Rodan And Fields: A Successful US MLM Ready to Go Global


Rodan and Fields (R+F) is a leading American skincare brand and a highly successful MLM.

While R+F has established itself as a trusted and authoritative name in the US skincare industry, it’s also building up its presence in several countries as it grows its global market.

Read on to find out what makes this company so successful.



Section 1 – The Company

Rodan + Fields logo

This section delves deep into the heart of Rodan and Fields, exploring its origin, value proposition, and journey through the years.

What is Rodan + Fields? (video)

Rodan & Fields, LLC (Rodan + Fields/ R+F) is a leading American skincare brand. It was founded by Dr. Katie Rodan and Dr. Kathy Fields (Stanford-trained dermatologists) and operates through a multilevel marketing model.

Market performance

Rodan + Fields has experienced remarkable performance over the years.

In 2017, CNBC reported that R+F generated net revenue of more than $1.5 billion, growing at a rate of 40%. Private equity firm TPG bought a minority stake in the company in 2018, valuing it at $4 billion.

However, by 2020, revenue slowed to $1.077 billion, as reported by Forbes*, with a decline in the number of independent sales consultants.

So far, Rodan + Fields remains a significant player in the skincare industry. The company has been featured in the DSN Global 100 list for many years as one of the top direct-selling companies globally.

It has a presence in a few countries, including the US, Canada, Australia, and Japan.

With such growth, R+F now has 500+ employees and over two million preferred customers.

RELATED ANALYSIS – Other leading MLM companies in the skincare market: 1) Avon (in-depth analysis here); 2) Mary Kay (in-depth analysis here).

History

Rodan + Fields has a rich history dating back to 1984 when the brand’s co-founders, Dr. Katie Rodan and Dr. Kathy Fields, met at Stanford University School of Medicine during their dermatology residency.

The two doctors went on to develop Proactiv Solution to prevent acne in 1995 (they sold it to Guthy-Renker and Nestlé).

The doctors launched the Rodan + Fields line in 2002, which Estee Lauder bought and sold in department stores.

However, feeling the Rodan + Fields brand was not getting the marketing push it needed, they bought it back in 2007 and re-launched it as a multilevel marketing firm in 2008.

Rodan + Fields has since grown its innovative line of products and expanded into several countries.

Who founded Rodan + Fields?

Rodan + Fields was founded in 2002 by Stanford-trained Dermatologists Dr. Kathy Fields and Dr. Katie Rodan.

Who is the CEO of Rodan + Fields?

Dimitri Haloulos is the current Chief Executive Officer and president at Rodan + Fields.

He has 20+ years of experience in the consumer-packaged goods and retail space, having held leadership positions at Procter & Gamble, Albertsons, and Safeway.

Fields and Rodan, the company founders, don’t run it daily but are board members. They focus on being the public face of the company and guiding product creation.

Who is the owner of Rodan + Fields?

R+F is a private limited company.

Dr. Katie Rodan and Dr. Kathy Fields own the majority of the company, with three investors holding a minority investment: TPG Capital in Fort Worth (United States), Ardian in Paris (France), and QB3 in San Francisco (United States).

Where is the Rodan + Fields headquarters?

R+F is headquartered in San Francisco, CA, at 60 Spear St Ste 600, San Francisco, CA 94105-1512.

Company philosophy, values, and mission

Rodan + Fields’ philosophy and values revolve around their commitment to providing life-changing skincare solutions to their customers through their “Multi-Step Science” approach: delivering visible results by utilizing the right ingredients in the right formulations and the right order.

The company is also dedicated to its environmental and social responsibilities, channeling its philanthropy through the Prescription for Change Foundation.

The foundation empowers young people, while the company focuses on using clean ingredients, recyclable packaging, and other waste reduction initiatives.

Section 2 – Business Model

Amway business model

In this section, we unravel the intricate details of R+F’s financial strategy, examining its profit streams and the opportunities it presents for entrepreneurs.

How does Rodan + Fields market its services?

R+F skincare products were initially sold in department stores until 2007. Now, R+F exclusively uses multilevel marketing to market and sell its products.

Rodan + Fields’ MLM compensation model explained

R+F provides a detailed MLM compensation plan on the company website.

Rodan and Fields commission planPin

Here, consultants rise through the following general ranks:

  • Retail Customers (RC): Customers who purchase R+F’s products at retail price.
  • Preferred Customers (PC): Customers enrolled in PC Perks, the Rodan + Fields Customer Loyalty Program, to receive regular product shipments.
  • Consultants (C): Independent contractors.
  • Executive Consultants (EC): The first title that active Consultants achieve. Requires a monthly 100 SV (Sales Volume) and 600 PSQV (Personally Sponsored Qualifying Volume).
  • Level I EC (LI EC) to RFX EC: The other leadership titles for consultants.

