Hey there sea changers, and welcome back to my series of MLM reviews. Today we take a journey into the world of cosmetics with my Rodan and Fields MLM review, or probably as they are better known Rodan+Fields. The sale of cosmetics and personal care products has become more and more popular over time within both the affiliate marketing space and MLM. So if you are interested in setting up an online business in this space then is Rodan and Fields a MLM worth considering? Let's check it out and see…
What is MLM?
Multi-level marketing (MLM) programs are the mainstay of the ‘party plan' world of products such as Tupperware, Mary Kay and Amway etc. and, as I commented above, becoming more and more prevalent within the cosmetics market. One of the reasons for this is that much of the sales and marketing for MLMs is now being managed online – alleviating the need to run parties – and, more importantly, not hassle everybody you know to join (you can of course, but you don't have to).
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The ‘multi level' aspects of MLM come from its hierarchical nature in which you make commissions based not only on those that you sell to, but also the sales of those whom you ‘sign' into membership arrangements as well.
In short, the process works as follows:
- You join the program, either via referral from another person (known as your up line) or directly through their website.
- You promote the products of the company via parties, workshops or online.
- As you make sales, you offer incentives to your customers to sign up as a member of the program (there are different names for this but they all mean the same thing).
- That new member is then placed ‘underneath' you in a hierarchical arrangement (known as your down line).
- You, and a number of levels of your up line, then gain extra commissions for everything they sell as well.
- If they manage to refer their customers into memberships, they also become a member of your down line allowing you to make up line commissions as well.
The number of levels of your up and down lines will vary depending on the program you have joined. Commission rates will also change as your down line grows or contracts and many will also offer other incentives such as total company sales percentages and/or access to membership prizes as your own business grows.
Who are Rodan+Fields?
Rodan and Fields was founded in 2000 by Dr. Katie Rodan and Dr. Kathy Fields, Dermatologists who met at the University of Standford Medical School in the 1980s. Using their experience and knowledge of dermatology as a base, the Doctors have built the company to becomes the #1 Skincare Brand in the U.S. in 2016 and is the #1 Fastest Growing Skincare Brand in the U.S. over the last 6 years.
Rodan and Fields is based in San Francisco, California with annual sales turnover in the U.S of approximately $58 Billion.
What do they Sell?
Rodan+Fields offers a massive range of cosmetics and skin care products – in fact away too many to list here – but their categories include:
- Regimens
- Face serums
- Eyes, lips & lashes
- Face masks
- Dermacosmetics
- Hand & body
- Sun protection
- Pro skincare tools
- Accessories
MLM Program outline
The Rodan and Fields MLM program calls its members ‘independent consultants” who join what appears to be a very basic MLM program in that is focuses on base level commissions only without any of the bonus payments found in others within this niche. Let's however start with the basics:
Base Commission rate: Up to 10%
Consultant discount: Approx 25%
Down line commission rates: 2.5 – 10% to 5 levels (1st generation (down line level 1) rates 10%)
Minimum monthly spend to qualify for commissions
- Consultants are required to maintain 100 Sales Volume (SV) to trigger commissions – these can be made up from either personal or customer purchases.
Payment terms: Monthly
Application required?: Yes, personal and payment information at time of first purchase
Purchase requirements to join: Yes
- Membership is free to join but a starter kit purchase is required for $45 (business kit only) up to $995 (includes products).
Marketing materials provided: Tracking and reporting is free. Personalised website, tools and advanced tracking is $24.95 per month as below:
As with the most MLM arrangements, down line commissions and rankings are determined by the total Personal Sales Volume (SV) which are the sales that consultants and their customers place. Most programs manage it this way in that commissions are paid on the points assigned to a product rather than the entire sales total. For example, if a product retails for $100 and has a 50SV rating (these generally vary from product to product) then the commission is calculated on the $50 purchase only. So if a commission rate for a product is 10% then it will generate a $5 payment to the sponsor (i.e. 10% of the $50 commissionable amount).
Within the Rodan and Fields site I was unable to locate any information in regards to how their point system is calculated. SV calculations can however range from 1 point per $1 up to 1 per $1.50 or even $2. Obviously the closer to the dollar mark the calculation the better. In addition, most programs assign minimum SV sales per month – either personally or via customer sales – in order to qualify for commissions (as per above, the tally for this program is 100SV). Payments and rankings are then also calculated based on the total PV of the member, and their downline.
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How can I get paid?
As mentioned above, the Rodan and Fields compensation plan is extremely simple – in fact, one of the simplest I have seen in that it offers traditional sales profits and base level commissions only. All in all, there are five ways to earn within this program so let's check them out below:
Note: The compensation plan I have used is from the website only so if I have missed anything please feel free to comment below if any of my information is inaccurate.
