How Beachbody Coaches Make Money (Part 4)


>>DAVE: Hey guys. Dave Ward here. I just wanna start by thanking you for taking the time to look over this four-part series I’m doing on how Team Beachbody Coaches earn money. I wanna start just by saying as well that you’re probably watching this videos for one of two reasons: either you are currently a coach and your just kinda trying to figure all this stuff out and looking for some information, or you’re somebody who’s interested in Team Beachbody Coaching. If that…the latter is the case, and that’s why you’re watching this video, and you’re not working with somebody else… if you’re already working with somebody else, really go back to that person and get in touch with them. I’m more than happy to just give you the information. But, if you’re not working with somebody else, my wife Monica and I have been coaches since the beginning. Always looking for people to sponsor into this business and mentor. Happy to spend some time with you and figure out if this is gonna be the right opportunity for you. So please, get in touch with me. Alright. With that, let’s move on to the next step in our four-part series. Alright, guys! Here we go…Part 4 of the four-part series on how Team Beachbody coaches earn money. Team Cycle bonus, here we are. We have come to the culmination of the series where I’m gonna talk to you about Team Cycle bonus. First, before I do that…and, I’m gonna have a link to this in the description section below. Michael Neimand, who’s senior vice president at Team Beachbody, filmed a hilarious video where he uses action figures and talks and explains Team Cycle bonus in a way that’s gonna be a lot more in-depth than what I’m gonna cover. I’m gonna talk a lot about the structure of things, okay? And, I’ll explain some of the basics and I’ve got some scenarios that I’m probably gonna run you through unless this video gets, you know, really, really long. But, what I wanna talk to you about is the structure, okay? And, that’s kind of what I wanna focus on. I’m gonna recommend you to Michael for the math. What I’ve laid out here is a hypothetical organization. This is not anyone’s particular organization. I’m sure there’s somebody out there looks just like this, but that’s not my intention. My intention is just to kinda show you hypothetically how our business grows, and how your ability to earn Team Cycle bonus is affected by the productivity of your organization, and, again…I said this in one of the earlier videos, I’m gonna say it again. It is so important for you to understand that Team Cycle bonus, in particular, and all these bonuses, but Team Cycle bonus in particular, is based on productivity. Okay? Your team has to be productive in order for you to earn any significant amount of income from Team Cycle bonus ’cause that’s what it’s about. Okay? And, if you’re being offered a business opportunity that doesn’t involve getting paid for productivity, instead just is gonna pay you for, I don’t know, signing somebody up who never does anything, for example, I would really carefully examine that and question whether you’re getting involved in an illegal pyramid scheme or not, and I say that very carefully as a former lawyer. But, I had…would have some real questions about a business that’s willing to pay you for nothing. That’s not legitimate business, in all likelihood. And, again, you should go and investigate that on your own, because I am not involved in another business. I’m involved with Team Beachbody. That’s my business and this is the business I know and have known since the inception, really. My wife was one of the founding coaches. So, let’s talk about this organization. What I’m showing you here is a couple things. Let’s kind of build the key, right? First of all, “PS” stands for “Personally Sponsored Coach.” Okay? So you’ve got a PS here, a PS here, a PS here, a PS here, a PS here, a PS here. Then we have “ECPS.” “EC” is an “Emerald Coach” that you have personally sponsored, and we have one here and one here. Why have I laid it out this way? Because this is what it looks like to be a Diamond coach. You have an Emerald Coach that you have personally sponsored and three other personally sponsored coaches on each leg and…BOOM. You’re a Diamond. Who are all these other people? They’re coaches that other people have sponsored in your organization. So, let’s take a look at this leg, which is the left leg ’cause I’m facing it, right? So that’s left. So you have an upline and then you have
the coach that sponsored you, and then there’s you. Now, I’m assuming that’s happening on your left leg. It might be happening on your right. It’s just as likely that it’s on your right, to be honest with you. That’s no…there’s no rhyme or reason to that. I just use the left ’cause I picked it that way. So…and you need to understand this, by the way, which one of these legs your coach is gonna build on. Okay? And that’s a pretty simple conversation with the person that sponsored you into this business. Okay, so we have a coach… the first person is in under you is somebody that you personally sponsored. Great! The next one has a “C” next to it because they’re a coach and they’re just a coach that somebody above you has placed in your organization. This one I gave you an “EC” and I put it in red ’cause I wanted to illustrate that, that person…the person above you…may sponsor Emerald coaches in your organization. That’s important to understand that that can happen, but it doesn’t make any difference for you as far as qualifying for any of the other rank advancement bonuses or the leadership bonus or the matching bonus. They’re just in your organization and they’re