Beachbody: An In-depth Analysis of a Popular Fitness MLM


Beachbody ranks among the most important multi-level marketing companies, taking the 19th position in the 2022 DSN Global 100 List of top direct selling companies globally.

Beachbody is a leading subscription wellness and health company offering a comprehensive suite of fitness and nutrition programs. This includes the famous P90X and 21 Day Fix, available through its Beachbody On Demand streaming service.

The company has a multilevel marketing model that converts customers into independent distributors or coaches who further promote the brand.

This article provides an in-depth analysis of everything you need to know about Beachbody.



Insights

  • BODi (formerly Beachbody) is a CA-based wellness company providing fitness programs and nutrition products via its streaming service and MLM model.
  • The company markets workouts, shakes, & supplements using endorsements, infomercials, & social media, with “partners” recruiting customers & team members.
  • Beachbody offers fitness/nutrition programs, digital content, and products like Shakeology, with popular programs like P90X accessible via its streaming service.

Section 1 – The Company

Here, we evaluate the critical performance indicators and defining features of Beachbody, including the company’s history and leadership.

Overview of Beachbody

The Beachbody Company, Inc. is a leading subscription wellness and health company based in California, which has rebranded as BODi.

BODi offers a comprehensive suite of fitness and nutrition programs, available via its Beachbody On Demand streaming service. These include popular programs like P90X and 21 Day Fix, as well as dietary supplements like Shakeology and BEACHBAR.

BODi (Beachbody company rebranded)Pin

The company is built on a multi-level marketing model and direct response advertising.

Market Performance

Beachbody reported total revenue of $873.6 million in 2021. However, the company reported a net loss of $228.4 million in 2021, compared to a net loss of $21.4 million the previous year. The adjusted EBITDA loss was $86.1 million in 2021, compared to $51.5 million in 2020

Even so, Beachbody’s on-demand platform, Beachbody on Demand, continues to perform well, with 93.2 million hours of fitness and nutrition content streamed in 2020.

Beachbody also recently announced it had sold more than 35 million bags of its Shakeology product.

History

Beachbody, the Santa Monica-based fitness company, has come a long way since its inception in 1998. Co-founders Carl Daikeler and Jon Congdon started the business with $500,000 from angel investors and a mission to help people achieve their health goals.

The company’s first successful program was P90X, a three-month boot camp which attracted fans like Michelle Obama and Sheryl Crow.

Beachbody’s success lies in its multilevel marketing strategy, which allows customers to become Coaches (Beachbody’s independent distributors) and sell workout DVDs and shakes. Daikeler and his wife developed Shakeology in 2007, a low-calorie, nutrient-dense shake that costs $130 for a month’s supply.

Beachbody also launched an online streaming service, Beachbody on Demand, in 2015, offering its entire library of workout DVDs for just $99 a year.

In June 2021, Beachbody went public through a SPAC merger with an exercise bike maker (Myx Fitness) and the Forest Road Acquisition Corp, valuing the company at $2.9 billion. Daikeler became a billionaire with his 44% stake worth $1.7 billion.

The merger with Myx Fitness allowed Beachbody to reposition itself as a fully integrated home fitness company competing with Peloton and iFIT.

The Beachbody Company logoPin

The Founder and CEO of Beachbody

Carl Daikeler founded the company in 1998 together with Jon Congdon, and he’s the current chairman and CEO.

Another key director is Sue Collyns, the President and Chief Financial Officer (Principal Financial Officer). Petra Kolber, a fitness expert and positive psychology performance coach, is the vice president of Personal Development and Mindset.

Who is the Owner of Beachbody?

When Beachbody went public in June 2021, the CEO and chairman Carl Daikeler had a 44% stake worth $1.7 billion. As of 2021, Daikeler controls over 80% of the company’s voting power.

In addition, Beachbody’s former CEO, Jon Congdon, holds a roughly 6% stake in the company, valued at approximately $220 million.

The Beachbody Headquarters

BODi is headquartered in Santa Monica, CA, at 400 Continental Blvd, Suite 400, El Segundo, California 90245.

Section 2 – Business Model

To understand Beachbody’s success, we evaluate the business model of this company and exactly how it manages its massive sales force.

