24/7 Market News- The Beachbody Company Introduces Omnichannel Approach to Accelerate Growth and Improve Margins
DENVER, Colo., Oct 01, 2024 (247marketnews.com)- The Beachbody Company (NYSE: BODI) stated that it will transition from a Multi-Level Marketing model to a single-level Affiliate Program, starting November 1, and expand its current direct-to-consumer, Amazon, and partnership-driven sales channels.
BODi believes that omnichannel sales channel approach restructuring will reduce costs, broaden its distribution channels, and significantly lower its revenue break-even point from ~$430 million in annual revenue to ~$225 million
Mark Goldston, BODi’s Executive Chairman, commented, “The first phase of our turnaround is centered on lowering our infrastructure costs and re-architecting our financial model.
“We have successfully accomplished that goal – we’ve lowered our revenue break-even point by more than $400 million, have reduced our net losses and generated positive Adjusted EBITDA over the last three quarters. The next phase of our journey is to optimize and broaden our points of distribution by converting the existing MLM to a single-level affiliate network, and expanding our direct-to-consumer, Amazon and partnership-driven sales channels, which we believe will further open the sales aperture and diversify our revenue sources.”
“We recognize that in light of today’s current market dynamics, as well as consumer preferences, the multi-level marketing distribution model is outdated and unsustainable. The evolution to the affiliate model offers a simpler, more modern approach to customer acquisition and will directly reward the seller for their effort. The organizational challenges and complexity of the MLM approach has weighed on the Company’s turnaround and the ability of Partners to optimize their potential. We are confident this shift will be beneficial to stakeholders and to new potential participants. I look forward to sharing more details on our third quarter earnings call.”
Carl Daikeler, BODi’s CEO and Co-founder, added, “Since our founding, we have had a long history of evolving our business model to adjust to dynamic market environments. We continue to adapt and evolve to optimize our sales channels. We believe that transitioning to the Affiliate Model will energize our network of Partners and new participants to stay more consistent with their own health and fitness objectives and share their results to help others live healthier and more fulfilling lives and get paid for it, now without the complexity of managing and recruiting a team of other Partners.”
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