Hello! Welcome to my Cutco Review! (Updated 2022)
I am sure you have already encountered Cutco before. Otherwise, you wouldn't be reading this, now would you? The Cutco Corporation offers a wide selection of cutlery and kitchen accessories and tools.
Certainly you've seen quite a few of its advertisements and posters, right? They seem to claim to have very sharp tools.
However, you probably want some answers to one of the most asked questions about it: "Is Cutco a pyramid scheme?". Or, more clearly: "Is Cutco a scam?".
Well, today might be your lucky day my friend because I wrote this unbiased review for you. So, sit back and seek out answers.
Is CUTCO A Pyramid Scheme: Quick Summary
Products: Cutlery and Kitchen Tools
CEO: James M. Stitt
Sales arm: Vector Marketing
Sales Strategy: Direct Marketing
What is Cutco?
Cutco Corporation, formerly known as Alcas Corporation (from its two founders, Alcoa and Case Cutlery), is a company and manufacturer of cutlery and kitchen accessories and tools, mostly knives. Founded in the year 1949 and has been around for a long time.
It practices a direct sales strategy and the company that takes care of its sales is Vector Marketing.
To be honest, Cutco is not the one that should be in the hot seat but Vector Marketing should be. But we will get to that later. Moving on.
Is CUTCO A Pyramid Scheme: Best Selling Products
This knife has been their customers’ favorite for 40 years, according to them.
This is the company’s version of a utility knife.
The product features a double-D edge which they claim is a lot better than straight-edged knives as it can cut through smoothly.
It also possesses an ergonomic handle which is very comfortable to any user. Learn more about it here.
Vegetable peeler ($42)
When it comes to preparing dishes, most of the time, a peeler will come in handy.
Cutco’s vegetable peeler is not only limited to vegetables, but it can also be used for peeling fruits, shaving cheese and chocolate, thanks to its super sharp dual-sided blade.
It also has a unique feature which is the “eye remover”. Don’t worry. It is not for taking out human eyes.
We are talking about Eyes from potatoes. Poor potatoes.
7 - ⅝” Petite Chef ($136)
This one is the smaller version of Cutco’s 9-¼” French Chef. It has a well-made and sharp straight edge that can cut through fruits and vegetables smoothly. Just like the rest of Cutco’s products, this knife has a full tang handle which is perfect to assure that extra strength and balance will exist once used.
Cutco has made a lot of cutlery tools and kitchen accessories, as well as gardening tools. Positive reviews from clients are proof of it. Shown below are some of the reviews of the customers.
Amidst all of these great positive reviews about the products made by Cutco, some people beg to differ. They say that Cutco has inferior tempering and that they do not use the best steel as they claim. If you wish to know more about this, click here. Also, below is a video of how Cutco make their chef knives.
What is Vector Marketing?
Now, enough with Cutco.
Let’s move on to the exciting part where you can find your answers.
Vector Marketing is a multi-level marketing company that handles the sales of Cutco Corporation.
Its approach is direct sales, mostly advertising through newspapers, posters, word-of-mouth, and various media in the internet.
How does Vector Marketing recruit?
Vector Marketing is known for recruiting college students to sell their products. This led to a lot of lawsuits against Vector Marketing before which we will tackle later on.
Based on my research about Cutco and Vector Marketing, there are 2 cases in which Vector Marketing recruit students into selling Cutco products, which are shown below:
Vector Marketing Interview
Vector telemarketers call you over the phone and recruit you to be one of their sales representatives.
They try to feed you confidence with how they talk. And when they do, then 90% of the time, you will likely fall into their trap.
Additionally, they will try to call you three times a day, hence their line, “3X’s a day is the Champion’s Way”, referring to the 3 times they will call you in a day.
Also, what makes this a bit shady is the the script that they use when they call you the second time. Usually around the lines of…
“Hey thanks for picking up! I know it’s a little weird that I just called you twice… we’ve just been so busy here and I wanted to make SURE that I got a hold of you right away because you (filled out an application on line for example…) or else I would have never gotten a hold of you.”
Once they establish a conversation with you, they will start to build a bond with you. They would usually say the lines...
"Oh, I just got off the phone with someone who…
- has a part-time job.
- lives in your area.
-goes to your school, etc."
“you were referred by [friend].”
Then, you will wonder and will probably tell them that you don’t even know the “friend” they are talking about.
But just like what I said, these recruiters use a well-crafted script.
When you continue to ask more questions, they will just say that they are receptionist and that they will forward you to their manager in order for your concerns and answers to be answered.
I don’t know about you, but that is so suspicious and a bit creepy already.
Vector Marketing posts ads and posters in schools and colleges, usually in a bulletin board to catch the attention of students and recruit them. Because of this, Cutco are usually thought to be a partner of those institutions.
How can you earn money in Cutco?
At some point in your life, when you encountered those ads and calls, you probably considered giving it a chance. But you wondered how you earn money with Cutco.
Basically, Cutco just tasks you to sell their products in a direct approach. At first, they will encourage you to visit relatives and friends and then demonstrate the products, which can lead to a purchase.
If you want to stop working for them, then you need to write a letter of resignation with all your personal information. After that, you will need to deliver it to your supervisor and another copy to the HR department.
Is CUTCO A Pyramid Scheme: Expenses
The good thing is Cutco does not require you to pay a membership fee. However, you have to complete their Vector Marketing training before you can be a sales representative.
The training consists of teaching you how to be a better salesperson and how to pitch their products. After that, they will let you borrow a product sample for you to use in your demonstration. Plus, you can also borrow other products given that you return them if you don't need them anymore.
