Is it too late to decide in on the backside tier?
Let’s face it. The primary few months of 2024 have been a curler coaster. With out naming any explicit main shifts in movie/TV manufacturing, worsening social media landscapes, or large-scale deterioration of democracy in main world superpowers, it is the type of yr the place many people are simply begging for the downfall of the evils on the earth to take maintain. Whereas dangerous information continues to dominate the dialog, of us can no less than discover some solace in adjustments going down at Rodan and Fields.
Article continues under commercial
In case you have not heard, Rodan and Fields is a skincare firm. Based by Katie Rodan and Kathy Fields, the R+F model makes use of a multi-level advertising and marketing enterprise mannequin wherein “impartial consultants” promote their merchandise.
“Multi-level advertising and marketing” ought to already be a pink flag for anybody studying, as this virtually at all times refers to a pyramid scheme wherein these on the prime basically earn from free labor. Fortunately, nevertheless, they appear to have shifted in technique. What occurred to Rodan and Fields?
Article continues under commercial
Rodan and Fields introduced an growth to their enterprise mannequin in 2024.
Rodan and Fields as an organization has lengthy been criticized as a pyramid scheme. Ever because the firm rebranded with multilevel advertising and marketing again in 2007, their vast and increasing vary of skincare merchandise had been offered utilizing a non-salaried workforce with the promise of compensation being relegated to gross sales commissions made by each the vendor and anybody else they’ve recruited to additionally promote these merchandise. Wherein case, probably the most fee at all times will get back-funneled again to whoever is on the prime of the pyramid.
R+F has operated beneath this mannequin for years, with many throughout the web lambasting the corporate for utilizing its blatantly exploitative enterprise technique. Nonetheless, they made a significant announcement with regard to their enterprise mannequin.
On July 15, 2024, R+F issued a press assertion stating that “the corporate will transfer away from the multi-level direct promoting mannequin to streaming the client and advisor expertise.”
Article continues under commercial
The brand new mannequin, which might be carried out on Sept. 1, goals to make use of “conventional channels and social media” to promote and promote their merchandise. In different phrases, the corporate appears to promote merchandise the best way another model would. Reportedly, present “consultants” might be rolled into a brand new Associates program wherein they’ll obtain elevated commissions based mostly on particular person gross sales efficiency.
Article continues under commercial
Many have praised this new transfer because the downfall of a pyramid scheme. One X person tweeted, “The MLMs actually appear to be crumbling and I’m soooo right here for it.”
This new enterprise technique comes two years after R+F reached settlements in a number of class motion lawsuits. In November 2022, the corporate agreed to pay over $38 million in damages after certainly one of its eyelash merchandise was discovered to trigger extreme uncomfortable side effects corresponding to eye irritation and even ocular irritation.
In any case, highschool reunions are about to turn out to be quite a bit much less awkward with much less folks “being their very own boss” by R+F.