Rodan + Fields
|United States, Canada, Australia|
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 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.
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, Fields and Rodan launched Rodan + Fields. Products were sold in department stores. The following year, the company was purchased by Estée Lauder. In 2007, Fields and Rodan reacquired the brand 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.
Rodan + Fields distributes via multi-level marketing, which has been criticized by consumer advocates as akin 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.
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. In 2016, 125,348 (representing 44% of all recruits) recorded zero earnings and are thus no longer considered active. Only 2% of active sellers make the annual minimum wage or higher.
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