Is Rodan + Fields a Scam? Is This Skincare MLM Worth Joining?
Is Rodan + Fields a scam MLM scheme or not? It’s a common question that gets asked around internet circles. It got me interested in seeing what this network marketing company is really like, and whether people can actually create a great lifestyle by jumping aboard the business opportunity.
Read on to find out more about the Rodan & Fields MLM scheme….
Company Name: Rodan + Fields
Founders: Katie Rodan and Kathy Fields
Price To Join: $45 Minimum To Start
My Rating: 5/10
~ Rodan Fields Reviews ~
Intro
These days I can’t believe just how many MLM/network marketing companies there are. There seems to be almost as many of them as retail outlets now, most of them based in America.
MLM always seems to be very popular with the masses, and I’m sometimes in awe just how many people want to get involved as distributors. Rodan + Fields found its way onto my radar recently. Being a popular “beauty” type of network marketing company, I decided I’d look into it and write a review on what I found out.
My Laptop Freedom Living website is focused on helping people find ways to make money, both online and offline, but mostly online. Because of this I tend to write a lot of reviews of make money schemes, as well as any training that teaches people methods to make money online. These reviews help us weed out the bad stuff and leave us with the good stuff.
The internet is awesome, because it’s opened so many doors of opportunity to make money from home, but the obvious downside is so many scams have cropped up because of it. Reviews help us avoid these scams and schemes that are a waste of time and money.
Congrats on finding your way to my review here. It’s shows you’re wise, because you’re willing to do some research before joining something. Chances are high you’ll never get scammed because of that.
Let’s now see how Rodan + Fields fares and whether it’s worth joining or not.
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What Is Rodan + Fields About?
This network marketing company was launched back in 2002, so it’s been around for a while now and still seems to be going strong.
Have you ever heard of the ProActiv acne cream?
Yes?
Well, that was actually created by this company’s founders – Katie Rodan and Kathy Fields, who are both dermatologists.
Back in the early days they were selling their range of skincare products in retail outlets, and ProActiv was sold both at a retail level and on infomercials.
In 2003, because of the success of ProActiv mostly, Estee Lauder bought the company, but the founders bought it back again in 2007. It was then that Katie and Kathy decided to adopt a multi level marketing model for their business instead of continuing to sell their products through stores.
Although predominantly focused on a US audience, more recently the company, its products and the business opportunity have found their way into both Canada and Australia.
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Rodan & Fields Products
Because this review is more focused on the business opportunity and whether you can make money as a consultant, I won’t go deep into the products. We’ll just take a brief overview to see what’s on offer. You can always check out their website for more details on the product line.
Below are the current categories for Rodan & Fields products. Beneath each category is a series of skincare and beauty products. Some are single products while others are sold in kits.
- Redefine
- Reverse
- Unblemish
- Soothe
- Essentials
- Enhancements
- Dermacosmetics
As I said, most of these products are focused on skincare, as well as fighting things like aging, acne, skin blemishes and so on. There are also exfoliators, lightening creams, moisturisers, masks, toners, eye serum and more.
Overall the products seem to be pretty well received, but compared to similar products on the market they are quite expensive.
Why Are the Products So Expensive?
Many people will query the prices associated with products in any MLM scheme, because they always seem to be ridiculously high for what the products are. If you ever ask why the prices are so expensive, you’ll receive a rehearsed pitch that makes claims like the products are so much better quality than anything else out there, or they contain some magical, secret ingredient.
The network marketing companies have to offer up some sort of “reasonable” sounding excuse to justify their high prices. Right?
They can’t say the real reason for it, because that would go down like a lead balloon.
So what is the real reason then?
The network marketing compensation plan and the way the commissions and bonuses are structured. People build teams through downlines when they recruit for MLM, and every eligible person in the line needs to get paid.
There are multiple small commissions paid on every sale right up to the very top. At the end of the day, after paying out all these commissions, the company still needs to make a profit. To guarantee they do, they need to make sure the prices are high enough to cover everybody’s share.
But you can’t say that’s the reason in a sales pitch, either to sell a product or recruit someone. It just doesn’t sound good at all. It’s far more preferable to come up with some sort of story why the products need to be so expensive, with the reason being focused on the product itself.
If a rep was to divulge the real reason for sky high prices, it would just sound like they’re ripping off the customer (which is essentially the truth of it)
I’m not criticising the Rodan and Fields product line at all, or suggesting they do anything different to any other MLM company out there. I’m simply explaining the real reason why the prices for MLM products are always so ridiculously expensive.
