Rodan + Fields

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Rodan + Fields, LLC
TypePrivate
IndustryMulti-level marketing
Founded2007; 15 years ago (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, 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.[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 2018, private equity firm TPG bought a minority stake in the company. At the time, Rodan + Fields was valued at $4 billion.[6]

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.[7]

Business and products[]

Rodan + Fields has its headquarters in San Francisco, California.[8] Its products include cleansers, toners, moisturizers, creams, exfoliators and sunscreens.[4]

Rodan + Fields distributes via multi-level marketing,[9] which has been criticized by consumer advocates as akin to a pyramid scheme.[1][10] Consultants focus on social media, phone and in-person presentations to sell products and invite others to join their team.[11] The average 2015 annual income for a consultant was $3,182.[12]

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.[13] In 2016, 125,348 (representing 44% of all recruits) recorded zero earnings and are thus no longer considered active.[13] Only 2% of active sellers make the annual minimum wage or higher.[1]

References[]

  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. ^ Gretler, Corinne (25 March 2016). "Nestle Forms Alliance with Bieber's Fave Acne Cure Proactiv". Bloomberg.
  4. ^ a b 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. ^ Voytko, Lisette. "A Wrinkle In Time: Why Rodan + Fields' Founders Lost Their Billionaire Status". Forbes. Retrieved 2021-07-12.
  7. ^ "Warning Regarding Earnings Claims Related to Coronavirus Disease 2019 (COVID-19)" (PDF). US Federal Trade Commission. April 24, 2020. Retrieved June 6, 2020.
  8. ^ 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.
  9. ^ Jackson, Nancy Mann (29 May 2015). "Three startups that want to steal Avon's look". Fortune.
  10. ^ Doctorow, Cory (7 November 2016). "John Oliver shreds multi-level-marketing pyramid schemes". Boing Boing. Retrieved 13 September 2017.
  11. ^ Lewak, Doree (3 February 2015). "$40,000 a month, Lexus cars: Meet the new Avon ladies". New York Post.
  12. ^ Leinbach-Reyhle, Nicole (25 April 2016). "The Rising Success Of Rodan + Fields Thanks To Nontraditional Retail And Savvy Women". Forbes. Retrieved 16 March 2017.
  13. ^ a b Rodan, Fields (1 January 2016). "2016 Income Disclosure Statement" (PDF).

Further reading[]

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