Hair and Skin Care Brand Moves Away from Multi-Level Marketing
- Rodan and Fields shifts away from multi-level marketing model
- 100 jobs cut as part of restructuring
- Consultants to receive increased commissions and product discounts
- Lawsuit alleges misclassification of consultants as independent contractors
- Founded by dermatologists Katie Rodan and Kathy Fields, acquired by Estée Lauder Companies in 2003
Rodan and Fields, the hair and skin care brand, is changing its business model to streamline operations and reach new customers. The company will support consultants through marketing and advertising across traditional channels and social media, offering increased commissions on sales and product discounts. This change aims to increase earning potential for consultants by 90% based on their current sales performance. CEO Dimitri Haloulas stated that it will allow them to impact more lives and provide a modern earning opportunity. The brand was founded in 2000, acquired by Estée Lauder Companies in 2003, and faced a class action lawsuit regarding the misclassification of consultants as independent contractors. Rodan and Fields employs over 500 people and has more than 300,000 independent consultants.
Factuality Level: 8
Factuality Justification: The article provides accurate information about Rodan + Fields’ decision to change its business model and includes relevant background information about the company’s history and legal issues. However, it could be more concise and avoid speculation on the reasons behind the changes.
Noise Level: 4
Noise Justification: The article provides relevant information about Rodan and Fields’ shift in business model and its potential impact on consultants. However, it could benefit from more analysis or context on the reasons behind the change and the implications for the industry.
Financial Relevance: Yes
Financial Markets Impacted: Rodan and Fields
Financial Rating Justification: The article discusses changes in Rodan and Fields’ business model which may impact its financial performance, as well as a class action lawsuit against the company. This affects the company’s operations and potentially its stock value or investor confidence.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the article. The article discusses changes in Rodan and Fields’ business model, including a shift away from multi-level marketing and potential impacts on consultants.
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