Rodan and Fields is a high-end skincare company that transitioned from traditional storefront selling to a multi-level marketing company. Most customers rave about the products, although there are some complaints out there as well. Overall, the company is well-trusted by customers, although many distributors end up leaving the company unhappy as they were unable to make any decent income.
With so many MLM companies out there, such as Younique and Mary Kay, you’ll want to get a more thorough look at Rodan and Fields before you make any decisions. We’ll take a closer look at this MLM company, their products, what being a consultant for them entails, and more in this review of Rodan and Fields.
Rodan And Fields Company Overview
History Of Rodan and Fields
Rodan and Fields was founded in 2000, although the history between its founders goes back much further than that. Founders Katie Rodan and Kathy Fields are both dermatologists who met in 1984 during their residency at Stanford University School of Medicine. In 1995, they developed an acne treatment called Proactive that went on to become extremely popular.
The pair continued working together and founded Rodan and Fields in 2000. In 2002, they launched their products in department stores, and sales of the products quickly took off. The very next year in 2003, the company was acquired by beauty giant Estee Lauder.
Founders Rodan and Fields then made an interesting move by re-acquiring the company in 2007. They bought the brand back from Estee Lauder, and then decided to make an even bolder move. They stopped selling their products in department stores and moved to a multi-level marketing model. They truly felt that word-of-mouth is the most authentic way to promote their products.
Since switching to a direct selling model in 2008, the company has expanded to Canada and Australia. They now employ around 700 employees and have a network of 300,000 Independent Consultants. They have also passed the $1 billion mark in annual revenue.
While customers are generally happy with the company’s products, Rodan and Fields has gotten into some hot water over their Lash Boosting Serum. There are multiple claims that the serum contains a drug regulated by the FDA, and the company did not get FDA approval prior to launching and selling the product. The drug is said to treat glaucoma by reducing eye pressure, but it could have serious consequences when used by someone without glaucoma. Some customers have reported having eyesight issues after using the product.
There are also many questions about the company’s operating structure and whether or not it operates an illegal pyramid scheme. This is nothing new in the MLM world as those questions exist about almost every MLM in existence. However, it has been taken a step further recently with Rodan and Fields.
The Federal Trade Commission issued a warning letter to the company related to statements made by some of its consultants during the COVID-19 pandemic. Many consultants were attempting to recruit new consultants by making promises of income and stating that the company was “always open for business even during the quarantine,” among other things. The FTC warned the company that they were responsible for the statements of its consultants, and that those statements may be in violation of federal law if they were without substantiation.
Current Company Structure
Rodan and Fields is headquartered in San Francisco, CA today. Unlike many MLM companies, the founders do not serve as the leaders of the company. Instead, Diane Dietz is the President and CEO of the company. The company has a strong leadership team and around 700 full-time employees.
Through its network of 300,000 Independent Consultants, the company continues to generate close to $1.5 billion per year. Amazingly, this level of revenue is generated even though the company has only expanded outside the U.S. into Canada and Australia. Many MLM’s have expanded in multiple countries outside the U.S., yet still do not achieve this level of revenue.
Rodan And Fields Product Lines
Rodan and Fields specializes in skincare products, and their entire product line is essentially dedicated to skincare. From anti-aging products to sun protection, there is something for everyone available from the company. Their products include serums, boosters, creams, regimens, and more.
Customers can shop for specific products or they can shop by category such as application area or need. For example, they can look for all products applied to the eyes or neck. Or, they could search for anti-wrinkle products or boosting and toning products. If you have a skincare need, Rodan and Fields has a product for it.
Company Marketing Practices
Having first been sold in department stores, Rodan and Fields has changed its marketing practices after its conversion to a direct-selling company. Or as they like to call it, a Consumer Connected Commerce business model. Their biggest marketing practices now consist of word-of-mouth advertising through their consultants.
Most of their consultants now use social media and an online presence to demonstrate and sell the products. This method is used both to sell products and recruit new consultants. The larger the online following, the more likely it is that a consultant will be successful within the company.
Making Money With Rodan And Fields
The beauty and skincare industries are huge globally, but especially in the United States. This should be obvious by the company’s annual revenue numbers. And with only 300,000 consultants in the company, the market is not extremely saturated at this point. So, how much are those consultants making on average?
Well, this seems like the same song with a different verse. The answer is that they are not making much. In fact, only 2% of consultants made more than minimum wage. According to the company’s 2019 Income Disclosure Statement, 96% of its consultants made less than $10,000 per year. Those numbers are pretty dismal considering the amount of money the company itself is making.
How To Enroll
Enrollment with the company is simple and straightforward. Simply go through their website and provide your personal information to sign up. Purchase of a Business Portfolio is required, and the amounts differ depending on which kit you decide to purchase. The lowest priced kit is currently $45.
The compensation plan is quite simple as compared to many other MLMs. First, consultants can make commissions on their retails sales directly to customers. That commission varies by product, and a consultant must maintain minimum sales of $100 per month to be eligible for commissions.
Next, consultants can earn commission from the sales of their teams. These commissions are typically 10% for their first-level team. Their team must meet a sales target of $600 per month for the consultant to be eligible to receive the team-based commissions.
As a consultant grows their team and progresses through the ranks, they can begin to earn commissions deeper into their downline. At the highest level, a consultant can earn commissions on sales of their team up to 6 levels deep. This level requires a large team and consist minimum sales, and very few people achieve this rank.
Sales And Marketing Techniques
As previously stated, the most successful consultants market their business through social media and other online channels. They use the Internet to both sell products and recruit new consultants onto their team. The larger the social media following, the more opportunities for sales and recruitment. This also provides a channel through which the products can be demonstrated for potential customers.
Comparison To Other MLMs
When compared to other MLMs, Rodan and Fields has a fairly strong reputation in the industry. Most customers agree that the products actually work, although they are a little on the expensive side. The earning potential for consultants is similar to other MLMs in the fact that very few of them make a true income. However, a select few do make over $1 million per year working for the company.
Conclusion: Rodan And Fields
While their products are expensive, most customers agree that the products truly work. Many people have attempted to capitalize on the success of the products by signing up to become Independent Consultants. However, most have failed to realize the success they had hoped for. While the company has a great reputation, do not fall for the income promises made by some consultants. The vast majority of them are earning very little, if anything at all.