How Beachbody Markets Its Services

Beachbody, now known as BODi, is a modern-day multi-level marketing machine that markets its workout videos, shakes, and supplements to weight-loss hopefuls through a variety of channels. The company combines MLM with celebrity endorsements, direct response infomercials, and social media marketing to attract customers.

It uses a network of independent “coaches,” selling Beachbody products to their social media followers and recruiting new customers and coaches to join the team.

From the start of 2023, the company changed the name of its independent distributors from coaches to partners.

How to Make Money on Beachbody

Beachbody offers two options to earn or save:

  • Preferred Customers – Purchase products at reduced prices (save up to 25%), without participating in the Team Beachbody Compensation Program.
  • Coaches – Purchase products at reduced prices and earn money through Team Beachbody’s Compensation Program.

Team Beachbody Coaches earn through several different options:

  1. Total-Solution Pack Bonuses & Retail Commissions:

Invite new customers, Preferred Customers, or Coaches to your Beachbody® Challenge Group on BODgroups™. Earn up to 35% for Total-Solution Pack sales (25% for non-Total-Solution Pack products).

Overview of Bonuses and Retail Commissions Per Product Type
Total-Solution Packs bonuses$38 – $139.60
Retail commission25%
Memberships (Beachbody On Demand/ Bodi On Demand)40%
Shakeology Fast Start Bonus in Shakeology Home Direct$20 
Shakeology Fast Start Plus Bonus (after earning five Shakeology Fast Start bonuses in a consecutive five week period)$100 
  1. Team Cycle Bonus

Earn from sales of your downline (Binary Plan). 1 Cycle = 300 Balanced Volume Points (200 Strong Leg/ 100 Weak Leg). Earn $14 to $18 each cycle each week, depending on rank.

LevelsTeam Cycle Bonus
CoachNA
Emerald$14 per cycle, up to $250 per week
Ruby$16 per cycle, up to $1,000 per week
Diamond$18 per cycle, up to $2,000 per week
1 Star Diamond$18 per cycle, up to $3,000 per week
2 Star Diamond$18 per cycle, up to $4,000 per week
3 Star Diamond$18 per cycle, up to $5,000 per week
4 Star Diamond$18 per cycle, up to $6,000 per week
5 Star Diamond$18 per cycle, up to $7,000 per week
6 Star Diamond$18 per cycle, up to $8,000 per week
7 Star Diamond$18 per cycle, up to $9,000 per week
8 Star Diamond$18 per cycle, up to $10,000 per week
9 Star Diamond$18 per cycle, up to $11,000 per week
10–15 Star Diamond$18 per cycle, up to $12,000 per week
  1. Matching Bonus

Earn 5%/ 10% on Personally Sponsored Coaches’ Team Cycle Bonuses.

LevelsCoachEmeraldRubyDiamond & Above
Matching BonusNANA5%10%
  1. Star Diamond Bonus

For 2 Star Diamonds and above. Four quarterly Star Diamond Bonuses. Based on all volume by all Coaches divided among all qualified Coaches within each pool.

Bonus PoolsPercent of Total Volume
2 Star Diamond Pool½%
5 Star Diamond Pool½%
10 Star Diamond Pool½%
15 Star Diamond Pool½%

Beachbody Compensation Model Explained

Beachbody’s compensation plan consists of 19 ranks. Rank levels are recalculated weekly.

The rank levels are:

  1. Distributor/ Coach
  2. Emerald Distributor
  3. Ruby Distributor
  4. Diamond Distributor
  5. One Star Diamond Distributor
  6. Two Star Diamond Distributor
  7. Three Star Diamond Distributor
  8. Four Star Diamond Distributor
  9. Five Star Diamond Distributor
  10. Six Star Diamond Distributor
  11. Seven Star Diamond Distributor
  12. Eight Star Diamond Distributor
  13. Nine Star Diamond Distributor
  14. Ten Star Diamond Distributor
  15. Eleven Star Diamond Distributor
  16. Twelve Star Diamond Distributor
  17. Thirteen Star Diamond Distributor
  18. Fourteen Star Diamond Distributor
  19. Fifteen Star Diamond Distributor

Here are the requirements for moving up the ranks from Coach to Diamond:

Rank RequirementsPersonal Volume RequirementOrganization Requirement
Coach500
Emerald751 active Coach or Preferred Customer per leg
Ruby1001 Emerald Coach per leg, 1 Active Coach or Preferred Customer per leg
Diamond2001 Emerald Coach per leg, 3 Active Coaches or Preferred Customers per leg

And here are the Star Diamond rank requirements (PS = Personally Sponsored):

Beachbody chart and compensation plan - Part 1Pin
Credits: Beachbody
Beachbody chart and compensation plan - Part 2Pin
Credits: Beachbody

As Distributors move through the ranks, they can generate the following Potential Weekly Team Cycle Bonus Earnings per Week:

Beachbody team cycle bonus earningsPin
Credits: Beachbody

How Many Team Beachbody Coaches Are There?

