The infomercial king nearly made himself a billionaire by selling DVDs and health shakes
Carl Daikeler is now worth an estimated $660 million
Image: Ethan Pines for Forbes
As the air-conditioning hums in a squat, windowless warehouse on a desolate side street in Van Nuys, California, Carl Daikeler strolls onto the set of a workout-video shoot and informs the spandex-clad cast that it’s time for his social media ritual. Everyone quiets down. He holds his iPhone up high, forces a smile and begins to rave about 80 Day Obsession, a new workout programme about to be filmed in real time. He stops and grimaces at a reporter after a few failed takes: “I’d be cursing if you weren’t here.”
A couple of more tries and he fires off several minutes of footage to his 130,000 Instagram followers. We head into a dimly-lit room with couches and a big-screen TV monitor to watch the lithe celebrity trainer Autumn Calabrese taping a choreographed workout. At 10 am sharp, an assistant hands Daikeler a plastic tumbler of Beachbody’s flagship product, a weight-loss shake called Shakeology. He has gulped down this vegan chocolate-flavoured concoction—cocoa powder, chia, quinoa, rose hip and some 60 other ingredients—at the same time, every day, for the past decade. He posts another quick video of himself drinking the brown sludge, his voice rising an octave as he tells viewers he’s logging Day 289 of the 365-day challenge urging other Shakeology drinkers to stick to the regimen.
Daikeler, at a trim 5-foot-8, is leading by example. As co-founder and CEO of Beachbody, he’s at the top of a modern-day multilevel marketing machine with more than 340,000 independent “coaches,” who sell workout videos, shakes and supplements to weight-loss hopefuls via social media. The playbook goes something like this: Lose weight with Beachbody by doing the at-home workouts and drinking the shakes. Share it on social media. Use your story to sell products and recruit new customers and coaches. Repeat.
“Credible success stories are the backbone of the company,” says Daikeler, 54, who owes his six-pack abs to Beachbody workouts. He considers himself customer No 1 and tells anyone who will listen that he hates working out and can’t stand vegetables. The story makes sense when you consider his mission is to sell to a nation of couch potatoes.
The way Daikeler sees it, he’s hit on a scalable solution to the fat epidemic afflicting approximately 175 million overweight and obese adults in the United States. Forget the gym—you’ll never go. Instead, shed those pounds in the comfort of your own living room, then become a cheerleader for others—all while making a percentage of sales to regular customers, plus a slice of any new coach’s sales that you bring on. In other words, join Beachbody to lose weight and get rich in the process. Daikeler himself is now worth an estimated $660 million, based on his majority ownership of the privately-held company, which has attracted 28 million dieters since its 1998 inception and had revenue of $1 billion in 2017. “The fact that there still hasn’t been a solution to obesity is a stunning opportunity,” says Daikeler, dismissing competitors like Weight Watchers and Nutrisystem. “It’s an opportunity that is just shockingly available to me.”
Back at the company’s sunlit Santa Monica headquarters, Daikeler parks his Tesla Model S and heads into his office, passing a wall of handwritten inspirational sayings (‘You can’t predict the future. But you can CREATE it!’). Daikeler loves this stuff. He is, after all, in the motivation business. “Probably the coolest part about Carl is he does lead with his heart. He’s about empowering other people,” says Amber Kuiper, a top-tier ‘nine-star diamond’ coach from Woodbury, Minnesota.
Daikeler needed motivation as much as anyone else. Growing up outside Philadelphia, he wasn’t much for healthy eating (his afterschool routine involved devouring a stack of Oreos while watching The Flintstones) or athletics (he got cut from his high-school basketball team on the first day). Not much has changed. He’s still far more interested in the lights-camera-action excitement of entertainment than in pumping iron at the gym. As a kid, he helped with the sounds and lights at a theatre his family co-owned, the Bucks County Playhouse. Later, in high school, he sometimes slept in the school’s TV studio after working late into the night, to the detriment of his grades and SAT scores.
When Daikeler was roundly rejected by every college he applied to, he drove up to Ithaca College in upstate New York with a buddy and talked a dean of admissions into meeting with him later that day. After enjoying a three-beer lunch with his friend, he managed to persuade the dean to change his rejection into an acceptance. He went on to graduate with a bachelor’s degree in corporate organisational media in 1986 and landed a job producing the halftime shows for nationally-televised football games. But entertainment for entertainment’s sake wasn’t rewarding enough for him, so in 1987 he decided to get into infomercials, where success is measured solely in dollars.
Daikeler’s first fitness infomercial was for Lifeline Gym, essentially a gym in a bag. In 1994 he co-founded TelAmerica Media with Lance Funston and came up with the idea for the ‘:08 Min Abs’ workout video. He thought it had the same ring to it as Greg Smithey’s hit workout video, ‘Buns of Steel’, from the 80s. Daikeler ended up selling 2 million copies. “What I learned was that solving my own problem—that I don’t like to work out and I eat like a second-grader—was a scalable opportunity,” he says.
After years of boasting that Shakeology prevented mental decline, slowed the ageing process, removed toxins and even helped prevent heart disease and cancer, Beachbody has been barred by the state of California from making claims that are not backed by science
(This story appears in the 08 June, 2018 issue of Forbes India. To visit our Archives, click here.)