Are you considering joining Vector Marketing but unsure if it’s the right opportunity for you? You’ve probably heard mixed reviews and are wondering if it’s a legitimate way to earn money or just another scam.
In this comprehensive review, we will dive deep into the workings of Vector Marketing, examining its business model, the experiences of those who have worked there, and the legal controversies it has faced.
By the end, you’ll have a clear understanding of whether Vector Marketing is a good fit for you and if it’s worth your time and effort. Let’s get started by exploring the basics of this company and what it promises to offer.
Disclaimer: This Vector Marketing review has been thoroughly researched with information and testimonials that are available online to anyone in the public. Any conclusions drawn from that information are my own opinions.
Vector Marketing Review Overview
Product Name: Vector Marketing
Owner: Cutco Corporation
Product Type: MLM opportunity to sell Cutco knives
Price: Free to Start
Best For: No one really
Pros
- Free to Join
- Opportunity to develop sales and leadership skills
- Good quality products
- Positive product reviews
- Long standing company
Cons
- Vector Marketing Lawsuits
- Unpaid Training Lawsuit
- No Compensation Plan
- No Income Disclosure
- Expensive Products
Quick Summary
Vector Marketing presents itself as a legitimate direct sales company, primarily known for selling high-quality Cutco knives. While it offers an accessible entry point with no initial fees, it does require representatives to purchase demo products and cover their own business expenses. The company also provides comprehensive training, which can be beneficial for those looking to develop sales and leadership skills. However, despite these potential benefits, the overall financial commitment and reliance on commission-based earnings can make it a challenging and uncertain venture for many.
The company has faced numerous controversies and legal issues over the years, including lawsuits related to deceptive recruiting practices and unpaid training. These legal challenges, coupled with complaints from former representatives about low pay and aggressive sales tactics, cast a shadow over the company’s reputation. While some individuals have found success and praise the support and skill development they received, many others have reported negative experiences, highlighting the risks involved in joining an MLM structure.
Given these factors, it’s essential to weigh the pros and cons before deciding to join Vector Marketing. While their products are well-regarded and the potential for personal growth exists, the financial risks and ethical concerns surrounding their business practices cannot be ignored. For those seeking more stable and transparent income opportunities, exploring alternative options may be a wiser choice. Ultimately, whether Vector Marketing is right for you will depend on your personal circumstances and career goals.
Recommended? No, Vector Marketing is not a good opportunity to start an income
Table of Contents
Is Vector Marketing A Scam?
Vector Marketing is a legitimate direct sales business. Their independent professionals earn money by selling a range of products, including knives, cooking cutlery, and various other Cutco products. The company’s recruitment strategy often involves “job interviews” to bring in university students as sales agents who then sell to family and friends.
It’s important to note that this practice is not unique to Vector Marketing. Many US-based companies, like 7K Metals and Enagic Kangen Water, use similar methods. However, some young people who joined have voiced concerns, claiming that Vector Marketing is a scam. For a firsthand perspective, let’s dig deeper into this review and uncover the truth.
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What Is Vector Marketing?
Vector Marketing is a multi-level marketing (MLM) company that has been around since 1948, founded in New York. In 1985, Cutco Corporation acquired Vector Marketing, making it a wholly-owned subsidiary. If you’re not familiar with Cutco, check out my Cutco review.
After the acquisition, Vector Marketing shifted its focus to selling Cutco Cutlery. The company expanded its product line to include kitchen cutlery, kitchen tools, and sporting knives. With such a long-standing presence in the industry, Vector Marketing has earned a global reputation as the largest producer of kitchen cutlery.
As highlighted in my Cutco review, Vector Marketing primarily targets students, especially recent graduates, enticing them with employment opportunities and the chance to earn by selling their products. If you’re hired, you join as a door-to-door salesperson, with promises of good pay, flexible hours, training, and personal growth opportunities.
Controversies and Concerns
Despite its long history, Vector Marketing has faced its share of controversies. Allegations have surfaced suggesting that the company misleads students, and there have been numerous lawsuits against it—topics we’ll discuss in more detail later in this review.
One major concern is that many recruited individuals end up earning little to nothing and some even lose money. Despite these issues, Vector Marketing continues to operate, which suggests that it has some level of legitimacy. Yet, the widespread complaints often label Vector Marketing as a pyramid scheme or scam.
To find out the truth, let’s dive into the next sections of this review.
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Is Vector Marketing a Pyramid Scheme?
Before diving into whether Vector Marketing is a pyramid scheme, let’s first understand what a pyramid scheme actually is.
What is a Pyramid Scheme?
