My First Year as a Team Beachbody Coach

If you own 2 or more Beachbody programs, love to travel, and/or would like an extra few hundred to a few thousand dollars a month, then you absolutely need to check out what coaching is all about.  Learn More HERE.

I just completed my first year as a Team Beachbody Coach and I have to say it has been one of the most rewarding experiences of my life.  I’ve helped quite a few people, added a few new skills, and even made a few bucks on the side.

What is a Coach?

Coaches are typically Beachbody customers who enjoy the products so much they decided to share them with others who have a need (and desire) to improve their fitness and nutrition.  In return for “spreading the news” Coaches receive a 25% discount on all purchases, and receive approximately 25% commission on customer purchases (there is a whole category of coaches called “Discount Coaches” who only join the program for the personal discount and do not actively sign up customers or sell products).  Coaches are not fitness professionals but over time we do learn alot about what works for most people which allows us to answer common questions people have.  For difficult questions we rely on the professional material available to us in the “Coach Online Office”, or we plug into the network of thousands of other coaches in our upline organizations.  Our role is to find people whose lives could be enhanced through the use of the products, help them identify the right products for their personal circumstances, connect them with others in accountability groups, and encourage them to succeed.  Basically a Coach is motivator, facilitator, and distributor.

The Three Vital Behaviors

The only expectations that the company sets for its Coaches are captured in the “Three Vital Behaviors”.  Practice these and not only will you see your cash flow increase but you’ll enhance your own life.

• Invite, Invite, Invite:  This behavior is all about inviting as many people as possible to have success with the products.  We are encouraged (and trained) to have the courage to invite everyone we come in contact with.  This can be in face to face meetings, on the phone, email, or through social media.  By practicing this behavior not only did I meet alot of new people, but I helped many of them begin their fitness journeys just by breaking the ice with them.  Also at the beginning of the year I wasn’t even on Facebook.  While it has provided me an opportunity to reach new people, it has also allowed me to re-connect with old friends and family members that I lost touch with over the years.
• Be a Product of the Product:  What better way to relate to people than be proof the products work.  Of course a coach should be knowledgable about the products offered, but nothing beats first-hand experience.  Between the two of us Susan and I have experience with 9 different Beachbody fitness programs, and practicing this behavior keeps us accountable for our own fitness.  We regularly use Energy & Endurance, Results & Recovery Formula and Shakeology not because we are required to but because they work.
• Personal Development:  We are encouraged to read 10 pages a day (or listen to audio) of a personal development book.  The concepts I’ve picked up from my reading this year have changed the way I approach life and my business.  Among the titles I’ve read this year are The Compound Effect, Go Pro, Salt Sugar Fat, My First Year in Network Marketing, The Paleo Diet, and The 15 Invaluable Laws of Growth.  Also thrown in were several dozen podcasts from different motivational speakers.  When you hit an emotional low spot, whether in life or your business, your personal development reading will help carry you through.

Impact on People’s Lives

For the first time in a long time I feel I am actually making a difference in people’s lives, and that’s the most rewarding aspect of being a coach.  Here are just a few of the comments I’ve received from clients–it really perks up your day when you see one of these in your inbox!  Some of you will see your own comments here:

I didn’t think he was that serious in saying I looked like I lost weight!  According to the scale I haven’t lost much but I know I have gained a lot of muscle. I generally feel much better so p90x is great to me!

Thanks for keeping in touch John. I need a little push every now and then and when I see your name it’s like I better have something good to report like I’m still working out – someone for accountability.

I did finish Hip-Hop Abs along with a couple of eating programs, helping me to get down almost 32 pounds! I am so excited for this great loss, and it’s motivation to keep going.

I’d be happy to refer everyone to you! You’ve been a big help to me and I’m sure you would do the same for others.

Thanks John!!! You are a really good coach. I know that is a simple compliment , but it means alot.

I am really determined to do this and I feel as though I couldn’t so it without someone there to support me in this journey.

I am nervous and exited all at the same time to start my program tomorrow. I honestly don’t know what I would have done with out you to help me get started.

Your comment about how little $ your workouts cost you had a big impact on my thinking.

The 30 hard minutes are really helping me because it’s almost impossible to make an excuse to not fit it in. Thanks for turning me on to it

It’s hard to have any regrets with feedback like this 🙂

Cash Flow

You’re probably wondering if you can make money doing this.  Positive cash flow?  Absolutely.  Make enough to pay your bills and live on?  Certainly, with enough time and effort–many coaches who have been doing this for a few years have “fired their bosses” and are supporting their families on this.  I, on the other hand, was working a full-time job all year and spent anywhere from 10-20 hours a week on it.  This is a network marketing opportunity, and those who remain consistent and show up every day over the long run find success.  But first, the legal disclaimer:

“Beachbody does not guarantee any level of success or income from the Team Beachbody Coach Opportunity. Each Coach’s income depends on his or her own efforts, diligence, and skill. See our Statement of Independent Coach Earnings for the most recent information on our Coaches’ actual incomes.” 

Income

This figure is taken from the “Statement of Independent Coach Earnings For Year Ending December 26, 2012” (click the link for the full text including footnotes; CLICK HERE for the latest version):

I had two goals when I signed up in order for this to seem worthwhile financially:

1. Achieve Emerald Rank, which is the rank required to receive free customers from the company.  These are customers who purchase a program on their own by calling the 800 number or through the company’s website.  They are assigned to coaches at Emerald Rank and above.
2. Earn at least the average earnings for an Emerald Coach ($3,353) in my first year.

