m not saying it’s easy, because it’s not. And I’ll even go as far to say that most people will fail. But not because the business model doesn’t work, but because they didn’t (or didn’t have the time to) put in the required effort.
SEE ALSO: Beachbody Coach Failure Rate
See that picture above? Network marketing can look bad because of people like that. They are untrained and using spammy and unethical methods to try make money. It doesn’t have to be this way. There are better and more effective methods you can use to build a Beachbody Coach business. (The spammy methods don’t work any way.)
Why Does Beachbody Use Networking Marketing To Grow Their Business?
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:
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 goes on to reply…
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 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.
Network Marketing 4 Year Plan VS Traditional Business 40 Year Plan
I recently came across some interesting statistics while reading Mark Yarnell’s book, My First Year In Network Marketing. Although I would consider myself an experienced network marketer, I’m reading it because it has some great information and reinforces the basic fundamentals of why this is a great business model.
SEE ALSO: Should You Become A Beachbody Coach?
Let’s take a look at how the majority of us are living our lives. For 30-40 years, most of us go back and forth everyday to job we hate, barely making enough to pay our bills. Overtime, we give up on our dreams and become complacent to what we have achieved in our life. We stop chasing our dreams, we stop learning, and we give up entirely on any kind of personal growth and development.
The below was taking directly from the book, My First Year In Network Marketing, by Mark Yarnell:
“By age twenty five, most people have an idea of what profession they’ll enter, anything from a fishing guide to a surgeon. But forty years later, out of a typical 100 people, 5 are still working, 36 are dead, 54 are dead broke (or at least earning far less than when they were employed), 4 are well off, and 1 person is wealthy. Thus, the forty-year plan means that for four decades most of us go back and forth, like a silly, sick, caged lion … and yet at the end of that time only 1 out of 100 has something to show for it!”
And Things Are Getting Worse
The video above is very sad. People’s lives have been crushed. Although the video is mostly about investing into a 401k, it also talks about the downturn of the economy and how getting laid off or losing a job can turn your financial situation into disaster. This reinforces the fact that working for someone else is the biggest financial risk someone can take. We all have the opportunity to be our own bosses and to take back control of our lives and finances.
Instead Of Working Hard For 40 Years, Work Hard For 4 Years…
With network marketing, it is possible to work hard for one company for 4 years and build an income based on the honest movement or products or services, and be set for life. While 4 years may be very ambitious, it is possible to do. I don’t want to give false hope or imply that it is something that is easy to do. As with any business or industry, there will be some learning involved that requires time and effort, but it well worth it. While author Mark Yarnell claims it is possible to achieve in 4 years, it may require up to 10 years of hard to work to earn enough residual income to consider yourself independently wealthy, 10 years is still much better than working hard for 40 years for someone else, and ending up with nothing.
“Stop building someone else’s dream and start building your own”
More To Think About
Most network marketing businesses have very little to no risk. Most “brick and mortar” businesses require significant capital before you can even hang up a sign. This is not the case when joining a network marketing business. This is a significant fact because it enable anyone to be able to join and in the competitive world of home businesses and franchises, we have no equals other than other network marketing businesses.
Another great aspect of being part of a network marketing business is that there is literally no ceilings or limits on the amount of income that can be earned. Most workers are paid by the hour or a fixed salary and there are only so many hours in a day, which limits how much they are able to make. Even high paid professions have limits to how much can be made, a lawyer can only bill so many hours in a day and a doctor can only perform a handful of surgeries in a day. Some great people working in traditional business haven’t had a raise in ten years. But, in our case, we can create a raise for our family everyday if we choose. Since we can sponsor an unlimited number of people who can each do the same, we are ultimately paid on the efforts of hundreds of thousands individuals.
Network Marketing Isn’t Perfect… It’s Just Better!
10 Reasons Why Network Marketing is A Solution to our Economy Problem
- Low-to-No Financial Risk. Start your own business at a no cost to low cost.
- Be Your Own Boss. Working for yourself whether it be part-time or full time, when and where you want.
- Superior Quality Products. Unlimited Market Potential
- Impressive Tax Advantages. Legally putting thought of dollars in your pocket from the Home-base-business tax-savings.
