Rodan & Fields, LLC, known as Rodan + Fields or R+F, is an American manufacturer and multi-level marketing company specializing in skincare products. In 2002 Katie Rodan, MD and Kathy Fields, MD, creators of Proactiv, started the Rodan + Fields brand; they sold it a year later and then bought back the brand in 2007 with a multi-level marketing structure. The company uses independent consultants, mostly women, to sell its products. Only two percent of these consultants make more than minimum wage. Its business model has been criticized by consumer advocates as being close to a pyramid scheme.
Video Rodan + Fields
History
Drs. Fields and Rodan met in 1984 during their dermatology residency at Stanford University School of Medicine. In 1995, they developed Proactiv Solution as a preventative skincare for acne. Proactiv is now a registered trademark of Guthy-Renker and Nestlé.
In 2002, Drs. Fields and Rodan launched Rodan + Fields. Products were sold in department stores. In 2003, Rodan + Fields was purchased by Estée Lauder. In 2007, Drs. Fields and Rodan reacquired the brand and transitioned the company from department stores to multi-level marketing, where consultants are paid a commission for their own sales and for the sales of people they recruit.
Rodan + Fields launched in Canada in February 2015 and in Australia in September 2017.
Maps Rodan + Fields
Business
The company has its headquarters in San Francisco, California.
Products
Rodan + Fields products treat common skincare concerns. Products and tools are categorized into regimens, each dedicated to a different skin concern. Regimens include cleansers, toners, moisturizers, creams, exfoliators and sunscreens.
Business model
Rodan + Fields uses independent consultants, mostly women, to sell its products. Commissions are earned based on a multi-level marketing strategy, which has been criticized by consumer advocates as close to a pyramid scheme. Consultants focus on social media, phone and in-person presentations to sell products and invite others to join their team. The average 2015 annual income for a consultant was $3,182.
The independent consultants that sell the skin care products are often recruited with the promise and potential for executive level incomes. Per the 2016 Income-Disclosure agreement, 90% of consultants earn less than $200 per month and 96% of the consultants earned less $500 per month. In 2016, 125,348 consultants (representing 44% of all recruits) recorded zero earnings and are thus no longer considered active independent consultants. Only 2% of active consultants make the annual minimum wage or higher.
References
Further reading
- "Skin Care Company Rodan & Fields Pursuing a Sale". The Wall Street Journal. February 18, 2015. Retrieved 5 May 2016.
Source of article : Wikipedia
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