You are likely reading this article because you are looking for an answer to this question: are the Beachbody pyramid scheme rumours true or false?
You may have been approached by a Beachbody coach, offering you an opportunity to start your own Beachbody business.
You’re intrigued at the prospect of being able to make extra cash to help you finally get ahead in this expensive world.
But you’re also a bit sceptical…
If it sounds too good to be true, it often is, right?
So let’s cut right to the chase: Beachbody is a legitimate business and the pyramid scheme rumours are completely false.
But…
Is Beachbody multi level marketing?
Yes.
And there is a lot of confusion in the general public about the distinctions between illegal pyramid schemes and multi level marketing or MLM.
But we’ll get to all that later.
Personally, I went through several Beachbody programs without even realising that there was a business opportunity attached to it.
Arguably, this might be one of the best known product lines of any network marketing company out there.
So what are we going to cover today?
- The company’s history
- Products they sell
- How the business works
- The compensation plan
- How you can succeed
My hope is that after going through this resource, you will be fully equipped with all the knowledge you need to make an informed decision about this opportunity and move ahead with conviction, no matter what you decide to do.
Team Beachbody History
The Beachbody company was started in 1998 by Carl Daikeler and Jon Congdon in Santa Monica, California.
Daikeler became well known in the 1990s from promoting Lifeline Gym and :08 Min Abs. After receiving half a million dollars from angel investors, they developed a series of workout videos and started selling them through Beachbody.com
Beachbody really became popular after Tony Horton created a home exercise program called P90X, or Power 90 Extreme. Like me, many people who know about Beachbody were introduced to the company through the P90X program.
Who is the CEO of Beachbody?
Carl Daikeler remains owner and CEO of Beachbody to this day.
Where is Beachbody headquarters?
The Beachbody Company headquarters still remains in Santa Monica, California.
Has Beachbody ever been sued?
In 2017, the city of Santa Monica sued Beachbody on allegations that Beachbody was charging customers’ credit cards on a recurring basis without the legally required written consent.
The Beachbody lawsuit was settled quickly, and the company agreed to pay the city $3.6 million in order to close the matter.
Surprisingly though, Beachbody has not been sued under “pyramid scheme” allegations like so many other MLM giants such as Amway or Herbalife.
While there haven’t been any lawsuits based on “pyramid scheme” claims, Beachbody has certainly faced scrutiny from the media.
In 2017, Truth In Advertising reported that Beachbody consultants were making exaggerated and unsubstantiated income claims in order to promote the business opportunity.
This is unfortunately very common in the network marketing industry and is an indictment on the behavior and lack of professionalism that many network marketers practice.
Beachbody Products | What Do They Sell?
I have to be completely honest…
I’m a bit biased here.
Years ago, before I even knew anything about network marketing, I fell in love with the Beachbody programs.
I went through a few of their programs including Insanity, 10 Minute Trainer, and P90X. I enjoyed P90X so much that I went through it several times.
And let me be the one to tell you…
These programs are gruelling.
They’re no joke.
If you’re wondering whether or not the Beachbody programs work, you do not need to wonder any more.
If you do the work the way it’s prescribed, you will lose weight and/or build muscle.
Beachbody Programs
This is not going to be a comprehensive list of all of the Beachbody programs… there’s over 40 of them, so we’d literally be here all day.
There are many other Beachbody reviews out there that cover the individual programs in detail. You came here to learn about the Beachbody business opportunity, so that’s what we are going to focus on.
But let’s just do a quick overview of what the programs are.
Beachbody offers many different types of programs. Whether your goal is to build muscle, lose weight, or become more flexible, Beachbody has something for you.
As we mentioned, there are over 40 workout programs. Here’s a list of a few of them:
- 80-Day Obsession
- P90X
- Hip-Hop Abs
- 3 Week Yoga Retreat
- Clean Week
- Shift Shop
- INSANITY
- Brazil Butt Lift
- Turbo Jam
- 21 Day Fix
- Lift4
Each of the programs comes with a meal plan specifically designed for the program.
