Rodan + Fields

Rodan + Fields, LLC
Private
Industry Cosmetics and personal care products
Founded 2007 (2007)
Founder
Headquarters San Francisco, California, U.S.
Area served
 United States, Canada, Australia
Key people
  • Diane Dietz (President and CEO)
  • Amnon Rodan (Chairman)
Products
Website www.rodanandfields.com

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.[1] Its business model has been criticized by consumer advocates as being close to a pyramid scheme.[1]

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.[2] Proactiv is now a registered trademark of Guthy-Renker and Nestlé.[3]

In 2002, Drs. Fields and Rodan launched Rodan + Fields. Products were sold in department stores. In 2003, Rodan + Fields was purchased by Estée Lauder.[1] In 2007, Drs. Fields and Rodan reacquired the brand[4] 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.[1]

Rodan + Fields launched in Canada in February 2015 and in Australia in September 2017.[1][5]

Business

The company has its headquarters in San Francisco, California.[6]

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.[4]

Business model

Rodan + Fields uses independent consultants, mostly women, to sell its products. Commissions are earned based on a multi-level marketing strategy,[7] which has been criticized by consumer advocates as close to a pyramid scheme.[1][8] Consultants focus on social media, phone and in-person presentations to sell products and invite others to join their team.[9] The average 2015 annual income for a consultant was $3,182.[10]

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.[11] In 2016, 125,348 consultants (representing 44% of all recruits) recorded zero earnings and are thus no longer considered active independent consultants.[11] Only 2% of active consultants make the annual minimum wage or higher.[1]

References

  1. 1 2 3 4 5 6 7 Vincton, Kate (1 June 2016). "How Two Dermatologists Built A Billion Dollar Brand In Their Spare Time". Forbes. Retrieved 13 September 2017.
  2. ↑ Espinoza, Galina (15 July 2002). "Saving Face". People.
  3. ↑ Gretler, Corinne (25 March 2016). "Nestle Forms Alliance with Bieber's Fave Acne Cure Proactiv". Bloomberg.
  4. 1 2 Lipton, Lauren. "The Truth Behind Rodan + Fields (And Its Takeover of Your Facebook Feed)". Allure.com.
  5. ↑ Philips, Carli (10 July 2017). "Internet is taking direct selling from the knock on the door and parties". The Australian. Retrieved 13 September 2017.
  6. ↑ Mattioli, Dana; Tan, Gillian (2015-02-18). "Skin Care Company Rodan & Fields Pursuing a Sale". Wall Street Journal. ISSN 0099-9660. Retrieved 2018-08-15.
  7. ↑ Jackson, Nancy Mann (29 May 2015). "Three startups that want to steal Avon's look". Fortune.
  8. ↑ Doctorow, Cory (7 November 2016). "John Oliver shreds multi-level-marketing pyramid schemes". Boing Boing. Retrieved 13 September 2017.
  9. ↑ Lewak, Doree (3 February 2015). "$40,000 a month, Lexus cars: Meet the new Avon ladies". New York Post.
  10. ↑ Leinbach-Reyhle, Nicole (25 April 2016). "The Rising Success Of Rodan + Fields Thanks To Nontraditional Retail And Savvy Women". Forbes. Retrieved 16 March 2017.
  11. 1 2 Rodan, Fields (1 January 2016). "2016 Income Disclosure Statement" (PDF).

Further reading

  • "Skin Care Company Rodan & Fields Pursuing a Sale". The Wall Street Journal. February 18, 2015. Retrieved 5 May 2016.
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