I'm just not that person. But it is possible with some effort. To get to the top of an MLM pyramid requires high-energy selling, public speaking and the unique ability to sell and recruit. Specifically, how good the products are and how legit the compensation plan is. I'm just saying it was mine. Now, if skin care products are your passion, and you’re really good at (and enjoy) direct selling and recruiting I absolutely recommend Rodan and Fields. Which, when you boil it down, is at the center of the issue as to whether or not Rodan + Fields is a pyramid scheme or legit MLM company. Rodan + Fields Hit With A Class Action Lawsuit May 4, 2018 Skincare product company Rodan + Fields faces a federal class action lawsuit accusing it of violating state consumer protection laws and engaging in fraudulent and unfair marketing of its Lash Boost eye serum. Britney Spears’ Mom is a Rodan and Fields consultant, as is Miley Cyrus’ Mom. But not like this. The truth is, the vast majority of people never achieve anything close to the financial independence programs like these promote. If multi-level-marketing doesn't appeal to you, then making money doing surveys on sites like surveyjunkie.com  and inboxdollars.com might be a better quick fix option. The comp plan outlines how you can earn as a consultant, and how much you can earn. That’s why Mcdonalds and other franchised brands look so deep into these matters, as business owners (which mlm reps ARE NOT) they make money from selling products/services and not from recruiting people. And when it does, people at the lower levels start leaving and the entire scheme falls apart. But still, people blame themselves if they don't reach their goals... That's the real tragedy of these pyramid programs. Think of it this way. But, can YOU make money, and should you join Rodan and Fields? This was a good, honest & unbiased review – thanks for this! Your email address will not be published. You should have done your research better. Following this recent good news from the company about out-pacing competitors, Rodan + Fields is facing a potential class-action lawsuit over its Lash Boost eyelash serum, which was reportedly responsible for bringing in more than $200 million in sales the first year it was released. Top Class Actions is a legal news source that reports on class action lawsuits, class action settlements, drug injury lawsuits and product liability lawsuits. Miscellaneous. To earn Personal Team Commissions, you must hold the ‘executive consultant’ rank or higher. Since the numbers (the compensation plan) make sense, and it’s hammered into you that the system works, it must be your fault when it doesn’t, right? No, Rodan And Fields is not a pyramid scheme. The good news is, MLM's are not your only option. What is your personal team? While LuLaRoe is proving to be one of the most headline-making companies in the space, because it is a magnet for multi-million dollar lawsuits, it is not alone. Another important takeaway from this disclosure statement, is the average income of a Level V EC is $64,394, and only 2.3% of paid consultants reach this level. At least, it will be very very difficult to succeed if you just try it out. The suit was filed on April 13 on behalf of four plaintiffs, two in New York and two in California. If you want to succeed at anything in life, whether it's your current career, being a great parent or getting into the best shape of your life... you have to go all in. So I do think the business opportunity side of things is legit overall. Do you have experience with Rodan and Fields, or MLM' s in general? MLM's are an option that won't be going away any time soon, but you must ask yourself the right question. That’s just the way it is. It takes tremendous motivation to keep your organization growing. I'm not saying that will be your experience. How so? The personal team commissions I explained above stops paying out when any given leg reaches an executive consultant. Archived [misc] Rodan and Fields is a pyramid scheme, right? The company has been around since 2007 and sells a tangible product that people are actively buying all over the globe. How much you can earn here, depends on the “customer discount level” you and your customer are at at the time you sell the product. Some people have what it takes to make it in MLM's, I didn't. Skincare product company Rodan + Fields faces a federal class action lawsuit accusing it of violating state consumer protection laws and engaging in fraudulent and unfair marketing of its Lash Boost eye serum. For a company whose sales reached $627 million in 2015, this is the kind of community you'd expect. So what’s the deal.. is it legit or just another pyramid scheme? They use Facebook, Instagram, Snapchat and all the other platforms to promote their products and recruit people into their downline. Here's an example of both. The really expensive products means … Of course, you can learn these skills, but if it’s something you hate doing, it's not sustainable. You can sign up as a consultant here. But, while it’s true those at the top of a traditional company make most of the money, there are MAJOR differences in how they operate. Are they are pyramid scheme, and is it a scam? And even if some bizarre miracle happens and you get all the ingredients right, do you even want to be a Rodan and Fields consultant? It's just the nature of the system. If your goal is to sell a few products to pay for your own purchases, or even to make a little part-time money, they are also a good choice. Well, all of this success is certainly good for those at the top. And we didn't have nearly as many opportunities and alternatives to make money back then as we do now. You won't achieve freedom and independence with surveys, but for some people they are the perfect "first step" to get a taste of making money online. Although they are legally not a scam or pyramid scam, due to the nature of companies that use individual distributors... some of the business practices are deceptive and not always fully controlled by the company itself. Rodan And Fields Overview. In order to become a consultant, you have to pay a fee. And it's still not my thing, which is why I earn my income