Before you call something a “pyramid scheme” I think it’s important to know exactly what a pyramid scheme IS. At one time I was under the false impression that Beachbody coaching was a pyramid scheme. And then I educated myself. I’m glad I did! My fellow Independent Team Beachbody Coach Mike Thompson wrote the following description that explains the key differences between pyramid schemes and Beachbody Coaching:
1. Pyramid scheme: a non-sustainable business model that involves the exchange of money primarily for enrolling other people into the scheme, often without any product or service being delivered.
1. Beachbody Coaching: Not only does Beachbody have products, but the products change peoples lives (just do a search for ‘P90X’ on YouTube). It isn’t even necessary to be a Coach to use the products (like P90X, Turbo Jam, etc). You can simply use the products and still change your life.
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2. Pyramid Scheme: is when the organizers of the scheme use the assets of new investors to make profit payments to the old investors. The scheme typically has no other source of revenue other than from the new investors. Pyramid schemes, often called ponzi schemes, progress geometrically until they reach the point that the operators cannot find enough recruits (victims) to continue the payout. A bust out is a form of a pyramid scheme whereby the suppliers are like the investors, and the bust out (pyramid) scheme continually uses its new debt to pay old debt, building a “house of cards,” which must, ultimately, collapse.
2. Beachbody Coaching: new coaches do not pay their dues to those above them but to the company itself. Beachbody operates on profits from a product–not the investment of new coaches. Not only that, but Beachbody gets profits from a greater percentage of those who are not coaches but regular customers (30,000 – 50,000 per week to be exact). This business works like any other business–nothing like a pyramid. Your income is not based solely on what a sponsored coach purchases.
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3. Pyramid scheme: It is not possible for anyone to out rank or out earn anyone in their up line. If you have a weak leader in your upline in a pyramid scheme then you’re screwed.
3. Beachbody Coaching: every coach has the potential to out rank and out earn anyone in his or her upline or downline. Each coach is rewarded based on their determination and productivity! I love the fact that my team is not hindered by my performance in any way. We’re INDEPENDENTS, we can outperform anyone we want. The people on the bottom can work their way to TOP COACH and that is true for anyone no matter where their position in the downline/upline is!
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Coaching is simply a profit sharing program. We are independent consultants/representatives that share in the profits BASED on COMMISSIONS, NOT INVESTMENTS. By now you should easily see the kind of company Team Beachbody is with such a high level of moral integrity and how it’s the polar opposite of what a pyramid scheme is.
So, perhaps you’re interested in becoming a Beachbody Coach and have a few more questions? Please contact me or leave a comment below. Perhaps I can fill in some of the blanks for you. I’d love to have you join my team but I’m very careful about who I share this business with because I want to work with people I believe will be great at it!
Amanda is a wife, toddler mom, PMAD survivor, certified nutrition and running coach, recovering perfectionist, and minimalist-in-training. Her mission in life is to help others get off the pity potty, embrace their own brand of weirdness, and get after their dreams. Proverbs 3:5-6