Rodan & Fields, LLC, known as Rodan + Fields or R+F, is an American manufacturer and multi-level marketing company specializing in skincare products. The company was founded in 2007 by Katie Rodan and Kathy Fields, creators of Proactiv, and has its headquarters in San Francisco, California.
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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. 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. In 2003, Rodan + Fields 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 are paid a commission for their own sales and for the sales of people they recruit.
Rodan + Fields launched in Canada in February 2015 and in Australia in September 2017.
Maps Rodan + Fields
Business
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.
Business model
Rodan + Fields uses independent consultants, mostly women, to sell products who earn commissions based on a multi-level marketing strategy, which have been criticized as akin to pyramid schemes. 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.
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. In 2016, 125,348 consultants (representing 44% of all recruits) recorded zero earnings and are thus no longer considered active independent consultants. Only 2% of active consultants make the annual minimum wage or higher.
References
Further reading
- "Skin Care Company Rodan & Fields Pursuing a Sale". The Wall Street Journal. February 18, 2015. Retrieved 5 May 2016.
Source of article : Wikipedia
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