A lot of folks are asking if Rodan + Fields is going out of business. It makes sense—there have been rumors, headlines, and plenty of chatter in consultant Facebook groups. But the answer is no, the company isn’t shutting down. Instead, the skincare giant is pulling the plug on the multi-level marketing (MLM) structure it’s used since launching in 2002 and pivoting to a direct-to-consumer model.
So, if you’ve spotted those tense “what’s next?” threads online, here’s what’s actually happening—and what it means for consultants, customers, and anyone curious about how beauty brands are adapting.
So, What’s Changing at Rodan + Fields?
On September 1, 2024, Rodan + Fields officially stopped operating as an MLM. This is a big deal. The old model relied on consultants selling products and earning a cut from anyone they recruited into the business. That’s gone now. Rodan + Fields will still use affiliates and consultants, but only for direct sales to customers—it’s not about building a “downline” anymore.
The new business structure is often called “affiliate-powered direct-to-consumer.” This means consultants and affiliates can sell to their networks or anyone online, earning higher commissions for actual product sales, with no rewards for recruiting others.
What About the Consultants?
If you were wondering how this impacts consultants, you’re not alone. There used to be a focus on building teams—earning money not just from your own sales, but also a percentage from people you brought in. That’s the MLM part.
With that system ending, you can’t make money off recruits anymore. Instead, commissions will come directly from the products you actually sell. According to Rodan + Fields, upwards of 90% of their active consultants could earn more under this new system, as long as their current sales performance is steady.
That shift might sound scary for people who relied on team-building as their main earning strategy. But for those who focused on direct sales anyway, the company claims it might feel like a raise. Plus, all consultants will have access to deeper product discounts.
Why Did Rodan + Fields Make This Move?
You’re probably asking: if it was working, why change it? The short answer—money got tight. Like a lot of direct-selling brands, Rodan + Fields saw a sharp sales drop over recent years.
There were cash flow problems, which means the company sometimes struggled to pay its bills or invest in growth. Some analysts blame the boom and bust cycle these brands experience—there’s often a surge of interest, but it’s hard to keep that going forever.
In the past year, Rodan + Fields went through a restructuring process where lenders started calling more of the shots. Massive credit downgrades happened, signaling that financial markets saw the company as risky. Layoffs followed—about 100 jobs cut, including several executives.
It’s a classic “circle the wagons” move for a company in trouble. By dropping the MLM complexity, Rodan + Fields is aiming for faster decisions, simpler operations, and more focus on the customer.
How Running the Business Will Change
The company says it’s all about simplifying the way people shop for skincare. Under the new structure, marketing won’t just rely on word-of-mouth through consultants. We’ll start to see more ads—think broader digital campaigns, partnerships, and maybe even influencer programs.
Sales will focus on what people actually want to buy, not on propping up the income of big teams. For consultants, there’s less pressure to recruit friends and more reason to just sell the products you like.
Because the company is now under the control of its lenders, big spending is on hold for a while. The focus is on streamlining, getting leaner, and building back profit.
Strategic Goals for the Next Phase
Rodan + Fields wants to shed its “MLM” reputation. The word’s gotten a bad rap, partly due to aggressive recruiting and high consultant turnover in the industry. Now, the company is pushing for a reputation built on good skincare and smooth customer experience.
There are hints that outside marketing agencies and affiliate networks (think beauty bloggers or lifestyle sites) will be tapped to widen the net. The idea is to reach new shoppers who may never have wanted to join a sales team, but will try a product if it shows up in their Instagram feed.
The vision is a modern brand where shopping feels straightforward—go to a site, get advice, shop if you want, that’s it.
What’s It Like for Customers Now?
How does this look if you’re a customer? Not much will change in the short run. You can buy all the Rodan + Fields products you want through the official website. If you already have a consultant you like, you can shop through their personal sales link, and they still get a commission.
One upside to ditching the team-building structure: there’s more focus on product education. Consultants are encouraged to become “product experts,” not just recruiters. You might get better advice when you shop.
Rodan + Fields also claims it can now offer more competitive pricing, better promotions, and efficient shipping—though only time will tell if those promises pan out.
Buyers worried about “buying into an MLM” can rest a bit easier. Sure, your consultant still earns a commission, but you’re not joining a pyramid or signing up for monthly minimums.
How Does This Fit Industry Trends?
This isn’t just about Rodan + Fields. If you watch the direct selling and beauty industries, you’ll see a real shift happening. Younger shoppers, in particular, want easy, transparent buying. Few are eager to sign up as “distributors” or host parties.
Online shopping and influencer marketing now drive most beauty sales. Direct sales through consultants still happen, but expectations are different. Consultants are more like brand ambassadors or referral partners.
Other big names in health and beauty have either overhauled their MLM models or pulled out of direct selling altogether. Regulatory crackdowns on tricky business practices mean companies have to keep things crystal clear.
Rodan + Fields is betting it can survive by moving faster and modernizing how it sells. That could help the brand stand out among younger shoppers and online beauty fans, not just friends and family of consultants.
What We Can Expect for Rodan + Fields
No sugarcoating it—things have been rough behind the scenes. But Rodan + Fields says it isn’t going anywhere, just figuring out a better way to do business.
The company’s new system brings it closer to the kind of affiliate programs most people already know from online shopping. It’s less about building a sales empire and more about direct recommendations.
In the next year, you’ll probably see the products pop up in more mainstream digital ads and on influencer channels. If Rodan + Fields manages costs and attracts new shoppers, it could stabilize and even expand again.
You can keep up with changes in direct selling and e-commerce models at sites like Sera Business, where industry news is tracked and explained in detail.
For now, Rodan + Fields is still here, just under new rules. Consultants who’ve built relationships with real customers might thrive. Those focused on recruiting will have to adapt.
The brand isn’t the first to overhaul its sales model in the face of market shifts, and it won’t be the last. But if you’re just someone looking for decent skincare, you’ll still find Rodan + Fields products, sold a bit more like everything else you buy online these days.
There are a lot of unknowns—nobody can guarantee how well the new system will work. But for people who like Rodan + Fields, there’s no need to panic. The company’s staying in business; it just looks a lot different than it did a year ago.