Rodan And Fields Income Disclosure Statement
Following on from our review of the Rodan and Fields Opportunity, we decided it was time to take a closer look at how much these consultants are actually earning.
The best document we could find was a copy of the Rodan and Fields Income Disclosure Statement. This document explains all the commissions paid to R + F consultants during a calendar year
Like any decent MLM income disclosure, Rodan and Fields starts off by telling us how wonderful their business opportunity is. They remind us that their skin care products are made by dermatologists.. while I haven’t checked, I’m pretty confident that almost all skin care products are designed by dermatologists.
Moving on to the actual earnings, the first thing we see is a line telling us that in April 2019 there were 362,300 Rodan and Fields consultants in the U.S. Of those 55% earned at least one commission during 2018. In other words 45% of Rodan and Fields consultants earned nothing in 2018
Rodan and Fields shows us the earnings from the top 55% of consultants, or those that earned anything at all, in the table below:
Rodan and Fields has been very kind, and saved us the effort of doing extra math. In their disclosure, they tell us that only 1% of paid consultants earned more than $27,000 in 2018. Keep in mind that 1% of paid consultants is only 0.55% of all U.S Consultants. And that is a lot less than you could earn with a regular job.
What they have effectively told us is that 99.45% of Rodan and Fields Consultants earned less than minimum wage from their business opportunity.
Unlike most MLMs, the Rodan and Fields income disclosure does include retail sales commission. This is a pleasant surprise because usually MLMs like to tell us that their income disclosure doesn’t include retail sales.. So we’re supposed to imagine that the figures are somehow better than they have presented.
In another unexpected flash of honesty, they tell us that the income disclosure figures do not include expenses. If we were to consider all the time, effort and money spent by consultants trying to build their ‘side hustle’, we’d expect to find that most Rodan and Fields Consultants are losing money.
Another factor not included, is churn. This is a common term used in the sales industry. It refers to people quitting. MLMs have a huge churn rate. In any given year, it’s common for more than half of them to drop out.
If it were possible to include the income, or lack of income, from all the consultants who quit the hunportunity, the income figures would be much worse.
If you are considering joining Rodan and Fields, or any other ancient Egyptian business opportunity, then we strongly suggest that you consider all you options before making a final decision. After all, we wouldn’t want you to sign up for a sales job where 45% of people earn nothing, and 99.45% earn less than minimum wage.
For posts like this check out our list of MLM Income Disclosure Statements. If you notice one that you think should be added to the list, let us know and we’ll do our best.