You also have the opportunity to become a member of an accountability group so that you will have the discipline to stay the course, even when things get tough.
Beachbody Supplements
Not only does Beachbody sell workout programs, but they also sell supplements.
Personally, I have never tried the Beachbody supplements as I already had a brand of dietary supplement that I was using.
But as far as I can tell, the supplements are high quality and provide the nutrients that a demanding workout routine requires.
Beachbody supplements online reviews are certainly positive, especially the well known Shakeology meal replacement shake.
Beachbody claims that the Shakeology drink is filled with “super food” ingredients that help you lose weight, reduce cravings for food, and boost your immune system.
Here’s a list of some of the better known supplements they sell:
- Shakeology
- 3-Day Refresh
- Beachbody Ultimate Reset
- Beachbody Performance Line
- ActiVit Daily Nutritional Advantage
- Beachbody Ultimate Performance Stack
- Daily Sunshine
There are many more, which you can see on their website if you’re interested.
Workout Gear
Many of the workouts you’ll be doing with Beachbody will require some workout gear.
And if you’re anything like I was, you don’t have any workout gear at home. I mean, nothing at all.
You might need gear like:
- Yoga Mats
- Shakeology Shaker Cups
- P90X Chin-Up Bar
- Power Stands (for push-ups)
- Jump Mat
- Resistance Bands and Loops
Luckily, you can buy all this stuff from Beachbody… what a coincidence!
You will find however, that many of the Beachbody programs don’t require any gear at all and some of the programs will even teach you alternative exercises that you can do in case you don’t have any gear.
Where To Buy Beachbody Products?
You can buy Beachbody products on their website or through a Beachbody coach.
If you want to try some of the workout programs, your best bang-for-buck will be to buy a subscription to Beachbody on Demand.
It’s a media platform that offers all of the Beachbody programs on one platform or app which you can then stream to your TV.
Think of it like a Netflix for workout junkies.
The platform costs roughly $100 per year.
That’s less than 10 bucks a month.
That’s a pretty darn good deal considering you probably pay more for your Netflix subscription which isn’t helping your physical fitness in the least.
But I digress.
Here’s what I love about the Beachbody programs:
It gives you an actual plan to follow. You can do the workout in front of your TV while watching and learning from the professional trainers as you work out.
Think about it…
You make a New Years Resolution one year to get in shape, right?
You get a gym membership, and you may even show up to the gym consistently for a few weeks.
But you don’t really know what you’re doing.
Even if you have some vague idea, you probably don’t have a real plan to follow.
So you struggle to get real, tangible results.
You start to become inconsistent and eventually, just quit altogether.
I was able to get results with P90X almost immediately because I had a simple (not easy!), black and white plan to follow so I never needed to doubt whether or not I was taking the right actions.
I just did what I was told to do.
And I believe that is really the true power of Beachbody programs and why so many people all over the world are getting in shape for the first time in their lives using these programs.
Is Beachbody FDA Approved?
Well technically, no.
Beachbody supplements are classified as “food” rather than “drugs” by the Food and Drug Administration.
This means that the FDA doesn’t directly regulate Beachbody supplements because there is nothing to approve.
But the FDA does set rules and guidelines that must be followed, and Beachbody does.
What Is The Beachbody Business Model?
How does the Beachbody business model work?
Do Beachbody coaches get paid?
These are questions people often ask when they first learn that you can actually make money by promoting Beachbody programs.
The answer is yes, Beachbody coaches can make money.
But being a Beachbody coach is not a job, exactly.
As we mentioned earlier, the Beachbody business model is based on multi level marketing, also commonly called MLM or network marketing.
This means that instead of putting a heavy focus on selling their products through retail stores, they choose instead to give their customers the opportunity to make money by selling the products themselves.
This saves the company millions in retail fees and advertising campaigns.
Plus, it gives regular working class folks like you and me the opportunity to start our very own business from the comfort of our homes.
So how does the Beachbody MLM work?
If you decide that you want to start your own Beachbody business, you would need to become a Beachbody distributor, or coach.
