Rodan + Fields To Shift Away from Multi-Level Direct Selling Model

Dermatologist-developed skincare brand Rodan + Fields says it is simplifying its business model to “unlock growth and reach new customers.”

Starting Sept. 1, the company will move away from the multi-level direct selling model to streamline the customer and consultant experience. This new model—which officials said will be supported by a broader array of marketing and advertising across traditional channels and social media to complement consultants’ advocacy—will better position the company to meet customers where they are discovering and buying beauty products.

When the new model takes effect, consultants will begin participating in the new Affiliate program, which will only be available for existing Rodan + Fields consultants. Under the new Affiliate program, existing consultants who continue to sell brand products will receive increased commissions on customer sales and product discounts, resulting in over 90% of current consultants having a higher earning potential based on their current sales performance. Recruitment and commissions consultants who receive through product sales by those they have recruited will no longer be a component of the brand’s model, resulting in a simplified consultant experience.

“Since day one, our brand has been focused on giving people the proven results they desire in skincare and haircare through science-backed, dermatologist-created products,” said CEO Dimitri Haloulos, CEO. “We are confident these changes will enable us to meaningfully expand the lives we can impact and—importantly—allow us to continue to provide our passionate Consultants with a modern and meaningful earning opportunity.”

As part of the model’s evolution, Rodan + Fields has also reorganized its corporate structure to support the future needs of the business, which resulted in the elimination of approximately 100 roles.