Pyramid Things-The Truth About Team Beachbody and Network Marketing
September 12, 2012 –
When I first became a Beachbody coach in 2010, I really did it to save 25% on the products. After all, if you on Shakeology Autoship, it is better to be a coach from a pure financial perspective. But soon the 25% discount faded away in the background and I felt a larger responsibility. I felt the responsibility to Pay It Forward as a coach. Could my story inspire others? Could I help others overcome their challenges? And could I help others as I had been helped?
When I launched “Team Right Now” in November 2010, I really didn’t know what network marketing (or multi-level marketing) was about. Was it a pyramid scheme? Was it one of those things where you throw home parties? Well, being the overanalytical that I am, I dove in to truly understand what this business model was. I also wanted to find out what classified something as a pyramid scheme.
Before I start, this video has been used by many in the industry and I find it does help answer some of the common questions. Oh yeah, it is pretty funny as well.
Per Wikipedia, Network Marketing is a marketing strategy in which the sales force is compensated not only for sales they personally generate, but also for the sales of the other salespeople that they recruit. This recruited sales force is referred to as the participant’s downline, and can provide multiple levels of compensation.
Pretty simple right? So not only to you get compensated for your sales, but as also for the people you mentor and sponsor.
What I attracted me to Beachbody was their products. I remember doing P90X and investigating the company behind this program. Network Marketing works so well with Beachbody because when you have a transformation, you become a walking billboard. And when you get results, people ask, “What have you been doing?” Well, Beachbody recognized that and feels you should get a commission because it was your results, your word of mouth, your advocacy that inspired another person to dive in. I sold about 6-7 copies of P90X before I even knew Team Beachbody (the network marketing arm of Beachbody) existed. I joked, “These guys should be paying me!”. It turns out that they do!
And while my sponsor and coach brought me into the business, educated me, and answered all my questions, he never got a penny. So it only makes sense to me that as my business grows, he should get some commission based off of that.
A Business Unlike Any Other!
Craig Holiday likes to talk about the 17 points of why this business is the best business model out there. So I want to list those because I think they make alot of sense. Network Marketing comes under attack by those who dont understand the business, and I think these are great points to discuss why it is such agreat business.
1. It Creates an Equal Playing Field – The is no experience required. It just requires the passion and desire to build your own business. There are no politics. There are no degrees required. And everyone starts at the same place.
2. There is Little Investment to Start. – To start a Team Beachbody business, it costs a one-time fee of $39.95 and a monthly fee of $15.95. And if you buy a Challenge Pack when you sign up, your $39.95 is waived! What other business can you start with this investment? I know many people who started their own business and had to spend their entire life savings just to get an “Open” sign on the door. So when people complain about the cost, they really dont see the big picture. The Return on Investment is unmatched.
3. This Business Depends on YOU. – You are the one who decides how big you want to make your business. There are no other blocks in your way. The control is all yours.
4. You Get an Immediate Mentorship Program. – You have mentors that want to see you succeed. You ever hear of job security? It is those people at work that hold information close to their vest and are not incentified to help you grow and learn because you may be a threat to them. This business is the opposite. Everyone wants to see you succeed, so everyone is willing to help you.
5. Seniority Means Nothing. – The time you have been in the network is irrelevant. Everyone starts at zero, so you can outperform your upline. There is no seniority.
6. You Choose your Level of Success and you Choose your Income. – This is completely determined by you. When you work for someone, they determine how much you get paid, when you get a raise, how much you get for your raise, how many days off you get, etc. This business is yours.You decide!
7. It is a Part-Time Business with Little Risk. – Those who own their business cannot do it part time. It is more than full time! You can do this business 1 hour a week or 80 hours a week. No one has to leave their current job to do this. When you open your own business, you typically have very high risk. 8 out of 10 business in the US fail within the first 5 years. You dont have that risk here.
8. Only Business that Grows Exponentially. – It grows itself! If you put 10 hours into your business a week, and 10 people in your business put in 10 hours, then you have over 100 hours going into your business, but you only put in 10. What other business does this happen in? This is the beauty of duplication!
9. Residual Income – This is “walk-away” income. We typically trade time for money. If you dont put in the time, you dont get paid. This is the beauty of network marketing. You invest time at the front so you dont have to trade time for money later. This is what gives you TRUE FREEDOM! You can take a year off and still grow your income!
10. You Pick Your Team – The end of the video above is pretty funny, but true. You get to choose the players you want. You get to pick people you like. People who have the same values and dreams you do. Pretty awesome.
11. You are Building your Business for the Next Generation – Ask people who have built their own business whether they want their kids to do the same thing. Most will say “No Way!”. This business is created for your children. If something happens to you, this income stays with your family!
12. Income is based on your Effort – This is not based on who you know. This is not political. This is not about how long you have been in the industry. Your income will parallel your work ethic and effort.
