Multi-level marketing companies come in all sizes and formats.
Some have a complex offer, while others are a straight Ponzi scheme.
Rodan and Fields MLM is a type of a business that stirs much controversy.
But is it legit to call Rodan and Fields a Ponzi scheme and write it off?
Well, give it a moment before you give it a verdict.
Is Rodan + Field a scam?
Well, not at all. People claim that the company is a pyramid scheme. Rodan and Field, in reality, is a legit business.
But, it is a business with a very limited earning possibilities. That is why it has such mixed reception.
Rodan and Fields Company
Rodan and Fields go back to 1995. Back then, two college graduates Rodan and Fields decided to start their dermatology product.
In those days, they came up with their unique products for skincare.
In the next seven years, they went on to create more products and start their company.
Thus, the Rodan and Fields company was born. Back then, there were no claims about Rodan and Fields’ Ponzi scheme.
Of course, Rodan + Fields scam claims came much later. It came with the advent of the pyramid structure of the company.
There is no mistake about Rodan and Fields’ MLM model of operations. It is something they advertise and show as their competitive advantage.
Of course, that doesn’t make Rodan and Fields a scam.
Rather than that, the problem is in their commission and earning possibility with the company.
The fact is that they offer low commissions.
Thus, your earning potential comes with limitations from the moment you start working with the company.
Another pressing issue is that you have to invest in packages and a starter kit.
Other than that, there are other problems with products and purchases. So, there are upfront costs of working with the company and hidden expenses as well.
This puts them very close to being dishonest and not very upfront about the kind of business they run.
Also, together, these issues reduce your capability of earning money.
However, all that company does is legal. There is not a single illegal action of Rodan and Fields MLM.
Instead, it is a registered and legal company.
They have total legal and digital protection. Even their website is clear and has proper cybersecurity. Thus, it is not fair to call it a scam.
For a business to be a scam, there must be an illegal action by the company.
That is not the case with Rodan and Fields.
It may be a broad conception, but it is a matter of concept rather than legality.
While it is legal, Rodan and Fields could do lot more to help their workers increase their revenue.
Is Rodan and Fields a Pyramid Scheme?
Understanding what a pyramid scheme is, is the point of misunderstanding of Rodan and Fields.
For example, a pyramid scheme is an operation that brings no value to the scheme participants.
It serves to recruit them and take advantage of them. And, it tends to do so to take their money, information, or another item of value.
Rodan and Fields is not entirely that type of business. It has products, and it has two kinds of roles for its external associates.
The problem is in the business model and the money-making options. If these were a bit different, the earning potential of Rodan and Fields employees would increase.
This puts them in a category of businesses like Herbalife or Cutco, which we have reviewed before.
However, you may note that in 2018, 90% of their employees had a negative income report.
There is a reason for that outcome and you need to be well aware of it before you start doing any type of work with this company.
It all starts with the structure of the business.
The core structure of Rodan and Fields is a pyramid. You can work as a salesman and earn a commission.
Or you can recruit other sellers and earn a commission for their sales.
From the start, there is an incentive to bring in recruits and earn from them. There, you can make a decision about which path to follow.
However, the sanest advice would be to act as both a salesman and a recruiter.
In the best-case scenario, that is how you make the most money out of an MLM business.
While you sell your products, you find others to help you do the selling part. Then, you can help them with logistics and supply them and earn.
From that point, you have a network of sellers. They continue selling, and you create a sort of passive income. The problem is that is rarely the case, and you have a better chance of ending like 90% of the people working with this company – in red.
Working at Rodan and Fields
In practice, the work looks much different. There are upfront costs when you start working at Rodan and Fields.
Think about investing around 50-500$ to start working with the company.
Now that you invest money in the products, you have to go and sell them.
There are options to take products and pay for them later.
However, if you fail to sell the bulk of the order, you pay for those products.
So, you have two pressing tasks.
The first is to start selling products immediately. The second is to find others to sell to you.
The problem with both is time management and success in sales.
If your account for living expenses and expenses of the products, you have little to no chances to succeed.
Even if you manage to sell, you earn by percentage.
And, if you find people to sell for you, there is no guarantee that they can earn money.
You need much preparation for any success with the company.
Rodan and Fields Customer Reviews
Most Rodan and Fields reviews talk about this issue. Most reviews talk about the problem with the pyramid structure of the business.
Yet, no person can say that the company didn’t pay their money. Rodan and Fields pay on time, and they never owe money to any party.
However, that is minuscule compared to other issues about the company. Even if you have a chance to work with them, your earning potential is low.
Rodan and Fields Products?
Another problem with Rodan and Fields are the products. They offer two types of products, and these are the portfolio and product sets.
The portfolio is the first purchase you have to make to start working with the company.
In it, there is elementary information about the company and the way they operate. Use it to learn about the company and make your first step as a salesman.
Then, you start with the actual product sets. These sets are the core of the business. There are various skincare products you can order for sale. So, it is up to you to decide which products you want to sell.
The advantage of a portfolio is that it is affordable. You can get it for only 45$. However, if you have any skill in sales it has little to offer.
These documents aim to appease people with no experience or skills.
Think of it as the upfront costs to start working with Rodan and Fields. Other than that, there is almost no actionable advice in the portfolio.
Make sure that you have either sales or networking skills before you start working. With that, you may earn something.
Product sets are the primary way to earn money.
They may differ depending on when you start working with the company.
However, there are an elementary set of products that you can find and sell.
The starting price of the product sets is around 400$.
If you fail to sell the whole set, you pay for the products you didn’t sell.
So, it is a necessity to network with customers and recruit and immediately sell the products.
The problem here is that you need more than a set of 400$ to make actual money.
Pros and Cons
Now, that is almost all there is to Rodan and Fields.
The pros of working with the company are few. Considering that you have a team, you could make it work for you.
Or at least if you have excellent networking skills.
However, if you lack that, your chances to earn with Rodan and Fields significantly decrease.
There is a financial risk in selling products of another company. And, there are no fixed earnings or a paycheck.
While you get to arrange your work hours, you have to calculate the risk and profit. If you think you make it, give Rodan and Fields a try.
But we also recommend looking for platforms that are legit, even if they seem like a lot more work. Try leveraging some of your actual skills, like a skill to write content.
You don’t need to be Hemingway to make money writing content online. You only need to know the basics, and along with decent research skills, you can make a good buck off of platforms like Writers Work.
Trying Rodan and Fields
Rodan and Fields offer a chance to earn money. However, your time may be better spent elsewhere and investing money initially to earn money from a company like Rodan and Fields doesn’t sound ideally.
It is an opportunity meant for people that have experience in sales or want to build skills within that area.
The job has the potential as a side hustle. Or if you have internet marketing skills and can sell online.
However, without these skills, you have almost no chance to succeed with Rodan and Fields.