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Abraham Stanley
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1 National Coach Call Audio Transcription Topic: Using October Fit Fest to Fire up your Challenge Groups Host: Sr. Vice President of Global Sales Jeff Hill Featured Coach Speakers: CEO Cark Daikeler, Coach Chilli, President Jon Congdon Date: October 22, 2012 Jeff: Today we want to focus a bit on the power of October Fit Fest and some things we are doing. To kick it off, we want to introduce none other, bring to the call, our CEO Carl Daikeler. He can introduce his very special guest. Hey Jeff. Thank you so much for putting this call together. We are very excited about what it means and what we're about to kick off here. I do think that what we re putting together is something that can truly change the course of obesity, change the course of health in our country. It's going to take people stepping up and really taking this seriously. What's exciting about that to me is that we have people of all walks of life getting involved and that includes somebody that is special and has a big heart. Chilli, are you on the phone with us? Yes. So here we go. We have a superstar that doesn't really have to do this. She is from the number one selling girl Group of all time, TLC. She somehow took notice of little old Beachbody. We are not paying her to be a celebrity spokesperson or to be a part of the coaching business. Let me ask you, Chilli, why would someone with your success build a Challenge Group in Atlanta? Why would you put yourself out there to be a Coach? Well, I think I've been a Coach all along, but never had the connection with you guys to be able to say I am a Beachbody Coach. It means everything to me because I know how important it is to be healthy. People ask me all the time, almost every day, what do you

2 do? At this point, being connected with you guys, I am just happy that I am able to direct them to a product that I have been using for a really long time. That's how we all got connected. I'm always Tweeting about different stuff that I like, P90X, everything, actually. It just means a lot to me to be able to give back, especially right here in Atlanta. This is where I live. Why wouldn't I have one here? I can come up with many reasons why somebody that is both as busy as you, working on music, working on movies like A Raisin in the Sun, would not. There are 1 million reasons, and we hear 1 million reasons from people about why not to become a Team Beachbody Coach, or even when they become one, we hear why they can t put together a Challenge Group. You would have as many excuses, if not more than anybody else. It's really just so awesome that you are doing it. Let's cut to the chase here a little bit. What type of Challenge Group are you putting together? First of all, I think everybody on this call knows, or maybe you don't know that Brazil Butt Lift, oh my God, that is the stuff! I love it! It is everything, it inspires. It s Oh My God! I could go on for hours about how much I love it. I'm calling it the Team Fit Chilli Kickoff Party. It's a Brazil Butt Lift Challenge and I think this is going to be so much fun. It s just great because with this particular Challenge you get the DVD and you get the Shakeology. I'm pushing everything because it s everything that I do. That is the Challenge that we are putting together. When does it start? November 15 That is awesome. Chilli Will you be coming? The first Team Chilli Kickoff Party, are you coming?

3 That is a big commitment. That is right around the time that I'm swinging east, but if I can dial- in all the coordinates and there is room for my ego in Atlanta, then I might try to get there. Way to put me on the spot, Chilster. Tell us how are you motivating people to sign up? What are you doing to let people know? Let me back up for a second, we've seen people, and even Beachbody tries to just yell across Twitter, yell across Facebook, and we try to get people to start a Challenge, buy Challenge packs or whatever, it's very easy for people to delay it and not get involved, so how are you going about building a Challenge Group? I've been doing it through Twitter, Facebook and through people that I know, even some of my celebrity friends that I talk to. I think that my being in shape definitely helps. People know how old I am, I am 41 years old, and at this age I am probably in the best shape I have ever been. I think that is a motivation for a lot of people because I think that when you reach a certain age, people just say it's so hard, I'm out of shape or this or that. I don't know. For some reason many people think that when you're a certain age or older that you're supposed to be really out of shape. Anybody can be out of shape. Well that is one way that people get motivated, it's really by me leading by example. I also let them know that this stuff really works and that they're going to see the results that they really want. It s also fun. It's not hard, it's challenging because Leandro really makes you feel the burn in your bum bum, but at the same time, it's a serious burn, but I let them know that if you don't feel the burn, you're not working it. You have to feel it in order to get those results. That is some of the ways that I'm trying to motivate people. You're not trying to put together a Challenge Group of thousands of people, right? I mean you and Lisa Koehler, who signed you up, are just sort of making a small Group thing, right? It doesn't have to be about trying to break records. I guess you are putting together a select group of people, right?