In order to do this, you would need to purchase a Beachbody business starter kit.
Then, you would be required to share the products with the people in your network, such as your friends, coworkers, or family members.
Every time you sell a Beachbody product, you earn a commission.
But you can also recruit your own team of Beachbody coaches to sell products for you. So not only would you earn income from the sales you personally make, but you could also earn income from the sales made by the coaches in your team.
The real power of the Beachbody network marketing business comes in when the coaches on your team start building their own teams…
Because you would also earn income from the sales made by those coaches as well.
As your organisation grows, this can become extremely lucrative.
If you would earn income just from your own efforts, your income would be capped, right?
If you wanted to take a vacation, your income would grind to a halt as soon as you stopped making sales.
But if you have an organisation of distributors making sales for you, your income would remain even if you decided to take some time off. It could potentially even grow over time, without any extra effort of your own.
As the late great Jim Rohn often said:
Profits are infinitely better than wages.
Is Beachbody a legitimate business?
It’s a fair question.
I mean, it almost sounds too good to be true, right?
The truth is, network marketing is not easy. It takes a thick skin, hard work, commitment, and lots of time and effort.
But it really is legitimate and many people have built extraordinary incomes with Beachbody.
We’ll talk more about exactly how you can succeed with this business a bit later.
First, let’s talk about how exactly the commissions are paid out.
Beachbody Compensation Plan
There are four main types of compensation plans commonly used by network marketing companies:
- Unilevel
- Breakaway
- Forced Matrix
- Binary
You can read about the various types of plans and how they differ in this deep-dive MLM analysis here.
How Beachbody Coaches Make Money
The Beachbody MLM compensation plan is based on the Binary plan.
With the Binary plan, you can personally recruit as many people as you want. But you can only place a maximum of two people directly underneath you.
The two people who are placed underneath you will become the two “legs” of your organisation.
When you recruit more members, they will be added to one of the legs of your organisation, after they pay the $40 sign-up fee.
Your Beachbody commission will be paid out every week. When payday arrives, you will get paid out the commissions on whichever of your 2 legs earned less money.
This is done in order to incentivise you to build out your teams evenly. You don’t want to add everyone you recruit to just one leg. That would create a very lopsided organisation and would make one of your legs very unhappy.
The most powerful part of the Binary Beachbody MLM structure is that it creates a lot of excitement and enthusiasm in your organisation.
Think about it…
You’re adding more people to your team, but you’re placing them below other people in the organisation.
This means that not only would your team members be earning from the efforts that you put in, but you would also be earning from the efforts of those who are above you in the organisation.
Everyone gets excited and motivated from the quick wins, driving them to work harder and build their own organisations.
The exact percentages that you will earn are a bit complex to explain and would require an article of its own.
Here’s all you really need to know:
If somebody that you personally sponsor buys a product, you will earn a 25% commission from each sale.
If you earn income from the efforts of others in your organisation (team bonuses), the commission will be much smaller per sale. But this will be made up by the volume of sales coming in.
As with all network marketing companies, the true life changing income is earned by building a large team. Make sales, recruit folks, and teach them to do the same.
The idiosyncrasies of the Beachbody compensation plan are outlined in the official pay plan document, published by Beachbody.
Can You Make Money As A Beachbody Coach, Really?
The answer is yes.
But the honest truth is, many don’t make any meaningful amount of money in this business. As outlined in the Beachbody income disclaimer, your success will completely depend on the amount of effort you put into the business.
Unlike a job, you will make very little money in the beginning.
It will take hard work and perseverance to build up your income.
We’ll talk about how to do that a bit later.
How Much Money Does The Average Beachbody Coach Make?
Finding the average earnings of Beachbody coaches proved to be a bit difficult.
I did however, find a 2012 Statement Of Independent Coach Earning which showed that the average income was just under $4,000 in 2011.
There are many who earned a lot less, some who earned nothing at all, and a few who earned well over a million dollars.
So the possibility of radical success is definitely there!
