Rodan + Fields Compensation Plan & Consultant Facts
I've been a Rodan + Fields consultant since September 2017, and the biggest lesson that I've learned is that it is difficult to fight the stigma about home-based businesses and network marketing.
There are so many blogs out there dedicated to bringing down companies like RF. I don't understand this, truly. If you don't trust these kinds of businesses? Don't join them. Don't buy or sell their products. But why make it your mission to dissuade others? Grown ups can make their own decisions. Go buy yourself an ice cream cone and be happier about your life.
What's been the most disheartening is that there is so much misleading and false information about how these businesses work. So my goal here is to give you accurate information about what it's like to be an RF consultant and to explain the compensation plan more easily.
tl;dr You can earn money from all of the areas below without being forced to spend your own money. It just takes hard work and creativity to make it happen! No one said this business was easy, but it is a simple concept. Like anything worthwhile, you get out of it what you put into it.
You can see from the guide that there are four (4) areas that feed an RF consultant's paycheck. They are Retail Profit, Consultant Commissions, Personal Team Commissions, and Generation Commissions.
1. Retail Profit
Every sale includes the retail margin profit that goes directly to the consultant. If someone purchases a product through a consultant (C) at retail price, the C receives approximately 33% commission. However, this is expensive for the customer. Most sales are made to Preferred Customers (PCs). PCs are customers who enroll in an extremely flexible autoship program and receive a 10% discount and free shipping on any order over 80. While autoships are recommended for every 60 days, PCs can edit or delay their orders until one day before the shipment with absolutely no penalty. Sales made to PCs generate about 16% retail profit for the consultant. Any consultant can earn this profit off any sale they make with no quota or purchase necessary.
2. Consultant Commissions
Active Consultants are also eligible for consultant commissions. This is a 10% commission on every sale. In order to qualify for this commission, the consultant must have 100 in Sales Volume (SV) each month. There are several ways consultants can get 100 SV.
-If the consultant chooses to have a personal MyRandF website for ease of sales, it's a $24.95 monthly fee, and the consultant receives 20 SV each month automatically. However, the website is not mandatory for any consultant.
-Another way to get 100 SV is through the consultant's personal purchases. Most consultants (myself included) joined this business because we were already customers and love the high-quality products. When we purchase products for ourselves at the consultant discount, that goes into our SV "bucket."
-A third way is through a consultant's business purchases. If a consultant chooses to purchase products to use as incentives, giveaways, or samples, they can do so at the consultant discount and that goes into their SV bucket. This is also a business expense and can be used as a tax write-off.
-Finally, consultants can offer up one order each month at their cost and use that order as a way to fill their SV.
You can see that although some consultants choose to spend the $100ish a month (which is an extremely inexpensive overhead for a CEO), it is never necessary to do so and still become an Active Consultant.
3. Personal Team Commissions
Personal Team Commissions are a 5% commission on all sales from a consultant's direct team and own personal sales. To qualify for this commission, the consultant must have 100 SV as stated above and sell at least 600 Personally Sponsored Qualifying Volume (PSQV). This brings the consultant to a promotion titled Executive Consultant (EC). PSQV are sales the consultant sells directly to PCs. Because of the price points of the regimens and products, it usually means selling between 4-8 orders each month to hit EC. If the consultant has signed direct consultants, those consultants' SVs are included in the sponsor consultant's PSQV. (I know these acronyms are a beast. Stick with it.)
4. Generation Commissions
This is the only commission level that can only occur once the consultant has signed other consultants. An Executive Consultant (EC) who signs another consultant who reaches EC is considered Level 1. L1 consultants earn 5% commissions on all sales in the first generation of their downlines. As consultants sponsor more consultants who becomes ECs, their level increases. However, you can only earn commissions as many generations down as you are levels out. This encourages ECs to continue growing their own businesses instead of relying on their downlines to earn them money. Once a consultant is a Level 5 (LV), he or she can earn 5% commissions from 5 generations down.
Consultants who continue growing bigger teams and reach what's considered RFx status can earn 2.5% on their sixth generation. RFx qualifications are having 15 ECs, 5 of which have achieved LV.