doing a little bit more than most people. They could just as easily be a Diamond Coach in your organization, too. Believe me, that happens. If you stick around long enough, this person here will advance to Diamond and you’ll have a Diamond in your organization, who you did not personally sponsor, okay? What does that mean? It just means they’re more productive. There’s more volume that’s gonna come from them and I’ll talk about that in a minute. Alright? So then we kinda get down here. And, again, I put this red person because to be an Emerald coach, this person has to sponsor a coach in each leg and that’s the same way with the green, right? I showed you here, Emerald Coach. Here in this scenario, the Emerald Coach has their first coach there and then their second coach way down here, and it just so happens that they fall in after a line of other coaches that have come into the organization. It’s pretty simple. That’s how an organization builds. That’s how the structure lays out. All of these people fall in a simple line based on chronology. It’s, you know…if this person signs up on a Saturday, they go here. This one signs up on a Sunday, they go here. This one signs up on Monday, they go here. There’s no moving people around. There’s none of that nonsense. It’s just based on whoever gets in first. Boom, boom, boom. That’s why if you are somebody watching this video, you wanna get in quickly. There should be some urgency on this for you because you don’t know who these people are who are coming in beneath you. You know? This Emerald coach, if they had made the decision a day before, or this one, they’d be here and they’d have an Emerald Coach in their downline instead of being in the downline of an Emerald Coach. I know this firsthand because my wife… well, I was not the first person that my wife sponsored into this business. She actually sponsored Lee Ratterman in, and another coach named Angela. Angela’s a Diamond coach. Lee is a Star Diamond coach, who along with us in 2010, was in the Top 10 Coaches in the company, and I’m in Lee’s downline, rather than Lee being in my downline simply because I didn’t act with any urgency on it when my wife asked me about it, which was dumb. But, that’s the way it goes and it’s all worked out in the end, of course. But, let’s talk about this leg now. Right…on this leg, I have this little note here called “Spouse.” I don’t want to dive into that too much, but if you…if you are married, you can open a second business center on Day 1. You can sponsor your spouse into this business, okay? So, we have separate business centers. You know, my wife…again, we have five separate business centers. Three of them are, I guess, technically assigned to her. Two are assigned to me. We have a corporation that owns all of them. But, that’s how this works. You’re able to open this second business center and start that on Day 1, which could be the way that you get to Emerald Coach in the very beginning. That’s what a lot of people do…they sponsor somebody into the business whose a, you know, a friend… you know…a contact of theirs or, you know, maybe a customer. It just depends in the business. And then the second person they sponsor is their spouse, and that helps them advance immediately to Emerald Coach. Why have I laid out all this structure with all these coaches who aren’t personally sponsored to you, right? Doesn’t personally sponsored coaches make…isn’t that the only thing that makes a difference? No. It’s the only thing that will help you advance in rank, okay? You have to personally sponsor people in this business to develop your organization to push it to Diamond Coach and then on to Star Diamond Coaches. Those are all personally sponsored coaches. But, each one of these people, whether they’re personally sponsored to you or not, contributes towards Team Cycle bonus, which is what I wanna talk about. Okay? So now you kinda see the structure. It’s important to understand this about Team Cycle bonus. That Team Cycle bonus is not based exclusively on your personally sponsored coaches. It includes everybody who’s underneath you. Everybody. So again, if this person here… you know, if we hit the fast forward button a year or something, and this person here went absolutely bananas and became a 10 Star Diamond, right? And, it builds a huge organization, you’re gonna cycle… get Team Cycle bonus off of what volume they create. Again, it doesn’t do anything for you in terms of your own rank advancement, or in terms of the Matching Check bonus, or the Leadership bonus that I’ve talked about in the previous videos. What it does do is create volume for you to cycle off of, and, again, it’s about productivity and being productive and having people in your organization who are. So how does Team Cycle bonus work, now that we sort of laid out the organization. Well, it can be complicated, but I’m gonna try to simplify things. Every time you have 200 points on one leg and 100 points of volume on another leg, you make a cycle, okay? And, so if you’re an Emerald Coach that cycle, you get $14 for that cycle. If you’re a Ruby Coach, you get $16 for that cycle. If you’re a Diamond Coach, you get $18 for that cycle. Now, in this scenario, you’ve got this one leg that is growing on its own, right? Because you’ve got people above you who are building that leg. So, in all likelihood, the 200 is gonna come, whoops… from your strong leg and the 100 is gonna come from your weak leg. I’m using these terms strong/weak because this one, since it’s not just you building it because your building this leg
