Beauty Industry, Mergers and Acquisitions

Rodan + Fields Announces New Business Model

The company will take a modernized approach to expand its consumer outreach.

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By: Rachel Klemovitch

Assistant Editor

Rodan + Fields (R+F)—a brand known for delivering proven results in skincare and haircare through science-backed, dermatologist-created products—announced a new simplified business model to expand growth and reach new customers.
 
Starting on September 1, R+F will move away from its multi-level direct selling model to streamline the customer and consultant experience. 
 
This new model will be supported by a broader array of marketing and advertising across traditional channels and social media to complement consultants’ advocacy. 
 
Dimitri Haloulos, CEO of R+F, said, 
 
“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. 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.”
 
R+F’s new business model will also help better position the company to meet customers where they are discovering and buying beauty products.

New Business Model Practices

  • Consultants will begin participating in the new Affiliate program, which will only be available for existing R+F Consultants.
  • Under the new Affiliate program, existing R+F consultants who continue to sell R+F products will receive increased commissions on customer sales and product discounts, resulting in over 90% of current R+F consultants having a higher earning potential based on their current sales performance.
  • Recruitment and commissions consultants receive through product sales by those they have recruited will no longer be a component of R+F’s model, resulting in a simplified consultant experience.
  • Customers will find it easier to browse, discover, and engage with the R+F brand across its digital channels, and continue to benefit from the incredible passion and knowledge of the R+F consultant base.
As part of its business model, R+F has also reorganized its corporate structure to support the future needs of the business, which resulted in the elimination of approximately 100 roles.
 
The company is grateful for the contributions of these individuals and is supporting them with the transition.  

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