Everyone wants younger, more beautiful skin, right? Well, some people don’t honestly care. But the belief that the majority of humans care about their appearance is what began the Rodan and Fields company.
You’re a hard-working individual. And you want to learn how you can legitimately supplement your income – be it through a home-based business or through investing – that’s why you visit Regulated Broker. And you also know that we’re going to give you the truth and nothing but the truth.
You’ve asked us about Rodan and Fields, and we’re happy to answer your questions. Is there a Rodan and Fields scam? Is it a legitimate opportunity for entrepreneurs? Read on to find out more.
Rodan and Fields: In the Beginning
Remember those ads which ran every 15 minutes on television, advertising Proactiv Solution? Rodan and Fields is the same group. Drs. Katie Rodan and Kathy Fields developed the line of acne treatments in 1995 and marketed them heavily via television and radio.
In 2002, the two women developed a line of skin care products called Rodan and Fields, which was sold in department stores. A year after launch, Estee lauder bought the company, but that was short lived, as the doctors reacquired their products in 2007. They had decided that rather than rely on the good old-fashioned method of retail sales to generate revenue, they would prefer to earn another way: direct marketing.
Today, Rodan and Fields representatives, or “consultants,” still sell products via direct marketing, also known as multi-level marketing. They’re similar to your local Avon or Mary Kay representative, except that the products they’re peddling cost much, much more. (We’re talking a $44.00 makeup brush, folks.) The company does sell actual products, and representatives do not rely mainly on recruitment for income. Therefore, they are a legitimate MLM company.
So why are we getting so many questions about the Rodan and Fields scam? We decided to ask a few representatives what they thought.
Rodan and Fields Scam: Is it True?
We’ll just start with the honest truth. Rodan and Fields is a legitimate company, which makes a tangible product, and relies on so-called entrepreneurs to sell it. The representatives with whom we spoke told us that in the beginning, they were required to “buy in” to the company. For anywhere from $100 to $1,000, they were required to purchase a starter pack which would serve as the initial sales kit.
Once that sales kit arrived, they were meant to start selling. Typically, MLM reps will host parties in their homes, or at the home of a friend. It’s then that the selling begins: crackers, cheese and a lot of wine were hits among the reps we spoke with.
Armed with a few sample cosmetic wipes and a lot of courage, these reps attempted to sell $90 vials of eye makeup remover to their friends. And that’s where most of the problems began for these representatives.
“You bought into the Rodan and Fields scam?”
“Isn’t this a little pricey?”
“I mean, this smells good, but I kind of like my Mary Kay lotion.”
Those are just a few of the remarks that the reps we interviewed received. Their parties were largely unsuccessful, and it was then that they resorted to social media. The Facebook “unfriending” began.
Let’s face it. There’s little worse than your friend attempting to sell you something. A social relationship quickly begins to feel like a commercial opportunity, and you’re likely to lose a bit of trust in that friend. When you’re constantly being asked for money on Facebook and Twitter, the rate of that trust loss accelerates.
Is Rodan and Fields Really a Scam?
As with any legitimate MLM scheme, it’s possible to make money with Rodan and Fields. And, if we’re being truthful, the Rodan and Fields scam isn’t really a scam. There are products being offered and people being paid to sell them. The problem is that it’s so difficult to make money doing it that it’s more likely that you’ll lose money trying.
Companies like Mary Kay, Avon, Younique and even Jamberry are all purveyors of cosmetics and beauty products. And if you’re interested in a multi-level marketing program, one of these might work for you.
Here’s the thing: if you’re reading the Regulated Broker website, that means that you’re likely not a millionaire yet. You’re probably not even remotely rich yet. And, with that said, it’s likely that your friends aren’t either. So if you’re looking to your friends to purchase products which will provide your income, it’s not probable they’ll be game for a $97 vial of lotion.
Is the Rodan and Fields scam really a scam? No. It’s not. Unless you consider paying hundreds of dollars on products you could purchase at a fraction of the cost elsewhere a scam.
Multi-Level Marketing: A Reputation for Disaster
We’ve mentioned in this article and in numerous posts in the past that multi-level marketing “opportunities” rarely work in the entrepreneur’s best interest. However, that doesn’t mean they’re all bad. Even Warren Buffet owns Pampered Chef; Berkshire Hathaway bought the MLM in 2002.
Our advice to you is this: if you’d like to try a little bit of entrepreneurship, be sure to do your research. That doesn’t only mean that you research the company you’re buying into. You’ll also need to research your social circles.
What are your friends currently doing? Where are they putting their resources? Pay attention to their habits and their opinions, and you’ll have a much higher success rate when you attempt to turn them into customers. If you’re living in a fixed income apartment complex, it’s unlikely your neighbor will want to spend $400 on a skin care routine. But she may be interested in insurance services, or even discount clothing options.
The long and short of the Rodan and Fields scam is that it’s not a scam. But it is a direct marketing company, and you can expect to lose money unless you work extremely hard; our sources say they put in more hours than they had at their office jobs. As a result, our recommendation is that you steer clear of Rodan and Fields, and opt for a more tried and true (and affordable) direct marketing opportunity.