Why Network Marketing?

Copied and pasted from Carl Daikeler's (CEO of Beachbody) Blog. CarlDaikeler.blogspot.com

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 works. Anne Dovel sent me this email string... Amazing stuff:
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From: Anne Dovel
To: Carl Daikeler
Subject: new customer lead

Hey Carl. Been a while since I’ve sent you a thumb’s up for everything you do. I thought you’d like to see a customer who is grateful for the coaching program. :) Thanks for everything. I hope you had a wonderful holiday and wish you a healthy, happy and prosperous New Year. :) Anne

Hi Anne! I am proud of the difference that I see. I know I can do this. It just takes time and effort. I honestly can't thank you enough for all your help. I am really grateful that Beachbody started the coaching program because I don't know that I would have been able to do all this without your help. I know my husband was trying to help me but he couldn't really come up with a menu for me and he really doesn't understand where I am coming from about hating the way I look. You do because you are a mom too and I think that is so cool to talk to you. You understand so much more than anyone else I've talked too. But anyways I will talk to you later. I hope you get your knitting fixed.

Thanks,
Susan

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Anne gets it, and now another customer has had success. As Anne said to Susan in a reply: "The reason Beachbody started the coaching was because they found out that someone had a greater chance of succeeding even if they just had someone to talk to who had been through the challenges they are going through!"

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:

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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!!

Joey

P.S. Traci (Morrow), I still remember our 5 minute conversation at Tony's Camp in NY and I told you about how I was considering going back to school for my phys ed degree. You said Beachbody would allow me the freedom to do what I want to do and I'm so thrilled and excited to continue to make that conversation, that dream, a reality.

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http://www.JoePetri.com

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!