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The Rodan and Fields Compensation Plan
Generally there are always two main ways that you earn when you become a distributor/consultant for any MLM scheme, and they are:
- Sell products at a retail level
- Recruit and build your sales team
Selling products to friends, family members and the general public is okay, but it’s not what’s going to put you in a position to make the most money. Commissions are in the 15% to 25% range for Rodan and Fields, so not too bad.
The real key to being successful with MLM comes with recruiting. It’s as you build out your downlines that you’ll be able to move up the ranks and enter levels where you earn more commissions from your downlines.
Apart from your very own sales, some other ways you earn include:
- Personal Team Commissions
- Generation Commissions
- Performance Bonuses
There are quite a few ranks you can aspire to, and really your main focus for success as a Rodan + Fields consultant should be to recruit like crazy and rise up these ranks as quickly as you can.
Let’s take a snap shot of the various ranks:
- Consultant
- Active Consultant
- Executive Consultant
- Level 1 Executive
- Level 2 Executive
- Level 3 Executive
- Level 4 Executive
- Level 5 Executive
- Premier Executive
- Elite Executive
- RF Executive
You can have a full read of the Rodan & Fields official compensation plan PDF here.
Also, check out the video I’ve embedded below that explains their compensation plan further.
Rodan + Fields Income Disclosure Statement
By law, MLM companies are required to include recent income disclosure statements on their websites. I managed to locate the latest one for Rodan + Fields, for the 2017 year.
It’s these IDS PDFs that really give us the true picture when it comes to making money with a particular network marketing company.
So what does it reveal?
The average yearly earnings for 59.3% of Rodan Fields consultants was only a paltry $243.
Yep, that’s a massive $243. Divide that by 12 months and you get $20.25 per month. And that’s before expenses.
These figures certainly aren’t something that financial wet dreams are made of.
Another interesting statistic is this: Only 0.3% of Rodan Fields members made more than $100k during 2017.
In fact, some 95% percent of total consultants made less than $7000 for the entire year, and only about 1% are making what I would consider to be a liveable wage from it.
The MLM Business Opportunity
I’ve done a number of MLM schemes in the past, and they pretty much all work the same when it comes to compensation and so on. I’m really not a fan and I make no secret of that fact.
There are some key points I don’t like, so let’s quickly take a look at them.
The reason so many businesses and companies are using the network marketing distribution model these days is because of all the advantages it gives to the company. They don’t want to go traditional routes because overheads are so much higher that way.
The problem is though, for every benefit the MLM company gains, that’s an advantage stripped away from its workforce.
A regular business or retailer has to hire employees and pay other work related expenses. Now MLM companies do pay some wages to certain people, but the vast majority of their “staff” work for free, with the promise of commissions and bonuses up for grabs down the track.
Consultants in the Rodan + Fields deal, for example, don’t get paid any wages or even a retainer. Typically you are signing up to become an unpaid sales rep for them. You cover all your own expenses, including business costs.
So Rodan & Fields saves truck loads of cash just on wages and salaries for starters, but that’s not all. It’s the consultants who are buying most of the products, doing all the selling, advertising and promoting the company and its products, and basically shouldering the majority of the workload.
Now, because of the need to recruit, build downlines and grow sales teams, this also means it’s up to the distributors to expand the business through this necessary recruitment process. If you fail to recruit, and recruit well, you just don’t stand a chance of making an impact in any MLM scheme.
This is all a really fantastic deal for the head company, and it’s also a very smart, strategic move on their behalf. But the deal for the consultants, in reality, is a really shitty one. It’s anything but sweet, that’s for sure. Distributors do nearly all the work on every level, but yet stand to earn the least when it comes to the majority.
MLM companies always talk up the opportunity in a big way, always selling the lifestyle and income potential when you rock up to their official seminars
This is all well and good, and many of us aspire to that kind of life, but the fact is that most network marketing schemes will not give you that kind of lifestyle at all. Only the top 1% enjoy that kind of life. The rest are there to make up the numbers, buy all the product and do all the work.
Even though you have to pay all your business expenses, you don’t actually get to own your own business. The company owns it all and always will. Consultants are just unpaid sales reps, even though the company will tell you otherwise.
Can you sell a network marketing distributorship? No, you can’t, so you don’t really own it.
Another thing is this: Most MLM companies practically force their distributors to buy a certain amount of product every month. So to put it bluntly, the workforce is also the main customer base.
Seriously, there are much better ways to make good money.
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Is Rodan + Fields a Pyramid Scam?