How Many Beachbody Coaches Are There?
There are well over 100,000 Beachbody coaches with more added every month.
It’s tough to pin down an exact number because there are always people quitting, as well as new people coming in to get started.
Is Beachbody A Pyramid Scheme?
Here’s the short answer:
NO.
The Beachbody pyramid scheme allegations are completely unfounded. But the Beachbody business model is based on network marketing, or multi level marketing.
And there are legitimate reasons as to why people believe the Beachbody pyramid scheme rumours…
Because there is a fundamental misunderstanding between network marketing and illegal pyramid schemes.
The reputation of network marketing has taken a major hit over the last 50 years or so.
You see…
Over the last few decades, there have been several illegal pyramid schemes that have operated under the disguise of legitimate network marketing.
When these illegal organisations inevitably collapsed, they received a lot of negative and very noisy attention from the media.
And for good reason.
A lot of innocent and unsuspecting people got badly hurt. Some of them were financially ruined.
These illegal pyramids need to be called out.
The problem is, the media never did a good job of educating the general public on the difference between a pyramid scheme and network marketing. Instead, they gave credence to the disguise that these illegal organisations had crafted for themselves.
This has caused most of the public to lose trust in the network marketing business model.
So What Is A Pyramid Scheme?
When you join a pyramid scheme, you will be paying for a spot in a pyramid shaped organisation.
You will then be required to bring more people into the organisation in order for you to get paid.
The problem is, there are no valuable products or services sold into the marketplace, making all pyramid schemes destined for collapse.
The marketplace will only support a business model that provides value to market participants.
So in a pyramid scheme, the people near the top of the pyramid get rich while the people near the bottom lose all their money when the organisation collapses.
Why Beachbody Is Not A Pyramid Scheme
Network marketing is not actually that different from the traditional business model.
Revenue is generated when sales are made.
It simply comes down to being a value for value exchange.
Beachbody products (value) are sold into the real economy in exchange for money (value).
The only difference is the way in which the products are marketed and distributed.
As we talked about already, Beachbody products are sold directly to consumers through independent distributors (coaches) instead of retail giants such as Wal Mart.
Not only does this save the company a ton of money, but it also allows regular middle class folks the opportunity to share the products they are passionate about and make a good living doing it.
What About The “Pyramid” Shape?
Some people might point to the pyramid shape that a network marketing organisation takes on as it grows.
It’s a valid concern to have.
But I challenge you to have a look at the traditional corporate structure:
Looks suspiciously like a pyramid scheme, doesn’t it?
Look, we as humans will always organise ourselves into hierarchies.
It’s what has allowed us to evolve into the beings we are today. It’s a large part of what allowed us to climb to the top of the food chain. We naturally collaborate with each other, and we do it through hierarchical organisation.
And a hierarchical organisation will always tend to take on the shape of a pyramid. You see it everywhere:
- Friend circles
- Family structures
- Business
- Churches
- Government
It simply cannot be avoided.
But the network marketing “pyramid” structure is inherently more fair than the traditional business model.
Think about it…
If you start out working in the mail room, you will likely never earn more money than the CEO.
Unless you are able to climb the corporate ladder, displacing people all along the way, and taking the CEO’s job for yourself.
It’s a zero sum game.
The corporate world can be a brutal, cut-throat experience.
But with network marketing, you could certainly earn more money than anybody who is above you in the hierarchical structure.
If you make more sales, recruit more reps, and ultimately generate more revenue, you will earn more money.
It’s one of the best examples of the free market incentivising productivity.
So again, is Team Beachbody a pyramid scheme?
No.
Absolutely not.
Another Reason For Beachbody Scam Rumors
There is another common reason that folks are sceptical about the network marketing industry.
It’s because of the way the business is often unprofessionally represented by new and inexperienced network marketers.
As someone brand new to the business, you tend to start with lofty dreams of quick and easy riches.
You start talking to the people in your personal network about your products and business opportunity…
But you quickly realise that folks are much less receptive than you thought they would be.
They just don’t see the power and potential of the business model the way you do.
