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How Brands Are Directly Supporting Service Workers

Brands like L’Oréal USA, R+Co, and DpHue are freezing salon payments and jumpstarting affiliate programs until their businesses are permitted to reopen.

Following salon and spa closures and the mass of unpaid beauty service providers, beauty brands are compensating by freezing outstanding credit payments and donating to funds aimed at unemployed or unpaid service providers.

Leading the charge is L’Oréal USA. Salon and stylist customers of L’Oréal’s professional division with an outstanding credit on their account are having their payments frozen until their businesses are able to reopen. L’Oréal USA has also extended points set to expire in April from its loyalty program, LEVEL Loyalty Rewards, to the end of May.

This comes in tandem with firm’s $200,000 donation to the Professional Beauty Association’s COVID-19 Relief Fund, giving short-term relief for necessities to salon workers and service providers. Other donors to the fund include Kao, Living Proof, Moroccanoil, Priori Skincare (who is donating 20 percent of online sales to the fund), and Davines.

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Hair care brand R+Co is also helping its salon clients with an affiliate program enabling salons and stylists selling R+Co products to their clients through a link to earn a 40 percent commission on the sales. It is also accelerating their payments to reach professional clients every Friday. The goal for March, for example, was to pay out $500,000 in salon commissions.

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DpHue has also found success with its affiliate program. Martin Okner, president and chief operating officer, said that there were 3,000 sign-ups for the program in March, wherein professional clients make a 50 percent commission for purchases. The salon professional administers the transaction, while DpHue ships the product to the consumer directly to avoid burdening the mediator with shipping charges. This is an increase from DpHue’s previous 35 percent commission rate, and the commission is deposited directly to the affiliate’s PayPal account every two weeks.

Okner underscored the importance of helping hair salons and small businesses as unemployment numbers reach record highs. “There are probably about 3 million stylists that aren’t able to work,” he said. “In terms of market penetration and getting these stylists to make money, we’ve got a long way to go.”