Is Rodan & Fields a Pyramid Scheme?

Giva Pyramids

As I have researched Rodan + Fields and other Network Marketing companies, the question seems to continually come up about whether or not it is a scam or a pyramid scheme.  The quick response is “NO WAY!!” – but keep reading for the explanation and proof.

The words “pyramid scheme” immediately has a negative connotation and generates red flags and warning signs.  I’m 44 and it seems like people my age and older have a very outdated concept of what Network Marketing is and often default to “It’s a pyramid scheme.” And when people think “pyramid” they think “scam.”  Why are people so afraid of a triangle?

When you think about it, most organizations are shaped like a pyramid – the company I worked for had an organizational chart that was a pyramid.  The military, the government, universities, churches, school systems – they all are organized as a pyramid.  But I am almost certain that no one below their superior is allowed to make more money than they are.  I don’t know which is worse, being limited in what you can earn, or knowing that someone above you is considered your “superior.”

When I think of “scheme” I think scam.  There are two things that I know Rodan & Fields is not – a scheme nor a scam.  There are certain criteria that proves it is a legitimate business.  I’ll explore some of those below the whimsical video.

Below is some info and guidelines provided by the Federal Trade Commission regarding direct sales opportunities to help you know what to look for in a reputable Network Marketing Company.

From the Federal Trade Commission:

If you’re thinking about joining what appears to be a legitimate multilevel marketing plan, take time to learn about the plan before signing on.

What’s the company’s track record? What products does it sell? How does it back up claims it makes about its product? Is the product competitively priced? Is it likely to appeal to a large customer base? What up-front investment do you have to make to join the plan? Are you committed to making a minimum level of sales each month? Will you be required to recruit new distributors to be successful in the plan?

How does the Rodan and Fields Opportunity stack up?

What’s the Company’s Track record?
Dr. Rodan + Dr. Fields revolutionized the skin care industry with the creation, marketing and distribution of ProActiv Solution.  Rodan+Fields Dermatologists have received numerous awards from the Direct Selling Association, the governing body for the industry, including three Ethos awards announced in May 2012 for Promotions, Social Media and Product Innovation. Rodan & Fields track record is not only impressive, but it’s a major benefit when it comes to representing such a product. Having the opportunity to represent such an impressive product allows you to simply share the product with others…and keeps you from feeling like you have to sell it, or push it on to others.  This company is the envy of so many other companies.

What products does it sell?
Rodan+Fields Dermatologists provide skin care products that are gender neutral for the adult skin care market. Anti-Aging, Sun Damage Repair, Sensitive Skin treatment, Adult Acne and dermatological quality every day essentials. Details about each of the products may be found by reviewing each of the product categories from my product pages.

How does  back up it’s claims?
Every order comes with a 60 Day Empty Bottle Money Back Guarantee  How many people actually return their products? It’s less than 1%.  The products work, and customers constantly reorder their products.

Is the product competitively priced?
Absolutely. Average cost is less than $50 per bottle for a 2 month supply of a regimen. Considerably less than department store brands or a trip to the Dermatologist.  There is a very cool tool that helps you know exactly which product is right for you to use – Try out the Solutions Tool.

Is it likely to appeal to a large customer base? 
Yes. The anti-aging market alone is estimated at $3 Billion per year. Because products are gender neutral they can be used by anyone with skin.  Rodan & Fields is also about to expand in other countries too, so the customer base will be greatly expanding.

What up front costs do you have to make?
Rodan and Fields offers three fast-track investment options depending on your goals and business model…ranging from $395 to $995. All pay the same amount of commission from your sales. All come with two fully developed websites. Because of the deep discounts, I encourage potential business partners to sign up with either the $695 or $995 – the deal is just too good to pass up.  You are buying product with these various kits, not the “right” to become a consultant.  This is very different than the scams which exist.

Are you committed to making a minimum level of sales each month?
No.  But this is a commission based business, so if you are not making sales, you do not earn commissions.  The more effective you are at generating business, the better commission you receive.
Will you be required to recruit new distributors to be successful in the plan?
No, you are not required. You earn commission on all sales from your website plus 10% from those on your immediate down line.  You’ll also receive 5% on your entire team (down 5 levels).

Those last two are key because at Rodan and Fields we have a saying: “It’s your race, It’s your pace.”
If you want to set goals each month, as your sponsor and coach, I will help you to achieve those goals. Matter of fact, I encourage you to have monthly, weekly and daily goals for success. But they are your goals based on your schedule and needs.

While you are not require to recruit new distributors each month, the “network” part of this business is the beauty of it.  The more people you have recruited, the more you are earning from your down line.  It’s the part that generates a steady and growing revenue stream and the residual income that makes this business appealing.

Here is another funny video that will help you see the absurdity of thinking that Rodan + Fields could be a scam.

One other thing that the FTC adds that is noteworthy:

“No matter how good a product and how solid a multilevel marketing plan may be, expect to invest sweat equity as well as dollars for your investment to pay off”

In other words,

 “You get out of  Rodan + Fields, Exactly what you put into it.”

The beauty behind Rodan and Fields business model is that it merges the standard successful business structure with the freedom to control your own schedule and income. It’s just that simple.

So while some may want to instantly throw it into the category of a “pyramid scheme” this categorization is done without merit or understanding of the company, it’s product or compensation plan.  If you are looking for a solid business opportunity to earn some money, you have just read about a golden opportunity that you can’t pass up.

As I have said in previous posts, I KNOW the people who are making lots of money doing this and who are breaking all of the rules for how to earn a living.

Do you want to join my Rodan + Fields team?  It’s easy, let’s talk this over and see if this opportunity is right for you and let me help you make a success of this!  If you are motivated, want to treat this like a business, are looking for success, consider yourself coach-able and train-able, then let’s talk, Rodan & Fields may be a good fit for you!

 

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