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This is a review of Rodan and Field multilevel marketing (mlm) business opportunity.
The first question that people ask when they heard the word MLM: ‘Is Rodan and Field a pyramid scheme?’
We all know that not all mlms are pyramid schemes.
We also know more than 99% of people fail in network marketing.
In this Rodan and Fields Review, we’ll discuss why it’s so difficult to make money with MLM opportunities?
If you want to become a consultant for Rodan and Fields, you should read this review before investing.
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Rodan and Fields Review
I don’t believe Rodan and Fields is a pyramid scheme. This company has been around 15 years.
However, I believe is difficult to make money with Rodan and Fields mlm business opportunity. This is what I plan to find out.
I have nothing against Rodan and Fields. I am not affiliated with this mlm business, and I am not a big fan of mlm.
I make money as a Blogger through Affiliate Marketing. Here’s my profile.
Affiliate marketing doesn’t require recruiting or face-to-face selling. It is much easier to make money compared to network marketing.
Let start our review on Rodan and Fields business.
What Is Rodan And Fields? – The Rodan and Fields Review
Rodan and Fields is the last name of two Stanford trained dermatologists, Katie Rodan and Kathy Fields.
These two doctors are famous for creating a skincare product line known as Proactiv, which currently owned by Guthy-Renker and Nestlé.
The Rodan and Fields company was launched in 2002 with the skincare line aimed at women age 30 and up. The doctors sold Rodan and Fields to Estee Lauder in 2003.
Then in 2007 they reacquired the name ‘Rodan and Fields’ and launched a new multilevel marketing (mlm) company selling skincare products through a network of independent consultants.
Today, this skincare mlm company has over 300,000 independent consultants with a business valuation of around $1 billion.
Rodan and Fields consultants are mostly women.
According to Rodan and Field 2017 earnings disclosure, about 44% of these independent consultants did not earn income promoting Rodan and Fields.
Rodan and Fields mlm business model has been criticized by advocates as a pyramid scheme.
Rodan And Fields Products
Rodan and Fields offers skincare products line to combat aging and blemishes.
The products are divided into four main groups with each group carried numerous skincare products. You can purchase these products individually or as a skincare kit.
- Reverse regimens combat age spots and uneven skin tone. The reverse kit contains a scrub, toner, lightening lotion and sunscreen. This kit costs $190.
- Redefine is designed for aging. It helps to improve the appearance by smoothing fine lines and pores on the skin. The kit retails for $199.
- Unblemish is an acne fighting treatment to prevent a breakout. This kit is popular with women concerning acne breakouts and skin blemishes. The treatment system cost $186.
- Soothe is skincare regimens for sensitive and irritated skin conditions. It helps to reduce visible redness and relieve dry skin. The soothe regimen kit is retail for $179.
As a Rodan and Fields independent consultant, you will be promoting and selling skincare products to earn commissions.
How to Become Rodan and Fields Consultant?
If you want to make money selling Rodan and Fields skincare products for a living, you need to have a sponsor to become Rodan and Fields Consultant.
It’s easy to find a Rodan and Fields sponsor.
Any Rodan and Fields Consultants online will be more than happy to sponsor you into this program.
The process of becoming a Rodan and Fields consultant begins when you contact an existing Rodan and Fields consultant.
- Setting up an appoint for the first one-on-one meeting with your Rodan and Fields sponsor.
- The sponsor will explain to you about Rodan and Fields products and how much you can expect to make as an independent consultant. (I’ll discuss earnings in the next section).
- You agree to sign up as a Rodan and Fields Consultant and purchase a business starter kit.
- You sponsor submits your application for approval and order your startup kit. Don’t worry, everyone gets accepted.
There you have it. That is the process of becoming a Rodan and Fields independent consultant.
Now, you probably want to know the costs of starting a Rodan and Fields business.
Rodan And Fields Cost of Becoming A Consultant
Your sponsor might want you to think the cost to become a Rodan and Fields consultant is minimal, only $45.
Don’t believe that. The initial investment is much higher.
You are required to purchase one of the 4 business kits to become a Rodan and Fields consultant.
Here is the description of each business kit.
$45 Business Portfolio Kit
This is the lowest cost business kit which includes no product.
This business kit contains only information about Rodan and Fields mlm business opportunity, product guides, and the necessary paperwork to get started as an independent consultant.
This $45 is a marketing tool to get a meeting with you.
Your sponsor will tell you that you need the product business kits if you want to make money.