4 Yes, we're doing it that way because I think it's better, especially for the first one. We are trying to concentrate on people that are really serious about working out. When doing something like that, they have connections to other people as well and they are also leading by example by being in shape and really putting forth the effort to take care of them. People see that. Those are the people that I really want to come to this event. It's kind of like a domino effect when you have some key people involved like that. So you and Lisa are putting this together on the 19 th? Chilli The 15 th, the 15 th That would have been embarrassing if I showed up for the event on the 19 th! So you guys are inviting people to an event on the 15 th. You're going to get people together. Obviously, it's a nice chance for them to rub elbows with you. Have you also signed up two Coaches, right? Yes. So they're going to be bringing people to this event and kicking off their Challenge Groups too? Absolutely! And how many people will be there? What is your goal? Do you plan to keep it within the scope of the person or the people that are really taking this seriously? How big do you think this event will get?

5 I wouldn't want more than 30 people. It's going to be really fun. I'm telling everybody that I want them to come in their workout gear and we're going to do a few bum bum workouts. I also have some Shakeology for them. It's just going to be a lot of fun. It s going to be in a place where everybody can connect. I think another part of this is that I'm very relatable. I think a lot of people feel more comfortable when they can relate to somebody when they come. We are all sharing in this week. We all have our challenges as far as what we want to do; whether we want to lose or gain or stay the same, we just want to improve. Everybody knows that. We all have the same goals. That makes it more fun and easy. To get invited to that event they need to have bought a Challenge Pack first, is that right? Chilli Yes. So that's basically your rules for engagement? You ve got to show you re serious and be on your Team and buy a Challenge Pack from you. What about your two Coaches and Lisa with whatever she is doing with this. What is her involvement with this? The point I want to make to all the Coaches is that everybody is a celebrity in their Group. You are a celebrity because you are representing the end of the trend of obesity. You represent somebody that has the courage to stand up and say, I'm going to do something. I'm going to put a group of people together. Whether it is three people to start in November or whether you can pull 30 people to put a team together, you need to step up. I'm not talking to you, Chilli, because you have already stepped up, I'm talking to everyone else. I'm saying people need to step up. They have to have courage. Make yourself a celebrity by inviting people. We always talk about invite, invite, invite. You ve got to step up. You have to invite some people and say I'm doing this. I'm doing the same thing that Chilli from TLC is doing, the same thing that people all over the country are doing. We can make November, we can kick off October Fit Fest by starting these Challenge Groups in November. This is such a big deal. Chilli, I know that you're super busy. In fact you're traveling this week, so I really appreciate you getting on the call. I

6 look forward to following your Twitter feeds and seeing how you're doing with this. I would suggest this to any Coach that wants to watch a celebrity promote this with real heart. She is not doing it like a "celebrity"; she is doing it like a real person. She is a great example. Thanks for being on the call with us, Chilli. Thank you. You guys have a good one. Jeff, just before I flip back to you I have to tell you that I have another celebrity on the phone. That s because I when I say that these Challenge Groups are happening all over the country, I mean it. There's even one that's going to be started up in our own office. I want to let him talk about the Comeback Kid himself. Jon (Congdon), are you on the phone? Beachbody President, Jon Congdon I'm here, Carl. So tell us about your next Challenge Group that you're kicking off. Jon: Thanks. It was really cool to hear what Chilli is doing. I think it's really interesting and hopefully she's going to fire some people up. I am on the other end of the spectrum. While Chilli is in the best shape of her life, I just have to say and admit that right now I am probably in the worst shape of my life, physically, as far as conditioning goes. Obviously a few months ago, I'm not sure if everybody knows my story, I was in worse shape that I am in right now because I was so sick from an infection. I got a staph infection in my knee and it really knocked me off my block. Everybody at Beachbody had to rally and make up for the fact that I wasn't in the office for weeks at a time, twice. Then I finally got out of that situation and I got myself a brand- new shiny Terminator- style knee. Now I'm walking around pretty normally, but I haven't been able to work out in any way shape or form for a year. This whole thing started last year on October I was finally able to walk in July at after I got the new knee and now I'm finally walking with a little bit less of a limp. But it s been rough.