While that's the basic breakdown of the compensation plan, those aren't the only benefits to joining the RF team. The company acts much like a trust; it pours money that it makes back into itself in order to continue innovating products and incentivizing consultants. Consultants can earn trips, cars, cash bonuses, and free product at different levels along the way. In fact, there's a great program for brand-new consultants called SPARK where consultants can earn up to $1000 back in the first three months (alongside their retail profit and commissions).
So how much does it cost to get started?
There are four (4) options consultants can choose from when joining the RF team.
1. RF Business Portfolio ($45)
This allows you to become a consultant and begin earning retail profit immediately.
2. Personal Results Kit ($395)
This includes $450+ worth of products, fills your SV bucket, and allows you to begin earning retail profit and active consultant commissions immediately.
3. Big Business Launch Kit ($695)
This includes $1300 worth of products, fills your SV bucket, and allows you to begin earning retail profit and active consultant commissions immediately.
4. RFx Express Kit ($995)
This includes over $2000 worth of products, fills your SV bucket, and allows you to begin earning retail profit and active consultant commissions immediately.
I'm sure you're wondering, if I can buy in at $45, why would I spend up to $995? That's a great question, and it's simple to answer.
First, the products in those kits are offered at those deep discounts only once--to brand-new consultants. I was a customer prior to becoming a consultant, and many are. Why wouldn't we want to purchase our favorite products at up to 50% off? Normal consultant discount is only 25% after that first purchase.
Second, if a consultant signs with a $695 or $995 kit, they qualify for the SPARK program which can earn them up to $1000 cash bonus plus free samples in their first three months.
Third, it's always a good idea for business owners to know about what they sell. If a consultant signs who has never used the product, how accurately can they promote the product from personal experience? And if a consultant who was a prior customer, like me, has never used other regimens or products, wouldn't we want to get our hands on them?
Fourth, consultants can use the products in the business kits as samples, incentives, and giveaways, or they can sell them directly to people and recoup money immediately.
Fifth, it's risk-free. No, really. Like every product RF sells, even the business kits are backed by a 60-day, empty-bottle, money-back guarantee. If a consultant purchases a kit, has no success selling anything, and decides this isn't a great fit, he or she can return the whole kit, no matter how much product was used, and get a full refund.
However, as stated previously, a consultant can still access every profit and commission level when buying in at the $45 level if they choose.
Interested in learning more? Drop a comment below. I'd love to connect.
https://megankhall.myrandf.biz/
There are so many blogs out there dedicated to bringing down companies like RF. I don't understand this, truly. If you don't trust these kinds of businesses? Don't join them. Don't buy or sell their products. But why make it your mission to dissuade others? Grown ups can make their own decisions. Go buy yourself an ice cream cone and be happier about your life.
What's been the most disheartening is that there is so much misleading and false information about how these businesses work. So my goal here is to give you accurate information about what it's like to be an RF consultant and to explain the compensation plan more easily.
tl;dr You can earn money from all of the areas below without being forced to spend your own money. It just takes hard work and creativity to make it happen! No one said this business was easy, but it is a simple concept. Like anything worthwhile, you get out of it what you put into it.
1. Retail Profit
Every sale includes the retail margin profit that goes directly to the consultant. If someone purchases a product through a consultant (C) at retail price, the C receives approximately 33% commission. However, this is expensive for the customer. Most sales are made to Preferred Customers (PCs). PCs are customers who enroll in an extremely flexible autoship program and receive a 10% discount and free shipping on any order over 80. While autoships are recommended for every 60 days, PCs can edit or delay their orders until one day before the shipment with absolutely no penalty. Sales made to PCs generate about 16% retail profit for the consultant. Any consultant can earn this profit off any sale they make with no quota or purchase necessary.
2. Consultant Commissions
Active Consultants are also eligible for consultant commissions. This is a 10% commission on every sale. In order to qualify for this commission, the consultant must have 100 in Sales Volume (SV) each month. There are several ways consultants can get 100 SV.
-If the consultant chooses to have a personal MyRandF website for ease of sales, it's a $24.95 monthly fee, and the consultant receives 20 SV each month automatically. However, the website is not mandatory for any consultant.
-Another way to get 100 SV is through the consultant's personal purchases. Most consultants (myself included) joined this business because we were already customers and love the high-quality products. When we purchase products for ourselves at the consultant discount, that goes into our SV "bucket."