The company now has more than 400,000 Team Beachbody Coaches.

The Requirements to Become a Beachbody Distributor

Interested individuals can sign up online by visiting the company’s official website.

To be approved, you should possess the following:

  • be at least 18 years old
  • a resident of the United States, any U.S. Territory, or a country where BODi has a network marketing business
  • have a valid Social Security Number, Federal Tax ID Number, or applicable tax identification number
  • purchase a Distributor Business Kit or a Total Solution Pack at the time of enrollment

How Much Money Can You Make With Beachbody?

According to Forbes, in 2016, Beachbody coaches earned an average of $3,233, but half of them made no money.

Here is BODi’s latest income disclosure statement for all Team Beachbody Coaches in 2021.

Coach RankAverage Tenure (in Years)% of All CoachesAverage EarningsLow EarningsHigh Earnings
Emerald4.9820.20%$3,283 $12 $138,483 
Ruby7.040.70%$12,670 $410 $121,326 
Leadership Ranks
Diamond5.822.30%$18,289 $124 $161,072 
Star Diamond7.361.30%$119,475 $863 $2,846,299 
All Development & Leadership Ranks
NA5.1724.50%$10,932 $12 $2,846,299 
Coach
NA4.1275.50%$491 $10 $41,516 
All Ranks
NA4.4100%$3,169 $10 $2,846,299 

How to Sell Beachbody’s Products

Distributors of Beachbody products are heavily reliant on social media platforms to grow their business. However, they must abide by a set of guidelines to avoid violating the company’s policies.

Selling Beachbody products through online auction or classified sites, such as eBay, iOffer, Craigslist, or any online marketplace like Amazon Marketplace, is prohibited. Television, radio, or video advertising must also be preapproved by the company.

Distributors may use a company-provided replicated website to sell products or enroll new distributors. However, creating a personal website requires the submission of a beta site for prior review and written approval from the company before going public.

How Much Does It Cost to Join Beachbody?

Joining Beachbody as a Coach requires a minimal enrollment fee of $39.95 for the Business Starter Kit. However, this fee isn’t necessary if you buy a Total-Solution Pack.

The Total-Solution Pack bundles everything a customer needs to achieve their fitness goals, including nutrition, streaming access to nutrition programs, and support from a Team Beachbody Coach.

The monthly Business Service Fee costs $15.95. Similarly, a monthly membership for Preferred Customers costs only $15.95.

How to quit Beachbody

Beachbody allows users to cancel their Coach account at any time. Those who wish to do so can reclassify as either a customer or Preferred Customer.

You can even request a refund for the Business Starter Kit and products or services bought within 30 days of Coach enrollment.

Section 3 – Products

This section provides a breakdown of Beachbody’s assortment of health products and services with an analysis of the critical components in its product offerings.

What Beachbody Sells (Video)

The Beachbody Company, is primarily a subscription health and wellness company that offers a range of fitness and nutrition programs, digital content, connected fitness, supplements, and other wellness products.

The company’s flagship product is Shakeology, a vegan chocolate-flavored weight-loss shake made from cocoa powder, quinoa, chia, rose hip, and over 60 other ingredients.

Shakeology by BeachbodyPin

Beachbody created some of the world’s most popular fitness programs, including P90X, Insanity, 21 Day Fix, Morning Meltdown 100, LIIFT4, and 80 Day Obsession.

These programs transformed the at-home fitness market. The company also offers comprehensive nutrition programs, Portion Fix and 2B Mindset, aimed at teaching healthy diet habits and promoting sustainable weight loss habits.