A pyramid scheme is a business model that recruits members by promising payments or services in exchange for enrolling new members into the scheme, rather than providing investments or product sales, as stated by Wikipedia. To understand how pyramid schemes work and how to identify them, check out this informative YouTube video. It provides valuable insights and guidance.
So Is Vector Marketing a Pyramid Scheme in Disguise?
Participants in Vector Marketing earn money by selling products and recruiting new members. However, the company cannot escape pyramid scheme allegations by emphasizing product sales to distributors. The absence of a traditional workforce, as the company employs only independent contractors, contributes to this perception. Some may view Vector Marketing as a pyramid scheme due to its unique operational model.
There are no limits on the number of people you can invite, and once your downline is established, forming a team becomes a priority. Commissions are earned when your recruits invite new members or make product sales.
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Turn Your Passion into Profits
Vector Marketing's Operating Model
Vector Marketing operates by recruiting individuals to work in a pyramid structure. This has led some people to question if it functions as a pyramid scheme. Simply selling products is often insufficient in MLM companies, where the primary method for earning substantial income is through recruiting.
To clarify, the only way to generate significant earnings within the company’s pyramid structure is by occupying a top position. The same principle applies to your downline if they recruit others. Commissions are earned from the sales of Vector Marketing consultants within your network. However, if you have not recruited anyone, your income will rely solely on the commissions from the products you sell.
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Vector Marketing Lawsuits
Vector Marketing has faced several lawsuits that raise concerns:
- In 1990, the Arizona Attorney General sued them for deceptive recruiting methods.
- In 1994, they were ordered to cease misleading recruitment practices in Wisconsin.
- In 2008, a class-action suit was filed against them for failing to pay minimum wages to sales agents, resulting in a $13 million settlement in 2011.
- In 2014, they faced another class-action suit for unpaid minimum wages in multiple states.
- In 2017, they paid $6.75 million to settle a class-action lawsuit for not compensating sales reps for attending training.
- Additionally, division managers filed a class-action lawsuit in the same year, arguing for employee benefits.
While Vector Marketing may not be a scam, given these concerns, I cannot recommend it.
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What Is Working at Vector Marketing Like?
While researching the legitimacy of Vector Marketing, I came across numerous YouTube reviews. Here are some videos where former participants share their genuine experiences working with the company:
Based on these Vector Marketing reviews, many users claim it to be a scam. However, legally speaking, there are no grounds for these accusations. It ultimately depends on your personal experience. Having reviewed numerous MLMs and pyramid schemes, it is evident that these companies prosper through the efforts and investments of others. Unfortunately, most participants end up failing and losing money. Consequently, the majority of Vector Marketing reviews label it as a scam.
I will delve further into this matter in my review, discussing the ideal candidate for this job and how it operates.
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Who Is Vector Marketing Best For?
To work effectively with Vector Marketing, the ideal person should possess excellent sales skills and enough financial resources to cover associated costs. This individual must have extensive experience in MLM and selling products and services to others.
It’s worth noting that if you’re solely looking for an online money-making opportunity, this may not be the right fit for you. Making money with Vector requires a long-term commitment. As an associate, your role involves presenting knives and other products through in-home presentations, for which you’ll receive a base salary. Additionally, you’re encouraged to share the items with family and friends, earning compensation from any resulting sales.
They also offer comprehensive training to familiarize you with their products and enhance your communication skills. The company’s goal is to build your confidence and equip you with skills applicable to your job. As you’ll discover in this Vector Marketing review, the company primarily targets recent graduates by promising competitive pay and more opportunities.
However, I wouldn’t say that it is the best opportunity for them. Yes, you can start selling their knives and master all the skills along the way. But is this really how a young person wants to start their career?
Personally, I wouldn’t recommend this to my kids, a family member, or a friend. See the rest of my Vector Marketing review to understand why not!
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How Does Vector Marketing Work?
At Vector Marketing, individuals have the opportunity to sell products and earn compensation or commission based on their efforts. As mentioned in my Vector Marketing review, anyone can apply; however, there is a selection process involved.
Application and Interview
Here’s how Vector Marketing works:
First, you need to undergo an application and interview process. The initiation process could potentially involve a physical interview. It’s a 50/50 chance that you will get hired by Vector Marketing. When you apply, you have to prove yourself first and make it through the application process, which starts with an interview with a local manager.
Once you successfully navigate the application process, you will be employed and allowed to promote Cutco products. However, it is important to note that earning money may not happen right away.
Getting Started With Selling Knives
Before you can start making money with Vector Marketing, you need to invest some upfront. This involves purchasing your own set of demo Cutco knives. Vector Marketing claims they will loan these demo knives to you.
Based on my research, if you choose not to pursue the opportunity or fail to generate sufficient sales, you will have to personally bear the cost, amounting to around $400 or more. Additionally, you will also be responsible for covering expenses incurred during business presentations, such as gas and equipment. All of these costs can significantly impact your finances.