How did my first year end up?  I achieved Emerald Rank in March 2012 and started receiving customer leads in April.  For my first 52 weeks my earnings totalled $4,680.  That’s $4,680 direct deposited into the bank, not total sales.  For those of you who know me know I’m not an excitable guy, but that just tickled me pink 🙂 The way I look at it the income is a combination of Active and Passive income, and comes from three sources:

• ACTIVE INCOME from personally invited customers (initial purchases by friends, family, co-workers, and referrals)
• RESIDUAL INCOME (Passive) from personally invited customers (follow-on purchases of programs or supplements, recurring Shakeology orders, VIP Club Memberships)
• PASSIVE INCOME from company provided customers and bonuses (“Success Club” customers who come with their first order’s commission, recurring Shakeology orders, VIP Club memberships, and “Team Volume” bonuses)

Here’s how the income breaks down between the three sources:

The split between Active and Passive works out to be 47% Active and 53% Passive, and even I was surprised by the amount of passive income that was generated in my first 12 months.  But the most exciting thing is the $1,235 completely passive income generated from company provided customers and bonuses.  It may not seem like much now, but as I grow my base and sponsor additional active coaches, this component will compound over time to where it is the largest piece of the pie.  It does cost more to qualify for it, but it’s worth the cost–details below.

(Note:  I did not include non-cash bonus gifts that coaches are eligible for throughout the year like books, discount coupons, or bobblehead dolls 🙂  Nor did I include $560 of credit I earned towards the annual spring trip since I will not be going on the trip this spring.  I do plan to take advantage of my travel dollar credits this year and have already earned $200 towards the cost of the spring trip next year.)

Expense

So what’s the catch?  How much does it cost to be a coach?  In order to earn commissions and residual income from personally invited customers, the Startup and Business Service Fees for my first year work out to be a grand total of (drum roll please) $215.35.  That’s right, for an investment of a little over $200 you can earn part-time income from personally invited customers and see positive cash flow.

I elected to invest a little more, so my total out-of-pocket cost works out to be about $575 and breaks down like this:

• Required: Business Service Fees:  $215
• Optional: Promotional Materials (brochures, business cards, logo cups, logo shirts):  $110
• Optional: Shakeology, R&R, and E&E samples:  $150
• Optional: John T Fitness Website:  $100

This is how much I spent to earn $3,445 from personally invited customers, not a bad return on investment (note this does not include other expenses such as home office expenses, cell phone expenses, etc. that will be deducted from income at tax time).

How much more does it cost to qualify for the company provided customers and bonuses?  Here’s where you don’t get something for nothing, so to qualify at this level you need to be a VIP Club Member ($13/mo), and basically order Shakeology every month (my discounted cost with tax is $96/mo, for new coaches the cost will be closer to $106/mo).  For 2013 my additional optional cost to earn passive income from company provided customers and bonuses was $1,208:

• 10 months Shakeology (not required until Month 3):  $960
• 10 months Club Membership (not required until Month 3):  $130
• 2 months Shakeology for spouse coach :  $192
• 2 months Club Membership for spouse coach :  $26

On the surface it looks like the $1,208 investment was about break-even for the $1,235 in passive income earned from this source.  But the way I look at it we are going to drink Shakeology whether it’s required or not because we like it and it is good food.  In fact, we go through two bags a month even though Susan was only required to purchase it for two months of the year to maintain her status and qualify for bonuses.  If you don’t want to drink Shakeology it is possible to re-sell the packets and reduce your net out-of-pocket cost–I sold about $400 in Shakeology packets in cash transactions that are not included in the income statements above.  One final point to keep in mind about the optional costs:  while your Shakeology and Club Membership expenses remain basically constant, the income derived from this source (specifically the Team Volume Bonus) will compound as you grow.

Bottom line my total costs were about $1,800 which generated $4,680 in earnings, for a positive cash flow of $2,880.  Not bad for part-time, it helps pay for the new programs they keep coming out with 🙂

Other Highlights

Just a few other highlights from my first year:

• At the beginning of the year I was not even on Facebook, now I am (not sure if that’s good or bad!)
• I opened up this website and learned how to run my own blog.  Our recipe database is up over 40 recipes now!
• We received our first “pingback” from another website referencing some of our content (that’s pretty cool).  Susan’s Grilled Salmon Salad with Raspberry Vinaigrette recipe was referenced at http://www.topinspired.com/top-10-savory-seafood-salad-recipes/.
• My P90X/T25 Hybrid blog post went to #1 in the Google rankings.  Just type “P90X T25 Hybrid” into Google and see what comes up.  I don’t know much about Search Engine Optimization but I know people pay alot of money for Google placement (I didn’t).
• Susan achieved Emerald Rank and I achieved Ruby Rank in December.  Now my goal for 2014 is to beat the average earnings for Ruby coaches and qualify for Diamond.

Thank you to everyone who made my first year successful.  This is a great way to earn a little extra money on the side.  If you want more detail or if you are interested in trying it out with me please let me know by leaving a comment below or using the “Contact Me” link at the top of the page.

“Beachbody does not guarantee any level of success or income from the Team Beachbody Coach Opportunity. Each Coach’s income depends on his or her own efforts, diligence, and skill. See our Statement of Independent Coach Earnings for the most recent information on our Coaches’ actual incomes.”

Learn More About Coaching

Latest Statement of Independent Coach Earnings

Compensation Plan Highlights (short version)

Coach Policies & Procedures/Compensation Plan (long version)