As you realise that this business will take way more time and work than you originally thought, you start to become frustrated.
This is not a good emotional place to be if you’re trying to make sales or recruit people, because other people can always sense desperation.
Your business seems to be grinding to a halt before it even really got going.
You start to get pushy, obnoxious even.
And frankly, people find it quite annoying.
Your friends and family start to become concerned, thinking that you may have been roped into a cult or some type of scheme.
This is the experience of many new network marketers and I believe this is where many of the Beachbody scam rumours originate.
So when you get started in this business (if you decide to do so), it’s very important that you avoid this trap.
Understand that the business may not be as easy as you’re being told.
The truth is, most of the people you talk to will not be interested in what you have to offer.
But some will.
You are not looking to force anyone into buying from you or joining your business. Instead, you are looking for people who are already interested in what you have to offer.
It’s just a numbers game, and your job will be to work through the numbers.
Talk to enough people over time, you will build a thriving network marketing team.
As one of my past mentors used to say:
Some will, some won’t. So what? Movin’ on!
Is Beachbody A Good Company?
Hopefully I have convinced you by now that the Beachbody pyramid scheme allegations are false and unfounded.
But the question still remains…
Is Beachbody a good company?
I mean, you can have a completely legal company that really isn’t that good, right?
One of the best indicators of a good network marketing company is when people buy and use the products regardless of the potential business opportunity that is attached.
And with Beachbody, there are millions of people all over the world who buy and use the programs without ever participating in the business.
Personally, I used the Beachbody programs to turn my physical health around for years before I even knew about network marketing at all.
The true test of a quality business model is whether or not there is a demand for the products in the broad economy.
And with Beachbody, there certainly is.
Beachbody Business Plan | How To Succeed
I wrote a full guide for how to succeed with network marketing a while ago. You can read it here.
Here’s a brief overview of 6 things you need to succeed with the Beachbody business long term.
I. Mindset
You are going to need a thick skin in order to be successful in this business.
As we talked about already, many people have a fundamental misunderstanding of network marketing. As you discuss your business venture with the people in your life, you might feel at times as though you’re being ridiculed.
Most people will not be interested in what you have to offer.
Remember, you’re doing this for YOU. It doesn’t ultimately matter what other people think.
Besides, you’re not trying to force unwilling folks to join your business…
Rather, you are sifting through the numbers in order to find the few that are open and willing to join you and start their own business.
II. Commitment
If you tell yourself that you’re just going to try network marketing for a month just “see if it works”, then I recommend that you stay away.
With that kind of mindset, it’s not going to work.
If you want even a small chance of succeeding, you need to commit at least one full year. During that year, you will give it your all. Do what it takes.
This is a real business. It’s serious.
But if you’re not serious about it, you will not be able to make it work.
III. Build The Foundation
When you get started as a Beachbody coach, your business leader will likely give you a set of tasks that you need to complete before you start making sales and recruiting people.
Do exactly what you’re told, and do it right away.
You need to get off to a running start so that you can get some quick wins, lay the foundation for your business, and build momentum early on.
IV. Do A Major Blast
This is a concept that Randy Gage talks about in his latest book.
He recommends that you get 100 invitations out as fast as you possibly can, as soon as you start your Beachbody business.
Sending out 100 invitations does not mean that you will be showing your business presentation to 100 people, because many will be uninterested.
But the more people you can get through the funnel quickly, the sooner you will start to see real results coming out of the other end.
V. Manage Your Time
You can’t just decide to work on your business whenever you feel like it.
It needs to be scheduled into your calendar.
Think of it like a job… You don’t simply decide to show up to work whenever you feel like it, right?
You’d get fired pretty quickly if that’s how you treated your job.
Well if anything, you should take your business even more seriously.
Be intentional with your time.
VI. Focus On Duplication
Duplication is really the key to long term success in network marketing.
It’s not about recruiting a bunch of people or selling a ton of products… it’s about getting decent results and then teaching your team how to do the same.
