Shakeology

The real margin is the shake, not the content

Sam breaks down Beachbody's economics: the DVD/streaming content and the coach salesforce are loss-leaders, and nearly all profit comes from Shakeology, a ~$130/month nutrition shake sold at near-pure margin. Same pattern as supplement companies generally.

“The shakes, it's like $130 for your one month of nutrition shakes. And that's like pure margin. It goes back to the Andrew Priscilla guys, like supplement company is like they make all their money on the profits come from the shakes. And the whole thing with the coaches is like, cool, we get you hooked on this program and then you want better results.”

Steal thisUse the program and the salesforce as front-end hooks, then make your money on a high-margin recurring consumable.