Beachbody Grows Exponentially Thanks To Network Marketing

Shaun T. Insanity
There are not many companies these days that can do $400 million in sales and remain relatively anonymous.

Yet Beachbody, a private company, grossed nearly as much as Groupon did last year and very few people talk about the robust engine that is behind exercise workout programs like P90X, INSANITY and Turbo Jam.

Under the leadership of co-founder Jon Congdon and Carl Daikeler, the company has developed a business model that seems to be Teflon, turning successful converts of its programs into network marketers who ensure that the brands flourish.

Many multi-level marketing companies are based on building a network of sellers and distributors getting rewarded based on the size of their network.

Most often, the people who have gotten in on the ground floor reap the greatest benefits while those late to the game struggle to make money.

What makes Beachbody’s network of distributors, called coaches, so successful is that these people have done the programs and are often in incredible shape. Their testimonial and therefore their business relies on how good they look, not whether they tell friends that a certain superfruit drink helps them have more energy or cures their stomach problems.

It seems like, more often than not, network marketing thrives on results which can’t be verified, but if my fat friend shows up with a six-pack, I’ll be more likely to believe he was doing an intense workout program.

Since starting the network marketing program three and half years ago, Beachbody now has 51,000 coaches who take a cut of videos and nutritional products they sell. Beachbody coaches sell $1 million worth of nutritional shakes under the brand’s Shakeology name a week. And it’s not cheap at around $120 for a month worth of servings.

“We could have built this company’s sales a lot faster at retail by selling at Walmart and Target,” Daikeler said. “But selling it through direct television (infomercials) and through our network works better for us.”

Daikeler says that his coaches serve as walking billboards and salespeople who want to help their family and friends by helping them lose weight through the company’s exercise programs. This is unlike many other multi-level marketing companies that solely rely on building a network to make more money.

And Daikeler doesn’t have to pay for testimonials, a common practice in the infomercial business space he plays in.

“The standard network marketing doesn’t work with our model,” Daikeler said. “This is not a ponzi scheme where if you’re the last one in, you don’t have a chance to do well.”

While the average lifespan of a multi-level marketer is three months, Daikeler says his coaches remain in the system an average of 18 months. It’s why he’s confident that by the end of 2011, there will be 150,000 coaches.

“We don’t promise it will replace your every day job,” Daikeler said. “That has been the case with about 1,000 of our coaches. But what it does for others is it keeps them in shape. In order to continue to have credibility selling, you need to continue to keep up. And so, it allows the people who want to fight obesity, to be motivated by the fact that they have skin in the game.”

By continuing to have more and more videos – P90X led to a harder workout, INSANITY, and that program is leading to The Asylum, which will come out in a few weeks – I don’t see Beachbody slowing down any time soon. And the non-traditional, more patient route of using those converted to the brand by really using it is a smart approach that I think will pay off nicely down the road.

Hydration for Athletes

Water
Possibly the most under-emphasized aspect of sports nutrition, hydration can make or break an athlete’s performance. While fuel depletion during exercise can impair performance, inadequate water not only impairs exercise capacity, but can create life threatening disturbances in fluid balances and core temperature. With as little as 1% of body weight lost in fluid, athletes can experience thirst, fatigue, and weakness. (1) Thirst drives a person to drink, but it can actually lag behind the body’s need. When too much water is lost from the body and not replaced, dehydration develops. Dehydration refers to an imbalance in fluid dynamics when fluid intake does not replenish water lost. On the flip side, water intoxication occurs with excessive water intake or kidney disorders that can reduce urine output. In healthy individuals, dehydration is more common than water intoxication, but appropriate water balance is crucial to optimal performance and ultimately survival.

  • Water and Body Fluids

Water constitutes about 60 percent of an adults weight and it is the medium in which all life processes occur, including:* Carrying nutrients and waste products through the body* Maintaining the structure of large molecules* Acting as a solvent for minerals (i.e., sodium and potassium) and other small molecules* Acting as a lubricant and cushion* Maintaining blood volume* Helping the body regulate temperature.  Every cell in the body contains fluid specific for that cell called intracellular fluid, and around it is extracellular fluid. These fluids continually lose and replace their components, but the composition of each compartment remains remarkably constant. Because an imbalance can be devastating, the body continually adjusts water intake and excretion as needed. This type of balance is referred to as homeostasis. The body must excrete a minimum of about 500ml (about 2 cups) of water each day as urine to eliminate waste products that the body makes through metabolism. Above this amount, the body adjusts by excreting excesses to balance intake. In addition to water lost in the urine, the body also loses water from the lungs as vapor and the skin as sweat. The amount of fluid lost depends on the environment (heat and humidity), and physical conditions such as activity. On average, the body loses about 2.5 liter/day. Fluid maintains blood volume, which influences blood pressure. The homeostatic balance of fluids and solutes in the body is carefully regulated by the kidneys with assistance from several hormones including antidiuretic hormone (ADH) and aldosterone. The primary solutes that are involved in maintaining fluid balance are sodium, potassium, proteins, and glucose. Adequate intakes of water and electrolytes maintain hydration levels and regulate fluid shifts between the intra- and extra-cellular compartments. To maintain water balance, intake from liquids, foods, and metabolism must equal losses from the kidneys, skin, lungs, and GI tract.

