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Beachbody Discusses Pyramid Schemes and Multi-Level Marketing (MLM)
FAQ:7829
| In 1998, Carl Daikeler and Jon Congdon set out with a simple idea in mind: to help people live healthy, fulfilling lives. From the beginning, Beachbody products and services have been sold directly to consumers without a physical retail storefront. Fundamentally, that's still how we sell today - directly to our customers, and to our independent Team Beachbody Coaches. And we're not alone. Today, thousands of companies just like ours, and millions more individuals, use the direct sales model. |
| But, you may be asking, is direct selling the same as multilevel marketing, or MLM? Is it a pyramid scheme? A Ponzi scheme? Is it a scam? How do people make money and what's the opportunity for me? Lots of great questions that we'll take one by one. |
| Simply put, according to Wikipedia, "Direct selling is the marketing and selling of products directly to consumers away from a fixed retail location." Read more about it here: https://en.wikipedia.org/wiki/Direct_selling. |
| So, what about pyramid schemes? A pyramid scheme or Ponzi scheme is something completely different, and far more harmful--like a scam. Again, according to Wikipedia: "A pyramid scheme is a business model that recruits members via a promise of payments or services for enrolling others into the scheme, rather than supplying investments or sale of products or service. As recruiting multiplies, recruiting becomes quickly impossible, and most members are unable to profit… pyramid schemes have existed for at least a century." You can read more about it here: https://en.wikipedia.org/wiki/Pyramid_scheme. |
| n 1920, Charles Ponzi ran a pyramid scheme to make money promising people a 50 percent return in 45 days or 100 percent return within 90 days for a convoluted, intentionally confusing investment involving international mail coupons. In reality, he was paying early investors using the investments of later investors. Scams and pyramid schemes of this type ran for years before Ponzi, but the scale of his scam has since made pyramid schemes and scams synonymous with Ponzi. Pyramid schemes and Ponzi schemes have been illegal for decades here in the United States and around the world. |
| Sadly, even though there are a multitude of federal, state, and local laws that target pyramid schemes and scams, they still prosper. |
| You can read Ponzi's biography here: https://en.wikipedia.org/wiki/Charles_Ponzi |
| Is Team Beachbody a pyramid scheme? |
| No. Team Beachbody Coaches make money from actual sales of genuine fitness and nutrition products and hard work, not from recruiting fees or business fees. Coaches are never paid to recruit people and do not earn money for recruiting, and Coaches are not required to buy or hold any inventory of product. Coaches have to sell products themselves. They don't just sit back and make money from only the product sales of Coaches underneath them. Our mission is to help people live healthier, fulfilling lives. And to get them results with fitness programs and nutrition products that actually work. And with the one-on-one support of a Team Beachbody Coach. |
| How do people become Coaches? Do they make money by selling Shakeology? How much and how does it work? |
| Typically, our Coaches start out as customers using Beachbody fitness and nutrition products. When they start to get results, people tend to notice and ask what they are doing. Often they end up Coaching these people on their own journey. They enjoy helping others achieve the results they've achieved using Beachbody products and want to share that with others. So then they sign up to become Coaches. People can sign up to be a Coach online for a $40 one-time sign-up fee plus a $15.95 recurring monthly fee - this covers on-going access to their website, training, reporting, personal development content plus all the back-end operations of warehousing and shipping products to their customers from Beachbody. |
| While some companies have used a direct sales model in a pyramid scheme or a scam, it obscures the fact that the vast majority of direct selling is perfectly legal and above-board. More than 20 million people were involved in direct selling in the United States in 2015, with estimated retail sales reaching $36.12 billion. Today, a huge number of well-respected, brand name companies continue to do business using direct sales, including Beachbody. Last year, we reached over $1 billion in revenue, and are expanding around the globe, on the internet, in social media, and more. We have 1,000+ associates and are a trusted brand to millions of consumers. Other direct sales companies that you may know include Avon, Mary Kay, Tupperware, and Stella & Dot. |
| Direct sales allows Beachbody to make sure that every single product and every single item we ship or offer online meets our exacting standards. Our fitness and nutrition products are rigorously developed, tested, and refined with doctors, scientists, nutritionists, and fitness experts. Our customers' health, safety, and well-being are our #1 concern. It's why we proudly stand behind everything we do with 24/7 support and a money-back guarantee. Our Team Beachbody Coach Network is over 400,000 strong and our online community is millions strong, meaning no one is ever alone, no matter the goals or how far anyone thinks they have to go. |