$395 Personal Results Kit
This business kit offers basic products which include:
- Business Portfolio
- The Regimens: One Redefine, and another Regimen of your choice
- Body care: Essentials Daily Body Moisturizer and Body Sunscreen SPF 30
- Perfect add-ons: Redefine Eye Cloths and Essentials Maximum
$795 Core Kit
This business kit is the popular choice for most Rodan and Field Consultant.
It is considered the best kit to launch your Rodan and Filed business.
You receive skincare kits and business material.
- Redefine Regimen
- Reverse Regimen
- Soothe Regimen
- Unblemish Regimen
- Spotless Regimen
Begin your Rodan and Fields Business Materials
- Quick Start Business Guide
- Product Guide
- Leave-Behind Flyers
- “Before and Alters” Flip Book
Beyond the Regimen Box
- Products to enhance and complement your skin
- Core skincare Regimen
- Redefine Multi-Function Eye Cream
- Essentials Gauze Pads
- 10 Sample Cards
$995 Ultimate Business Kit
This is Rodan and Fields new consultant kit for 2019.
In addition to all the goodies from the Core Kit. You receive these extras:
Ultimate Sampling Box
- 5 Active Hydration Serum
- 5 Active Hydration Bright Eye Complex
- 5 Active Hydration Body Replenish
- 15 Radiant Defense Perfecting Liquid Sample Cards
- 10 Enhancements Micro-Dermabrasion Paste Packets
- 10 Give It A Glow Samples
Besides purchasing the one business kit above, you will need a personal website, Pulse Personal Website (PPW).
- Every business kit comes with a free trial of Pulse Pro. After your trial is over, the cost is $24.95 a month.
- You can opt out and use the free Pulse site. However, you cannot access customer data and order info. If you want to make money selling Rodan and Fields, you will have to purchase Pulse Pro.
The total cost to become Rodan and Fields consultant is not really $45.
- Let says you to select the most popular business kit, the Core Kit, which cost $795.
- You choose to go Pulse Pro for $24.95 per month, that costs $299.40 a year ($24.95 x 12).
Your total cost to start this mlm business is $1,094.40.
You might think this total cost is not expensive. But wait, there are costs associated with running this business.
Most Rodan and Fields consultants do not add operating costs. These costs will eat all your earnings.
- One fix operation cost is meeting the monthly sales volume (SV) requirement of 100 SV to stay active and earn commissions.
- 100 SV is about $100 in product sales. I’ll explain this in the next section of Rodan and Field Compensation Plan.
I consider the SV as a business cost because most or all new Rodan and Field consultants must personally purchase monthly products until their business can generate enough sales volume.
It takes about 1 year for a Rodan and Fields to generate 100 SV a month.
This means the 1st year cost of operating the business is $1,200 ($100×12).
Other operating costs include advertisements, product promotions, and your time working in this business. These costs vary with each consultant.
Now, your total cost to launch a Rodan and Fields consultant business is $2,294.40.
You might say, what if I start with the $45 business kit?
But you still have to meet the monthly SV. How are you going to do this in your first few months to earn commissions?
YES, buying the Rodan and Field products yourself.
Under this option, it still cost $1,245, not $45.
I agree that you must invest money to make money.
But, can you make money with Rodan and Fields?
You can find this answer by looking at the Rodan and Fields compensation plan and earnings disclosure statement.
Rodan And Fields Compensation Plan
Rodan and Fields is an mlm business opportunity. Under the mlm business model, a consultant receives compensation two ways: from personal sales and from team sales.
To understand consultant commissions, we have to look at the Rodan and Fields Compensation Plan.
According to the compensation document, Rodan and Fields consultants earn commissions as follows:
Retail Profit Commissions
This is from direct selling products made in person or through the personal website. You earn a retail margin up to 25% from the retail price and up to 16% from preferred customers price. There is no monthly SV requirement to receive this commission.
You earn a 10% commission from sales made by your Consultants (L1), both retail and PC sales.
However, you must meet the monthly sales volume (100 SV0 to earn these commissions.
Personal Team Commissions
This 5% team commission is only paid to Executive Consultant (EC). EC is achieved by meeting the minimum of 600 Personally Sponsored Qualifying Volume (PSQV) each month.
PSQV is sales volume generated by the Consultants and PC whom you personally enroll in Rodan and Fields.
You will earn a team commission of 5% on all the sales generated by your team, including sales by consultants and customers you have enrolled (L1+L2).
This 5% commission is earned when to become a Level 1 Executive Consultant (L1EC).
L1EC is an EC with one EC in his/her personal team. You can achieve up to 5 Levels of Executive Consultant.
You earn an additional 5% for each level of EC. This will earn you a 5% commission from Generation 1 through Generation 5.
