Is Rodan + Fields a Pyramid Scheme? – My Shocking Discovery!
Welcome to my Rodan + Fields review!
Rodan + Fields has been a really controversial company where there are many people accusing them for operating like a pyramid scheme.
First of all, I must Congratulate you for taking your time to do your own research before buying into any "seemingly good" product.
That's the way to avoid scams and find the legitimate way to make money online!
To be completely transparent with you, I'm not associated with Rodan + Fields in any form.
So rest assured that I won't be pitching to you any products or business opportunity with this company.
Instead, I'm here to give you a 3rd party review and investigate for you whether Rodan + Fields is really a pyramid scheme or not...
Rodan + Fields Review Summary
Product Name: Rodan + Fields
Founder: Founded by Dr. Katie Rodan & Dr. Kathy Fields in 2002
Product Type: Skincare MLM Company
Price: $45 to start + $100/month to stay active
Best For: Females, moms
Summary: The good news is that R+F is NOT a pyramid scheme because they have real solid physical products and they're not completely focusing on recruiting. However, the bad news is that more than 95% of the Consultants/distributors fail at this business. There is real evidence showing that only 2% of the Consultants make more than minimum wage!
What is Rodan + Fields?
It's founded by 2 well-known dermatologists, Dr. Katie Rodan & Dr. Kathy Fields in 2002.
They have some credible history due to their professional background. They're also the founder of ProActiv, a company with skincare products specializing in fighting acne.
There are 2 main parts to this R+F company:
- Legit but overpriced skincare products
- Network marketing business opportunity for you to make money with them
Let's talk about their products first...
Roden + Fields Product Line
There are 6 skincare regimens (product lines) namely:
- Redefine ($20 ~$384) - For smoother, younger-looking skin, including products like cleaning mask, toner, eye cream, serum, etc.
- Reverse ($42~$376) - Address skin discoloration to help you either brighten dull skin or lighten dark spots. (e.g. sunscreen, exfoliating wash, brightening/lightening toner, skin treatment, etc.)
- Unblemish ($30~$320) - Reduce existing acne and prevent new blemishes (e.g Acne treatment, clarifying toner)
- Soothe ($42~$311) - Reduce visible redness and calm sensitive skin (e.g. Sensitive skin treatment, replenishing cream, gentle cream wash)
- Essentials - Daily skincare essentials (e.g. Body moisturizer, sunscreen, Vitamin D supplement)
- Enhancements - Optimize results of all the regimens listed above
To be honest, these products are overpriced in my opinion, just like many other MLMs do because that's how they make their business model sustainable. They need to pay their distributors.
According to R+F, they're a premium skincare brand built on a legacy of innovative dermatology-inspired skincare products backed by clinical results.
That's the reason for more expensive products. But who knows how credible is that claim.
After all, all the MLM companies definitely have some unique selling proposition to stand out and justify for the prices, right?
I Created My Own 4-Figure Monthly Passive Income at just 21 Years Old!
How to Make Money with Rodan + Fields?
Just like any other MLM company, the 2 main ways for you to make money with R+F are:
- Sell their products and earn retail commission
- Recruit members as your downline and build this business with you
But let's first understand the requirements for you to be qualified...
How to get started with R+F?
First of all, you need to purchase the $45 Business Portfolio, which is the Consultant Starter Kit to help you get started. (Compulsory)
But that doesn't come with any of the products. All you get is some training and beginner materials.
So, they'll offer you 3 different product packages:
- Personal Results Kit ($395)
- Big Business Launch Kit ($695)
- RFx Express Business Kit ($995)
Although they are considered optional, you can really run your business without having any products, right?
You need to try it yourself and use them as samples when you're recommending them to your friends.
So, there's no way you can run a successful business with R+F without purchasing any of the expensive product packages.
That's not the end...
You still need to incur a monthly order of around $100 if you can't sell enough products.
If not, you won't be considered an "Active Consultant" who is eligible to earn commissions.
The Rodan and Fields compensation plan provides 5 ways to make money. These include the following:
- Retail Profits - Buy products at wholesale prices, sell them at retail price and earn the difference
- Consultant Commissions - Commissions made from selling startup packages to consultants (e.g. The $45 business portfolio that is required to become a consultant)
- Personal Team Commissions - Commissions made from the sales your team (aka your downline) makes
- Generation Commissions - Additional commissions made when both you and your downline advance to the rank of Level 1 Executive Consultant and beyond
- Performance Bonuses - Bonuses for achieving higher ranks or certain achievements. This can include holiday rewards, cars rewards, etc.
