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In this writing, we will look into the complete review of Rodan and Fields MLM Company.
|CEO:||Katie Rodan and Kathy Fields|
|Industry type:||Network Marketing or Multi-level Marketing company|
|Headquarters||San Francisco, U.S., California|
This company is a combination of dermatologists named Katie Rodan and Kathy Fields. They founded proactive solutions for acne treatment and developed a San Francisco based MLM company in 1995. They developed their brand cosmetics and launched in 2002.
Though it is promoted by the cosmetic giant Estee Lauder, Rodan +fields brand was not able to make a commercial success. The two dermatologists held back their company from Estee Lauder to develop it as an MLM company in 2007. The company possessed around 287,000 consultants in 2016 along with its growing network marketing business.
They are mainly into the production of skincare products. As per the internet reviews, they are of high quality. Since qualified dermatologists developed this company from a well recognized Stanford university, they were known for their brand and high quality.
In 2014, the demand for cosmetics was around $460 billion globally and it is estimated that it would be around $675 billion by 2020. It gives us hope that there will be an inclined growth of this cosmetic based network marketing company.
As per the website of Rodan and fields, they provide high business opportunities and financial freedom. With their compensation plan, it is understood that it is not easy to make money with Rodan and fields.
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The distributors of Rodan and fields can earn retail profit by selling their products to the customers. The distributors can distribute the products online, or in person, or customers can make use of the distributor’s web link to purchase the product.
The distributors can earn around 33% commission from a sale and around 16% commission if the customer prefers to receive the monthly supply of Rodan and Field’s product.
The consultants need to make 100 QV (qualifying volume) with the product sale of Rodan and fields. It is also known as Commission volume, or Sales volume, or Personally sponsored QV. However, the 100 QV volume remains the same for qualifying the commission.
The consultants and their team need to buy the products to attain such QV. This point system is used by all the MLM companies to standardize their qualifying quota globally.
The distributors or consultants need to be active in the network system to attain this QV. Every month they need to sell the product worth 100 points from their consultant account.
The active distributor can earn around 10% commission on the product purchase of their L1 consultants or customers.
L1 is referred to as the first level of referrals of the particular distributor. This may include any downline consultant or the customer of Rodan and fields.
To be eligible for team commissions, the distributor needs to qualify as an Executive consultant, and their team should generate around 600 PSQV (Personally Sponsored Qualifying Volume).
The executive consultant will earn around 5% commission as a team commission. The retail sales made by their recruited team will make the executive consultant earn, and it is referred to as L2 point.
This is an additional incentive from Rodan and fields. A distributor may receive their performance bonus at any point in time. It ranges from a small cash bonus to a car incentive or any other noncash incentive rewards.
After the consultant reaches the executive consultant level and if one the downlines reach the same level, then the consultant is eligible for a 5% commission on the first generation of their downline.
When 8 downlines reach the executive consultant level, then the consultant will look at level 5 executive consultant rank. At level 5, the consultant will be able to earn a 5% commission from 5 generations of their downline.
The earning potential is not limited to this generation. The consultant will be able to qualify RFX executive consultant and will be able to 2.5% commission from the 6th generation of their downlines. For this rank and commission, they need 15 executive consultants in their team and 5 out of 15 should be able to reach level 5 executive consultant position.
To know whether the consultants are earning properly, you can look into the income disclosure statement of Rodan and fields. The statement begins with network marketing and then the goals like life-changing opportunities. It supports all people irrespective of their sex, age, or background.
This statement shows the retail profit margin that can be earned by the consultants. When the customers order their product online, the retail profit is credited to the respective consultant.
Around 286,709 consultants joined in Rodan and fields during 2016, and around 56.28% consultants i.e., 161,361, earned the commission, and the remaining consultants could not earn the commission.
Consultants need to put their utmost efforts to earn the commission by promoting the products and building their team network. they sometimes need to spend from their own pockets to reach the $100 worth product sales.
Only a few consultants i.e around 0.6% earned an income of around $50,000. It means around 99.4%did not earn a full-time income from Rodan and fields.
This shows that hardly a very few consultants are earning a full-time income with Rodan and fields.
When the consultant buys a product at a certain price, the price includes 8 levels of commission. It means 42.5% of what the consultant is spending to buy a product will go as commission to the uplines and the remaining percentage will go for the production cost of Rodan and Field products.
It shows that the products are expensive for the consultants to earn passive income from this network marketing.
To decide whether it is an illegal pyramid scheme, it solely depends upon the definition of it.
The definition of an illegal pyramid scheme is to only make money by simply sponsoring the downlines and building the network and it will not focus to promote the products.
Like other MLM giants, Rodan and fields is also a legitimate MLM company. Since it is focussing on promoting their skincare products, it is not an illegal pyramid scheme.
It is evident from their compensation plan they promise compensation only on promoting the products and not for simply sponsoring the downlines into the network.
As per the Federal Trade Commission, they have the guideline set to follow the MLM business and we can say that it is not an illegal scheme.
It is recommended that before joining the company, you can try to be a retail customer. When compared with the competitors of Rodan and fields, you will be able to find that the products of Rodan and fields are not that expensive. So you may join this MLM company for receiving high quality branded products.
As we have already discussed that only a very earn passive income from this MLM business, you may not be interested in spending more as a consultant to attain the MLM business profit.
If someone is interested in receiving some full price products, then they may consider joining Rodan and fields.
Read more to know about other MLM Company Reviews
I hope in this article; you will be able to view the complete review of Rodan and fields. From the above review, we can conclude that it is not easy to make money with Rodan and Fields, and still, there’s a chance if you are ready to spend in the beginning to build the network.
From the compensation plan, you can make out that only members at the top level earn the commission when compared to low-level downlines.