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Rodan + Fields, LLC
Company typePrivate
IndustryMulti-level marketing
Founded2007; 17 years ago (2007)
Founder
Headquarters
San Ramon, California
,
U.S.
Area served
United States, Canada, Australia
Key people
  • Dimitri Haloulos (President and CEO)
  • Amnon Rodan (Chairman)
Products
Websitewww.rodanandfields.com

Rodan & Fields, LLC, known as Rodan + Fields or R+F, is an American 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 uses independent consultants to sell its products.[1] Its business model has been criticized by consumer advocates as being a pyramid scheme.[1]

History

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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][3] Proactiv is now a registered trademark of Guthy-Renker and Nestlé.[4]

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[5] 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][6]

In 2018, private equity firm TPG bought a minority stake in the company. At the time, Rodan + Fields was valued at $4 billion.[7]

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.[8]

In 2021, Rodan and Fields is named the number one skincare regimen brand in the United States for the fourth year in a row (2018-2021).[3]

In October 2022, the founders launched a whole line of shampoos, conditioners and stylers, on top of their skincare.[9][10] In November 2022, Rodan and Fields were a part of a class action lawsuit in regards to their Lash Boost serum. The company offered $38 million to resolve the issue as well as change their verbiage on the product usage, instructions, and warnings.[11][12]

Products

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In 2002, Fields and Rodan launched their skincare line. Those products ranged from cleansers, to acne treatments.[5] Their Redefine skincare line is a three step regimen. Starting from either a Clay or Foaming Cleanser (Step 1), a Pore Refining Toner (Step 2), A Defense Lotion or Cream (Step 3), and lastly a Restorative Cream or Lotion (Step 4).[13]

In 2020, the company launched their Anti-Aging Regimen.[14]

In 2022, the company expanded into haircare and launched the Volume+ and Smooth+ lines, both with a scalp first approach.[15]

Business

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Rodan + Fields has its headquarters in San Francisco, California.[16] Its products include cleansers, toners, moisturizers, creams, exfoliators and sunscreens.[5]

Rodan + Fields distributes via multi-level marketing,[17] which has been criticized by consumer advocates as akin to a pyramid scheme.[1][18] Consultants focus on social media, phone and in-person presentations to sell products and invite others to join their team.[19] The average 2015 annual income for a consultant was $3,182.[20]

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.[21] In 2016, 125,348 (representing 44% of all recruits) recorded zero earnings and are thus no longer considered active.[21] 2% of active sellers make the annual minimum wage or higher.[1] Most use Rodan + Fields to supplement, not replace, other work.[22]

References

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  1. ^ a b c d e f g Vincton, Kate (1 June 2016). "How Two Dermatologists Built A Billion Dollar Brand In Their Spare Time". Forbes. Retrieved 13 September 2017.
  2. ^ Singer, Natasha (2007-10-18). "Why Should Kids Have All the Acne?". The New York Times. ISSN 0362-4331. Retrieved 2021-07-12.
  3. ^ a b "RODAN + FIELDS CELEBRATES 15 YEARS OF CHANGING LIVES". Yahoo Finance. 22 March 2023. Retrieved 2023-04-11.
  4. ^ Gretler, Corinne (25 March 2016). "Nestle Forms Alliance with Bieber's Fave Acne Cure Proactiv". Bloomberg.
  5. ^ a b c Lipton, Lauren. "The Truth Behind Rodan + Fields (And Its Takeover of Your Facebook Feed)". Allure.com.
  6. ^ Philips, Carli (10 July 2017). "Internet is taking direct selling from the knock on the door and parties". The Australian. Retrieved 13 September 2017.
  7. ^ Voytko, Lisette. "A Wrinkle In Time: Why Rodan + Fields' Founders Lost Their Billionaire Status". Forbes. Retrieved 2021-07-12.
  8. ^ "Warning Regarding Earnings Claims Related to Coronavirus Disease 2019 (COVID-19)" (PDF). US Federal Trade Commission. April 24, 2020. Retrieved June 6, 2020.
  9. ^ "Rodan + Fields Haircare Is Here to Remind You That Scalp Is Skin". Harper's BAZAAR. 2022-11-09. Retrieved 2023-04-11.
  10. ^ Sandler, Emma (2022-10-24). "Rodan + Fields jump-starts brand expansion with launch into hair care". Glossy. Retrieved 2023-04-11.
  11. ^ "Rodan + Fields Pays $38 Million to Resolve Lash Boost Class Action Lawsuits". Beauty Packaging. Retrieved 2023-04-11.
  12. ^ Actions, Top Class (2022-03-28). "Rodan + Fields Lash Boost $38M class action settlement". Top Class Actions. Retrieved 2023-04-11.
  13. ^ "The Rodan + Fields Redefine Regimen Worked Wonders for My Skin". Men's Health. 2022-11-17. Retrieved 2023-04-12.
  14. ^ "Rodan + Fields Just Launched a Completely Reimagined Anti-Aging Regimen". NewBeauty. 2020-10-19. Retrieved 2023-04-12.
  15. ^ "Rodan + Fields Has a New Hair-Care Line". NewBeauty. 2022-11-01. Retrieved 2024-04-24.
  16. ^ 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.
  17. ^ Jackson, Nancy Mann (29 May 2015). "Three startups that want to steal Avon's look". Fortune.
  18. ^ Doctorow, Cory (7 November 2016). "John Oliver shreds multi-level-marketing pyramid schemes". Boing Boing. Retrieved 13 September 2017.
  19. ^ Lewak, Doree (3 February 2015). "$40,000 a month, Lexus cars: Meet the new Avon ladies". New York Post.
  20. ^ Leinbach-Reyhle, Nicole (25 April 2016). "The Rising Success Of Rodan + Fields Thanks To Nontraditional Retail And Savvy Women". Forbes. Retrieved 16 March 2017.
  21. ^ a b Rodan, Fields (1 January 2016). "2016 Income Disclosure Statement" (PDF).
  22. ^ Dickler, Jessica (2018-02-17). "How to keep from going broke from your friend's side hustle". CNBC. Retrieved 2022-02-02.

Further reading

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