From Carl Daikeler, CEO of Beachbody
This is a reprint from Carl’s Blog. Please be sure to read the very bottom where I included one of the comments and Carl’s answer.
I love creating things, building something that will be productive and solve a problem. I also like building income over the long term. Creativity, contribution, and constant steady year-over-year growth… that’s how I approach what I do.
Beachbody exceeded $300 million in sales last year, largely due to the success of infomercials like Turbo Jam, P90X, Ten Minute Trainer, Slim in 6 and Hip Hop Abs. We have the most compelling pipeline of new products and infomercial since we launched the company. So, why network marketing?
I believe the real opportunity in fitness is not in building a huge monolithic company that simply sells product to people. Companies have been trying to leverage fitness to build huge businesses for decades. Yet the obesity trend grows, and no fitness company has really succeeded in getting people to REALLY embrace what it takes to get healthy and fit. Not the equipment makers. Not the gym chains. Not the weight loss centers. Not even Beachbody. Yes, we continue to grow, infomercial by infomercial, selling great product to people, and we’ve had some amazing success stories. But many people still will start-then-quit just like everything else they’ve tried unless there is another dynamic at work.
That’s what the Beachbody Coach Network is about — adding the powerful dynamic of peer-support, the “Share” of “Play, Shake and Share”, to help people stay accountable to their desire to get healthy and fit.
Our network marketing business is 16,000 coach-distributors strong and growing fast. We assign customer leads to qualified coaches (for free) when one of our TV customers says they want support to succeed with their program. The coach helps that customer set their start date, and stay accountable to consistency. Our coaches are not fitness experts or nutritionists — but friends who care about revolutionizing how people approach their own health and fitness.
In exchange, in the future when those customer leads purchase another product from Beachbody, the coach gets the commission.
And it’s a win-win that will continue to grow. I know that because I get so many emails like this one from part-time coach Joey Petri. While many coaches are still working their way to their first check and income is always a factor of skill and effort, here’s a young coach who is one of the many people who are turning this opportunity into a dream job:
I just wanted to share this with you guys because I’m super excited.
I added up all my commission checks from 2008 and I earned $13,394.98!!! This is amazing to me and I know that 2009 will be an ever bigger and better year. This money allowed me to go to school full time and pursue a 2nd degree in Phys Ed, this allowed me to live in my place and not move home, this paid my bills and my gas. (Disclaimer I also had some help from my savings as a pharma rep.) This is going to make 2009 an amazing and exciting year. Thanks again for all of your support!!
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!
At 11:52 AM, Anonymous 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.
At 1:39 PM, Blogger 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 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 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.