Rodan + Fields, Seint, BODi, and Tastefully Simple transition to an affiliate-based structure
In a year marked by companies adapting to shifting consumer behaviors and evolving market dynamics, several prominent direct selling organizations have redefined their business models to better align with contemporary trends. Over the past year, Rodan + Fields, Seint, BODi, and Tastefully Simple have transitioned from traditional network marketing structures to affiliate-based systems, reflecting a significant evolution within the channel. While these changes are not indicative of the entire sector, they underscore a strategic response to evolving trends.
Rodan + Fields: Streamlining Operations
In July 2024, skincare and haircare leader Rodan + Fields announced a pivotal move from its established direct selling model to an affiliate-based structure, effective Sept. 1, 2024. Founded in 2000 by dermatologists Dr. Katie Rodan and Dr. Kathy Fields, the company built its reputation through a vast network of independent consultants. However, evolving consumer expectations and market challenges necessitated a strategic transformation.
Under the new affiliate program, existing consultants are compensated solely for direct sales, eliminating recruitment-based earnings. This approach offers increased commissions on customer sales and product discounts, with over 90% of current consultants projected to achieve higher earning potential based on their existing sales performance.
CEO Dimitri Haloulos expressed confidence in the transition, stating, “We are confident these changes will enable us to meaningfully expand the lives we can impact and—importantly—allow us to continue to provide our passionate consultants with a modern and meaningful earning opportunity.”
To enhance customer engagement, Rodan + Fields is investing in traditional marketing channels and social media, aiming to simplify product discovery and purchasing processes.
Seint: Simplifying Compensation
Beauty brand Seint transitioned to an affiliate commission structure on Oct. 1, 2024. Originally launched in 2013 as Maskcara Beauty, the company rebranded as Seint in 2020 and has continually adapted to meet market demands.
The new model compensates Seint’s independent contractors, known as Artists, exclusively based on personal sales, with commissions ranging from 25% to 45% and additional bonuses for achieving sales milestones.
This shift eliminates recruitment-based compensation, aiming to simplify earnings and provide greater transparency. In its official announcement, the company stated, “This transition signifies a pivotal shift that aligns perfectly with our vision and values.”
By focusing on direct customer engagement and removing complexities associated with traditional network marketing practices, Seint aspires to create a sustainable business model that empowers its Artists and resonates with modern consumers.
BODi: Innovating Fitness Distribution Channels
Formerly known as Beachbody, fitness and nutrition company BODi began its transition to a single-level affiliate program on Nov. 1, 2024, with plans to fully phase out its network marketing structure by Jan. 1, 2025. This decision is part of a comprehensive strategy to modernize operations and diversify revenue streams.
Executive Chairman Mark Goldston highlighted the rationale behind the shift, stating, “We recognize that in light of today’s current market dynamics, as well as consumer preferences, the multi-level marketing distribution model is outdated and unsustainable.”
The new affiliate program focuses on rewarding participants for direct sales efforts, streamlining earnings and removing the complexities of team management.
Concurrently, BODi is implementing a broader restructuring initiative, including a 33% workforce reduction and centralization of operations around a unified e-commerce platform. These measures are projected to yield annualized savings of $54 million and significantly lower the company’s revenue break-even point.
BODi CEO and Co-founder Carl Daikeler emphasized the importance of this evolution, stating, “We believe that transitioning to the affiliate model will energize our network of partners and new participants.”
Tastefully Simple: A Hybrid Approach for Modern Sellers
Tastefully Simple, a longstanding leader in meal and entertaining solutions, is set to launch a reimagined business model on Jan. 1, 2025. The company, which has thrived for 30 years, is moving away from its traditional network marketing structure to a hybrid approach designed to meet the needs of today’s sellers and clients.
Under this new structure, Tastefully Simple sellers, now known as TS Ambassadors, will no longer sponsor or build teams. Instead, they will focus on sharing products via easy-to-use shopping links, social media and in-person gatherings, which maintain the interactive experiences the company is known for. Hosts will continue to earn rewards, preserving a key element of the Tastefully Simple experience.
“We chose the term Ambassador because it perfectly reflects what our sellers do,” Jill Blashack Strahan, Tastefully Simple’s founder and CEO, said. “They love our products so much that they instinctively want to share them with family and friends.”
While new Ambassadors will not sponsor others, the company is introducing a hybrid model that retains a small group of heritage leaders called Diamond and Gold Ambassadors. These leaders will have the opportunity to build first-line teams, offering flexibility for longtime sellers to grow their communities while catering to younger sellers seeking a less demanding, flexible side gig.
Tastefully Simple is also investing in intuitive technology to streamline business operations and enhance connectivity for Ambassadors. “After 30 years, we are stepping into 2025 with a reimagined Tastefully Simple business model. Our goal is to be a testament of creativity, faith, and gritty determination,” Strahan added.
Implications for the Direct Selling Channel
The transitions undertaken by these companies reflect a strategic response to changing consumer preferences and market conditions. By moving away from traditional network marketing models and embracing affiliate-based structures, these network marketing firms aim to enhance transparency, simplify compensation, and strengthen direct customer relationships.
While these shifts are significant, they represent individual company strategies rather than a wholesale transformation of the direct selling industry. However, they may signal a broader trend toward modernization and adaptation within the sector, as companies seek to remain competitive and relevant in a rapidly evolving marketplace.
David Bland is the publisher of Social Selling News.