  • The Needs of the Athlete

One of the primary functions of water for all individuals, especially athletes, is thermoregulation. A person can tolerate a drop in body temperature of 10 degrees (c), but an increase of only 5 degrees (c). Heat generated by active muscles can raise core temperature to levels that would incapacitate a person if caused by heat stress alone. (2)The body uses three mechanisms to dissipate heat:* circulation* evaporation* hormonal adjustment. The circulatory system works to deliver warm blood to the body’s shell. This produces the typical flushed face. Sweating begins within several seconds of the start of vigorous exercise and this evaporative cooling controls heat dissipation during exercise. Lastly, because sweat contains water and electrolytes, the body makes hormonal adjustments to help prevent the loss of salts and fluid. When the fluid lost in thermoregulation results in dehydration and a drop in blood volume, the end result produces circulatory failure and core temperature levels can increase to lethal levels.

  • Water Replacement

Total water intake at the reference level of 3.7 liters for adult men and 2.7 liters for adult women per day covers the expected needs of healthy, sedentary people in temperate climates. The obvious dietary sources of water are water itself and other beverages, but most foods contain some water as well. Most fruits and vegetables are almost 90% water, and many other foods like meats and cheese are approximately 50% water. The body also makes water during metabolism, when energy-yielding nutrients break down and their carbons, hydrogens, and oxygens combine to make carbon dioxide (CO2) and water (H2O).According to the Dietary Reference Intakes: The Essential Guide to Nutrient Requirements, published by the Institute of Medicine (3), most people get adequate fluids by drinking when they’re thirsty. However, the report does add that prolonged physical activity and heat exposure will increase water losses and therefore may raise daily fluid needs. Very active individuals, who are continually exposed to hot weather, often have daily total water needs of six liters or more. Both heat acclimatization as well as nutrition intervention is indicated for this population. According to the American College of Sports Medicine, general guidelines for fluid replacement are as follows: (5) Consume a nutritionally-balanced diet and drink adequate fluids during the 24-hr period before an event. Drink about 500 ml (about 17 ounces) of fluid about 2 hours before exercise to promote adequate hydration and allow time for excretion of excess ingested water.* During exercise, athletes should start drinking early and at regular intervals in an attempt to consume fluids at a rate sufficient to replace all the water lost through sweating or consume the maximal amount that can be tolerated.* It is recommended that ingested fluids be cooler than ambient temperature [between 15 degrees and 22 degrees C (59 degrees and 72 degrees F])] to enhance palatability and promote fluid replacement.* Addition of proper amounts of carbohydrates and/or electrolytes to a fluid replacement solution is recommended for exercise events of duration greater than 1 h since it does not significantly impair water delivery to the body and may enhance performance. Water loss by sweating peaks at about 3L per hour during intense exercise in heat. However, just about any degree of dehydration can impair performance. Adequate fluid replacement sustains the body’s potential for evaporative cooling. Rehydration protocols are often based on water lost as measured either by urine color, urine specific gravity, or changes in body weight.(4) If collecting urine is not feasible, sweat loss as reflected by weight loss can be used. An athlete’s pre and post workout (or event) weights are taken and whole body sweat rate can be calculated by dividing the sweat loss by the time period of collection. The following equation can be used to determine volume of fluid lost: (5) Sweat loss = (body weight before – body weight after) + amount of fluid intake – toilet loss. Alternatively, taking a simple measure of body weight each morning after emptying the bladder can show a pattern of hydration over time, provided gains or losses of fat and muscle tissue are not also taking place. Fluid balance, electrolyte homeostasis, cardiovascular function, and thermoregulatory control are intimately linked to fluid consumption and each has a major impact on health and performance. Fluid replacement helps maintain hydration and, therefore, promotes the health, safety, and optimal physical performance of individuals participating in regular physical activity. Athletes and their coaches should be aware of fluid replacement needs, and develop strategies and protocols to insure athletes drink enough to keep pace with sweat loss.

 

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