The general ranks can also be grouped into the following categories:

  • Product Ambassadors (Consultants only focused on sharing products with consumers)
  • Business Builders (Consultants sharing products with customers and building a team): Consultants and Executive Consultants
  • Evolving Leadership: LI to LIV Consultants
  • Advanced Leadership: LV+ Consultants (includes LV, Premier, Elite and RFX Consultant leaders)
  • Executive Consultant Groups: Personal teams of Executive Consultants which make up the generational volume.

Here is an overview of the requirements for each rank and earning potential:

RankRequirementsEarning Potential
Business Starter PackTotal Sales Volume (SV)Personally Sponsored Qualifying Volume (PSQV)Number of Qualified LegsRetail ProfitLevel 1 (L1) Consultant CommissionPersonal Team Commission (includes L1)Generation Commission
EC LegsLV LegsIIIIIIIVVVI
Consultant000000000000
Active Consultant100 SV00010%0000000
Executive Consultant100 SV600 PSQV0010%5%000000
Level I Executive100 SV600 PSQV1010%5%5%00000
Level II Executive100 SV600 PSQV2010%5%5%5%0000
Level III Executive100 SV600 PSQV4010%5%5%5%5%000
Level IV Executive100 SV600 PSQV6010%5%5%5%5%5%00
Level V Executive100 SV600 PSQV8010%5%5%5%5%5%5%0
Premier Executive100 SV600 PSQV11110%5%5%5%5%5%5%0.50%
Elite Executive100 SV600 PSQV13310%5%5%5%5%5%5%1%
RFX Executive100 SV600 PSQV15510%5%5%5%5%5%5%2.50%

How many Rodan + Fields Consultants are there?

As of 2021, Rodan + Fields states that the company had 355,074 enrolled Consultants.

Out of these, 155,293 (44%) were paid Consultants who received payment for sales, while 199,781 (56%) were Consultants who received discounted prices without earning compensation.

How much money can you make with Rodan + Fields?

According to the company’s US income disclosure statement, the typical paid Consultant earned $420 annually in 2021. This includes retail profits, commissions, and other cash payments.

However, yearly earnings can vary greatly, ranging from as low as $20 to as much as $45,737 (with direct sales only) or $2,933,919 (with a successful MLM team).

Here’s an overview of the earning potential for different levels of Consultants:

CategoryLevel per Category% of Paid ConsultantsMedian Annual Income
Product Ambassadors (73% of paid Consultants and 7% of the total R+F community)less than 5 customers53%$141 
5 to 9 customers13%$629 
10 to 20 customers5%$1,701 
20+ customers1%$4,376 
Business Builders (3% of the total R+F community)
Developing Business (22% of paid Consultants)C*11.32%$472 
C3.96%$1,572 
EC6.22%$4,695 
Evolving Leadership (5% of paid Consultants)LI2.74%$6,965 
LII1.81%$10,921 
LIII0.62%$20,331 
LIV0.28%$31,651 
Advanced Leadership (<1% of paid Consultants)LV+ (includes LV, Premier, Elite and RFx Consultant Leaders)0.56%$92,683 

How to make money on Rodan + Fields

R+F’s MLM compensation plan is only based on product sales. You cannot earn any income directly from sponsoring or recruiting new team members. 

Here are the five ways to earn in the MLM program:

  1. Retail profit: Profits from selling products to Retail Customers and Preferred Customers.
  2. Consultant commissions: commission from sales to Consultants and Preferred Customers whom you sponsor.
  3. Personal team commissions: Commissions on sales by your Personal Team and Consultants whom you sponsor.
  4. Generation commissions: Commissions on sales by your Personal Team’s extended organization.
  5. Performance bonuses
  6. Incentives and other rewards

Alternatively, you can opt to simply purchase products at a discount for personal use through the PC Perks program that offers:

  • 10% off every order
  • free shipping on orders $80+
  • a free gift ($50+ retail price) on the 2nd order 30-90 days after enrollment (costs $19.95 one-time fee) plus an annual Rodanniversary Gift offer
  • exclusive access to personalized offers and rewards
  • subscription delivery every one or two months
  • personalized recommendations, advice, help and more

Requirements to be an active Rodan + Fields Consultant

You must be an active Consultant to earn commissions on products, which means monthly retail sales and/or personal purchases worth $100 (measured in Volume, which is sometimes the same as the Consultant product price).

How to join

You can join R+F through the company website with your sponsor’s name and ID number, as well as your name, social security number, phone number, email, and shipping address.

Thereafter, you’ll buy the Business Starter Pack with a one-time fee of $75.

An optional VIP Box is available for new Consultants, and you can download the PULSE by Penny app for tools and support to start your business.

How much does it cost to join Rodan + Fields?

You’ll pay $75 only once for a Business Starter Pack when joining.

Those joining to purchase discounted products only for personal use can instead enroll as Preferred Customers (PC) for a one-time fee of $19.95.