online today, and not in people's living rooms . But to achieve it, you must be in-sync with your strengths and your passions. Now that we’ve looked into the company and its products, it’s important to understand how the Rodan + Fields compensation plan works. Well, according to the 2018 Rodan + Fields U.S. income disclosure statement (IDS), only 54% of consultants made any money at all that year. On April 13th, 2018, a class-action lawsuit was filed against Rodan + Fields, a multi-level marketing company that sells a variety of skincare creams and ointments. Please assume that any/all of the links on AffiliateUNguru.com are affiliate links of which we receive a small compensation from sales of certain items. I'm a persistent person but I've been there too. That level of commitment is where a lot of people are at, and there is lot of value at that level too. ―pyramid selling‖ [now called multi-level or network marketing, or MLM] ―an intolerable potential to deceive.‖ Warning to readers If you are investigating MLM, and you read this chapter – including both appendixes – with an open mind, it is not likely that you will be able to look at MLM as a credible class Rodan + Fields failed to disclose the harmful effects [...] But without seeing the hard numbers, that only the company has access to, it’s impossible to know one way or the other if this is what’s really going on. People involved in these businesses will passionately tell you it's not a pyramid scheme. I, too, get posts on my Facebook news feed from some friends who sell R&F products, and I’ve always wondered how successful they really are. 1 year ago. View all 2 photos and videos. However, it is a multilevel marketing company, and as such, a percentage of consultants are buying the products just to “qualify” for commissions, which is a red flag. According to TINA.org, there were two class-action lawsuits filed against Rodan and Fields in 2018 for false advertising. Legit MLM or Scam? Which means it is NOT a 10% commission on the retail price, it’s a 10% commission on the consultant price of the product, which of course is less. In spring 2018, a federal class-action lawsuit was filed in the US alleging that Rodan + Fields did not disclose potential side effects of the isopropyl cloprostenate. The Rodan & Fields (products and business) has, of course, both pros and cons: Pros: The products are created by dermatologists; List of ingredients is available for their products; Probably not so hard to sell the product (the recruiting part is another story) Cons: It … Which you can do by simply visiting the company website. Your downline. Rodan And Fields ranks 190 of 901 in Cosmetics and Personal Care category. There are some details that you should know before you can reach a conclusion about Rodan and Fields: is it a pyramid scheme? Maybe you're an experienced rep with a team but questioning whether you should stick with it... and you're not alone. However, the good comments by far outweigh the bad. Basically, you earn the difference between your price (Consultant Price) and whatever the customer ends up paying (Retail or Preferred Customer Price). When you look at a packed audience during one of their events, how many would even make it past the resume stage to get an interview if they were hiring, instead of recruiting? [misc] Rodan and Fields is a pyramid scheme, right? The distributors are the only people buying the product to stay “active.”, By using this form you agree with the storage and handling of your data by this site, as set out in our privacy policy. You can’t build someone up and get them hyper-excited about their dreams and goals without consequences. It's hard for me to believe that was 25 years ago. I would say R+F is NOT a pyramid scheme. affect each person differently. Rc OilDragon TimeMental Health BenefitsPositive Outlook On LifeSelf RegulationLiving EssentialsEnergy LevelYoung Living Essential OilsAdvertising A 2016 Forbes article said this about Rodan + Fields... including at quote by Dr. Kathy Fields. So, while it doesn’t paint a very pretty picture, I personally don’t think that makes it a scam in and of itself. If you saturate the market, you can work your soul off and still not get to where you “should” be according to the effort you’re putting into the business. I must admit, with all the talk of this being a pyramid scheme, I thought Rodan and Fields would be a scam. In this Rodan and Fields review, we'll dig deeper and find out. The focus is on recruiting others so that you can earn more. In any case, this is where the ‘multi level’ aspect of this comp plan kicks into gear. Shortly thereafter, it was revealed that diet and nutritional supplement maker Advocate had become a target of Federal … Again, I think there is a lot you and I can learn from their success. This review has been researched with information and/or testimonials that are available online in the public domain. This is a pyramid scheme just like all the rest. That doesn't mean Rodan and Fields is no good, it just means that it's not a one size fits all... opportunity, nor should it be. I have a quick checklist when reviewing "make-money" products. I approached people at gas stations and in lines when buying groceries. It supposedly helps with the “appearance of lines, pores and loss of firmness” in the skin. What I do know about however are business opportunities, and this review will be looking at Rodan and Fields from that perspective. This is where the line starts to blur and why it becomes quite difficult to actually determine a real pyramid scheme versus a legitimate MLM company. Copyright 2020 Gig Hustlers, all rights reserved. Cheers – Orion, ENTREPRENEURSHIPLIFESTYLEONLINE SURVEYSPROGRAMS AND REVIEWSWORK AT HOME, LEGAL DISCLAIMERAFFILIATE DISCLOSUREPRIVACY POLICY. What It's Really Like to Make Your First $1000 Online. So let’s take a look at what a pyramid scheme is, so we can compare this to how Rodan and Fields works, and make a more educated decision from there. If the commitment required to succeed at multi-level-marketing doesn't appeal to you, you're not alone. It goes without saying that Rodan and Fields is a legitimate opportunity, and not a scam. About 10 years