Rodan + Fields is shaking up its multi-level marketing (MLM) business model to “reach new customers”, resulting in around 100 job losses.
The US skin care brand, which sells dermatology-inspired products, is moving away from a MLM model to a new affiliate programme on 1 September.
Rodan + Fields says the new sales structure will help it compete against online platforms like TikTok Shop and Amazon, and “meet customers where they are discovering and buying beauty products”.
The company has been reorganised to support the revamped model, resulting in the loss of approximately 100 roles.
In the new affiliate programme, existing Rodan + Fields consultants who continue to sell products will receive increased commissions on customer sales and product discounts.
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Commissions from sales by recruited consultants will be phased out as part of the company’s plans for a ”simplified” consultant experience.
“We are confident these changes will… allow us to continue to provide our passionate consultants with a modern and meaningful earning opportunity,” said Rodan + Fields CEO Dimitri Haloulos.
The affiliate programme will be supported via new marketing and advertising across traditional channels and social media.
Rodan + Fields has reportedly reached an agreement with its current minority investors to provide up to US$75m in funding to strengthen its capital structure and financial position, according to WWD.
It offers consumers skin care products around four regimens: Redefine, Reverse, Unblemish and Soothe.