When it comes to high-quality kitchen knives, Cutco is a name that often pops up. But along with its reputation for premium products comes a flurry of questions and concerns: Is Cutco a scam? Is it a pyramid scheme? Can you really make money selling Cutco knives?
In this comprehensive review, we’ll dive deep into Cutco’s business model, the quality of their products, and what it takes to be a part of their sales team. Whether you’re considering buying their knives or joining their MLM program, it’s crucial to get all the facts.
We’ll cover everything from the history of Cutco and its partnership with Vector Marketing to the details of their compensation plan and what current and former representatives have to say about their experiences. By the end of this review, you’ll have a clear understanding of whether Cutco is a worthwhile investment for you.
So, let’s get started and uncover the truth about Cutco knives and their business model.
Disclaimer: This Cutco MLM 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.
Cutco MLM Review Overview
Product Name: Cutco
Owner: Alcoa and Case Cutlery
Product Type: Knifeware & cutlery MLM Company
Price: Free to start
Best For: Honestly, I wouldn’t recommend it
Pros
- Get Paid $15 per Lead
- High-Quality Products
- Lots of Positive Product Reviews
- Provides Training & Sales Material
Cons
- Handful of Lawsuits
- Expensive Products
- No Compensation Plan on Website
- No Income Disclosure
- Low Commissions
Quick Summary
Cutco Knives offers high-quality kitchen products that come with a lifetime guarantee, reflecting the company’s confidence in their craftsmanship. Many users and cooks worldwide praise the durability and effectiveness of Cutco knives, making them a preferred choice in the kitchen. The positive feedback about the products themselves is consistent and reassuring for potential buyers.
However, the business model, especially under Vector Marketing’s MLM structure, raises some concerns. While the opportunity to earn commissions and a base pay per presentation exists, the initial work required and the expenses associated with running the business can be substantial. The cost of the products can also be a barrier, limiting the potential customer base and making it challenging for representatives to achieve significant earnings.
In conclusion, while Cutco is not a scam or a pyramid scheme, it’s not an easy money-making venture either. Success with Cutco requires strong sales skills, dedication, and the ability to handle high-priced products. For those who are not comfortable with direct sales or lack marketing abilities, exploring other income opportunities might be a better choice. Overall, Cutco offers legitimate high-quality products, but the business opportunity may not be suitable for everyone.
Recommended? Cutco may sound great at first, but it is a notorious MLM that is best for the owners
Table of Contents
Is Cutco a Scam?
Cutco MLM is not a scam. The company offers a range of good products for selling and making money. However, there are several red flags with this MLM, which is why I don’t recommend it.
Cutco has a long-standing reputation for producing high-quality products. However, since Vector Marketing joined, there have been numerous lawsuits, as mentioned earlier.
One of the main issues is the misrepresentation of the company, particularly the false claim that you can earn $15 per hour. In reality, you are only paid per appointment, and the job appears to involve “cold calling.”
While there is a product to sell, there is still a possibility that you may not earn. Not everyone can afford the high prices, as who would buy a knife that costs $100 or more?
Selling knives can be great because they are useful and essential in every household. However, I don’t believe this opportunity will lead to good earnings.
To gain more insights into the entire scheme, I highly recommend you keep on reading this comprehensive Cutco MLM review.
Related Post: Vector Marketing MLM Review
What Is Cutco?
Cutco Knives is a company that has been around since 1949. It was founded by Alcoa and Case Cutlery and is based in Olean, New York.
Cutco operates as a direct sales company and offers kitchen knives through its multi-level marketing (MLM) entity called Vector Marketing.
In addition to kitchen knives, Cutco also manufactures and sells sporting, hunting, and pocket knives.
All of Cutco’s products are proudly made in the USA and are highly regarded for their exceptional quality, backed by a lifetime guarantee.
Chances are, you came across Cutco because someone introduced you to the company. It could have been through an online workshop, webinar, or an in-person information session.
You might have been told that the key to building a successful business is to sell Cutco products to your family and friends, while also enlisting them in a subscription for monthly recurring profits.
Unfortunately, like many people who fall for these types of schemes, you’ll soon realize that the well dries up faster than expected.
Related Post: LegalShield MLM Review
The Truth About Cutco Knives: Are They Worth Your Investment?
So, is Cutco a scam or a pyramid scheme? Will it make you any money? Should you join? Is Cutco legit? Let’s dive into my Cutco MLM review and find out!
Cutco MLM is not a scam. The company offers a range of good products for selling and making money. However, there are several red flags with this MLM, which is why I don’t recommend it.
