By Hilary Milnes.
At skin-care brand Rodan & Fields, a team of direct sellers showing off their bare faces on social media to shill product has helped fuel a billion-dollar business.
The company, launched in 2002 by dermatologists Katie Rodan and Kathy Fields, follows a multi-level marketing model that turns its customers into brand consultants in order to promote products through social media, primarily through invite-only Facebook groups. Rodan & Fields handles all of the transactions, while consultants — who pay a starting fee, as well as an optional monthly fee if they want a personal website — get a cut of sales. It also sells product in an online store, but Diane Dietz, CEO and president of the brand, said those sales only make up 3 percent of overall revenue.
Social commerce and consumer success stories are what primarily drive the brand’s growth, which has recently seen a big uptick. The company says it generated $1.2 billion in sales last year, an increase of 80 percent year-over-year. In April, retail analytics and research firm Euromonitor named it theNo. 1 beauty brand in the U.S.
Read more at Glossy.