Is Rodan and Fields a pyramid scheme? This a queston for someone who wants to earn passively. It is possible someone asked you to join Rodan and Fields. It makes sense to ask, and so we will address it in this blog post.
We will go over how you make money and dissect the compensation model. Furthermore, we won’t attempt to present this company as better than it is because we are neither endorsing it nor connected to it in any manner.
Table of Contents
- About Rodan and Fields
- Definition of Pyramid Scheme
- Is Rodan and Fields a Reputable MLM or a Scam?
- Is Rodan and Fields a Pyramid Scheme?
- Which Products Are Sold by Rodan and Fields?
- Are Products Made by Rodan and Fields Any Good?
- Are Rodan and Fields Products Approved by FDA?
- How Does MLM by Rodan and Fields Operate?
- What Is The Cost To Become A Member Of Rodan and Fields MLM?
- How Does the Rodan and Fields MLM Earn Money?
- Is Selling Rodan and Fields Profitable?
- What Is The Salary Of Rodan And Fields Representatives?
- FAQs
- References
- Recommended Posts
About Rodan and Fields
An MLM (multi-level marketing) company in the skincare industry is called Rodan and Fields. Though this isn’t the purpose of my review, their items seem to be nice. I’ll go over the business concept now.
There are various pay tiers, much like in any multilevel marketing organization, and consultants can increase their income by bringing in new consultants. This is precisely what I’m going to get into, which is why so many people are wondering whether or not it’s a pyramid scheme because of the recruitment structure.
You must first understand what a pyramid scam is.
Definition of Pyramid Scheme
Pyramid schemes are recruitment-style enterprises that rely on the constant recruitment of new members; they are banned in the US and many other countries. For instance, let’s say you invest first, then you encourage others to invest as well, and so on.
However, it’s not as easy as it might seem to identify a pyramid scheme. A lot of pyramid schemes are what are known as “product-based pyramid schemes,” which means they really market actual things.
The fine line also depends on the volume of goods sold. Businesses are considered pyramid schemes if their primary focus is on enlisting new members rather than selling products to the wider public.
This explains why some multilevel marketing companies have policies requiring that 51% of your revenues go to retail clients rather than recruits.
Therefore, the products that an MLM company like Rodan + Fields sells to the general public determine whether or not it is a pyramid scheme. Hiring is permitted. Many genuine multilevel marketing companies exist, and they are all dependent on recruiting. However, as long as they don’t depend on it excessively, they should be fine.
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Is Rodan and Fields a Reputable MLM or a Scam?
Fields and Rodan is not a fraud. They pay their consultants on time and sell genuine stuff.
Their well-designed website offers all the necessary contact details, such as a physical address, phone numbers, and business hours.
With hundreds of thousands of followers across numerous social media sites, Rodan and Fields enjoy a devoted and sizable fan base.
Like other multilevel marketers, Rodan and Fields rely on recruiting and referrals to run their business.
Invites from current members, who get a cut of sales when a new member buys a kit and a certain range of skincare items, are how new members join the company.
Even if multilevel marketing has its disadvantages, Rodan and Fields is a respectable opportunity. You must decide for yourself, though, if this is the correct work for you.
The purpose of this Rodan and Fields review is to give you additional information to aid in your decision-making.
Is Rodan and Fields a Pyramid Scheme?
Like Amway, Tupperware, and Primerica, Rodan and Fields is categorized as a multi-level marketing company. It’s vital to remember that while developing a network of suppliers beneath you is the main source of cash, it’s also feasible to make money just from product sales.
Rodan and Fields is not a pyramid scam, it may be concluded. At first, the claims of a pyramid scheme made me doubt Rodan and Fields’ credibility as well.
My concerns were allayed, though, when I saw how engaged the brand’s community was and how devoted its fan base was.
These elements demonstrate that Rodan and Fields is not a fraud. However, it is important to note that opinions vary and that the question of whether Rodan and Fields are similar to a pyramid scheme is subjective.
The organizational structure of the corporation, which is defined by teams and uplines, does resemble a pyramid scheme in which large sums of money are made. In the end, you have to make that decision about your judgment.
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Which Products Are Sold by Rodan and Fields?
At Rodan and Fields, there are dozens of items that are part of the following product lines:
- Eye cream, toner, cleaning mask, etc.
- Reverse: toner, exfoliation, sunscreen, etc.
- Recharge: sunscreen, cleanser, mask, etc.
- Unblemish: Toner, acne treatment, etc.
- Spotless: acne cleansing, exfoliation, etc.
- Calm: Hydrating moisturizer, mild cream cleanse
- Enhancements: SPF makeup, serum, lash lift, etc.
- Essentials: sunscreen, moisturizer, vitamin D supplement, etc.
There are several options available, most of which are related to skincare and more especially to clearing up acne.
The sensation of your skin is improved by these items.
- Increased hydration
- Renewed
- More supple skin
- Plumper
- More radiant
Are Products Made by Rodan and Fields Any Good?
A product must pass clinical studies and have both medicinal and cosmetic properties in order to be classified as medical-grade.
There is no clear indication that Rodan and Fields are medical-grade, even though they are “skin specialist influenced” and have undergone scientific testing.
Nonetheless, it might be assumed that they are dermatologist-approved because they were created by dermatologists.
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Are Rodan and Fields Products Approved by FDA?
Several R + F products have active chemicals that are available over-the-counter yet technically need FDA approval. They are certified to adhere to all FDA regulations, even though they haven’t yet received that particular stamp.
We’ll talk more about these items’ prices later in this Rodan and Fields review. But for now, let’s examine the unique selling propositions and comprehend the workings of this multilevel marketing plan.
How Does MLM by Rodan and Fields Operate?
