Source: Beachbody
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Yet Beachbody, a private company, grossed nearly as much as Groupon did last year and very few people talk about the robust engine that is behind exercise workout programs like P90X, INSANITY and Turbo Jam.
Under the leadership of co-founder Jon Congdon and Carl Daikeler, the company has developed a business model that seems to be Teflon, turning successful converts of its programs into network marketers who ensure that the brands flourish.
Many multi-level marketing companies are based on building a network of sellers and distributors getting rewarded based on the size of their network.
Most often, the people who have gotten in on the ground floor reap the greatest benefits while those late to the game struggle to make money.
What makes Beachbody’s network of distributors, called coaches, so successful is that these people have done the programs and are often in incredible shape. Their testimonial and therefore their business relies on how good they look, not whether they tell friends that a certain superfruit drink helps them have more energy or cures their stomach problems.
It seems like, more often than not, network marketing thrives on results which can’t be verified, but if my fat friend shows up with a six-pack, I’ll be more likely to believe he was doing an intense workout program.
Since starting the network marketing program three and half years ago, Beachbody now has 51,000 coaches who take a cut of videos and nutritional products they sell. Beachbody coaches sell $1 million worth of nutritional shakes under the brand’s Shakeology name a week. And it’s not cheap at around $120 for a month worth of servings.
“We could have built this company’s sales a lot faster at retail by selling at Walmart and Target,” Daikeler said. “But selling it through direct television (infomercials) and through our network works better for us.”
“We could have built this company’s sales a lot faster at retail by selling at Walmart and Target,” Daikeler said. “But selling it through direct television (infomercials) and through our network works better for us.”
Daikeler says that his coaches serve as walking billboards and salespeople who want to help their family and friends by helping them lose weight through the company’s exercise programs. This is unlike many other multi-level marketing companies that solely rely on building a network to make more money.
And Daikeler doesn’t have to pay for testimonials, a common practice in the infomercial business space he plays in.
“The standard network marketing doesn’t work with our model,” Daikeler said. “This is not a ponzi scheme where if you’re the last one in, you don’t have a chance to do well.”
While the average lifespan of a multi-level marketer is three months, Daikeler says his coaches remain in the system an average of 18 months. It’s why he’s confident that by the end of 2011, there will be 150,000 coaches.
“We don’t promise it will replace your every day job,” Daikeler said. “That has been the case with about 1,000 of our coaches. But what it does for others is it keeps them in shape. In order to continue to have credibility selling, you need to continue to keep up. And so, it allows the people who want to fight obesity, to be motivated by the fact that they have skin in the game.”
By continuing to have more and more videos – P90X led to a harder workout, INSANITY, and that program is leading to The Asylum, which will come out in a few weeks – I don’t see Beachbody slowing down any time soon. And the non-traditional, more patient route of using those converted to the brand by really using it is a smart approach that I think will pay off nicely down the road. “
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I do not care for working out in a gym and I really do not like spending money every month on a membership. I have been a member to many gyms in the past but so prefer working out at home, in my PJ’s and not in front of strangers. I did the whole personal training thing for 1 1/2 years too and loved helping others, but did not like going to the smelly gym much. It is just not for me.
I found Turbo Jam and was hooked and have been a beach body guru and supporter since. The workouts may be a small chunk of change in the beginning but think about how much more it is for a monthly gym member ship and then do the math? Beachbody products are a ton cheaper in the long run and you can change up your workout every day and take it with you on vacation! I workout in my hotel rooms and at friends houses all the time when I travel!
Anyway I love to share my passions and this is one of them!
Have a great day everyone and happy exercising!
Tawna
Beachbody information is available here!
It is so hard to find a good company in this day and age.
Good Job!!
Very cool!