~ Rodan + Fields Dermatologists moves away from direct marketing to new business model ~
“Throughout R+F’s history, our brand has never stood still, embracing new ways to create visible results and provide confidence to millions through our award-winning, breakthrough products and new ways to share those products to make an impact.”
Skincare giants Rodan + Fields Dermatologists has announced a new direction to its business model “to unlock growth and reach new customers.”
As announced today in a letter sent to consultants, the new changes, will be effective September 1, 2024. Beginning on Sept. 1, the existing R+F Compensation Plan and multi-level marketing plan will be discontinued, and the skincare company will move away from direct selling to “reach more people with our unique products while providing a meaningful and modern earning opportunity for this incredible community.”
What Is Changing at Rodan + Fields?
As part of this update, Consultants will earn through a new compensation program that provides a more “frictionless experience” while still offering a meaningful earning opportunity to sell the brand’s unique, award-winning products.
According to Rodan + Fields, the new business model “will be supported by a broader array of marketing and advertising across traditional channels and social media to complement consultants’ advocacy, will better position R+F to meet customers where they are discovering and buying beauty products.”
The company says they plan to continue offering existing consultants rewarding earning opportunities designed for today and the future.
What’s Changing & What’s Staying the Same?
Below is a quick overview of what’s changing at Rodan + Fields and what’s staying the same:
- Founding Brand Consultants will be able to earn a higher commission – 30% of the price paid on each direct customer sale.*
- Brand Consultants will have access to a personal website, the Solution Tool, and a reporting system for an annual renewal fee of only $9.99 USD / $13.00 CAD / $14.00 AUD.
- Brand Consultants will no longer need to consider recruiting additional Consultants or even have to think about meeting any Group Volume, Sales Volume or Qualifying Volume targets.
- Brand Consultants will have exclusive, first access to R+F’s breakthrough innovation.
- Brand Consultants will continue to have access to R+F product training and marketing materials.
- Brand Consultants will receive 30% off current PC pricing, which will be the price for everyone as of September 1.
- Brand Consultants will receive free shipping on all product orders over $40 USD/$53 CAD/$58 AUD.
Problems for Rodan + Fields
According to some news reports, Rodan + Fields recently cut 100 jobs. Rodan + Fields has also been recently involved in some lawsuits over their Lash Boost product. Some reports allege the company may have been recently sold
Who Bought Rodan + Fields?
In 2018, private equity firm TPG Capital invested in Rodan + Fields as a minority shareholder in the company. Some reports indicate TPG may have recently increased its holdings in the brand .
Whatever the reasoning for the changes, many consultants are leaving the company because they will lose multiple legs of consultants they spent the last 10-20 years recruiting and training as well as all the income those consultants generated.
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