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Tuesday, July 16, 2024

Rodan + Fields Announces Major Changes to Business Model

~ 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:

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.  

If you have any questions about the Rodan + Fields brand of products, please leave me a comment or message me  

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