BeachBody is the latest MLM company to ditch its network marketing business model.

In a September 30th communication to investors, BeachBody stated it would be focusing on “current direct-to-consumer, Amazon, and partnership-driven sales channels”.

As part of its strategic shift to optimize its omnichannel distribution platform, BODi will transition from its current Multi-Level Marketing (MLM) Network channel to a single-level Affiliate Program, which will launch November 1, 2024.

Speaking on the transition, Mark Goldstone, BeachBody’s Executive Chairman, stated;

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of today’s current market dynamics, as well as consumer preferences, the multi-level marketing distribution model is outdated and unsustainable.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.

In addition to ditching its MLM business model, BeachBody has also slashed its workforce by 33%. The company claims this will save it $54 million annually.

BeachBody’s MLM “revenue break-even point” is $430 million annually. By ditching MLM and firing staff, BeachBody is aiming to reduce this to “less than $225 million”.

Back in March BeachBody claimed it expected “to have positive cash flow from operating activities and free cash flow in the first quarter.”

In a follow up August 2024 update BeachBody disclosed revenue was $110.2 million, down from “$134.9 million in the prior year period”. Surprisingly though, BeachBody had only lost $10.9 million, down from $25.7 million the year prior.

BeachBody states it expects its MLM operations to be “fully wound down by January 1, 2025.”