Although joining Vector Marketing is free, it is important to consider the substantial financial investment associated with these expenses.
Becoming a Vector Marketing Representative
Anyway, let’s say you get hired. Your task will be to go around, knocking on doors, and setting up appointments to demonstrate the products. It’s important to note that you won’t be paid for this and will be responsible for the expenses. However, for each demonstration you perform, you’ll receive a guaranteed base pay and a commission if you manage to sell any of the products.
While Vector Marketing doesn’t specify their pay rates on their website, based on my research, they pay $15 per hour. However, in reality, your pay is primarily commission-based, and you might only make minimum wage if you’re lucky. In the following section of my Vector Marketing review, I will explain how you can make money with this MLM.
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How Can You Make Money With Vector Marketing?
In my previous Vector Marketing review, I mentioned that upon being hired as a sales rep, you work as an independent contractor. As an independent contractor, you are responsible for covering all the costs associated with promoting the products. Unfortunately, this company’s approach does not sit well with me because it requires a significant financial investment without any guarantee of success. Consequently, if you do fail, all your efforts in promoting the products will go to waste.
During my research, I discovered that many people were dissatisfied with the independent contractor set-up and accused the company of engaging in deceptive practices. In fact, there was a controversy surrounding Vector Marketing where Wisconsin authorities issued an order for the company to cease providing false information to students. Moreover, as I alluded to earlier, almost half of the recruits ended up earning nothing and even lost their own money in the process.
With that said, let’s return to our main topic. So how can you make money with Vector Marketing?
With this company, there’s a kicker – you won’t earn much and you only get a 10% commission. Selling knives can be challenging, especially for recent graduates or those without sales experience. While the possibility of earning a 35% commission exists if you sell more, it is important to note that most sales reps typically earn only 10% per product sold.
Additionally, organizing product demos can be costly. Although they initially claim to pay $15 per hour, you will only receive $15 per appointment, making it difficult to earn a reliable income. Working with Vector Marketing may offer very limited earning potential. Moreover, the management can become aggressive when sales are low, resulting in added pressure.
If you’re still unsure about the opportunity, you can read more in this article.
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Vector Marketing Reviews
To determine whether Vector Marketing is a scam or a legitimate business opportunity, I would recommend reading online reviews. This is exactly what I have done. In truth, opinions regarding this company are quite divided. It comes as no surprise to me, considering their extensive customer and business bases, which naturally attract both positive and negative feedback.
Vector Marketing Praise
Glassdoor is one of the platforms where you can find legitimate Vector Marketing reviews. Out of 5.5K reviews on this website, 92% of people recommend this business to a friend.
In terms of overall rating, the company received a 4.4-star rating on Glassdoor. Here are some of the most common positive reviews:
- Flexible Hours: Many reviewers appreciate the flexibility that Vector Marketing offers, allowing them to balance work with their studies or other commitments.
- Skill Development: Several individuals mentioned that working with Vector Marketing helped them develop valuable sales and communication skills.
- Supportive Environment: Positive feedback often highlights the supportive environment and the training provided to new recruits.
Another popular public review site is Consumer Affairs.
On this platform, Vector Marketing has gathered 111 reviews with an average rating of 3.9 stars. Here is another glowing review:
- Professional Growth: Some reviews praise the opportunity for professional growth and the chance to build a network within the sales industry.
After reading these positive reviews online, I began to consider that Vector Marketing might actually be legitimate. Even though they do have issues, it’s clear that those who take them seriously are generally satisfied.
The situation is similar across various sites. However, there are also some negative complaints where people claim Vector Marketing is a scam. Let’s take a moment to listen to their experiences as well.
Vector Marketing Complaints
Below is a complaint that I found in the Better Business Bureau (BBB) from a customer who alleges that they sent a letter to her daughter in an attempt to recruit her. The person in the complaint expressed their dissatisfaction with Vector Marketing’s sales representatives harassing his daughter, pressuring her to become a prospector. Any company that disregards privacy is conducting business improperly.
Another complaint highlights the issue of low pay. Katherine, a former sales representative, explains how selling their products barely allows for minimum wage. This is the primary reason why I dislike Vector Marketing. Despite the absence of distributor costs, I still cannot recommend this company.
Red Flags to Watch Out For
Now, let’s explore some red flags to determine if Vector Marketing is a scam.
- High Initial Costs: While the company claims to loan demo knives, the potential financial burden if you don’t succeed can be significant.
- Recruitment Pressure: The emphasis on recruiting new members rather than solely focusing on product sales can resemble pyramid scheme tactics.
