Recently my news feed came across an R+F consultant (that's Rodan and Fields, an MLM cosmetics brand)
denying that R+F is a pyramid scheme. Does her denial make sense?
She started out by casting a wide net, basically stating "I hear that from time to time... (some people) believe RF is a scheme... (but) RF isn't like that"
Then she immediately went into defensive dilemma, which means "if you say it to my face, I will assume that 1) you don't know me and I don't know you, or 2) you don't know what you're talking about"
But does the author know what she's talking about?
She never explained what a pyramid scheme is, or how R+F is not like that. She simply claimed that R+F is a legitimate company. But that's interesting are the two factors she cited in her denial.
We are different: really?
According to the author, "If you’re looking at a company’s payroll by levels of income, it’s probably going to resemble a pyramid. The owner is at the top and earns the highest salary, everyone else trickles down. Right out of the gate, we are different."
Basically, the author is saying that R+F is NOT like a traditional company where the owner is NOT earning the highest salary, isn't it?
Unfortunately, it seems the author is merely half-right. Because R+F is run by Chairman Amnon Rodan (Dr. Katie Rodan's husband) and President/CEO Diane Dietz. Drs. Rodan and Fields own most of R+F. They pocket most of the profit, just not a direct salary.
R+F press release says they achived 626.9 million revenue in 2015, and maybe a billion in 2016. You can be sure all the top execs took home MILLIONS in salaries or other compensations.
It's definitely NOT as different as the author implied.