- No Restrictions. Not set Hours. NO COMMUTING. NO employess. NO dress code, NO high overhead. NO limitations. No one to tell you when you can go to the bathroom or taking a break.
- 100 Billion In Sales. More than 20 million independent business people in North America alone, where annual company growth rates of 30% to 1500% are common. An expanding global market.
- Open to All. Regardless of your Age, Sex, Race, Education, Experience, Income Level, Capital Investment, Family or Business Background., Past Success or Failure.
- In-Depth Training/Support. The internet is filled with a wealth of information It promotes the highest of personal and professional growth, business and leadership Skills and Development.
- Immediate Income. The very real opportunity to earn both part-time and full-time. You will be able to leave your job.
“Network Marketing Is For Idiots!”
“Network Marketing is for idiots!” This is a quote from someone I know that I was trying to explain the business to. This can be very frustrating. People often have negative preconceived notions about the network marketing business model and I often get the, “sounds like a pyramid scam”, comment. Some people just don’t get that this a real business model and continues to grow year after year.
So back to my original conversion with the person who made the, “Network Marketing is for idiots” comment. I found this cartoon below which shows pretty much how the entire conversation went.
So is the Network Marketing business model really for idiots? I did a little research and here is what I came up with according to information given to me by www.careerbuilder.com:
- 71% of people involved in Network Marketing and direct sales have some college education, a college degree or a post graduate degree.
- 41% of people involved in Network Marketing and direct sales have a college degree or graduate degree.
- Only 27% of all Americans have a degree.
So if you base “smarts” on education level, which generally is the case. You can say that people involved in Network Marketing are smarter than the average American.
But don’t take my word for it, here is what Donald Trump wrote in his book, Why We Want You To Be Rich:
“Network marketing has proven itself to be a viable and rewarding source of income, and the challenges could be just right for you. There have been some remarkable examples of success, and those successes have been earned through diligence, enthusiasm and the right product combined with timing.”
“I am often asked if Network Marketing is a Pyramid Scheme. My reply is that corporations really are pyramid schemes. A corporation has only one person at the top, generally the CEO, and everyone else below.” -Donald Trump
It is true, when you draw out the structure of the business model, it is shaped like a pyramid. But just because it is shaped like a pyramid doesn’t mean that it is some kind of scam. Think about it the structure of every big company, schools, churches, the government, every thing is shaped like a pyramid.
To determine if a business opportunity is actually a pyramid scam, you need to ask these 2 questions:
- Is there a legitimate product involved?
- Do you get commissions based on product distribution or on recruitment?
If the answer to both of these questions is yes, generally it will be a legitimate business. Obviously Beachbody has real products. Their informercials alone sell millions of products to millions of happy customers. And Beachbody commission structure is based totally on product movement. A Beachbody Coach makes nothing from recruiting another Coach. If a Beachbody Coach went out and recruited 1000 new Coaches, he wouldn’t make a penny until 1 of those Coaches started selling some products. As a Beachbody Coach, you will want to do every thing you can to see that the new Coaches you sponsor succeed, because if they don’t succeed, then you don’t succeed.
Additionally, you should also consider the following factors that might influence long term success.
Be aware of hype and ground floor opportunities
Although some people might claim you earn more money if you get in first, this is never the case and these are companies that normally fold within the first couple of years. It is much safer to join a company with a proven track record.
Does the company have a proven track record?
If the company has been around for a few years then there is a fair chance that governing bodies that police pyramid schemes have already pulled the business model apart and given them the ok. Publicly traded companies are normally your best bet.
Will the company buy back any unsold product?
Most network marketing companies have a money back guarantee which means that if you are unhappy with the products you can send them back for a refund. Given that the majority of your start up kit was product, if you’re not happy with the business you should be able to send back any leftover product to refund most of your start up costs. Try network marketing and potentially become very wealthy, or if it’s not working for you send your product back for a refund, it’s a win-win! Naturally a pyramid scheme is not going to refund your money.
Is this a get rich quick scheme?
Although there is a lot of potential to earn very good money in network marketing very few have made it quick, most make their millions through consistent effort. So if it sounds to good to be true, it probably is.
So Is Beachbody A MLM?
Yes, Beachbody is a MLM company, and in my opinion is the best MLM company, with the best products.