- Mixed Reviews: While there are positive reviews, the negative feedback about aggressive sales tactics and low earnings is concerning.
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Pros of Joining Vector Marketing
When evaluating Vector Marketing, it’s important to consider both the positives and the negatives. Here are some of the benefits that come with being part of this company:
#1 Free to Join
One of the key advantages of Vector Marketing is that it is free to join. This can be particularly appealing for students or individuals who are looking for a way to earn extra income without needing to make a significant upfront financial investment. This low barrier to entry allows a wide range of people to explore the opportunity without immediate financial risk.
#2 Opportunity to Develop Sales and Leadership Skills
Vector Marketing provides a robust training program aimed at helping new recruits develop valuable sales and leadership skills. Through hands-on experience and structured training sessions, representatives can learn effective communication, customer service, and sales techniques. These skills are not only beneficial for the role at Vector Marketing but are also transferable to many other career paths.
#3 Good Quality Products
The primary products sold by Vector Marketing are Cutco knives, which are well-regarded for their high quality. These knives are known for their durability, sharpness, and overall craftsmanship. Selling a product that you can confidently stand behind can make the sales process more rewarding and credible.
#4 Positive Product Reviews
Cutco products have garnered positive reviews from customers, highlighting their effectiveness and quality. These positive reviews can be a significant advantage for sales representatives, as they provide third-party validation of the product’s value. Satisfied customers often lead to repeat business and referrals, which can enhance a representative’s sales performance.
#5 The Company Has Been Around for a Very Long Time
Vector Marketing, and its parent company Cutco, have been in operation for many decades. This longevity suggests a certain level of stability and success in the business model. A company that has sustained itself over such a long period is likely doing something right, which can provide a level of reassurance to new recruits considering joining the organization.
Vector Marketing: Things To Consider
When evaluating an opportunity like Vector Marketing, it’s crucial to consider various factors that can impact your decision. Here are some key points to keep in mind:
#1 Vector Marketing Lawsuits
One of the most significant red flags is the number of lawsuits that Vector Marketing has faced over the years. In 1990, the company was sued by the Arizona Attorney General for misrepresenting its compensation system. This lawsuit highlighted concerns about the transparency and honesty of the company’s recruitment practices. For more details on this and other lawsuits, you can click on this Wikipedia link.
#2 Unpaid Training Lawsuit
Vector Marketing Corp allegedly violated the Fair Labor Standards Act and state laws in California, Florida, Illinois, Michigan, and New York by mandating unpaid training. This means that new recruits were required to undergo training without receiving any compensation, which is a clear violation of labour laws. This practice can be particularly burdensome for young people or those already struggling financially. For more information on the unpaid training lawsuit, click on this link.
#3 No Compensation Plan
When you visit Vector Marketing’s website, it becomes evident that there is no clear compensation plan outlined. This lack of transparency is troubling because it makes it difficult for potential recruits to understand how they will be compensated for their work. Without this critical information, it’s challenging to make an informed decision about joining the company. As mentioned in my Vector Marketing review, it appears that this company lacks consideration for the needs of potential members.
#4 No Income Disclosure
Another significant concern is the absence of an income disclosure statement on Vector Marketing’s website. An income disclosure provides proof that representatives are actually earning money and can give potential recruits an idea of what to expect. Without this transparency, it’s impossible to verify the company’s claims about earning potential. How can they provide proof that those individuals actually earn money if they don’t disclose it?
#5 Expensive Products
Vector Marketing primarily sells Cutco knives, which are known for their high quality but also their high price. These products can cost thousands of dollars, raising questions about the feasibility of selling such expensive items. Not everyone can afford these high-priced knives, making it a challenging sell, especially for new representatives who may not have established sales skills or networks.
Verdict – Vector Marketing Review
Based on my research and analysis, I don’t recommend Vector Marketing. The company has a troubled history with lawsuits and numerous complaints, coupled with questionable practices in recruiting graduate students and its overall marketing approach.
MLM companies, in general, involve a significant amount of recruiting, which can strain personal relationships. Additionally, they often require substantial financial investments for things like creating a website, running ads, and purchasing products to meet sales quotas. This can result in spending more money without guaranteed returns, making it a risky endeavor for many.
It’s important to note that MLMs tend to benefit those at the top of the hierarchy. Regarding Vector Marketing, while their product (knives) is of high quality, it may not be affordable for everyone due to the price. I suggest exploring other money-making opportunities that don’t involve pressuring others to join a company.
This is my Vector Marketing review, and I’d love to hear your thoughts. Do you think Vector Marketing is a scam? Have you been or are you currently a member? Feel free to share your reviews and experiences below.
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Thanks for reading my Vector Marketing Review! If you have any questions, or any experiences to share then please write them in the comments below. ;).