over here, and everybody’s building out here, okay? This is probably gonna be the stronger leg, but the multiples could come from the other way, too, and this can flip. You never know. This person could go bananas and become the next 15 Star Diamond, and then, you know, completely blow this leg out and all your multiples of 200 would come from here. It doesn’t matter. What’s important is every time you’ve got 200 and 100, that’s when you cycle. Okay? So, just to give you kind of an example, right? A Shakeology is worth 90 points. So, when these people are consuming Shakeology, because it’s also based not just on their sales, but on what they buy for themselves. It’s buy or sell. It all creates volume. So, if this person here buys Shakeology and sells Shakeology, they’re gonna create volume, right? And, every time they sell Shakeology or buy a Shakeology for themselves, there’s gonna be 90 points of team volume that come rollin’ on up to everybody. Right? That’s important, too. It’s like if this person just has 90 points. Right? They create that 90 points through one Shakeology sale, this person has 90 points of team volume, this person has 90 points, this person has 90 points, this person has 90 points, this person has 90 points, this person has 90 points. They have 90 points and everybody above them has 90 points as well. So I hope what you can see by just illustrating that simple example of one Shakeology sale is…the bigger your downline is, the more potential you have to create these multiples of 200 and 100. Because, right? It’s the same situation for here. If this person does 90, they get 90, they get 90, they get 90, they get 90, they get 90, they get 90 and you get 90, and so does the people above you, alright? So, that’s…that’s kind of the key on how Team Cycle bonus works. I’m just gonna give you a couple examples. I’m gonna move this over here. So, let’s just say that you had a week where… and again, we’ll go left and we’ll go right, and hopefully I can make this nice and clean because I’m… it’s struggling to write on this board. Let’s say you had a week where you had 400 over here and 100 over here. Alright? So, again, this is…in my scenario, this is gonna be the one that probably does more volume…hypotheticals, right? These are all hypotheticals. This is not based on any actual circumstance and we make no guarantees about income and that’s an important thing. We’ll have a nice little disclaimer in the description section for you to look over. What would happen in this situation? Well, you have a multiple of 100, but you don’t have… and you’ve got two multiples of 200, but you’ve only got one multiple of 100 to match it. So that’s one cycle. Alright? That’s what it looks like. That’s one cycle. Now, what does that mean? Well, if you’re an Emerald Coach, that would get you 14 bucks. If you’re a Ruby Coach, it would get you 16. If you’re a Diamond Coach, it would get you 18. But, as you can see, for an organization like this, it’s not likely that 400 is what it’s gonna be, right? I mean, if these people are all active, they’re all drinking Shakeology and this person’s selling Shakeology and so is that person. So, it’s gonna be…the numbers are gonna be a little bit higher than that. So let’s say that next week, it looks more like this. And, it’s 800 and what’s my center? 400. Well, here’s what happens. When you cycle up here, okay? You have leftover volume. You didn’t use all of the 400. You used all of the 100, but there’s 200 left over here. You don’t lose that volume. That volume is what we call carry over volume. So, it’s really not 800. It’s really 1,000, because you had 200 that rolled down from the previous week. Quick note about carry-over volume. You start establishing carry-over volume when you reach the rank of Emerald Coach. You lose it if you go inactive. So, if you fall out of Emerald, you don’t lose your carry-over volume, but if you go inactive, meaning that your coach account is not buying or selling 50 points, which is just like nothing, every five weeks and you go inactive, all of that flushes. If you’re sitting over here somewhere, that could be a huge number. So do not let your coach account go inactive. That is a tremendous mistake. All of the carry-over volume will flush and you will go back to zero. Don’t do that, okay? Because this carry-over volume ends up becoming very, very significant. So, let’s go back to the scenarios. So, now we’ve got, instead of 800… 800 was what the team did…you had 200 that carried over. You have 1,000 in this leg and 400 in this leg. What do we have in this scenario, is we have four cycles. Okay? Four cycles. What does that get you? Well, if you’re an Emerald Coach, that is gonna get you 56 bucks. If you are a Ruby Coach, it’s gonna get you 64, and if you’re a Diamond, it’s gonna get you 72. Great! So there you go. That’s a…that’s a typical week for a lot of people. They have 1,000 points in one leg and 400 in the other and they’ve cycled four times and they earn, you know… depending on what their coach rank is, that’s what they earn. So let’s keep goin’ with this. Alright? So let’s say the next week this team…their productivity keeps goin’ up, but this team does zilch. Alright? They just…all these people over here fall asleep. They just take the week off and do nothing. Not very likely given this business structure, but that could happen. Well, guess what? You get nothin’. You get no Team Cycle bonus. Why? Because there was no productivity, okay? Going back to the comment that I had earlier about the business being related to the productivity of the people on your team. If they’re not productive, you don’t get paid. Because this isn’t a pyramid scheme, okay? This is a legitimate business opportunity. A legitimate marketing opportunity, in which