BODi executive chairman says multi-level marking distribution model is ‘outdated and unsustainable’ as fitness and nutrition companies seek to diversify revenue streams
The Beachbody Company, known for workouts like P90X and Insanity, is transitioning from its long-standing multi-level marketing (MLM) model to a single-level affiliate program.
The fitness and nutrition company, which rebranded to BODi last March, says the official transition will take place on November 1st and the current MLM network will be discontinued by January 1st, 2025. says. Participants in the Team BODi Partner Network in the United States and Canada are eligible for what the company says is a new affiliate program.
BODi is reducing some of its workforce, affecting approximately 33% of its workforce. The changes come as BODi seeks to streamline operations and position the home-based wellness company for future profitable growth.
Beachbody’s turnaround strategy
BODi Executive Chairman Mark Goldston said: “The first phase of our restructuring is focused on reducing infrastructure costs and restructuring our financial model.” “We have successfully achieved that goal. Over the past three quarters, we have lowered our breakeven point by more than $400 million, reduced our net loss, and generated positive adjusted EBITDA.”
Mark Goldston (Credit: BODi)
Goldston said the next phase of BODi’s efforts will be to optimize and expand its distribution footprint, including expanding BODi’s direct-to-consumer, Amazon and partnership-driven sales channels to diversify its revenue streams. It added that it includes.
Exactly one year ago, BODi announced a new “Growth Game Plan” that gave special bonuses to high-performing network distribution partners and streamlined its content into a digital fitness library.
new outlook
Regarding the multi-level marketing distribution model that BODi has maintained for many years, Goldstone noted that it is “outdated and unsustainable” given market dynamics and consumer preferences.
“The evolution to an affiliate model provides a simpler, more modern approach to customer acquisition and rewards sellers directly for their efforts,” he continued. “The evolution to the affiliate model offers a simpler, more modern approach to customer acquisition and rewards sellers directly for their efforts. The organizational challenges and complexities of the MLM approach We are confident that this transition will be beneficial to our stakeholders and potential new participants.
Zacks added that Goldson will share further details during BODi’s third-quarter earnings call, scheduled for Nov. 5.
Related Items Credit: BODi
Karl Daikeler, CEO and co-founder of BODi, spoke about the change in business model, stating that since its founding, the nutrition and fitness company has evolved its business model to adapt to a dynamic market environment. He said it has a long history.
“We continue to adapt and evolve to optimize our sales channels,” Daikeler said. “The move to an affiliate model has energized a network of partners and new participants who are more consistent with their own health and fitness goals and can share their results to help others become healthier and more fit. We believe in helping people live fulfilling lives and getting paid for it.The complexity of managing and recruiting a team of other partners.”
BODi also reaffirmed its financial guidance for the third quarter, expecting sales to be in the range of $97 million to $107 million.
Beachbody welcomes new brand ambassador
BODi, a healthcare payment provider that helps eligible customers access HSA/FSA funds for supplements, exercise and other health interventions, last month named former pro football player and professional wrestler Dean Muftadi as its new brand ambassador. , in partnership with TruMed. The partnership will allow eligible BODi customers to use pre-tax HSA or FSA funds to purchase BODi supplements, including Shakeology Superfood Nutrition Shakes.
Courtney Rehfeldt
Courtney Rehfeldt has worked in the broadcast media industry since 2007 and freelanced since 2012. Her work has been featured in Age of Awards, Times Beacon Record, The New York Times, and has an upcoming article in Slate. She studied yoga and meditation with Beryl Bender Birch at the Hard & the Soft Yoga Institute. She loves hiking, being outdoors, and is an avid reader. Courtney holds a Bachelor’s degree in Media and Communication Studies.