later, they developed and sold the popular acne treatment, Proactiv Solution, which is when their entrepreneurial endeavors really started to pay off. According to data from its 2015 income disclosure, 42% didn't get a single paycheck last year.". This is not required to earn retail profits. Retail Profits is about earning commissions for selling Rodan + Fields products, so there’s no need to recruit anyone to make money this way. If all three are okay, we’re off to a good start. Rodan + Fields offers skincare, cosmetic solutions and tools. If you don't enjoy sales and have no interest in selling to your friends, family and co-workers, you can still make money from home. Although I won’t go into product specifics, we will have a look at what people are saying. Is it a lifestyle with passive income and less stress I want... ... or is it the status of being a top salesperson and recruiter? As far as independent consultants though, their success rate is typical of any MLM, which isn’t very good. One of the main ways to figure out if something is a pyramid scheme or not is to figure out if the products are legit (versus overpriced “snake oil”). It’s basically the same story in virtually every MLM I’ve reviewed over the years. Which means that less than 1% of consultants are earning what many would consider a full time income. They are a reputable company and they operate within the guidelines set out by the Federal Trade Commission's Amway decision. If the things you do are inconsistent with your passions and your strengths, it's next to impossible. They use SSL (secure socket layers), which is just a geeky way to say your connection to their site is encypted and safe. Are the product claims legitimate? Top Class Actions does not process claims and we cannot advise you on the status of any class action settlement claim. This site and authors do not offer individual financial, investment, medical or other advice. This includes holidays, vehicles and other benefits depending on what you achieve. But I get it. If you're only making 64K per year, and 90% of your recruits keep dropping out, it would be exhausting to constantly rebuild your downline. Consultant Commissions pay you 10% commissions on any products bought by your preferred customers, your consultants and your consultant’s retail customers. And there’s also a lot of complaints from people who don’t like the products. After two years in Amway pounding the pavement every day I had to accept it wasn't for me. And that’s what I found here. They do leverage the same ‘multi level’ recruiting system as a pyramid scheme, but there are some legitimate MLM companies out there. AND, it is NOT a pyramid scheme, people; do your research. Because the CEO at the top makes all the money while the workers make very little. "This is an opportunity for women to have it all,", "you might make a little bit of money if you can handle a lot of rejection.". GoGoKid Online Teaching Review – Is This a Legit $25/Hour ESL Job? And according to the companies latest pricing catalog, this means selling and/ or buying roughly $100 in product each month to stay active. I would avoid pyramid scheme products in general, but especially during pregnancy. Including other well known MLM companies I’ve reviewed like Mary Kay, Avon and Tupperware for example. Is selling one of your strengths? They use terms like “financial independence” and “being able to have it all”. If you’re an extrovert, shaking hands and taking names over drinks is probably your game. Some people say Rodan + Fields is a pyramid scheme and a good for nothing scam, while others say it’s an amazing company with great products and a legit business opportunity. If people are gathering online to say good things about a product or company, it's a good sign. I knew others who were putting the effort in too and following the plan...they weren't earning big bucks either. Many believe that MLM is as good as a pyramid scheme; MLM is not a pyramid scheme. In fact, if I met her I'd like to pick her brain and learn a few things. [Full Review]. Two Young Living participants have filed class action lawsuits claiming the multilevel marketing company is nothing more than an illegal pyramid scheme. Rodan and Fields gets mixed reviews. So some pyramid schemes actually do sell “legit products”, but in reality these are just there to try to legitimize an otherwise clear cut pyramid scheme. They're not selling politics and religion, but skin care products and MLM's can also be controversial. And with Rodan and Fields, there are five main ways you can earn: Let’s take a closer look at how each of these works…. My name is Tim and I’m the creator of Affiliate UNguru. Rodan and Fields is a direct sales and marketing company that specializes in skin care products. Despite what most gurus portray, success online doesn’t happen overnight or at the push of a button. However, it is a multilevel marketing company, and as such, a percentage of consultants are buying the products just to “qualify” for commissions, which is a red flag. This same process is repeated down 5 generations total, with each generation paying out 5% commissions based on the total CV accumulated within each. No career is one size fits all and no education is one size fits all. If you like to be out there selling, making deals and talking to people, Rodan and Fields might be what you're looking for. Like Amway, Avon and Mary-Kay Cosmetics the real income comes from building a network of distributors below you. Which is why you really need to dig deeper into the company itself, in terms of the products they’re selling and the business opportunity, to really determine how legit the whole thing is. Not only faces R+F a federal class-action lawsuit because of their fraudulent marketing of the Lash Boost Serum but there are also serious complaints against the company on BBB. If you want to succeed at Rodan and Fields (or any MLM) you'll have to be all in. I don't want to talk to people all the time. It's a simple fact that most people don't fit this profile. And probably the most popular of these is the “Redefine Regimen” kit which costs $208 and lasts about 60 days. 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