Rodan Fields Is A Scam Or Another So-called Pyramid Scheme
There are mixed reviews about Rodan Fields. Some say that there’s nothing good that’ll come out of it. Others say that this is the best opportunity that you can invest in.
These mixed reviews have strong stands, and there are little neutral comments about the issue. With this dilemma at hand, it’s hard to choose what to believe in. I always say that the best way of judging a company is based on the credible facts recorded about it. One should go beyond mere opinions, strong feelings about the company, or column reviews from flamboyant magazines.
To help you with the truth, we laid down some facts about Rodan Fields, what it is, what it does, how it works, and more.
What is Rodan+Fields?
Rodan Fields is an MLM or multi-level marketing company that deals with direct sales of skincare products. Its founders were Dr. Katie Rodan and Dr. Kathy Fields.
The founders of the company are an expert in skincare and are quite credible since they are medical practitioners. If you’re not still convinced- they’ve created Proactive solutions. The proactive solution is devoted skincare for acne, and its effectivity bolstered its sales to heights.
As an MLM company, Rodan Fields targets women and stay at home moms for their sales representative job. Since their main line of products is skincare, it’s all the more perfect to employ women.
How Does Rodan Fields Works?
Rodan Fields is an MLM type of company (which goes without saying) that lets you earn through commissions and downlines. As your downline and commission grow, so is your position in the MLM structure of Rodan Fields. Below are the possible titles that you can get. Each title has certain qualifications and added perk/perks.
- Consultant: This is the first position that every member has to go through. To sign up as a consultant, you have to pay $45.
- Active Consultant: To be an active consultant, you have to maintain a sales volume of up to 100 per month.
- Executive Consultant: To be able to clinch this title, maintain a personally sponsored qualifying volume of 600 per month.
- Level I Executive: You need to sponsor at least one executive consultant.
- Level II Executive: You need to sponsor at least two executive consultants.
- Level III Executive: You need to sponsor at least four executive consultants.
- Level IV Executive: You need to sponsor at least six executive consultants.
- Level V Executive: You need to sponsor at least eight executive consultants.
- RFX Executive: You need to sponsor at least 15 executive consultants.
How Do You Earn From Rodan Fields?
There are many ways of earning in the Rodan and Fields company. Below are some of the earning ways and how they work:
- Retail Profits:
This type of method is earning through direct sales. You are earning a dime from a fraction of the “Preferred Customer Price” and the “Retail Price.” For example, the original price is $145. Your “Preferred Customer Price” is at $174, and your “Retail Price” is at $193. The mark up in “Preferred Customer Price” is at $29, and the mark-up in “Retail Price” is at $48. The mark-ups are your retail profit. Of course, you’ll earn more in the “Retail Price” section as the mark-up is way higher than “Preferred Customer Price.”
- Consultant Commissions:
To avail of this earning method, you have to register as a consultant of the company. Your bread and butter here are the 10% commission you are going to make from:
- Your preferred customer’s sales;
- Your downline sales;
- Customer’s sales that your downlines will generate.
The consultant commission method of earning is where the MLM feature of the company comes in. As a consultant of Rodan Fields, you’ll follow the unilevel type of downlines. Unilevel means:
- You are the top of the crop;
- You can recruit direct consultant as many as you want;
- There is an infinite downline under you and your direct consultant.
- Personal Team Commissions
For you to earn via personal team commission, you have to clinch up to the level of “Executive Consultant.” To be able to get in that position, certain qualifications are required from you. Examples of these qualifications are the number of recruits, sales generated per month, and more. The main perk of this earning method is you’ll get an additional 5% from all the commission volume generated by your team. Who then is your team? Your personal team includes:
- All consultants from your downline;
- Your next executive ranked consultant;
- Personally, sponsored preferred customers;
- and the preferred customers of any consultants below the executive consultant rank.
- Performance Bonuses
There are bonuses given to certain milestones reached by any of the consultants. The bonus is not necessarily cash. The bonuses can be vacations, trips, cars, holidays, and more.
So, on average, how much does a Rodan Fields consultant earn? According to the income disclaimer filed in 2016, this is what a consultant can potentially earn:
- 1% earnings from an excess of $28,156
- 10% earnings from an excess of $4,841 up to $28,156
- 50% earnings from an excess of $647 up to $4,841
- 39% earnings from an excess of $647 and less.
If you look closely in the disclaimer report, you could gauge that only 1% of the total number of consultants lives solely from their Rodan Fields income.
The statistics look pretty bad, but there’s a lot of things that go with it. You can’t just blame the company and its business structure. Some factors to consider are, the effort put into selling, marketing strategy, and the time invested by consultants to the business.
What Are The Advantages Of Doing Business With Rodan Fields?
- The founders of Rodan and Fields are credible: The founder of Rodan Fields, who are Dr. Rodan and Dr. Fields are both successful dermatologists. They both created the popular acne solution in the US today, which is a Proactive solution. They are also successful in various businesses of skincare. Their somewhat pristine and successful track record boosts their company’s image.
- The company has a steady growth over the years: In 2016, they clinched their first-ever billion-dollar collective sales. Their skincare lines are amongst the top-notch skin lines in the US. Their skincare brand is also one of the fastest-growing brands of all time.
What Are The Disadvantages Of Doing Business With Rodan Fields?
- They have a slightly expensive start-up cost: How expensive does their start-up cost? Their starter kit, product packages, and monthly order requirement are priced steeply:
Start-up kit: $45
Product Packages: As low as $395
Order requirement per month: At least $100
- There is a little number of people who went successful: According to their income disclosure, about 1 percent of their consultants only can make their selling job a full-time commitment. Meaning, most of their consultants treat it as a part-time job only.
- Their products are not cheap: You might have a hard time selling products to customers. Their skincare lines go beyond 200$.
Is Rodan Fields A Scam Or Another Pyramid Scheme?
In a word Rodan Fields, not a scam. But with all these facts at hand, can we logically deduce that Rodan Fields is a pyramid scheme? The hard truth is yes.
The money Rodan Field gets from the genuine selling of the product is little compared to their MLM profit structure. This means, the company profits more from selling memberships than actually selling a product. This is somewhat a quantifying conclusion of the company’s illegitimacy as a company. The monopoly of an MLM feature is a hallmark of a pyramid scheme.
Another thing to consider in joining this company is the low success rate that their agents suffer from. For the prospect seller (which is you), your initial question upon entering will be about your potential success in this business. According to their latest income disclaimer, their percentage of successful consultants is not that high. This fact should make you double take on the matter of joining them.
Other factors might make investing in Rodan Fields hard for you. For example, the company has a slightly expensive start-up cost for interested consultants. Second, their products are not cheap. The retail price point is what’s going to drive your sellability. Not everyone can afford the products that you are going to sell. You will have to go the extra mile of selling the product line to a different market of a more comfortable economic status.
All in all, Rodan Fields has a great line of products but has a low percentage of successful consultants.
If you’re new to the business, you might want to venture to other part-time jobs that could offer higher chances of success.
Why don’t you try to venture to online businesses? There are many types of online businesses to choose from. Be aggressive in finding an online business venture. You might not know this is your doorway to success. Do you want to know how I am making money from home? Then check it out