7 It seems like it was just recently, but it was nine years ago that we (Beachbody) put together the first group of people. You could almost call it a little Challenge Group of people in the office that did P90X for the very first time. Tony was coming in the office every day and I was part of that Group of four people. When that was done, I was in the best shape of my life. I decided that I'm going to start a Challenge Group called Comeback Kids for anybody that has fallen off their game a little bit, been knocked off the block for a little bit, or whatever. It could be because you just lost focus for a little while and then you got in the habit of not working out, which everybody has done. I've talked to a lot of people who have joined the Challenge Groups and had a little back situation, or had hurt their ankle and had to back off for a little bit. Then all of a sudden they just found out that they weren't working out regularly even though they were able to again. They just didn t get back into it. This is for anybody that wants to fire up and call themselves a Comeback Kid. Join the Group. That's what it's about. I'm going to do a round of P90X and I'm going to finish it just before my 50th birthday. That s my goal. Nice. Jeff I know you weren't expecting to have another special guest like Jon on the phone, but I thought it was so awesome that he's doing this. I want to say to all the Coaches that you're welcome to join Jon's Challenge. Jon, are you doing anything with this on Facebook? Jon: Yes we're setting up a Facebook page. We are working on it right now and will definitely have it going. Similar to when I did the Reset, I want to say to all the Coaches that if you have people out there who you want to get involved, link them. You join your own Comeback Kid, or make your Comeback Kid Challenge Group and use the momentum that Jon is creating to put your Challenge Groups together so that they feel connected to the source of the company. I have to say that it's pretty impressive, I don't know if you saw the numbers this morning, Jon, but two weeks in a row the Coach business is generating more sales than the rest of the entire business. That's two weeks in a row, so great job Coaches. That's

8 you helping people, and it's really awesome. So Jon, when you get that Facebook page ready let me know and we'll Tweet it and Facebook it so that we can get as many people on this as possible. Jon: Will let you know. One thing I forgot to say is that my Challenge Group begins on Monday, November 12. That is two weeks from today. Alright, very good. Jeff: Carl, would you stay on the line with me for a minute. Can I say one last thing before that? You might also see on my Facebook page that I put out what I call the Challenge Du Jour or the CDJ for short. That is for you Coaches to invite a total stranger today. We are used to Facebook and friends, we are used to taking the easy way out, and hitting it up with Twitter, but I am saying to you that the Challenge today is for you to invite a total stranger to your Challenge Group to start in early November. It's part of the October Fit Fest. You have to walk up to somebody you've never met, people you ve never spoken to before. That's the Challenge Du Jour. I hope you're up to it. I hope you let me know on Facebook or Twitter that you did it and if they signed up or not. I say you go for it. Jeff, I'm turning it over to you but I'm staying on the phone. Jeff: I guess we can call this a bit of an audible today. We intended to have the regionals share some of the things that were happening (with October Fit Fest), but we will move that to next week. I want to ask you a question if I can, Carl. Here is where we are, there are basically about 70 days left in the year. You have been a very successful business person in your lifetime and my guess is that there have been times that you have run up against things and where you said maybe I haven t accomplished all of my goals the way want to, but everything is falling in place, but some stuff has gotten in the way. There is a bit of an opportunity there, a deadline that I can take advantage of. I imagine