That is the only way you will ever build a team that will sustain and grow itself over time, without you putting in more effort of your own.
Online Beachbody Business Plan
When you get started with the Beachbody business, you will be taught a system to sell products and recruit folks into the organisation.
They will teach you to make a list of at least 100 people. Your family, friends, and acquaintances etc.
Then you will need to approach these people and attempt to sell them products or join your business.
This is a fine place to start and you should definitely do so if that’s what you’re taught.
But eventually, you will run out of people to talk to. By the time this happens, you should already have built a sizeable team that is starting to experience some duplication.
When you reach this point, it might be time for you to turn to the internet in order to expand your business.
We live in the digital age after all, so why not take full advantage of the tools available to us?
And the internet can be a very powerful tool for building a network marketing business.
Imagine having people reach out to you, ready to join your business…
This can only happen using internet marketing strategies to build your Beachbody business.
The Internet Marketing Plan
Internet marketing really comes down to 3 basic steps.
1 – Provide value online
The beautiful thing about the internet is that it can give absolutely anyone a voice.
No matter who you are, you have a platform.
If you want to attract hungry prospects to you, you should be using a platform to provide value to people.
Teach them everything you know about your products without ever trying to sell to them.
Simply provide value.
If a potential customer out there is asking themselves a question about whatever niche your business is in (health and exercise in this case), then YOU should be the first person that comes to their mind.
You want to become the trusted advisor, a thought leader in your niche.
You could do this with a blog, YouTube channel, a podcast, Twitter, Reddit, related forums, or any other type of social media platform that you could think of.
2 – Build a list
If you continue to provide value to your followers online, you can eventually get them onto an email list.
Create some type of free digital gift, like an informative eBook for example.
In order for your followers to get this free gift, they would need to enter their email address into a form.
This would then add them to your email list.
3 – Provide value to the list
Once you have a new prospect on your list, you should still continue to provide value.
Send out emails consistently in order to continue building trust.
This will keep your readers coming back for more, keep them from unsubscribing, and will have them ready to buy anything you recommend.
The truth is, you still need to make money, right?
You are running a business after all.
I recommend keeping 80% of your emails purely value based, and 20% of them recommending products to buy.
We are living in the digital age and if you refuse to use the internet to your advantage, you’re leaving money on the table.
This is a pretty simplified explanation of internet marketing. I recommend reading this full guide to digital network marketing here.
Beachbody Business Review | Conclusion
If you read this whole article, the main question you are trying to get answered is this:
Is Beachbody a legitimate business?
The answer is simply yes. The Beachbody pyramid scheme rumours are unfounded and the products they sell are known and well received all over the world.
The real question is this:
Is this business a good fit for YOU?
It depends.
Do you have a passion for health and fitness?
If not, then it may not actually be a good business for you.
One of the first network marketing companies I ever joined was a health and wellness MLM. They sold vitamin supplements and other health products.
It was a good business. The people were wonderful and the products were top notch.
In fact, I still use the products every day, over ten years later.
But I was never able to make the business work for me. In fact, I never made more than $500 in that business.
And it was because I simply didn’t have a passion for health and wellness. I was unable to sell the products and business opportunity in a convincing way.
And when it really got tough, I quickly gave up because I simply wasn’t that passionate about what I was selling.
Trust me, things will not always be easy in this business.
But if you are truly passionate about what you do, you will be able to persevere through the tough times long enough so that you can eventually achieve success.
So if you do have a passion for health and fitness and you get excited at the thought of building a Beachbody business, then this might be exactly what you’re looking for.
If so, I recommend that you reach out to the person who introduced you to the business to get more information.
My hope is that after reading this article, you will be armed with all the information you need. I hope that you can now move forward with confidence and conviction, no matter what you decide to do.
If there is anything I’ve missed, feel free to leave me a comment down below and I’ll get back to you as soon as I can.
Written By:
Johnny Friesen
Just a blue collar guy passionate about finance, network marketing, and writing. When I'm not working on a car, you'll find me working on various side hustles and sharing my musings with the world.
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