The MLM game has been taken up a notch.
Usually, an MLM corporation owes its existence to one person or a small group of people who have a vision. This vision is to provide better products, empower people to run their own companies and so on.
But when responding to the question what is Rodan & Fields we find that the powers behind the company are two former medical students who have Doctor degrees. It is unique for this to take place but then the MLM field is open to just about everyone.
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The name of the company came from the two surnames of the two founders, Dr. Katie Rodan and Dr. Kathy Fields. These two women met while attending Stanford University School of Medicine in the 1980s.
Over the next few years they worked hard to develop a skin care product that would make an impact on the beauty world. In 1995 they developed Proactiv Solution and 5 years later they formed the company that bears their name.
Their main target was to develop an anti ageing cream that helped turn back time. They seem to be successful at putting together their formulas as Estee Lauder bought the company in 2003.
4 years later, in 2007, the two Doctors bought their company back from Estee Lauder and relaunched their company n 2008. Only this time they did it as an MLM company. Over the years the Rodan & Fields products were seen as very good for the skin and the company won awards in 2014 for those products.
These awards helped motivate the two Doctors who worked very hard to turn the company into the #1 skin care corporation in the US in 2016. 2017 saw the sixth straight year that Rodan & Fields was the fastest growing skin care brand in the US.
The company is still growing and going strong after only 11 years in their new existence.
Since Rodan and Fields is a skin care company it stands to reason that their products would be very heavily tilted toward skin care and associated body issues. With 7 product lines directed towards skin care that is the case.
They also have products for eye lashes, lips, face masks, serums, regimes as well as skin care, sun protection and personal and body care. They seem to cover every part of the body without a problem.
It is true that some of their products will provide some improvement to a lady’s skin. One of the company’s success stories, a 6 figure earner, started out with a skin problem.
When she was given some products to use to fade the problem and they worked, she became a sales consultant for Rodan & Fields. So there is some success with the products this company puts out. BUT...
And it can be a very big but depending on which perspective you are using. The ingredients contained in one lip serum, and possibly other products are as follows: Hydrogenated Polyethylene, Polyisobutene, Silica Dimethyl Silylate, Palmitoyl Tripeptide-1, Solanum Lycopersicum (Tomato) Fruit Lipids, Tocopheryl Acetate, Tribehenin, Fragrance/Parfum, Sorbitan Isostearate, Ethylhexyl Palmitate.
Notice anything familiar about them? These are common ingredients found in just about every lip serum made by a variety of beauty companies. Also, the ingredients used by the company could produce some side effects and there is a low risk of it happening.
This is not good for the company as they are not marketing anything special. They are merely copying other companies and using the same type of ingredients everyone else is using.
The other problem with Rodan and Fields skin care products is that they are very expensive. Especially if you are paying for something that you can get far cheaper at your favorite store. We checked their online store to see the costs for ourselves and you will be lucky to pay less than $25 for anyone product.
Many cost over $100 and the regimes can cost you hundreds if you are not careful.
We are not talking about using independent sales reps or the usual MLM compensation plan. Those come later. What we are talking about is how those sales consultants are told to market the Rodan and Fields products.
First, while you can find their products on third market sites like Amazon, it is against company policy to sell those products through those types of marketplaces. The sales are supposed to be done through the independent sales consultant or the company’s official online store.
Second, you are supposed to have your own website and do a lot of marketing through that medium. Also, it seems that the sales consultants are told to use Facebook and other social media outlets to sell their product.
Usually, you will see a before and after photo posted on these sites with links directing you to usernames at the R and F website. Or you will see some celebrity sales consultant post Instagram posts , etc., showing the product in an exotic location while while writing tantalizing script to accompany the photos.
It is a unique way to advertise, one that is becoming more and more popular.
Signing up is easy. All MLM companies make it nice and simple. That is just one of the hooks they use to get you to sign the dotted line. But selling is another thing. Before you can sell, you have to purchase your starter kit, we will get to that in a minute.
The way to sign up is through one of the independent consultants you have already met and possibly bought product through. Once you do that, you become a member of her team and part of your sales go to her.
