HONOLULU--(BUSINESS WIRE)--UNITE HERE Local 5 announced a new website about fitness company Beachbody today, www.beachbodybummer.org. Known for its “P90X” and “Insanity” workout DVDs sold on TV infomercials, Beachbody is a Multi-Level Marketing program. According to UNITE HERE Local 5, the company’s salespeople, independent non-employees typically recruited by other independent non-employees, must pay both upfront and monthly fees to qualify for the chance to make money. Unlike traditional sales jobs with guaranteed base rates of pay, Beachbody salespeople do not make any hourly income, instead being paid out through a complex system of commissions which is not directly based on the value of what they sell - many of the commissions are dependent on recruiting other people to be salespeople - and which is subject to change at Beachbody’s discretion.
In addition to examining the company’s sales program, the website provides comparative information for consumers to consider before they decide to buy the company’s nutritional shakes and other products. The site examines the company’s policy procedures, compensation plan and actual earnings by salespeople, as well as Multi-Level Marketing programs in general. According to UNITE HERE Local 5, findings include:
- In 2012, most salespeople did not earn any bonuses or commissions from Beachbody.
- Beachbody’s Shakeology nutritional shake costs significantly more than similar products.
- Salespeople are required to pay monthly fees to maintain their standings whether or not they earn any revenue.
- There are numerous reports about Beachbody’s business practices on online consumer forums.
About Unite Here Local 5 – Local 5 is the Hawaii-based branch of the UNITE HERE union, which represents over 250,000 North American members, with a tradition of consumer advocacy.