Fresh from a $75 million funding round, skin care line Rodan + Fields has unveiled a new business model, resulting in the elimination of about 100 roles.
Under the new affiliate program, existing R+F consultants who continue to sell R+F products will receive increased commissions on customer sales and product discounts, it said. Commissions that consultants received through product sales by those they have recruited will no longer be a component of R+F’s model.
When asked if the failure of Beautycounter, whose products were also distributed through independent sellers in a multilevel marketing model, had anything to do with the decision, the answer was a firm no. As part of the evolution of its business model, R+F has also reorganized its corporate structure, resulting in the elimination of about 100 roles. This is in addition to 76 layoffs that were made at R+F’s Bay Area office, according to aR+F said it has reached an agreement with its current minority investors that will provide up to $75 million in new funding to strengthen its capital structure and financial position. The transaction is expected to close later this year.