What happens if you quit Rodan + Fields?

If you find that the MLM opportunity with Rodan + Fields is not for you, the company offers the option to cancel your consultant agreement at any time.

Since R+F products come with a satisfaction guarantee, even if partially used, you’ll get a refund within 60 days.

Also, the company accepts returns for a full refund (excluding shipping) up to one year from purchase, as long as the product is in a resalable condition. In Maryland, Massachusetts, Wyoming, and Puerto Rico, you’ll get refunds on the Business Starter Pack even after a year.

Growth potential

Rodan + Fields has the potential for significant growth due to its ongoing international expansion.

The company launched in Canada in 2015 and exceeded its annual profit forecast. R+F later expanded to Australia in 2017, and it’s targeting the Asian skincare market.

With the saturation of the US market, international expansion could be the key to growth for Rodan + Fields, as demonstrated by the success of other multinational corporations such as Amway.

Section 3 – Products

Rodan + Fields products

Rodan + Fields sells anti-aging products addressing such problems as adult acne, sun damage, wrinkles, and sensitive skin.

What does Rodan + Fields sell?

Rodan + Fields sells anti-aging products addressing such problems as adult acne, sun damage, wrinkles, and sensitive skin.

The product lines consist of cleansers, moisturizers, toners, creams, exfoliators, sunscreens, and many more. Such products retail for roughly $160 to $190 for a two-month supply. In 2022, Rodan + Fields launched its first haircare product.

Some of the best-selling products include: VOLUME+ and SMOOTH+ hair regimens, R+F Lash Boost for lashes, Total RF anti-aging serum, and R+F Instant Targeted skin firming gel.

Rodan + Field products soldPin

Rodan + Fields’ production process

Rodan + Fields states that the company prioritizes the safety and effectiveness of its products by adhering to all FDA guidelines.

Moreover, R+F is a member of the Personal Care Products Council (PCPC), which does product testing to ensure product safety and efficacy. Such tests include irritancy testing and dermatologist-run clinical trials.

Where to buy Rodan + Fields products?

Rodan + Fields skincare products are easily accessible through their Independent Consultants or on their website.

Unlike buying directly from the website, Independent Consultants provide personalized recommendations based on your skin type and preferences.

Are Rodan + Fields’ products tested and certified?

Rodan + Fields is a member of the Personal Care Products Council (PCPC), which conducts irritancy and other testing on its products. Additionally, Rodan + Fields provides a publicly accessible ingredient list of its products on the company website.

Although the company’s products are available over-the-counter, like Proactiv, Rodan + Fields states that they comply with FDA guidelines for such products even if they don’t need to.

Lawsuits and independent reviews of Rodan + Fields

Rodan + Fields has faced several lawsuits and challenges to its products and marketing claims.

In 2022, the company agreed to pay $38 million to resolve class action lawsuits related to its Lash Boost product, which plaintiffs claimed was misbranded and could cause serious side effects.

Even so, R+F denied the allegations and denied any liability or wrongdoing, while stating that it provides instructions on potential side effects to users.

Earlier in 2018, Procter & Gamble filed a complaint with the Better Business Bureau over alleged deceptive claims by Rodan + Fields that R+F’s Vitamin A serum was more effective than P&G’s Olay serum.

Rodan + Fields sued P&G in response claiming P&G was illegally trying to block their marketing but dropped the lawsuit. Later, Procter & Gamble put their complaint on hold.

In 2020, the Federal Trade Commission sent warning letters to 16 multilevel marketing companies, including Rodan + Fields, concerning Consultants making misleading earnings and treatment claims related to the coronavirus.

Despite these legal challenges, Rodan + Fields has been recognized as the #1 premium skincare regimen brand in the US for four consecutive years by Euromonitor.

And the company has maintained an A+ rating from the Better Business Bureau since 2013, while being used by celebrities such as Britney Spears.

Section 4 – FAQs About Rodan + Fields

Amway FAQ

In this section, we provide answers to queries about R+F, shedding light on the most frequently asked questions about the company.

Is Rodan + Fields a pyramid scheme?

The FTC defines pyramid schemes as scams that promise large profits based primarily on recruiting others to join the programs without any genuine investment or sale of goods. However, Rodan + Fields’ compensation plan is based on product sales rather than recruitment. Moreover, the company states that 90% of those who order products are customers who buy for personal use. This means it’s unlikely to be a pyramid scheme.

Are Rodan + Fields products vegan?

Rodan + Fields states that their products cannot be considered vegan. To achieve clinical results, some products contain natural or animal-derived ingredients, such as milk or honey. However, the company has confirmed that almost all their formulations are gluten-free, except for SOOTHE Daily Mineral Sunscreen SPF 30 and SOOTHE Sensitive Skin Treatment.

Sources

Author: Victor Nyorani

Victor Nyorani - Network Marketing Start

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