For more detailed explanation of the Rodan + Fields compensation plan, please watch the animation video below:
What is a Pyramid Scheme?
So, back to the main question...
Is Rodan + Fields a pyramid scheme?
In order to answer that question, let us fully understand the definition of a pyramid scheme.
According to Wikipedia, "A pyramid scheme is a business model that recruits members via a promise of payments or services for enrolling others into the scheme, rather than supplying investments or sale of products or services."
In other words, if the company focuses on recruiting or enrolling members to make money instead of selling products, it can be considered as a pyramid scheme.
To get an even better understanding, let's take a look at this video:
So, Is Rodan + Fields a Pyramid Scheme?
One major misconception for many people is that Multi-Level Marketing or Network Marketing equals to scam or pyramid scheme.
That's definitely not true.
Rodan + Fields is a MLM company but it's NOT a pyramid scheme simply because its business model doesn't solely rely on recruiting.
Their official website still focuses on acquiring genuine customers.
So, that's a good news for those interested or existing distributors.
Pyramid Scheme in Disguise...
However, please take note, not all MLM with a product or service are legit either.
This is how FTC describes pyramid scheme in the modern days:
"Modern pyramid schemes generally do not blatantly base commissions on the outright payment of fees, but instead try to disguise these payments to appear as if they are based on the sale of goods or services."
In other words, there are many companies out there claiming that they're legit MLM offering real products or services yet they can actually be considered as pyramid schemes.
Just take a look at Jeunesse, it seems to be a legit MLM company but it's all focusing on recruiting.
This is still not the worst...
They claimed to offer lots of different courses and training as their "products". In fact, those courses simply taught members how to recruit more people into the system to make money.
Unsurprisingly, FTC has shut them down and officially labeled them as pyramid scheme scam!
So, please be careful. The real definition of a pyramid scheme is becoming unclear because there are more and more sneaky/scammy companies trying their best to not be labeled as pyramid scheme.
What I Like About Rodan + Fields...
1. Credible Founders
Dr. Rodan & Dr. Fields are real dermatologists who are well-known and well-repected in their industry.
Not only that, they also have experience in building a company and creating skincare products prior to founding Rodan + Fields.
Judging from this perspective, their products are credible and reliable.
2. Fast Growing Company
Another good thing about this company is that they had really great achievements over the past years:
- Over $1 Billion in product sales in 2016
- #1 Skincare brand in US
- #1 Fastest growing skincare brand in US over the last 5 years
So overall as a company, Rodan + Fields is doing a pretty good job.
But for individuals who want to make money, trust me on this, R+F is really not the best option...
What I DON'T Like About Rodan + Fields...
1. Expensive Startup & Product Costs
Let's revise on the costs you need to start this business:
- $45 Starter Kit
- Product Packages: $395, $695, $995
- Monthly Order Requirement: Roughly $100
To be honest, this can be a really steep startup cost for many people who are just starting out to create their own business.
Also, their products are not cheap either.
As consumers, you're paying close of $200 for some of the skincare lines.
If you're short of cash, I don't recommend you to invest in this business.
2. Most People FAILED!
The most critical reason for you to stay away from this company despite it's not a pyramid scheme is this...
- Only 2% of Consultants make more than minimum wage (Wikipedia)
- Less than 1% are actually earning a full-time income
Just take a look at their income disclosure:
This is their 2017 Annual Average Income and their respective percentage of paid consultants.
More than 95% has an average annual income of less than $6,893. That's a mere $574 per month, far lower than the minimum wage.
I'm not saying it's impossible to make money with Rodan + Fields. There will sure be R+F Consultants telling you how good this business is and how much money they're making.
But ultimately, that's the minority as you can see from their income disclosure.
So, my question is...
Do you think it's worth risking hundreds of dollars for this business?
How I Make a Living Online...
Having low success rate is definitely one of the main reasons I'm not a fan of MLM.
My top recommended business model for anyone to make money online is Affiliate Marketing!
The reason is simple...
- You don't need to recruit anyone to make money
- You have the freedom to promote any products you like and not being restricted to only promote products from one MLM company
In fact, with affiliate marketing...
I've personally created a 4-Figure Monthly Passive Income Stream and become financially independent at just 21 years old without any College degree or working experience!
Through my own hard work, I went from a broke restaurant waiter to living my dream laptop lifestyle in less than a year's time...
If you want to discover the secrets of how I did it at such a young age, click here!