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There’s a pretty popular meme format involving women calling on all their “boss babe” high school contacts and asking them if they want to make a “lot of money” by “working for themselves.” These are generally known as multi-level marketing (MLM), or pyramid schemes, where money is funneled upward after recruitment. Rodan and Fields (R + F) was notoriously known to have this business model, but recently the company switched course. So what happened?
For some reason, MLM schemes have become something of a stereotype for a certain brand of woman. They’re stylish, dedicated and they’re going to help you make a lot of money, or so they say.
Of all the MLMs out there, Rodan and Fields was one of the biggest. The company sold its skincare products to “independent consultants” who would then recruit more consultants underneath them. The person above collects money from the person below and on and on. It’s free labor, and it’s totally a scam.
Earlier this week, the company announced it was moving away from the “multi-level direct selling model to streamline the customer and Consultant experience.”
“Recruitment and commissions Consultants receive through product sales by those they have recruited will no longer be a component of R+F’s model, the company said, “resulting in a simplified Consultant experience,”
The new model will use “traditional channels and social media,” meaning it will just be a brand selling a product. Current “consultants” will no longer have to recruit other people and will now just be salespersons. By the way, people are here for it.
Dimitri Haloulos, the CEO of R+F said the change will allow for the company’s “passionate consultants” to have a “modern and meaningful earning opportunity,” which is a fancy way of saying no more scamming your friends.
This new direction for R+F means a leaner company, so it announced that about 100 people were let go, but not to worry, the company is “grateful for the contributions of these individuals and is supporting them with the transition.”
R+F was founded by dermatologists Dr. Katie Rodan and Dr. Kathy Fields, who you may know as the creators of the acne treatment Proactiv. In 2003, the company was bought by Estée Lauder Companies, Inc. The doctors bought the company back in 2007 and introduced the MLM model.
These changes come after R + F settled in court following a number of class action lawsuits involving a product called “Lash Boost,” which caused eye irritation and ocular inflammation.
Unfortunately, this means a lot of boss babes will never get their chance to hop into the pyramid. The new changes go into effect on Sept. 1.