-A third way is through a consultant's business purchases. If a consultant chooses to purchase products to use as incentives, giveaways, or samples, they can do so at the consultant discount and that goes into their SV bucket. This is also a business expense and can be used as a tax write-off.
-Finally, consultants can offer up one order each month at their cost and use that order as a way to fill their SV.
You can see that although some consultants choose to spend the $100ish a month (which is an extremely inexpensive overhead for a CEO), it is never necessary to do so and still become an Active Consultant.
3. Personal Team Commissions
Personal Team Commissions are a 5% commission on all sales from a consultant's direct team and own personal sales. To qualify for this commission, the consultant must have 100 SV as stated above and sell at least 600 Personally Sponsored Qualifying Volume (PSQV). This brings the consultant to a promotion titled Executive Consultant (EC). PSQV are sales the consultant sells directly to PCs. Because of the price points of the regimens and products, it usually means selling between 4-8 orders each month to hit EC. If the consultant has signed direct consultants, those consultants' SVs are included in the sponsor consultant's PSQV. (I know these acronyms are a beast. Stick with it.)
4. Generation Commissions
This is the only commission level that can only occur once the consultant has signed other consultants. An Executive Consultant (EC) who signs another consultant who reaches EC is considered Level 1. L1 consultants earn 5% commissions on all sales in the first generation of their downlines. As consultants sponsor more consultants who becomes ECs, their level increases. However, you can only earn commissions as many generations down as you are levels out. This encourages ECs to continue growing their own businesses instead of relying on their downlines to earn them money. Once a consultant is a Level 5 (LV), he or she can earn 5% commissions from 5 generations down.
Consultants who continue growing bigger teams and reach what's considered RFx status can earn 2.5% on their sixth generation. RFx qualifications are having 15 ECs, 5 of which have achieved LV.
While that's the basic breakdown of the compensation plan, those aren't the only benefits to joining the RF team. The company acts much like a trust; it pours money that it makes back into itself in order to continue innovating products and incentivizing consultants. Consultants can earn trips, cars, cash bonuses, and free product at different levels along the way. In fact, there's a great program for brand-new consultants called SPARK where consultants can earn up to $1000 back in the first three months (alongside their retail profit and commissions).
So how much does it cost to get started?
There are four (4) options consultants can choose from when joining the RF team.
1. RF Business Portfolio ($45)
This allows you to become a consultant and begin earning retail profit immediately.
2. Personal Results Kit ($395)
This includes $450+ worth of products, fills your SV bucket, and allows you to begin earning retail profit and active consultant commissions immediately.
3. Big Business Launch Kit ($695)
This includes $1300 worth of products, fills your SV bucket, and allows you to begin earning retail profit and active consultant commissions immediately.
4. RFx Express Kit ($995)
This includes over $2000 worth of products, fills your SV bucket, and allows you to begin earning retail profit and active consultant commissions immediately.
 |
| RFx Express Kit |
I'm sure you're wondering, if I can buy in at $45, why would I spend up to $995? That's a great question, and it's simple to answer.
First, the products in those kits are offered at those deep discounts only once--to brand-new consultants. I was a customer prior to becoming a consultant, and many are. Why wouldn't we want to purchase our favorite products at up to 50% off? Normal consultant discount is only 25% after that first purchase.
Second, if a consultant signs with a $695 or $995 kit, they qualify for the SPARK program which can earn them up to $1000 cash bonus plus free samples in their first three months.
Third, it's always a good idea for business owners to know about what they sell. If a consultant signs who has never used the product, how accurately can they promote the product from personal experience? And if a consultant who was a prior customer, like me, has never used other regimens or products, wouldn't we want to get our hands on them?
Fourth, consultants can use the products in the business kits as samples, incentives, and giveaways, or they can sell them directly to people and recoup money immediately.
Fifth, it's risk-free. No, really. Like every product RF sells, even the business kits are backed by a 60-day, empty-bottle, money-back guarantee. If a consultant purchases a kit, has no success selling anything, and decides this isn't a great fit, he or she can return the whole kit, no matter how much product was used, and get a full refund.
However, as stated previously, a consultant can still access every profit and commission level when buying in at the $45 level if they choose.
Interested in learning more? Drop a comment below. I'd love to connect.
https://megankhall.myrandf.biz/
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