Rodan + Fields

Rodan & Fields, LLC, known as Rodan + Fields or R+F, is an American manufacturer and multi-level marketing company specializing in skincare products. Katie Rodan and Kathy A. Fields, creators of Proactiv, started the Rodan + Fields brand in 2002 and sold it a year later. They relaunched the brand in 2007 as a multi-level marketing firm.

Rodan + Fields, LLC
TypePrivate
IndustryMulti-level marketing
Founded2007 (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
Websitewww.rodanandfields.com

Rodan + Fields 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

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, Fields and Rodan launched Rodan + Fields. Products were sold in department stores. The following year, the company was purchased by Estée Lauder.[1] In 2007, Fields and Rodan reacquired the brand[4] and transitioned the company from department stores to multi-level marketing, where consultants can earn 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]

In April 2020, the US Federal Trade Commission (FTC) issued a warning letter to Rodan + Fields for making unlawful and misleading earnings claims related to COVID-19.[6]

Business

The company has its headquarters in San Francisco, California.[7]

Products

Rodan + Fields products include cleansers, toners, moisturizers, creams, exfoliators and sunscreens.[4]

Business model

Rodan + Fields distributes via multi-level marketing,[8] which has been criticized by consumer advocates as akin to a pyramid scheme.[1][9] Consultants focus on social media, phone and in-person presentations to sell products and invite others to join their team.[10] The average 2015 annual income for a consultant was $3,182.[11]

Per the 2016 Income-Disclosure agreement, 90% of Rodan + Fields members earned less than $200 per month and 96% earned less than $500 per month.[12] In 2016, 125,348 (representing 44% of all recruits) recorded zero earnings and are thus no longer considered active.[12] Only 2% of active sellers make the annual minimum wage or higher.[1]

References
  1. 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 (July 15, 2002). "Saving Face". People. Retrieved October 15, 2018.
  3. Gretler, Corinne (25 March 2016). "Nestle Forms Alliance with Bieber's Fave Acne Cure Proactiv". Bloomberg.
  4. 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. "Warning Regarding Earnings Claims Related to Coronavirus Disease 2019 (COVID-19)" (PDF). US Federal Trade Commission. April 24, 2020. Retrieved June 6, 2020.
  7. 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.
  8. Jackson, Nancy Mann (29 May 2015). "Three startups that want to steal Avon's look". Fortune.
  9. Doctorow, Cory (7 November 2016). "John Oliver shreds multi-level-marketing pyramid schemes". Boing Boing. Retrieved 13 September 2017.
  10. Lewak, Doree (3 February 2015). "$40,000 a month, Lexus cars: Meet the new Avon ladies". New York Post.
  11. Leinbach-Reyhle, Nicole (25 April 2016). "The Rising Success Of Rodan + Fields Thanks To Nontraditional Retail And Savvy Women". Forbes. Retrieved 16 March 2017.
  12. Rodan, Fields (1 January 2016). "2016 Income Disclosure Statement" (PDF).

Further reading
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