MJP –
A surprising beauty brand is currently eliminating 100 positions as it prepares to shift its business model, as stated in a press release.
On Monday, the brand specializing in hair and skin care, Rodan and Fields, revealed the modifications.
As of September 1st, the company will transition away from a complex direct sales structure with multiple levels.
According to Retail Dive, existing Rodan and Fields consultants will be integrated into an innovative affiliate initiative.
Earnings from product sales through recruiting will no longer be included in the brand’s business strategy.
Moreover, the company has revamped its organizational framework and has cut approximately 100 positions.
According to the company, Rodan and Fields have shifted away from its multi-level marketing strategy to simplify its operations and attract a fresh customer base.
On the contrary, the company will back up its advisors by promoting and advertising through both conventional platforms and social networks.
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According to the company, consultants will have the opportunity to earn higher commissions and enjoy discounts on products, leading to more than 90% of them having increased earning potential based on their sales performance.
In a statement about the modifications, Dimitri Haloulos, CEO of Rodan and Fields, expressed assurance that these adjustments will broaden the scope of lives they can influence and, most importantly, sustain the provision of a contemporary and significant income opportunity for their dedicated Consultants.
In California, a legal case was brought against the company and its creators concerning how they categorized their consultants.
In its submission, it was argued that Rodan and Fields took advantage of its sales team in California by mistyping them as independent contractors rather than employees.
According to the lawsuit, in 2022, a third of its consultants were not paid a commission throughout the year.
Rodan and Fields chose not to comment on inquiries about the lawsuit or any additional questions about the shift in their business approach.