Quality vs. Earnings:
Cutco has a long-standing reputation for producing high-quality products. However, since Vector Marketing joined, there have been numerous lawsuits, as mentioned earlier.
One of the main issues is the misrepresentation of the company, particularly the false claim that you can earn $15 per hour. In reality, you are only paid per appointment, and the job appears to involve “cold calling.”
While there is a product to sell, there is still a possibility that you may not earn. Not everyone can afford the high prices, as who would buy a knife that costs $100 or more?
Selling knives can be great because they are useful and essential in every household. However, I don’t believe this opportunity will lead to good earnings.
To gain more insights into the entire scheme, I highly recommend you keep on reading this comprehensive Cutco MLM review.
Related Post: Advocare MLM Review
What Is Vector Marketing?
In 1972, Alcoa acquired Case’s share of the company. Later, in 1982, Alcas’ management purchased the entire company from Alcoa. In 1985, Alcas also acquired Vector Marketing Corporation.
Vector Marketing is a multi-level marketing company that handles the sales of Cutco Corporation.
Vector Marketing is a direct sales company that primarily advertises through newspapers, posters, and various online media.
They target stay-at-home students, particularly graduate students, enticing them with potential employment opportunities to sell their products. Additionally, Cutco sellers may attempt to recruit individuals into their MLM model to earn extra bonuses.
You have been hired as a door-to-door salesperson for Vector Marketing.
Here is some more information about Vector Marketing: In 1985, Cutco acquired Vector Marketing, making them their top seller and enabling them to replicate Vector’s success in other regions.
It is important to note that if you encounter an ad or receive a call offering a job opportunity to sell Cutco products, the call is from Vector Marketing, not directly from Cutco.
During my research, I discovered that Vector Marketing has faced controversy. Wisconsin ordered them to cease providing dishonest information to students, and there have been several lawsuits.
In 1996, the Washington Post reported that almost half of the recruits earned nothing, with some even losing money.
Despite the criticism they receive, Vector Marketing continues to operate and remains the leading seller of Cutco Cutlery. If you prefer a video review, I have found an interesting video on YouTube.
Understanding Vector Marketing: The Engine Behind Cutco’s Sales
So, what exactly is Vector Marketing, and how does it fit into the Cutco picture?
In 1972, Alcoa acquired Case’s share of the company. Fast forward to 1982, Alcas’ management purchased the entire company from Alcoa, and in 1985, Alcas also acquired Vector Marketing Corporation. This acquisition was pivotal for Cutco.
Vector Marketing is the driving force behind Cutco’s sales, operating as a multi-level marketing company. They handle the direct sales aspect, heavily advertising through newspapers, posters, and various online media.
Vector Marketing primarily targets stay-at-home students, especially graduate students, offering them potential employment opportunities to sell Cutco products. They also encourage these sellers to recruit others into the MLM model for extra bonuses.
If you’ve been hired as a door-to-door salesperson for Vector Marketing, here’s what you should know: In 1985, Cutco acquired Vector Marketing, making them their top seller and enabling them to replicate Vector’s success in other regions.
It’s important to note that if you come across an ad or receive a call offering a job opportunity to sell Cutco products, it’s from Vector Marketing, not directly from Cutco.
During my research, I found that Vector Marketing has faced significant controversy. For instance, Wisconsin ordered them to stop providing misleading information to students, and there have been several lawsuits over the years.
In 1996, the Washington Post reported that almost half of the recruits earned nothing, with some even losing money. Despite these issues, Vector Marketing continues to operate and remains the leading seller of Cutco Cutlery.
For a deeper dive, check out this interesting video review on YouTube:
Related Post: Pampered Chef MLM Review
Turn Your Passion into Profits
What Kind Of Knives Is Cutco Selling?
Before diving into how Cutco MLM works, let’s take a quick look at some of their products.
Here is a list of the types of knives that Cutco is selling:
- Kitchen Knives
- Table & Steak Knives
- Sporting Knives
- Knife Sets
- Knife Gift Sets
Knife block sets are among the popular products on the list.
Although this one is a bit expensive, it does come with a lifetime guarantee and free sharpening.
The Ultimate Set – includes 32 knives and an oak block. The Homemaker Set – consists of 10 knives. The Space Saver Set – consists of 5 knives. The Studio Set – includes 4 knives.
The knives are exceptional because they are all made in the USA. Additionally, their handles are crafted from thermo-resin, providing greater strength, dishwasher endurance, and long-term durability.