| Our tremendous success selling proven, results-driven fitness programs and health and nutrition solutions directly to consumers is just one part of our business. Beachbody was founded by two entrepreneurs who believe that success is something that everyone can share. That's why our independent Team Beachbody Coaches are empowered to inspire others to live healthier, more fulfilling lives by doing what they love - staying fit and healthy and helping others do the same. It's more than a way to make money. It's a way to find meaningful purpose by helping others. |
| Our Team Beachbody Coaches are products of the product. They've used Beachbody's proven health, fitness, and nutrition solutions to better their lives. Their rewards for helping others do the same are physical, personal, and financial. We believe they're helping us make positive change in the world, one healthy decision at a time. |
| Don't take our word for it. Here's Team Beachbody Coach Joan Crocker's story. She'd been suffering from depression and was gaining weight. Her husband introduced her to Beachbody. She bought INSANITY and worked hard to complete the 60-day program. She told us: "I found my confidence and happiness again. I felt better physically, mentally, and emotionally. I had the ability to help others change their lives." You can read her story here: https://www.teambeachbody.com/coachsuccessstories/coach-success-stories/the-power-of-self-worth/. |
| This is a good example of multilevel marketing (MLM), or network marketing. Network marketing can change people's lives by empowering them to reach their full potential, and change other's lives for the better in the process. No pyramid, no scheme. Just honest people working hard, helping people, and making money doing what they love. |
| Here's Team Beachbody Coach Jenn Richardson's story. She was two months postpartum with her second son and searching for teaching jobs where she could put her Master's degree to use. She had personal fitness goals she wanted to reach. She also wanted to satisfy her needs for a fun, creative outlet - something just for her, outside of being a mom and a wife. She says: "I think what Coaching really did for my future goals is give me the belief that anything I put my mind to, I can accomplish. There were several years of self-doubt where I lacked confidence in myself, and Coaching turned that around for me. I've watched people from all walks of life create incredible success for themselves with Beachbody Coaching simply because they believed they could and they worked hard every day." You can read her story here: https://www.teambeachbody.com/coachsuccessstories/coach-success-stories/wedreamed/. |
| Our Coaches are our biggest fans. Their energy and enthusiasm is built upon the personal success they found by using Beachbody products themselves to reach their own fitness and nutrition goals. They are products of the product. They've realized the opportunity to share their Success Stories. They guide their customers on a similar journey using Beachbody products. Numerous studies have shown that support and accountability from a friend or partner is very important to helping you stick to a weight loss or fitness program. This increased accountability provides motivation during challenging times. Coaches can help provide this type of support to those they mentor. Coaches are there to help you reach your goals, hold you accountable for working out every day, and help you follow the program. In this way, Team Beachbody Coaches offer unparalleled support and service for the products they use and sell. When it comes to our Coaches, we are incredibly proud of their success and find inspiration in them daily. |
| Beachbody was built by entrepreneurs. We know how hard it is to start and build a business, nurture it, and see it grow into a successful enterprise. We are champions of people who, like our founders, are taking control and responsibility for their own success. |
| Here's another Coach Success Story. Hillary Kelly remembers her early days as a Team Beachbody Coach, and how she built her business through hard work. "I'm not a nutrition expert, but I started with the simple approach of sharing my story both in person and on Facebook," she says. "I think people responded to that. I had no agenda, except to help people get fit. If you break it down, that's what this business is all about." |
| The idea of helping people became her mantra and a key driver to her success. By listening to people's needs and recommending the right Beachbody products, Hillary quickly grew her business. "It exceeded my expectations," she says. "And I was helping people physically, mentally, and financially." You can read more about her here: https://about.me/HillaryKelly. |
| Beachbody puts proven fitness and nutrition tools into millions of people's hands. We help them turn their goals into meaningful results. With Beachbody On Demand, they can stream over 500 workouts on their TV, smartphone, tablet, or laptop. Plus, Beachbody On Demand members get exclusive shows like FIXATE, the Fix-approved cooking show that has delicious recipes in perfect portions for healthy weight loss. |
| Thanks for letting us tell you about direct sales and setting the record straight on pyramid schemes and scams. |
| For more information about our products, our beliefs, and our company, visit www.Beachbody.com. |
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