Beachbody’s digital content is available through the Beachbody On Demand streaming service, which has:

  • customized nutrition guides
  • hundreds of hours of premium content
  • the exclusive FIXATE cooking show
  • workout calendars

The company sells nutritional products such as Shakeology nutrition shakes, BEACHBAR snack bars, and the Beachbody Bike by MYXfitness.

Revenue from Key Products

Beachbody’s digital platforms accounted for 42% of its revenue. Shakeology, its premium nutrition shake, constituted 30%. Additionally, the Beachbody Bike business, also known as Myx, accounted for approximately 5% of the company’s revenue.

In comparison to 2020, the company’s digital revenue increased by 9%, while its nutrition and other revenue decreased by 12%.

Beachbody’s Product Testing and Certification

The company boasts a team of well-trained scientists, nutritionists, and dietitians who work alongside distinguished experts in weight management, nutrition, sports medicine, and food and product safety.

Their clinical trials have shown that Shakeology can decrease appetite by up to 51% and calorie intake by 180 calories in some customers.

Lawsuits and Independent Reviews of Beachbody

In 2017, Beachbody settled with the city attorney in Santa Monica for $3.6 million after being accused of making bold health claims about its core product, Shakeology, without scientific evidence to back them up.

The settlement also required Beachbody to overhaul its auto-renewal program that had been accused of charging customers without proper notice and making it difficult to cancel subscriptions.

Despite these setbacks, Beachbody maintains an A+ rating with the Better Business Bureau and boasts a highly rated app, BODi, on the App Store (4.9/ 5 stars from 277,500 ratings). The company is also a member of the Direct Selling Association.

Section 4 – Doubts and Misconceptions about Beachbody

Beachbody may have specific aspects that few people know about; therefore, we uncover the critical aspects that can help demystify some mistaken beliefs about the company.

Are Bodi Coaches Trained Fitness Instructors?

According to Team Beachbody’s official policies and procedures, BODi coaches aren’t authorized to act as fitness instructors in group workouts. They may only offer BODi workouts as part of BODi Challenge Groups or BOD Groups.

However, trained fitness instructors can be Independent BODi Distributors.

Do You Get a Refund if You Quit BODi?

If you cancel your distributor agreement with Bodi, you may return any products and sales aids you purchased within the last 12 months for a refund. However, there are conditions that apply.

The products and sales aids must be in resalable condition and must have been purchased personally by you from the company. And you must return them within 30 days of cancellation.

You will receive 90% of the cost of the original purchase price, less shipping charges. If you received a commission for a product that is subsequently returned, it will be deducted from the refund.

Is Beachbody a Pyramid Scheme?

Beachbody is a multi-level marketing company that sells fitness and weight loss products, such as workout programs, supplements, and nutritional shakes.

The company operates within the bounds of the law since pyramid schemes are illegal in the US.

Section 5 – FAQs and Recap

In conclusion, we summarize some key concepts by answering frequently asked questions about Beachbody.

What is BODi (formerly Beachbody)?

BODi is a California-based health and wellness company, offering a variety of fitness and nutrition programs, digital content, and products. Previously known as Beachbody, it has rebranded and provides services through its Beachbody On Demand streaming platform.

What types of fitness programs does BODi offer?

BODi is known for popular fitness programs such as P90X, Insanity, 21 Day Fix, Morning Meltdown 100, LIIFT4, and 80 Day Obsession. These programs cater to different fitness levels and goals, revolutionizing the at-home fitness market.

Does BODi offer nutrition programs?

Yes, BODi offers comprehensive nutrition programs like Portion Fix and 2B Mindset, which focus on teaching healthy eating habits and promoting sustainable weight loss. These programs complement the company’s fitness offerings to help users achieve their wellness goals.

What are some popular BODi products?

Shakeology, a nutrition shake, is BODi’s flagship product, while other offerings include BEACHBAR snack bars and the Beachbody Bike by MYXfitness. These products help support users’ fitness and nutrition goals.

How can I access BODi’s fitness and nutrition content?

You can access BODi’s fitness programs, nutrition guides, workout calendars, and the exclusive FIXATE cooking show through the Beachbody On Demand streaming service. This platform provides hundreds of hours of premium content to help users achieve their health and wellness objectives.


Sources


  1. PM International
  2. Herbalife
  3. Jeunesse Global

Author: Victor Nyorani

Victor Nyorani - Network Marketing Start

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