During a recent Rodan + Fields Leadership Summit in Nashville, one of the company’s top 10 markets, Chairman Amnon Rodan and President and CEO Lori Bush shared insights on the company’s evolution and business model in a Q&A for The Tennessean.
When Drs. Katie Rodan and Kathy Fields launched their eponymous company in 2002, the clinical skincare brand became a top seller in high-end department stores. The founders recognized that product sales were largely being driven by word of mouth—a fact that led them to exit department stores and adopt a direct sales model in 2008. Rodan calls that shift “the best decision we’ve made.”
As the economy weathered the 2008 financial crisis, a strong, validated product and attractive business opportunity enabled Rodan + Fields to grow by leaps and bounds. The company, which now supports a network of 50,000 consultants, reported revenues of nearly $200 million in 2013, up from $108 million in 2012.