You achieve the RFX Executive Consultant level when you have 15 ECs with at least 2 achieve L1EC. You earn an additional 2.5% commission from the 6th generation in your downline.
Performance bonuses are awarded from time to time to compensate Rodan and Fields Consultants for their achievements. These include car incentives, cash bonuses, and other lifestyle rewards.
Rodan and Fields compensation plan sounds impressive on paper.
When you look at Rodan and Fields earnings disclosure for 2017, it offers a different picture.
- Rodan and Fields had 397,790 enrolled Consultants.
- BUT, 175,513 (44%) of Rodan and Fields Consultants received no compensation.
Of all the Consultant received compensation, more than 50% receive an average compensation of only $325 for the year.
Looking at the earnings summarized table above, you can see that only 4.28% of Rodan and Fields Consultants earned above the minimum wage while over 95% earned below $7,000 per year.
The bulk of Rodan and Fields earnings, $100k and up, were paid to the top group of less than 1%.
Because of the bulk earning are paid to a small group at the top, many advocates label Rodan and Fields a pyramid scheme.
These commissions did not include expenses. Many Consultants spent time and money to build and promote their Rodan and Fields business.
When you take into account all business expenses, you will find that most Rodan and Fields consultants are losing money.
Your chance of achieving financial freedom is extremely low. I’ll never invest in a business opportunity with a 95% chance of losing everything.
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Is Rodan And Fields Worth It?
Rodan and Field supporters would tell you this is a great business opportunity ever exist on earth. To them, it’s worth every penny.
I make my business investment based on the numbers. According to the company 2017 earnings statement, Rodan and Fields is not worth it.
I would never invest in this mlm business opportunity for the following reasons:
- Your chance of success is less than 5%, and
- The Rodan and Fields Consultant business has become too competitive.
I make my decision using the business data provided by Rodan and Fields.
A good business to invest must generate at least over $100,000 annual revenue.
With Rodan and Fields, your chance of earning a 6-figure income is 0.18%. This is less than 1%.
With mlm business, direct sales will not generate a lot of money. Recruiting new consultants is the only option.
In 2017, Rodan and Fields had close to 400,000 consultants. This number is growing daily. The business is becoming too competitive to recruit new consultants.
Based on the information above, I say Rodan and Fields does not worth the investment.
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Is Rodan and Field a Pyramid Scheme?
There are two different opinions on this topic.
Those following the laws would agree Rodan and Fields is not a pyramid scheme, because it mlm operation is legal.
Rodan and Fields is a legal mlm business because the company does not promote the selling of membership. All consultants are required to purchase a business kit, which means you are purchasing a product from Rodan and Fields.
Allow me to ask you this, are you investing in a business opportunity just because it’s legal?
I would not. I invest in a business to make money. So, being legal is not enough. The business opportunity must also be PROFITABLE.
Other consumer advocates accuse Rodan and Fields of operating a pyramid scheme, because most low-level consultants do not earn money, except a small group at the top.
It doesn’t matter to me if Rodan and Fields a pyramid scheme or not. The fact is, this business opportunity is not profitable.
Why invest in a business knowing that 95% you will not make money?
How To Make Money Starting A Business?
To build a successful business requires certain investment disciplines.
- You cannot invest in a business because the products or services are good or the best.
- Every Rodan and Fields consultant will tell you these are the best skincare products. But the right investment question, ‘Is this business opportunity profitable?’
After looking at the earnings data, you must agree Rodan and Field mlm business opportunity is not profitable.
From my experience, it is very difficult to make money with mlm business if you are not good at recruiting or face-to-face sell.
I know this because I had tried mlm and fail. I hate doing face-to-face sell, especially in a stranger’s house.
I choose another business model which is much easier to make money and does not require face-to-face selling. This business is called Affiliate Marketing.
Affiliate Marketing focuses on generating income through passive activities. There is not recruiting or face-to-face marketing. You can run this business from the comfort of your own home.
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We start a business to generate profits and be our own boss. Not every business is profitable. We just need to find the right one.
- If you are struggling to make money as a Rodan and Field Consultant, I suggest looking at using affiliate marketing to help you recruit and build your team.
- I recommend reading MLM and Affiliate Marketing to discover the process of using affiliate marketing to promote your mlm business.
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I hope this Rodan and Field Review provided you enough business information about this mlm business opportunity.
The main reason I don’t like to invest with Rodan and Fields because it is not a PROFITABLE BUSINESS.
Is Rodan and Fields a pyramid scheme? This question is irrelevant at this point.