we get paid based on productivity. No productivity, you don’t get paid. However, as I mentioned earlier, the 2,000 points would roll on over to the following week. So what do we have coming down here? Well, we had 200, right? Because the previous week we used up all 400 to cycle four times, ’cause we had 100 on this leg… multiples of 200 over here. We had 1,000. So, that’s 800 that we used up. 200 carries down. These people did 2,000 in this week. Meaning when we had to carry over volume, we actually have 2,200. Okay? So hopefully you see how this works…where we’ve got the, the carry over volume being now 2,200, because all 2,000, you didn’t use any of it. Right? Because you didn’t have any multiples of 100 here to offset it… or to, to, to match it is a better way to put it. So, you didn’t use any of the 2,000 and you had 200 from the week before, so all it just carries on over. Again, you don’t lose this stuff unless you go inactive and that is just… don’t do that. I’ve seen a lot of people make that mistake over the years, and we try to really encourage people. Alright, so here we our with our situation where we have 2,200 carry-over volume. This is all carry-over. Right? Because you had the 200 and then you have the 2,000 that’s new. The 200 carried over and this was new. New volume. So we’re at 2,200 carry over volume. So let’s advance to the next week and let’s say people get back to work. Right? And, you get 1,000 points over here, and you have 2,000 over here. Well, this number is actually 4,200 because of carry-over volume. Right? You have 2,200 carry-over volume, because you had 200 from two weeks ago, you had 2,000 from the previous week, which you didn’t use any of because you had zero here. So now you’ve got 4,200 and 1,000. What’s that gonna get you? 10 cycles. 10 cycles, which will mean if you are an Emerald Coach, you get 140 bucks. If you are a Ruby Coach, you get 160 bucks, and if you are a Diamond Coach, you get 180, right? Because every cycle it’s 14 for Emeralds, 16 for Rubies, and 18 for Diamonds. Pretty straight forward. That’s what a 10-cycle week looks like… …and, of course, you have carry-over volume that’s left over here of 2,200, and that is how Team Cycle bonus works. It’s been a really long video. What I really wanna impress upon you guys is… and, again, this can get super, super complicated. If you’re talking to people about… who are interested in our business, I don’t think, unless they are some…have some background in network marketing, or really, really want to understand this stuff on a big time level before they get involved, and you will find some of those people, but most people, they aren’t gonna need this level of detail. You know? And I can tell you that I was a Diamond Coach and then some, before I understood it on this level. You don’t need to understand it with this sort of depth in order to be successful in this business and you certainly don’t need to be explaining this to your prospects. The idea behind this video really is to give you, as a coach, a little bit more in-depth understanding of how Team Cycle bonus works, and that’s my real goal here. Hopefully you get it. You know? The whole organization is what contributes. Team Cycle bonus can be, as you can see, a really substantial amount of income. You know? I give you this 1,000 cycle or 1,000, I’m sorry… 1,000 point week with 10 cycles, but, you know, I mean…that’s one, two, three, four, five, six, seven, eight, nine coaches. If they all do 90 PV, you can see how close you’re getting to 1,000 cycles right there, okay? This takes time to build. You know? And, this isn’t an organization that’s gonna build overnight. You know? And it’s gonna take time for, you know, the scenario I gave you with this Emerald coach to become that next 15 Star. Don’t worry about that stuff. Just get busy. Plug away. If you haven’t watched the other video I did where I laid out my weekly paychecks on the surfboard actually. I used…I didn’t have a whiteboard so I just used this surfboard and I laid out my weekly paychecks from my first week, which was August of 2008, was my first real official week I was really jamming as a Beachbody coach. I’d been a coach before then, but I hadn’t done anything. I laid out that week, which I made $26.42 that week. You know? Laid it out to just last August, which was like a $3,000 week. Something like that, I don’t remember exactly. In one of our five business centers is the only thing that I did there. So, hopefully, this has become clear as mud to you. Again, I don’t expect you to really get it and understand all this stuff. You get it by learning by experience and watch Michael Neimand’s video. For this bit over here, Michael Neimand’s video is gonna be a lot better explanation. I was really trying to give you the structure and all that other stuff. So, hopefully you found this helpful. Once again, if you’re watching this video because you are thinking about becoming a coach and you are not working with a coach, I wanna make this really clear… I’m not looking for people who already have sponsors in the business. Not looking for people who already have potential sponsors in the business. I’m looking for people that, if you’re out there, and you don’t have anybody to coach you and you’re looking to be involved with this business, and you want a sponsor who knows what they’re doing and who is in for the long haul, we can be those people for you. So, please reach out and contact me. My email address is [email protected] You can, of course, find more information in the description below. I hope you’re having a great day. Talk to you soon.

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