Is Beachbody Coaching a Pyramid Scheme?
This was actually NOT something I ever even thought about before I started as a Team Beachbody Coach back in 2013. Pyramid schemes are illegal, so the thought that all of these multi-level marketing companies were pyramid schemes just didn’t make sense to me. How could they be running businesses if they were using an illegal model? Anyway, even though I personally never had this concern, because I thought it was an odd thing to say, but I do meet a lot of people that say they are CONVINCED that all multi-level marketing comeanies are schemes. What I found is that most people aren’t actually educated on what a pyramid scheme is, so that is the reason for this blog poct today. 🙂
So it seems that one of the first instances of multi-level marketing companies being accused of being pyramid schemes was in the 70s when Amway was put on trial for being a “pyramid scheme” and was found not guilty (source). Yet, people seem to be unaware of the final ruling and how this industry is nothing of the sort and is actually 100% legal AND highly recommend by many financial gurus, such as Donald Trump and Robert Kiyosaki.
Here are a few main points to think of in regards to determining if Beachbody Coaching is a pyramid scheme:
1) A pyramid scheme (also known as a Ponzi scheme) has no actual product for sale – the only thing they sell is the recruiting opportunity.
Which means the money brought in from purchasing your opportunity to be a distributor is paid up the chain of command. Beachbody coaches make NO bonus off of your $40 sign-up fee. If you purchase product, we only receive commission from your order. You’ll find a lot of nay-sayers on the internet who don’t really know the business, who will say that people earn more from recruitment than from customers, and that is not the truth. The ONLY way money is earned from your team is if you HELP THEM BECOME SUCCESSFUL. If they enroll, and never become successful and never help change any lives, NO compensation is received by you. That’s just the facts. Furthermore, we have many products for sale – in fact, we make a significant income from our customer base (not our distributors/coaches). I feel that we are one of the most financially sound MLMs because of our strong infomercial division. When’s the last time you saw an Amway commercial?
2) Pyramid schemes are illegal and are immediately shut down by the government.
Beachbody has been around for over 8 years and has an A+ rating with the Better Business Bureau (source). We get a ton of positive press and are a steadily growing, billion dollar company. If we were representing something that was an absolute scam, do you think we would be on every major news station, late night show, and major TV production when we launch a new product? I also have a personal friend who works with The Department of Homeland Security, and he is a Coach – he shared with me one day that before he was able to enroll as a Team Beachbody Coach, his boss wanted to fully investigate this opporotunity to see if it was something he wanted one of his employees to be a part of. His boss came back in full approval of this legitimate opportunity. I thought that it was very interesting that he was able to share that!
3) All Beachbody coaches are responsible for filing their yearly taxes as 1099 contractor or LLC/S-Corp business.
Again, any illegal industry would immediately be shut down by the government upon filing. Uncle Sam seems okay with taking my tax dollars, so I know that he supports my business model. I have filed my taxes for 3 years now showing a rapidly growing profit from being consistent with my work for the past 3 years, and the IRS or my accountant have never once questioned me.
Don’t be afraid to educate people (and yourself!) on the difference. You can google the topic and get some amazing articles of reference. The truth is, multi-level marketing is an incredible industry. A lot of unknowing people don’t know the difference and assume the worst, but that is simply not the reality. It truly blessed my family financially and opened up a world of opportunities for me and allows me to be at home with my new daughter full-time – and I know it can bless you as well.
Let me know if you have any other questions regarding Direct Marketing or MLMs – and let’s put those negative connotations to rest! You can CONTACT me or fill out my form below, and I will personally answer your email: E-MAIL Whitney.