Retail Profits
Retail Profit is the traditional sales profit earned by the general day to day retail sales that Consultants can make either in person or via their website. There are two main ways here:
- Earn a commission of up to 25% of the purchase value if done so at retail prices (basically the difference between the distributor discount and the retail price).
- Purchase products at the discounted rate and on sell them at retail prices within a shop front, market stall or kiosk – or even the traditional party plan method.
Consultant Commissions
Consultant Commissions are the first level commissions paid on all sales generated by the first level down line of a consultant and their customers.
Consultants are required to acquire a minimum of 100 Sales Volume (SV) each month to attain a status of Active Consultant and qualify for commissions.
Personal Team Commissions
Once the personal downline of a consultant generates a total of 600 Personally Sponsored Qualifying Volume (PSQV) within the commission period, they then qualify for an extra 5% commission on the sales volume. This is in addition to the 10% paid out for the Consultant Commissions above.
Generation Commissions
The Matching Bonus is Rodan and Fields' version of the stock standard Unilevel commission arrangements common to most MLM programs. Commissions are paid down to 6 levels on all generated volume within the downline of the Consultant. Rates are as follows:
Performance Bonuses
Performance Bonuses are the only ‘bonus' type options offered by Rodan and Fields. It is included as one of the 5 earning options within the compensation plan however there is no real information in regards to content. The only information I can find is within the graphic below:
Ranking structure
As you have probably noticed, the commissions above are paid out depending on the ‘rank' that consultants are assigned within the Rodan and Fields MLM program. This ranking structure is quite straight forward with commission qualifications rising based on total monthly PSQV and the number of underlings within the down line structures. Rank requirements are as follows:
As with most programs, rankings are determined by the total sales generated in a calendar month. As down lines grow, commission rates increase as outlined earlier within this post.
What is good about it?
So, after a good look around the site and looking at all the options I could find, I do like the following:
- Information in regards to their MLM program is easy to find.
- The program is extremely simple.
What is no so good about it?
There are also some things to be aware of including:
- There are no extra bonus options that others have (such as rank achievement bonuses etc.).
- A monthly subscription is required to access most Consultant tools.
- Commission rates on comparison to others are quite low.
- Information as to how SV is calculated is not evident.
How much can you make?
As with most MLM programs, the percentage of members making the upper rank levels is very low and those making a supporting income is less than 1%. Rodan+Fields income disclosure table is as follows:
My final thoughts
Look, MLM is not an easy platform to make money in and this is an interesting one based purely on the simplicity of it all. I keep looking for all the extra payment options and wonder if the lack of them makes this a risky proposition. That said, the Rodan and Fields program is extremely simple to understand with an ‘old school' approach to paying commissions for sales. I guess however that the lack of the multitude of added bonuses that many others (such as Monat and even Avon) offer may reduce earning potential in comparison – especially as base commission rates are also a little lower than others as well.
At the end of the day, there is some good information available in regards to the commission structure so if you are passionate their products and like this brand, then to be honest I cannot see much in there that would cause me to warn you off.
The joining process is quite simple however there are some immediate financial requirements via the purchase of a starter kit and personalised will need to part with $25 per month if you want access to a personalised website etc (most programs offer this for free).
Once you have joined though, there are not the usual financial pressures of needing to make personal minimum purchases in order to qualify for commissions as long as you can make them within your downline. Although to be honest, I think if you are going to succeed in any MLM program, you will need to be intricately aware of the products you are promoting – meaning I think some purchases will be necessary – oh and this may also become necessary if your downline sales fail to make up enough to reach your rank required targets.
Reviews
I was unable to locate anything major in terms of negative reviews regarding non-payments or customer service for this site. There have been some legal issues in regards to their products which if that is something that concerns you then maybe something that should be checked out a little further. There are also some negative comments about the MLM program and products although it was not really anything that is uncommon in regards to most MLM programs.
Conclusion
So there you have it, my honest review and appraisal of the Rodan and Fields MLM program. I hope it has been of assistance but as usual, if you have any questions or experience with this program please do not hesitate to reach out by commenting below – especially if any of my information is inaccurate.
Are there any other programs you have been looking at but want to know more about? If so, please comment below and I will do my best to get some details for you.
Do you want further assistance with any of the above or need help to build your own Cosmetics or MLM based website?
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Until next time
Have fun
Paul
Note: If you make a purchase from this page, there is a very good chance that I make a commission from it – these commissions do not increase your sale price.
Rodan and Fields MLM
49.95++++Pros
- Information in regards to their MLM program is easy to find.
- The program is extremely simple.
Cons
- There are no extra bonus options that others have.
- A monthly subscription is required to access most Consultant tools.
- Commission rates on comparison to others are quite low.
- Information as to how SV is calculated is not evident.