Rodan + Fields has been a familiar brand on skincare shelves and social media feeds for years. If you’ve heard some recent talk about its business changing or even rumors about the company closing you’re not alone. But the headline is simple: Rodan + Fields is not going out of business.
They’re just changing how they run things, and in a big way.
The Strategic Shift: From MLM to Direct-to-Consumer
Rodan + Fields was known for its multi-level marketing (MLM) structure. If you’ve ever had a friend ask you about their skincare regimen or invite you to host a product party, you already get the idea. Consultants could make money both by selling products and by recruiting new people under them.
But as of September 1, 2024, that model is officially done. The company is now pivoting to a direct-to-consumer setup. What does that mean exactly? Instead of encouraging consultants to build teams, Rodan + Fields wants to sell directly to people using more traditional marketing, social media outreach, and online sales.
That doesn’t mean there won’t be people making commissions. It just changes how those commissions are earned.
No More Recruitment Commissions
Under the old model, consultants could earn commissions not only for their sales, but also when people they recruited made sales. That’s out. Going forward, the focus is on selling products not convincing friends or family to sign up as consultants under you.
The company quietly cut about 100 corporate roles and changed around its internal teams. Executives say these changes make things more efficient and help them reach new people who might have felt uneasy about MLMs in the past.
How Consultants Are Affected: Goodbye MLM, Hello Affiliate Program
So, what about the tens of thousands who called themselves Rodan + Fields consultants? They aren’t out of a job, but their role is different now.
Anyone already in the consultant program is being moved to a new affiliate-style system. Instead of tracking how many people they recruit, they’ll now earn commissions based mainly on how much product they personally sell to others. Basically, if you love the products and share them with friends, you still get paid but there’s less pressure to sign people up under you.
According to the company, over 90% of current consultants could actually see higher commissions, since most weren’t earning more than a modest amount under the old MLM system anyway.
Plus, those in the affiliate program get better product discounts. If you’ve always been a loyal customer, that helps too.
Consultant Income: More Focused, Potentially Higher
For a lot of people, the old MLM pitch never paid off. Some earned very little, especially if they weren’t into recruiting. Now, Rodan + Fields claims that most consultants (now called affiliates) will actually make more money from their actual sales.
You don’t need to spend hours building a “downline.” It’s all about sharing and selling products you already use and recommend. For people who love the skincare line but never wanted to push a business opportunity, this could be a win.
Funding and Investor Confidence
Big changes are rarely cheap. That’s why, around the same time these changes were announced, Rodan + Fields pulled in a fresh $75 million funding round. That’s a pretty solid endorsement from investors, especially in a beauty industry where new brands pop up constantly, and TikTok Shop or Amazon are just a click away.
New money should help Rodan + Fields invest in different types of marketing, update their product lineup, and reach people who might not have considered them before. When investors put up that kind of cash, it’s a vote of confidence that the company isn’t disappearing any time soon.
Why the Change? The Legal Angle
There’s another side to the story: legal pressure. Rodan + Fields was caught up in a California class-action lawsuit that argued consultants were wrongly classified as contractors instead of employees. That lawsuit made some serious points including the fact that about a third of consultants earned no commissions at all in 2022.
So, the new business model helps address those legal headaches. Shifting from MLM to an affiliate approach reduces wage and classification risks. It’s cleaner, simpler, and lowers the chance they’ll face more lawsuits about consultants’ pay or classification down the road.
How’s the Business Doing Financially?
Let’s look at the numbers for a minute. The Rodan + Fields flagship website pulled in about $31 million in revenue in 2024. That’s not the peak it once saw, but it’s nowhere near a drop-off that would send up red flags. Analysts expect revenue to hold stable or shrink just a bit in 2025 think flat or a mild dip, not a nosedive.
The company kept more than 500 corporate employees and still supports over 300,000 consultants (now affiliates) across North America.
Rodan + Fields has been the top premium skincare regimen brand in North America for six years running, from 2018 to at least 2023. Sure, the way they reach customers is changing, but the brand itself isn’t going anywhere.
What About Competition and Market Challenges?
Every beauty brand is feeling pressure from all angles: indie lines blowing up on TikTok, direct deals through shops like Amazon, and even in-app buying on social feeds. The direct-to-consumer model lets Rodan + Fields compete more easily, especially when everyone’s scrolling past ads and sponsored posts.
The company’s move away from MLM could make it more attractive to people who want quality skincare but don’t want any “Hey, want to join my business?” conversations with friends.
The Upside: Cost Savings and Room for Growth
With no need to train consultants on how to recruit or build teams, the company saves on logistics and training. Money that once would’ve gone into onboarding thousands of new “downline” team members can now be put toward advertising, better product formulas, or even exploring new markets.
There’s also a customer trust angle. MLMs have a reputation problem, and not always a fair one. Moving to an affiliate-based model helps Rodan + Fields shake off some of those old stereotypes. The company says this should help build better, longer-lasting trust with everyday buyers.
All of this means they’re in a good spot to reinvest funds and try new things. They’re betting that focusing on products and direct sales will help them grow, even in a crowded market.
Legal Challenges Are Less of a Shadow Now
That earlier lawsuit in California got a lot of attention in business circles. By redesigning their sales program, Rodan + Fields cuts down on risk. There’s less chance of someone coming after them about consultant pay or work status because the affiliate path is clearer on what you do and how you get paid.
It’s not the most dramatic reason for a corporate pivot but it’s practical. It shows the company is listening and adjusting, instead of digging in and hoping lawsuits go away.
Zooming Out: What Does This Mean for Skincare Fans and Sellers?
If you’re just a customer, you’re unlikely to see drastic changes when you buy. The website still works, the products aren’t going anywhere, and new promotions will probably show up like usual. You might even notice more social media posts or ads from people who genuinely use the products, instead of high-pressure sales pitches.
If you were thinking about becoming a consultant, now you’ll be signing up as an affiliate. You can earn money when you sell products, not by adding to a sales tree.
For people who liked the old system and had big teams, this change might sting a little. For most, it’s a more straightforward way to share products without complex business rules.
What’s Next? The Outlook for Rodan + Fields
Rodan + Fields says the transition allows them to spend less on overhead and more on the stuff that actually gets new customers: marketing and product innovation. By focusing on a direct-to-consumer model, they’ll try to reach digital natives, skincare junkies, and even people who felt uneasy about MLMs in the past.
No reports or company filings suggest a shutdown. Industry coverage frames this as a smart evolution, not desperation. If anything, the move is about future-proofing the brand as competition stiffens. For more business updates and similar stories you can check out United Business Magazine as well.
Experts expect them to remain a top player in premium skincare. With new money to spend and less legal baggage, Rodan + Fields seems ready to experiment rather than bow out.
Bottom Line: Not Going Anywhere
So, is Rodan + Fields going out of business? No, not by a long shot. The brand is changing how it works behind the scenes, and for most customers and affiliates, that should mean a simpler experience and maybe better payday. It’s all part of the bigger picture: adapting so they can stick around in a fast-moving beauty industry.
If you’re a fan of the skincare, you’ll still be able to order it. As for the business side? That’s now a little less complicated, and a little more focused on actual products over recruitment. That’s the real story here change, not closure.