Or you can sign up at the company’s website and they will help you find a sponsor nearest you. After you have signed up, you can get online virtual seminars to watch or go to in person events.
These are supposed to be the tools you need to succeed. Unfortunately most sales consultants are not properly trained by the company and they have no clue what to do. You are usually left that way after you sign up.
You will have to create your own website and customize it to fit your needs, etc. Plus, you may get help with that. The bare minimum for signing up is $45 just to get the DVD and instructions on how to be a consultant.
There are probably about 300,000 independent sales consultants already marketing the Rodan and Fields products. That may be in just the 3 markets we know they have entered - Canada, America and Australia.
Also, their website claims that they have enrolled over 2 million customers buying directly through their official website. You may not have to take long to do the math, especially when you include some of the following facts.
When you sign up your are very encouraged to buy the starter’s kit. Fortunately, you have a choice between one of the 3 offered. The bad news is that these kits will cost you $395, $695 and finally $995 The retail value of the products are just under double those figures.
Then you start off with a straight 10% commission and when you reach the next level, qualified consultant, your commission split is supposed to go up to 25%. The bad news here is that you have to buy $100 worth of product every month to be a qualified consultant.
If you are lucky enough to do $600 every month in product purchases then you are promoted to Executive Consultant. This gives you a 15% team commission on top of other commission possibilities. After that you can go up 5 more levels if you want to earn the big bucks.
Now for the worse news. About 90% of all Rodan and Fields sales consultants earn about $200 or less a month. Another 6% may earn $500 per month. Those figures translates in to about $2,400 and $6,000 a year.
In 2016, 44% or 125, approx., sales consultants did not earn one dime trying to sell Rodan and Fields products. They were cut from the active roster as a result. If you are able to make the lucky 2%, you could earn yearly minimum wage or higher.
The odds are against you making any money at all.
Again, we have to say yes and no. It is a yes because the potential sales consultants are fed a bunch of hyped up stories and rare success stories to get them motivated to sign up. The claim to get rich is telling only part of the financial story.
That is the dishonest part that meets the definition of the term scam. The company is definitely not being honest to those who they are recruiting to sell their product lines.
The fact that their products can and do work over time, keeps the company away from being a total scam. As we related earlier one of their sales consultants who became one of the top earners in the company did use the products for a skin condition and it cured the condition eventually.
So the company is not scamming its customers. They are providing them with products that work. The fact that they use common ingredients every company uses does not make the company or those products false or misleading.
The other factor going for the company is that the two founders are legitimate dermatologists and they do hold doctor’s degrees. What undermines their and their company’s credibility is their marketing technique, their treatment of their sales reps and the high cost of their products.
Rodan and Fields products are not exactly cheap nor are their starter kits. That is a shame. It makes the company and the founders look like they just want to make money at all costs. That is the message they send with their MLM marketing and compensation schemes.
MLM employment is not easy to do. It is a very tough way to make a living or even earn extra money towards your financial goals. Most people quit or give up because making money the MLM way is so difficult to do.
Fortunately, there is a better way to reach your financial objectives and pay off some pressing bills. It is called affiliate marketing. And while there are some similarities between affiliate marketing strategies and MLM plans, there are a lot of vital differences.
One main difference is that affiliate marketing is legitimate and makes sure there is only one pay level. That commission you earn only goes to you. Plus, you can select from hundreds of thousands of products to represent, almost all of which tell you the exact commission you will earn if your readers click your affiliate link and make a purchase.
With the right guidance and training, something you do not get in MLM employment fields, you can reach your financial goals if you work hard enough. You do have to work hard though as this is not a get-rich-quick scheme.
If you have questions about affiliate marketing or need more information just contact us. Not only will we answer your questions and give you more details, we will introduce you to the Wealthy Affiliate way.
This affiliate marketing platform is one of the best to be involved with as it provides you with access to thousands of niches and hundreds of thousands of products to represent. Plus, unlike Rodan and Fields, they will make sure you are fully trained to handle the business.
Thank you for reading.
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