Rodan + Fields has introduced it’s abandoning its MLM enterprise mannequin as of September 1st.
Instead Rodan + Fields will function what it calls a “simplified enterprise mannequin”, aimed toward “unlock[ing] progress and attain[ing] new prospects”.
As per a July fifteenth Rodan + Fields press-release;
Beginning September 1, the Firm will transfer away from the multi-level direct promoting mannequin to streamline the shopper and Marketing consultant expertise.
Rodan + Area’s new enterprise mannequin feels like a single-level affiliate mannequin. Rodan + Fields Consultants that select to remain on can be charged $9.99 yearly to take part.
Rodan + Fields states that below the brand new non-MLM mannequin, Consultants will “obtain elevated commissions on buyer gross sales”. That is to be anticipated with downline commissions being wiped.
Recruitment and commissions Consultants obtain via product gross sales by these they’ve recruited will now not be a element of R+F’s mannequin, leading to a simplified Marketing consultant expertise.
Along with canning its MLM mannequin, Rodan + Fields additionally introduced it had “eradicated roughly 100 roles” in company.
The Firm is grateful for the contributions of those people and is supporting them with the transition.
Rodan + Fields commenced MLM enterprise operations in 2007. The corporate is headed up by founders Katie Rodan and Kathy Fields.
I can’t communicate to Rodan + Fields’ gross sales efficiency however web site site visitors seems to have hovered between 400,000 to 500,000 month-to-month visits for a while (SimilarWeb). 97% of Rodan + Fields’ web site site visitors originates from the US.
Earlier this 12 months Rodan + Fields was sued by a Marketing consultant. The proposed class-action seeks to have Rodan + Fields’ Consultants categorised as staff somewhat than impartial contractors.
In July 2024 Rodan + Fields and the Marketing consultant agreed to remain the case pending the result of arbitration proceedings.
As of BehindMLM’s final July 4th docket verify, the result of arbitration proceedings stays pending. A Case Administration Convention has been scheduled for October 2nd.