Furthermore, if you want to keep your status as an active member, then you need to sell $100 worth of products each month. Failure to do so would mean you have to return demo products you borrowed. On the other hand, you can purchase those demo products for $75.
However, you would still have to keep in mind other expenses like travel and equipment expenses. These can add up and become expensive.
Is CUTCO A Pyramid Scheme: Compensation Structure
During my research, I was able to stumble upon a review that discussed the compensation structure of Cutco/Vector Marketing.
You earn $12.50 to $17.50 per appointment. This is when you meet or go to a house to promote and demonstrate the products. Appointments usually occur for an hour.
Furthermore, you earn commission from your sales
- 10% (commission) = $0 - $1,000 (sales)
- 15% = $1,001 - $3,000
- 20% = $3,001 - $6,000
- 25% = $6,001 - $10,000
- 30% = $10,001 - $20,000
- 5% (bonus) + 30% = $20,001 - $30,000
- 10% (bonus) + 30% = $30,001 - $50,000
- 15% (bonus) + 30% = $50,001 - $150,000
- 20% (bonus) + 30%= $150,001+
To get paid, a presentation report must be passed every week. There is also a requirement to sign an agreement and a $200 security deposit for the demonstration of knives.
Cutco and Vector Marketing Red Flags
Faced a lot of lawsuits
In 1996, the Washington Post conducted a survey among 940 Vector recruits. Most of them reported that they did not even earn money and stated that they lost more than they earned.
Because of this, the state of Wisconsin ordered Vector to stop passing false information to students.
Additionally, Vector Marketing was the reason why a group students formed the group called SAVE (Students Against Vector Exploitation).
Wow. Vector Marketing was really in a tough spot before.
Suspicious method of recruiting. Like what we discussed above. They call you over the phone and use a script and often say things that a friend of yours referred you, even though you do not know that name they provided. Then, they try to recruit you in a deceptive manner.
Cutco products are too expensive for you to sell. Because of that, it will be so difficult for these students to make sales.
Most people would like to be practical and would rather choose to stick with the cheaper knives.
Let me mention again that the recruits will have to pay $200 for a security deposit. And also, other expenses for you to make sales and promote their products are not covered by the company.
Too good to be true
When something is too good to be true, there a very big chance that it is too good to be true. Vector Marketing says a lot of good stuff in their posters and ads, luring students.
A lot of customers commented about how disrespectful the staff is. Below are some of the reviews given by clients regarding the staff of Cutco and other negative reviews.
Is CUTCO A Pyramid Scheme: Customer Reviews
So, how does Cutco stack up when it comes to customer reviews? Well, as of December 2020, the BBB gives them an "A+" rating. That said, they have a rating of just 2.52 out of 5 based on 33 reviews (as of 12/20/20):
The positive things about Cutco and Vector Marketing
Some people however, shared their positive reviews about Cutco and Vector Marketing saying that the management is amazing. Also, they offer training for employees, especially in the demonstration part. Below are some of the reviews of employees and customers of Cutco.
Opportunity to make money
I won’t deny it. You can earn money through Cutco.
But in the long run, things will be more difficult since you will have to find more customers to sell to after going through your family and friends. If you are not the type of person who likes to sell directly, this is not for you.
#3 Great BBB ratings
Even though Cutco and Vector Marketing might not have the best customer review ratings on BBB, they still have an "A+" BBB rating.
Is Cutco a Pyramid Scheme?
Cutco is not a pyramid scheme. They provide you with real products, and you don’t even have to recruit or establish a downline and earn commission from them.
There is no doubt that their products are great. Well made, super useful and very sharp.
Same with most of the reviews, people have no problems with the products. The only thing that is shady is how shady their sales strategy is. Vector marketing has been around for a long time.
They even had lawsuits before because of how they treated former employees.
They sometimes randomly call you and talk to you in a way that they will give you confidence.
If you are looking to buy knives, then sure why not? Their products are good. However, if we are going to be practical, who needs $45 knives?
When you can find ones that are a lot cheaper. Furthermore, do you really need shears that can cut through pennies? I mean, why would you even cut pennies? Lol.
Business-wise, if you love sales jobs, then Cutco might be the one for you. It requires direct selling.
They encourage you to go house-to-house, sell to your family and friends.
At first, the salary might be ok, but long-term speaking, it will be a lot more difficult. If you do not like direct marketing and selling, then I do not recommend this for you. You deserve to make money from your passion.
Other Legit Ways to Earn Online
There are a lot of ways to earn money ONLINE! Yes, these are legit online opportunities.
You do not need to go out of your house and do some face-to-face marketing. One of the best ways to earn money online is through Affiliate Marketing.
You just basically promote a product and earn money whenever you attract customers.
There are a couple of methods of practicing affiliate marketing. One is content marketing.
You create your own website, join an affiliate program, promote a product, then start earning money! You do not need any prior experience.
Need help? Then Wealthy Affiliates is the one for you.
It has free training, a very kind and help community of fellow affiliate marketers who can really help you a lot.
If you need more information regarding this, then click here.
This is How I Make Money from Home!
If you want to make a full-time income online then check out this opportunity it's an affiliate marketing training for newbies looking to start a full time home business.
The reasons why it is a lot better than MLMs are:
- It is free to sign up
- You earn a passive income
- It has free tools
- You won't be recruiting or selling
In fact, thanks to Wealthy Affiliate I'm able to earn affiliate commissions like this.