Rodan + Fields will discontinue its multi-level marketing operations, effective September 1st. The skincare company, founded by Katie Rodan and Kathy Fields, is abandoning the MLM model that underpinned its business since 2007. It will replace it with what company executives call a "simplified business model."
The shift represents a significant corporate restructuring. Consultants who choose to remain will now pay an annual fee of $9.99 to participate. The most fundamental change eliminates recruitment commissions. Under the revised system, Consultants will no longer earn income from sales generated by individuals they recruited into the network. Their earnings will come solely from direct customer sales, effectively converting the business into a single-level affiliate model.
Company officials described the change as a step forward. A July 15th press release from Rodan + Fields stated the new model would "streamline the customer and Consultant experience." It aimed to "unlock growth and reach new customers." The practical impact is more direct. Without downline commissions, the primary financial incentive for Consultants to recruit new members into the sales force collapses. This core incentive drives the expansion of most multi-level marketing structures.
The company did not publicly release specific sales figures related to the change. However, website traffic data indicates challenges. SimilarWeb reported Rodan + Fields received between 400,000 and 500,000 monthly visits, with 97 percent originating from the United States. The company has experienced difficulty in growing its web traffic over recent periods.
This business pivot follows a period of increasing legal pressure. Earlier this year, a former Consultant initiated a proposed class-action lawsuit against Rodan + Fields. The suit argued that the company's Consultants should be classified as employees rather than independent contractors, a common point of contention in the direct selling industry. That specific case moved to arbitration in July 2024, and its outcome remains pending. A Case Management Conference is scheduled for October 2nd.
The restructuring also resulted in corporate layoffs. Rodan + Fields eliminated approximately 100 roles within its corporate office, offering various transition support packages to the departing employees.
For the Consultants who remain with the company, the new arrangement offers higher commission rates on direct customer sales. This increase intends to compensate for the lost income previously derived from recruitment. Historically, the success of multi-level marketing businesses hinges on their ability to continuously recruit new participants. Removing this foundational element fundamentally alters the growth engine that powered Rodan + Fields for nearly two decades. The Direct Selling Association, an industry trade group, defines direct selling as "the marketing and selling of products directly to consumers away from a fixed retail location." Multi-level marketing is a specific compensation model within direct selling, relying on both direct sales and network expansion.