It is required that you purchase products from Rodan and Fields in order to become a representative or member. Once finished, you can choose to either promote the firm or use the products yourself. It is strongly advised to carry out both.
Your pay isn’t exclusively dependent on how well you promote Rodan and Fields merchandise. Incentives are also available for the sales of new members that you personally recruit and those that your staff hires.
It’s crucial to remember, though, that this is the primary cause of the misconception that some people have about Rodan and Fields being a pyramid scam.
The problem is that you will need to market a lot of their products if you want to turn a profit of any kind. It’s also crucial to remember that in order to sell the things, you must first buy them (more on this topic coming soon!).
This, in our perspective, presents an issue.
Essentially, the amount you can invest in buying the products sets a limit on your earning potential.
Having said that, the main factor that contributes to Rodan and Fields’ frequent accusations of being a pyramid scheme is the obligation to “pay to play.” But let’s first take a look at the pay structure before jumping to any quick conclusions.
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What Is The Cost To Become A Member Of Rodan and Fields MLM?
You must pay a $75 program access fee in order to work as a consultant with Rodan and Fields. It will also be recommended to you to purchase one of their business kits, which are $395, $695, or $995.
How Does the Rodan and Fields MLM Earn Money?
A Rodan And Fields consultant can make money in a few different ways:
- Retail Profit: This is the amount that separates the retail or PC price from the consultant’s fee.
- Consultant Commission: When a consultant in their downline and a chosen consumer buys a product, the consultant receives a commission of 10%. In order to be eligible for this income, a consultant needs to obtain 100 SV or more.
- Consultants receive a personal team commission of 5% on any purchases of products made by members of their team. A consultant must complete 600 PSQV to reach the Executive Consultant rank in order to be eligible for this commission.
- Generation Commission: In the downline, several generations are formed under the Executive Consultant (EC). Every generation rewards a 5% commission; but, in order to get this money, one must be at least a Level I Executive.
- Performance Bonus: Special prizes comprise the Performance Bonus, which is awarded for significant accomplishments.
The best method to make money is to personally test the goods and bring in more downline members to create passive revenue, as I discussed in my Rodan and Fields review.
You also receive commissions and bonuses for any sales or purchases made by your downline. By using this strategy, Rodan and Fields are able to escape being called a pyramid scheme.
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Is Selling Rodan and Fields Profitable?
The majority of people never do become financially independent, despite what these kinds of programs advocate. Online marketers will fail in 99 percent of cases.
This only implies that R+F isn’t the most profitable option—it doesn’t imply that it’s wrong.
Even though Rodan and Fields is a reputable multilevel marketing organization and not a fraud or pyramid scheme, some of the business tactics employed by individual representatives may be dishonest and not entirely within the company’s control.
To put it another way, a lot of MLM reps overstate their income potential, which is why some reviews refer to Rodan and Fields as a pyramid scheme. The sales pitch might be dishonest, even though the plan itself might not be.
It is quite uncommon, though, to succeed simply employing individuals in line with the plan and encouraging your downline to follow suit.
Even the wealthiest people have to consistently work with their downlines, go to events, and support their teammates as they grow their businesses.
MLM organizations minimize the time, effort, and special circumstances needed to achieve residual income and a wealthy lifestyle.
It’s easy to see why the majority of people with Rodan and Fields—or any MLM—fail to make money. Certain personality qualities, specialized abilities, and a unique capacity for handling rejection are needed for recruiting and selling.
In actuality, a lot of people lack these characteristics.
Consider it this way: Achieving success is challenging. It is hard to succeed financially with Rodan and Fields or any other MLM if your activities are not in line with your hobbies and strong points.
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What Is The Salary Of Rodan And Fields Representatives?
When applying to be a Rodan and Fields salesperson, they show you the biographies of their biggest stars along with inspiring tales and family photos.
And the Rodan and Fields website has more that are somewhat similar to those. Once more, you stand to earn a great deal from their accomplishments. They genuinely want to help others, I believe.
Based on their personal profiles, the majority have found success after working part-time hours for approximately three to six months.
However, what is their income with Rodan and Fields? If you choose to become a representative, what is the potential income? Let’s examine the official 2015 income report to find out more.
The average annual salary for a Level III Executive Consultant was $14,623, according to Rodan and Field’s 2015 Income Disclosure. A small percentage of Level III Executive Consultants made just over $90,000. But just 6.3% of consultants who are compensated go on to become Level III Executive Consultants.
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The disclosure statement also highlights the fact that only 2.3% of paid professionals achieve the typical salary of a Level V EC, which is $64,394.
We are not saying that $64K a year is not a lot of money. But these figures don’t include expenses, therefore they won’t give you the lifestyle that multilevel marketers heavily advocate.
Nevertheless, you must continue to provide that fantasy in order to attract new members and earn commissions. According to a 2016 Forbes article, Rodan + Fields.
FAQs
In order to settle multiple class action lawsuits pertaining to its Lash Boost serum, which is claimed to significantly lengthen and thicken lashes, Rodan + Fields has made a $38 million offer. Lash Boost is a mislabeled medication with potentially dangerous adverse effects, according to plaintiffs in three class action lawsuits.
Purchase your Business Starter Pack to get started for just $75 one-time! Get your complimentary VIP Box for New Consultants to sample our best-selling R+F items at significant discounts from retail.
You receive one-on-one advice from the consultants. They possess the expertise and resources to assist you in developing a skin care regimen and identifying the ideal R+F products. Rather than buying things from a store, you can buy them straight from your Consultant. On our website, you can purchase things even if you don’t have a consultant.
Utilize your Consultant ID number to earn retail profit on products that your clients buy directly from Rodan + Fields over the phone or online (see Figure 1.2). The retail profit will be paid to you in your monthly commission check by Rodan + Fields, who will ship these products straight to your retail customer.
References
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