Beachbody and Pyramid Schemes

By Chad, 22 April, 2011

It sounds to me like Beachbody is a Pyramid Scheme?

I get this question asked a lot and many people make the assumption that Beachbody is a Pyramid Scheme. First, it's not. Second, in general, people do not know how a Pyramid Scheme works.

What is a Pyramid Scheme?

"People are often misinformed about network marketing and get the business model confused with illegal pyramid schemes.  To give a short summary, a pyramid scheme is similar to a Ponzi scheme.  Pyramid schemes are to the network marketing industry as Ponzi schemes are to the Investment industry.  Both look like a legitimate business opportunity and look like they are based on the business model, but they promise high returns with no work involved except for getting other people into the scheme and paying those above them with the money taken in by new investors.  Why they always ultimately fail is that as the scheme grows, new investors are required to put more money in.  Once the bubble bursts, the scheme falls apart and everyone gets burned." - Coach Jim Wyatt.

People PyramidWhat does this mean? New recruits are paying money into a business, but often do not receive any type product. The primary source of income, for example in Ponzi schemes, is from new investors. They must constantly bring in new investors in order to continue paying the old investors. Beachbody’s costs are not paid to the coach who recruits you. They are paid directly to Beachbody. Something else, a lot of those schemes require you to have inventory (most are likely to end up in the trash). Beachbody does not have such a requirement. Purchases are directed through their site or their resellers. There is no inventory kept on hand by the coaches.

I heard Amway is a pyramid scheme!

"Amway, which is a legitimate network marketing company was sued by its distributors for being a pyramid scheme in the 1970s.  Even though they were exonerated, the damage to the industry had been done.  The courts found that Amway was not guilty of ripping people off, but people still think the company is a pyramid scheme even though over the years Amway has refined its business model and grown to a multi-billion dollar international company.  So, this is where people get the thought that network marketing is some sort of nefarious scheme." - Coach, Jim Wyatt.

Yeah, that's all good and stuff, but I can't be of higher rank than you right?

Beachbody has ranks built into its system for coaches. In a pyramid scheme, new investors cannot obtain a higher rank than their recruiter. But with Beachbody, a coach can outpace, outgrow, and make MORE income than their recruiting coach. Hence, the word Independent in the tagline An Independent Beachbody Coach. The new coach’s business can take off and outpace their upline coach. The recruiting coach can only benefit if he/herself has a successful business. It’s all about how much effort you put into your business.

MoneyOk, so how do you make money?

Beachbody coaches share in the profits made through commissions of their independent organizations. It has nothing to do with the coaching fees that are paid monthly as those go directly to Beachbody.

I don't want a coach, can I sign up without a coach?

Beachbody passes new coachless customers that purchase the product or that signup as a coach to other coaches in the organization. Basically, Beachbody is giving Millions of dollars to existing coaches from new customers every year!

What does being a coach mean?

As a coach, you are not here to sell a product. You are here to become a product of the product itself and to help others achieve their goals of being healthy, losing weight, getting in shape, getting ripped, toned, more muscle, more energy, confidence, you name it. Being a coach is for those that are interested in building a business and making money helping others. It's the job of the coach to encourage and help others stay committed to their workout program.

On a last note.

As my coach told me, "Network Marketing is nothing more than people promoting and recommending something they like. Most people do network marketing every day, such as recommending a good movie, a pair of shoes, lipstick, what toothpaste you use, your favorite restaurant, etc., but they just don't get paid for it." We make commissions on products that work, that help people to become healthier. The obesity rates are insane today. Medical bills are in the $350 BILLION range for chronic diseases related to being overweight! If you want to help, or are interested in becoming a coach, please contact me. If you have any questions, just ask.

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