13. The Greater this Business, the Less Effort it Takes – The larger the business becomes, the less effort you put in. For most businesses / organizations that grow, it takes more effort. In the beginning, you get a little for alot. As it gets bigger, you get a lot for a little.
14. It’s an Economically True Business – When the economy gets bad, network marketing companies grow faster and bigger. Why? Because people are more open minded and they learn that the things that mat have lost them their job, don’t exist here.Downsizing does not exist in network marketing.
15. Simultaneous Success and Significance – We spend half of our life trying to be successful and the other half trying to be significant. During the productive season of our live, we have to be successful. We have kids to pay for, college tuitions,mortgage payments, etc, etc. Then during the provision season of our lives, we begin to look for significance. But today so many people dont get there because they are spending the productive years of their life until 60-65. On the way to success in network marketing, you get significance as well! You are helping others. You are helping make others dreams come true!
16. You Give and You Receive – You sow the seed and receive the harvest. This is what network marketing is all about. And this is certainly what Team Beachbody is about.
17. Compares To Nothing – Is there any business that can compare to this? Match these questions against any business you know. It simply is the best business out there.
What Constitues a Pyramid Scheme?
So now I want to discuss the negativity surrounding the term “pyramid scheme”. When most people hear pyramid scheme, they think of Amway. In the early 70s, they did undergo some very serious, expensive, and prolonged investigation. The results proved that they were not an illegal “pyramid scheme”. This ruling has given way to a network marketing boom for the past 30+ years.
So here are (3) common element of a pyramid scheme (which is illegal):
1) A large, required initial investment or purchase of inventory
2) Direct payment for recruiting additional persons into the scheme
3) Heavy emphasis on recruiting additional persons, with little or no emphasis on selling products to consumers.
So how does Team Beachbody fair against these elements?
1) There is no required inventory from Beachbody. All products are shipped directly from their warehouse.
2) There is no direct payment for recruiting people.
3) Beachbody was a product company long before Team Beachbody (the network marketing arm) came along. The company was born in 1998, while Team Beachbody started in 2007. Usually network marketing company’s are formed and then they decide which products to sell. Not the case with Beachbody.
So Why Join Team Beachbody?
Well, the video below does a better job explaining it than I can. But here is why I joined and believe in it.
1) I believe in the products. I have used them and seen the results with myself and so many others. Without phenomenal products and services, no company is destined for the long haul.
2) I believe in Paying It Forward and helping others achieve their health and fitness goals.
3) I believe that the Obesity Crisis in the US (200M People) is one of the biggest issues we face as a nation. And staying healthy in this country is not easy. Beachbody has the solution and I want to support people through their programs.
4) I believe in the company and its executives. I have had the opportunity to talk with Carl Daikeler, the CEO and Jeff Hill, SVP of Sales. I have heard their leadership team speak. And their passion to “End The Trend” of obesity is the true driver of the business!
5) Beachbody has the most cost effective solutions on the market. My local gym is charging almost $2,000 for a 4-month package with a personal trainer! This does not even include nutrition or any other products. We coach for FREE! And the products that Beachbody sell have a low cost barrier. There are no gym membership fees. There is no monthly fee. And when you buy something, you get a real product that actually works!
6) Beachbody spends over $100MM on advertising a year. Who benefits from that? Team Beachbody coaches as the brands become more and more apart of standard American nomenclature.
7) I have been blessed with a BS in Electrical Engineering and an MBA. And those degrees and my work experience have given me a great living. But not everyone has this opportunity. For the reasons mentioned above in Craig’s 17 points, Team Beachbody allows people to not only get physically fit, but financially fit as well. What a gift to help someone achieve financial freedom!
And the list could go on and on. So here is the a little bit more about Team Beachbody. If you want to find out more about becoming a Team Beachbody Coach, you can go to my Coach Corner or shoot me an email at TeamRightNow@gmail.com.
I appreciate all your comments. The dialogue is why I write. So please leave a message below!
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*Note – If you have a “dud” coach and would like to change coaches, the process to do so is very simple. Simply email coachrelations@teambeachbody.com and tell them that you would like “Coach Mike Roberts (Coach ID #64523) at TeamRightNow@gmail.com” as your coach. Please CC me as well so I can ensure to follow-up.
12 Responses to “Pyramid Things-The Truth About Team Beachbody and Network Marketing”
Leave a Reply to Carl J.
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Excellent Post Michael!! This is right on the money!!
Excellent! Very true, very informative, and it mirrors what I’ve experienced with Team Beachbody. I’m so glad I signed up!!
Thanks!
Great job Coach Mike! Awesome write up! This post was perfect!
Great Info Michael!! Thanks for explaining this in depth – I know it will help out lots of people who are on the fence about beach body coaching !!
“DO WORK”
You bet Paul! Thanks bud!