Rodan & Fields, LLC, known as Rodan + Fields or R+F, is an American multi-level marketing company specializing in skincare products. Katie Rodan and Kathy A. Fields, creators of Proactiv, started the Rodan + Fields brand in 2002 and sold it a year later. They relaunched the brand in 2007 as a multi-level marketing firm.
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| Company type | Private |
|---|---|
| Industry | Multi-level marketing |
| Founded | 2007 |
| Founder |
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| Headquarters | , U.S. |
Area served | United States, Canada, Australia |
Key people |
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| Products | |
| Website | www |
Rodan + Fields uses independent consultants to sell its products.[1] Its business model has been criticized by consumer advocates as being a pyramid scheme.[1]
History
Fields and Rodan met in 1984 during their dermatology residency at Stanford University School of Medicine. In 1995, they developed Proactiv Solution as a preventative skincare for acne.[2][3] Proactiv is now a registered trademark of Guthy-Renker and Nestlé.[4]
In 2002, Fields and Rodan launched Rodan + Fields. Products were sold in department stores. The following year, the company was purchased by Estée Lauder.[1] In 2007, Fields and Rodan reacquired the brand[5] and transitioned the company from department stores to multi-level marketing, where consultants can earn a commission for their own sales and for the sales of people they recruit.[1] Rodan + Fields launched in Canada in February 2015 and in Australia in September 2017.[1][6]
In 2018, private equity firm TPG bought a minority stake in the company. At the time, Rodan + Fields was valued at $4 billion.[7]
In April 2020, the US Federal Trade Commission (FTC) issued a warning letter to Rodan + Fields for making unlawful and misleading earnings claims related to COVID-19.[8]
In 2021, Rodan and Fields is named the number one skincare regimen brand in the United States for the fourth year in a row (2018-2021).[3]
In October 2022, the founders launched a whole line of shampoos, conditioners and stylers, on top of their skincare.[9][10] In November 2022, Rodan and Fields were a part of a class action lawsuit in regards to their Lash Boost serum. The company offered $38 million to resolve the issue as well as change their verbiage on the product usage, instructions, and warnings.[11][12]
Products
In 2002, Fields and Rodan launched their skincare line. Those products ranged from cleansers, to acne treatments.[5] Their Redefine skincare line is a three step regimen. Starting from either a Clay or Foaming Cleanser (Step 1), a Pore Refining Toner (Step 2), A Defense Lotion or Cream (Step 3), and lastly a Restorative Cream or Lotion (Step 4).[13]
In 2020, the company launched their Anti-Aging Regimen.[14]
In 2022, the company expanded into haircare and launched the Volume+ and Smooth+ lines, both with a scalp first approach.[15]
Business
Rodan + Fields has its headquarters in San Francisco, California.[16] Its products include cleansers, toners, moisturizers, creams, exfoliators and sunscreens.[5]
Rodan + Fields distributes via multi-level marketing,[17] which has been criticized by consumer advocates as akin to a pyramid scheme.[1][18] Consultants focus on social media, phone and in-person presentations to sell products and invite others to join their team.[19] The average 2015 annual income for a consultant was $3,182.[20]
Per the 2016 Income-Disclosure agreement, 90% of Rodan + Fields members earned less than $200 per month and 96% earned less than $500 per month.[21] In 2016, 125,348 (representing 44% of all recruits) recorded zero earnings and are thus no longer considered active.[21] 2% of active sellers make the annual minimum wage or higher.[1] Most use Rodan + Fields to supplement, not replace, other work.[22]
References
Further reading
- "Skin Care Company Rodan & Fields Pursuing a Sale". The Wall Street Journal. February 18, 2015. Retrieved 5 May 2016.