Electronic Retailer - May 2012 - 26

LEADING A FITNESS REVOLUTION

network – not available through television. One example is Shakeology, a protein shake sold directly through the network. A lot of the relationships that fellow Beachbody customers and coaches create across the country are online – whether through Facebook, Twitter or YouTube. “People who are customers of ours have become close friends without ever meeting each other because of the online community. And when they finally do meet each other, it’s at our Team Beachbody Annual Summit,” says Congdon. This year, the summit will be held in Las Vegas, which, he says, is expected to attract between 6,000 and 8,000 coaches. “They’ll learn about new products and they each leave the summit ready to conquer the world,” explains Congdon. Although many ideas are exchanged at the event, he says the information shared on Beachbody’s online community is a valuable resource. “Essentially, there’s no

easier way to keep your site fresh than to have the users generating the content.”

The Obama Connection
Not only is Beachbody reaping the rewards from an innovative business model, but it’s also become a catalyst for helping the DR industry evolve. As Daikeler puts it: “Instead of being the industry that tricks people into fitness gimmicks, this could be the industry that literally is responsible for ending the trend of obesity in this country. The proof is when [Jon and I] can be at a fundraiser for the Democratic party, where the President of the United States walks up to us and says, ‘P90X … my wife does that and I can hardly keep up with her.’” “And then all the Secret Service agents around him tell us they’re doing it too,” Congdon adds. “I’ve been in the infomercial business now since 1987 and that’s one of those moments when you realize, ‘This is not a

bottom-of-the-barrel business anymore. We are truly changing people’s lives and marketing something that has exceptional value to the people who buy from our coaches or our TV commercials,’ ” Daikeler affirms.

Making an Imprint in the Industry
However, while Beachbody continues to innovate and challenge traditional DR methods, both Daikeler and Congdon acknowledge that bad actors can tarnish an entire industry and affect their own business. That’s why the company remains committed to promoting selfregulation and working with fellow ERA members and marketers to ensure that consumers can trust the product claims made in DRTV advertising have been vetted; therefore, they know they can achieve the results being promised to them. Congdon says, “We’ve worked very hard to get our industry to realize that making a lot of money selling false promises would eventually hurt their bottom line because nobody was going to trust what they bought on television.” In September 2011, Beachbody became the toast of the industry when it was named ERA’s 2011 Marketer of the Year. “We were honored by the recognition,” says Congdon. “I think it has to do with the presence of so many of our brands on television, which is obviously noticed by our peers and that’s exciting to us. Clearly, we wouldn’t be on the air and wouldn’t be selling those products if we weren’t sticking to our business model.” Looking back at the 25 years he’s spent in the DR business, Daikeler shares the most important lesson he’s learned. “Infomercials can be a very compelling way to sell a product and can create amazing wealth very quickly. But when you combine that power with an intense focus on how you’re serving the customer, it creates an amazingly va luable company,” he says. “At Beachbody, our biggest investment has been and continues to be in serving the customer better, not just selling more product.”

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Electronic Retailer - May 2012

Table of Contents for the Digital Edition of Electronic Retailer - May 2012

Calendar of Events
Your Association, Your Bottom Line
Industry Reports
FTC Forum
eMarketer Research
IMS Retail Rankings
Jordan Whitney’s Top Categories
From the Executive’s Desk
Cover Story Leading a Fitness Revolution
ERA’s in Your Corner on the Key Issues
10 Secrets to Slashing Production Costs
Guest Viewpoint
Teleservices
Creative
Legal
Fulfillment
Member Spotlight
Advertiser Spotlight
Bulletin Board
Advertiser Index
Classifieds
Rick Petry
Electronic Retailer - May 2012 - cover1
Electronic Retailer - May 2012 - cover2
Electronic Retailer - May 2012 - 3
Electronic Retailer - May 2012 - 4
Electronic Retailer - May 2012 - 5
Electronic Retailer - May 2012 - 6
Electronic Retailer - May 2012 - Calendar of Events
Electronic Retailer - May 2012 - Your Association, Your Bottom Line
Electronic Retailer - May 2012 - Industry Reports
Electronic Retailer - May 2012 - 10
Electronic Retailer - May 2012 - 11
Electronic Retailer - May 2012 - 12
Electronic Retailer - May 2012 - FTC Forum
Electronic Retailer - May 2012 - eMarketer Research
Electronic Retailer - May 2012 - 15
Electronic Retailer - May 2012 - IMS Retail Rankings
Electronic Retailer - May 2012 - 17
Electronic Retailer - May 2012 - Jordan Whitney’s Top Categories
Electronic Retailer - May 2012 - 19
Electronic Retailer - May 2012 - From the Executive’s Desk
Electronic Retailer - May 2012 - 21
Electronic Retailer - May 2012 - Cover Story Leading a Fitness Revolution
Electronic Retailer - May 2012 - 23
Electronic Retailer - May 2012 - 24
Electronic Retailer - May 2012 - 25
Electronic Retailer - May 2012 - 26
Electronic Retailer - May 2012 - 27
Electronic Retailer - May 2012 - ERA’s in Your Corner on the Key Issues
Electronic Retailer - May 2012 - 29
Electronic Retailer - May 2012 - 30
Electronic Retailer - May 2012 - 31
Electronic Retailer - May 2012 - 10 Secrets to Slashing Production Costs
Electronic Retailer - May 2012 - 33
Electronic Retailer - May 2012 - 34
Electronic Retailer - May 2012 - Guest Viewpoint
Electronic Retailer - May 2012 - 36
Electronic Retailer - May 2012 - 37
Electronic Retailer - May 2012 - 38
Electronic Retailer - May 2012 - Teleservices
Electronic Retailer - May 2012 - Creative
Electronic Retailer - May 2012 - Legal
Electronic Retailer - May 2012 - Fulfillment
Electronic Retailer - May 2012 - 43
Electronic Retailer - May 2012 - Member Spotlight
Electronic Retailer - May 2012 - 45
Electronic Retailer - May 2012 - Advertiser Spotlight
Electronic Retailer - May 2012 - Advertiser Index
Electronic Retailer - May 2012 - Classifieds
Electronic Retailer - May 2012 - 49
Electronic Retailer - May 2012 - Rick Petry
Electronic Retailer - May 2012 - cover3
Electronic Retailer - May 2012 - cover4
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