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Team Beachbody Exposed: Why These Coaches Make So Much Money
With the rise of the health trend, many people are pursuing improvements in fitness and diet. Team Beachbody, now known as BODi, has attracted countless people to its products and fitness programs since its founding in 1998. While the company offers a variety of highly-rated fitness programs and dietary supplements, it has also been associated with its own share of controversy, particularly related to the compensation structure for its independent trainers (also known as “coaches”).
"As the company grows, more and more people join as coaches, but only a few can earn enough income."
Team Beachbody's business model relies heavily on multi-level marketing (MLM), where independent trainers earn commissions by promoting fitness products. Coaches are reported to receive around 25% commission on each sale, but in reality only a small number of coaches achieve significant income levels.
"It is clear that many new coaches are failing to achieve their earnings expectations in the short term, which is worrying."
According to internal reports, Team Beachbody coaches often quit within a year, and as "walking advertising and sales staff", they only earn an average of about $2,600 per year. More than half of the coaches do not even get income. This reflects a deeper question: Is the time and effort required by coaches really worth it?
History and development of the company
Team Beachbody was founded in 1998 by Carl Daikeler and Jon Congdon. Initially, they focused on the fitness video market and developed several well-known fitness programs, including the popular P90X series. The company launched the "Beachbody On Demand" video streaming service in 2015. Due to the impact of the epidemic, the number of users of this service has increased significantly.
"While the company offers a variety of classes and fitness solutions, how trainers survive in this is another matter."
Income gap and challenges
This multi-level marketing business model has attracted a large number of users and potential coaches, but it has also left many people disappointed. According to the data, some independent coaches may think they can earn a stable income through this, but the opposite is true.
The reason behind all this may lie in the structural flaws of the business model. Many coaches may not have adequate sales skills or understand how to effectively market their products. Furthermore, if a coach wants to be successful, he or she must do everything in the market and rely on the support of friends and family. This pressure also makes the coach feel troubled.
Industry risks and legal challenges
In 2021, Beachbody plans to merge with MYX Fitness and Forest Road Acquisition Corp, forming a business alliance valued at $2.9 billion. But as the company has grown, the classification of its independent coaches has raised concerns and may even face legal challenges.
“People are increasingly questioning the legal status of independent coaches and expecting companies to provide clarity on this.”
Future Outlook and Changes
BODi recently announced changes to its compensation plan and plans to partner with high performance coach Brendon Burchard in hopes of changing the status quo and attracting more partnership opportunities and income potential. However, it will take time to prove whether such changes can really bring tangible benefits to coaches.
Faced with the ever-changing market and challenges, can BODi improve its business model so that more coaches can get corresponding returns?
