Rodan + Fields

Rodan & Fields, LLC, known as Rodan + Fields or R+F, is an American 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, LLC
TypePrivate
IndustryMulti-level marketing
Founded2007 (2007)
Founder
Headquarters,
U.S.
Area served
United States, Canada, Australia
Key people
  • Dimitri Haloulos (President and CEO)
  • Amnon Rodan (Chairman)
Products
Websitewww.rodanandfields.com

Rodan + Fields uses independent consultants to sell its products.[1] Its business model has been criticized by consumer advocates as being 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][3] Proactiv is now a registered trademark of Guthy-Renker and Nestlé.[4]

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[5] 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][6]

In 2018, private equity firm TPG bought a minority stake in the company. At the time, Rodan + Fields was valued at $4 billion.[7]

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.[8]

In 2021, Rodan and Fields is named the number one skincare regimen brand in the United States for the fourth year in a row (2018-2021).[3]

In October of 2022, the founders launched a whole line of shampoos, conditioners and stylers, on top of their skincare.[9][10] In November of 2022, Rodan and Fields were a part of a class action lawsuit in regards to their Lash Boost serum. The company offered $38 million to resolve the issue as well as change their verbiage on the product usage, instructions, and warnings.[11][12]

Products

In 2002, Fields and Rodan launched their skincare line. Those products ranged from cleansers, to acne treatments.[5] Their Redefine skincare line is a three step regimen. Starting from either a Clay or Foaming Cleanser (Step 1), a Pore Refining Toner (Step 2), A Defense Lotion or Cream (Step 3), and lastly a Restorative Cream or Lotion (Step 4).[13]

In 2020, the company launched their Anti-Aging Regimen.[14]

Business

Rodan + Fields has its headquarters in San Francisco, California.[15] Its products include cleansers, toners, moisturizers, creams, exfoliators and sunscreens.[5]

Rodan + Fields distributes via multi-level marketing,[16] which has been criticized by consumer advocates as akin to a pyramid scheme.[1][17] Consultants focus on social media, phone and in-person presentations to sell products and invite others to join their team.[18] The average 2015 annual income for a consultant was $3,182.[19]

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.[20] In 2016, 125,348 (representing 44% of all recruits) recorded zero earnings and are thus no longer considered active.[20] 2% of active sellers make the annual minimum wage or higher.[1] Most use Rodan + Fields to supplement, not replace, other work.[21]

References

  1. 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. "RODAN + FIELDS CELEBRATES 15 YEARS OF CHANGING LIVES". Yahoo Finance. Retrieved 2023-04-11.
  4. Gretler, Corinne (25 March 2016). "Nestle Forms Alliance with Bieber's Fave Acne Cure Proactiv". Bloomberg.
  5. Lipton, Lauren. "The Truth Behind Rodan + Fields (And Its Takeover of Your Facebook Feed)". Allure.com.
  6. Philips, Carli (10 July 2017). "Internet is taking direct selling from the knock on the door and parties". The Australian. Retrieved 13 September 2017.
  7. Voytko, Lisette. "A Wrinkle In Time: Why Rodan + Fields' Founders Lost Their Billionaire Status". Forbes. Retrieved 2021-07-12.
  8. "Warning Regarding Earnings Claims Related to Coronavirus Disease 2019 (COVID-19)" (PDF). US Federal Trade Commission. April 24, 2020. Retrieved June 6, 2020.
  9. "Rodan + Fields Haircare Is Here to Remind You That Scalp Is Skin". Harper's BAZAAR. 2022-11-09. Retrieved 2023-04-11.
  10. Sandler, Emma (2022-10-24). "Rodan + Fields jump-starts brand expansion with launch into hair care". Glossy. Retrieved 2023-04-11.
  11. "Rodan + Fields Pays $38 Million to Resolve Lash Boost Class Action Lawsuits". Beauty Packaging. Retrieved 2023-04-11.
  12. Actions, Top Class (2022-03-28). "Rodan + Fields Lash Boost $38M class action settlement". Top Class Actions. Retrieved 2023-04-11.
  13. "The Rodan + Fields Redefine Regimen Worked Wonders for My Skin". Men's Health. 2022-11-17. Retrieved 2023-04-12.
  14. "Rodan + Fields Just Launched a Completely Reimagined Anti-Aging Regimen". NewBeauty. 2020-10-19. Retrieved 2023-04-12.
  15. 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.
  16. Jackson, Nancy Mann (29 May 2015). "Three startups that want to steal Avon's look". Fortune.
  17. Doctorow, Cory (7 November 2016). "John Oliver shreds multi-level-marketing pyramid schemes". Boing Boing. Retrieved 13 September 2017.
  18. Lewak, Doree (3 February 2015). "$40,000 a month, Lexus cars: Meet the new Avon ladies". New York Post.
  19. Leinbach-Reyhle, Nicole (25 April 2016). "The Rising Success Of Rodan + Fields Thanks To Nontraditional Retail And Savvy Women". Forbes. Retrieved 16 March 2017.
  20. Rodan, Fields (1 January 2016). "2016 Income Disclosure Statement" (PDF).
  21. Dickler, Jessica (2018-02-17). "How to keep from going broke from your friend's side hustle". CNBC. Retrieved 2022-02-02.

Further reading

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