MLM businesses utilise a pyramid structure for compensation, and because of this fact they are more often than not labelled as illegal pyramid schemes by some people. I don’t believe this is entirely accurate though.
Why? Well, let’s take a look at the true definition of an illegal pyramid scheme, such as Ponzi schemes.
An illegal style of pyramid scheme relies totally on the recruitment of new members to make money for both the company, as well as its existing members. These schemes don’t have any real products of any real value, either.
New members are recruited. They pay money and a percentage goes to the recruiter as well as the company’s owner.
Rodan + Fields has loads of real products and don’t just rely solely on recruitment to survive. Therefore it’s not an illegal pyramid scam in any way.
Target Market
It’s always amazed me just how popular the network marketing thing is with the vast majority of people. I guess it’s because the hard work of setting up a business, complete with products, has already been taken care of.
You can basically just jump on board and get out there selling, promoting and recruiting. There’s no time lag or stress of getting things organised.
That’s probably the most appealing thing of all when it comes to these schemes.
But like I mentioned earlier, you never own your own business, so that’s a massive negative when you think about it. If you’re just going to be a worker, why not just get a job that pays a wage instead. Way less stress and expense.
And you are just a worker when you join anything MLM at the end of the day, you just don’t get paid wages and have to cover your own expenses.
What I Like
- Rodan + Fields has been going strong since 2002
- The founders actually invented the super popular ProActiv acne cream
- The products are quality and well received
- The founders are actually dermatologists
- The MLM seminars can be very motivating to attend
- You might be able to make some money with this if you focus most of your efforts on recruiting and advancing up the ranks
- Over $1 billion in sales in 2016
What I Don’t Like and Red Flags
- You may just annoy all of your inner circle
- Only 1% of Rodan Fields members actually make a liveable yearly income
- The products are mega expensive for what they are
- You’ll have to recruit like a maniac to get anywhere in this company
- You’ll be competing against some major cosmetic and skincare brands that sell their products far cheaper
- All the advantages go to the company and not the consultants
- You will never own your own business doing this
- Expensive start up costs – Their kits are really pricey
- The average yearly earnings for almost 60% of consultants in 2017 was less than $300
How Much Does Rodan + Fields Cost To Join?
The very basic Starter Kit you need to purchase to become a consultant costs $45.
After that, to remain eligible to earn commissions, bonuses and to advance up the ranks, you need to purchase a minimum of $100 of product every single month (see what I’m saying about these companies turning their workers into their main customers?).
Other product kits cost the following amounts: $395, $695 and $995.
So all pretty expensive, and that’s not all the costs you’ll incur by joining this thing.
Is Rodan + Fields a Scam Or Legit?
No, I don’t rate Rodan + Fields as a scam at all. In fact, I don’t rate any MLM schemes as scams, despite the numerous reasons why I don’t like them.
What I really don’t like is the way they compensate their workforce. There are no advantages to the consultants, as all advantages are designed to be for the company itself. That’s why they adopt the network marketing business model in the first place.
You can’t really blame them, but it sucks from a distributor point of view.
Basically when you get involved in MLM you’ll spend heaps of time (and money) buying products and trying to offload them, and even more time and energy focusing on necessary recruitment.
If you were to get involved in this, focus almost all of your energy on recruitment and climbing the ranks. That’s the secret to success here. Forget trying to make money on a retail level. The products are way too expensive.
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Look, you might be able to make some money by joining the Rodan Fields business opportunity, but it’s highly unlikely you’ll ever make a liveable wage out of it. And even if you do, you’ll likely be working your butt off 24/7.
I said earlier that I’ve tried a few MLM deals in the past, but I much prefer the simplicity and budget friendliness of affiliate marketing instead. It has it all over network marketing in my opinion.
Affiliate marketing is way less work, there’s no actual buying and selling of products, you don’t pay membership fees, purchase starter kits, or have to buy a certain amount of product every single month. You also don’t have to recruit people in order to make decent money.
There’s really no comparison between the two.
Every single day I make money with this. I even make money while I’ve been sleeping. I’m not alone either. Multiple millions of people around the globe do the same thing. If you follow a proven training blueprint, you can be successful at this too. It’s really not that hard.
You get to work from home and you don’t need any capital to get started. Along with that, your affiliate marketing gig runs on a shoestring budget.
Over time you will end up creating multiple streams of residual and passive income. There’s no ceiling on how much you can earn online, and you’ll enjoy a lifestyle of time and money freedom.
Part-time or fulltime, it doesn’t matter. It’s all doable. Some marketers have even gotten rich from this.
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