9 that we have 1500 people on this call and we'll have another 1500 people that will be downloading this call. There are a lot of those that have said I haven t accomplished my goals yet this year, I am not quite where I want to be right now, I'm sure you have been in that situation at some point in your career, what would you say to the brand- new Coach or the Coach that has struggled a little bit and said you know what? So I have this October Fit Fest and I have a literally the world's leader in providing health and fitness solutions that I am working, but what do I do? I say two things: there is one sure way to continue that string of not achieving your objectives and that is to stop now. That is the sure thing, stop now and continue to focus on the fact that that you didn't achieve that goal. We all fall into the trap sometimes. We all have that voice in the back of our heads. That is the same voice that I heard when we first tested P90X, but we didn't give up. 2 1/2 years later and twenty two versions of that show later, one of the top infomercials. Certainly, they were the number one fitness infomercials of all times. That's the same voice that I heard when we first launched Shakeology, and everybody including Coaches, customers, were saying "who is going to spend over $100 for a bag of powder, when I can get a bag of powder for $20 bucks at the grocery store, and our point was that nobody is selling this kind of quality, this kind of thing that can feed the body this way, so try it. That's why we have the money back guarantee. Try it for 30 days and just see how your life will change. So we turned that around. And then the same thing happened with Derm Exclusive. We have been after that show, I don't know if Jon is still on, but I think it's been 2 1/2 years. We had been trying to make that show work with Minnie Driver. We talked to focus groups and it was just dead. That thing would not go. We couldn't sell it on TV. Then we said we have to bring the doctor that's behind it. We have to bring him forward into the show. That wasn't part of the deal, but then we made a part of the deal. Now that thing is going to be an absolute hit. So my point is, when you sign up to do something there is no easy way to do something great. If you look at the New England Patriots, or look at any champion basketball team or athlete, that thing that a constant champion basketball team or athlete has in common, is that they know it's going to be hard at the beginning of the season. You are going to face headwinds. It's whoever can deal with hard the best that comes out on top. And yes, some people just can't do it; they don't have it in them and they are going to fall off. They are going to be the followers, or they are going to be the people that walk around whining that life wasn't so good for them.

10 Then there's going to be other people that say you know what? I'm going to feel the heat, I'm going to feel the pressure, and I'm going to do it anyway. I'm going to overcome the odds and going to get in great shape. I'm going to inspire other people to do the same. Those are leaders, those are winners. That is a winning attitude and you have to maintain that attitude. You either you can accept it and continue to complain about it or I promise you will not achieve what you set out to achieve. Or you can say screw it; I'm going to do this. I'm going to do that Challenge Du Jour. I'm going to invite some people. I'm going to build a Challenge Group. I'm going to do whatever it takes, and I'm going to learn from it and I am going to refuse to give up. And you fill your lungs with oxygen and you say I'm going for it. When you say you're going for it, you'll go for it. Big time. I don't care if it's the fourth quarter, I don't care if it's almost Halloween, I don't care if it's the holidays. You go for it. I'm going for it, Jon's going for it, and Chilli is going for it. We need 1000, 2000, 3000 Coaches right now to commit to going for it. That's what I say. Jeff: Alright, completely unprepared and perfectly delivered. Thanks Carl. Coaches, I can't really add much more on this. I do want to add just a little information about October Fit Fest. I talk to a lot of Coaches out there, this goes hand- in- hand with what Carl said, a lot of people they question their ability and they say I don't know how to do this, I haven't had an upline to help me do this. If your desire and your commitment is there, the real question is, are you available? Not, do you have the ability? If you make yourself available, if you show up, if you do it, the ability will come. The capability will come. One of my favorite sayings is "sometimes you have to jump and build your wings on the way down. In doing so, the how will come to you. There are 10 days left in this month to take care of the October Fit Fest. It's very simple; all that it is is starting a new Challenge Group with new customers and new Coaches by the end of the month. There is a key chain for those who put that together. But it's not about that; it's about engaging in the right activities; it's about helping people; it's about sharing. If you'll do that, you will end strong and you will start the year strong and take advantage of everything that Beachbody offers. I said a few minutes ago we are the world's leaders in providing fitness and health solutions. That's who you're teaming with. That's what it's all about. If you want to achieve your goals, you have to go out and make yourself available and do it. So Coaches we didn't get a chance to hear from our regional sales directors. We want to make sure we do that next week. They had some great insights.

11 Make this a phenomenal Monday. Make today the day that changes the rest of your life. Thanks and we ll talk to you next week.

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