Possibly the biggest selling point of these products is the Lifetime guarantee. Many individuals claim to have owned these knives for over 60 years!
However, one common question that arises from people interested in selling these products is whether Cutco MLM is a pyramid scheme or a scam. In this review, we will delve deeper to find out…
Exploring Cutco’s Knife Offerings: Are They Worth the Investment?
Before we dive into the workings of the Cutco MLM, let’s explore some of their renowned products.
Types of Knives Cutco Offers:
- Kitchen Knives
- Table & Steak Knives
- Sporting Knives
- Knife Sets
- Knife Gift Sets
One of the most popular items on the list is the knife block sets. Though they are on the pricier side, they come with a lifetime guarantee and free sharpening services.
Popular Knife Sets:
- The Ultimate Set – This includes 32 knives and an oak block, perfect for serious culinary enthusiasts.
- The Homemaker Set – A practical choice with 10 knives, ideal for everyday use.
- The Space Saver Set – Consisting of 5 knives, it’s great for those with limited kitchen space.
- The Studio Set – Includes 4 essential knives, making it perfect for smaller households.
These knives stand out not only for their American craftsmanship but also for their durable thermo-resin handles, which offer superior strength, dishwasher endurance, and long-term durability.
Lifetime Guarantee: One of Cutco’s biggest selling points is their Lifetime guarantee. Many users claim to have owned their Cutco knives for over 60 years, a testament to their enduring quality.
But, with such high-quality products, why is there skepticism about Cutco’s MLM model? The big question remains: Is Cutco MLM a pyramid scheme or a scam? We’ll delve deeper into this in the following sections of the review…
Related Post: Coway MLM Review
Is Cutco a Pyramid Scheme?
Cutco is technically not a pyramid scheme. It is a registered and accepted business that is legal in most countries. The conventional business model they follow is a “straight sales” model where you can make payments from anything they offer.
However, the newer “Cutco at Home” program provides bonuses for any sales made by people you hire. This often implies that representatives make the most money when they recruit more individuals into their “down line.” Thus, Cutco appears like a pyramid scheme in disguise.
So, is it? Before answering that, let’s understand what a pyramid scheme is…
What Is a Pyramid Scheme?
A pyramid scheme is a fraudulent system for making money that relies on recruiting an ever-increasing number of “investors.” Initially, the promoters recruit investors, who then go on to recruit more investors, and so on.
The name “pyramid” comes from the fact that the number of investors grows at each level.
Cutco Cutlery offers a variety of products, allowing employees to earn money through marketing. However, it is important to note that this is not a pyramid system. If the sole means of income was solely based on recruiting new members, then it would indeed be considered a pyramid scheme.
Is Cutco Cutlery a Pyramid Scheme in Disguise?
Despite some reviews that may portray Cutco as a pyramid scheme, it is important to note that the company ensures that only salespersons with a proven track record join their team. Additionally, if you do not receive an opportunity with Cutco, they reimburse the upfront cost. Over the years, the company has built a strong reputation in its niche and has gathered thousands of independent agents in the United States and Canada.
Therefore, it is safe to say that Cutco is not a pyramid scheme in disguise. While the “Cutco at Home” program may resemble certain aspects of a pyramid scheme, the company’s primary income structure is based on product sales.
Related Post: Arbonne MLM Review
Is Cutco MLM a Legitimate Business?
Cutco Cutlery is often regarded as a scam, but technically it is not.
While it is possible to earn money with this program, it is not as easy as the company portrays. The upfront work required is substantial, success is not guaranteed, and the actual commissions are quite small.
Recruiting others and front-loading the work to reap the rewards later is not inherently wrong. However, if you find yourself grinding it out for three months only to receive a meager $50 compensation, it may not be worth it.
Based on these reasons, I cannot recommend Cutco to you or anyone else. Nonetheless, it is important to note that Cutco is legitimate, so the ultimate decision rests with you.
Related Post: Tupperware MLM Review
How Does Cutco MLM Work?
Cutco, like other MLM companies, relies on its members to promote and sell their products rather than engaging in traditional advertising. As a representative, you can earn a 10% commission for your efforts.
However, the specific responsibilities and requirements for becoming a representative are not clearly defined.
Here’s an overview of how it works:
- Cutco advertises a job opportunity for students, offering $15 per appointment.
- Students go through a rigorous interview process consisting of multiple stages.
- Upon selection, you will attend a 3-day training course that spans approximately 7 hours each day.
- As part of your training, you will be asked to create a list of people you know.
- You will then make calls to your friends and relatives, using a provided sales script.
- Your goal is to book a presentation, also known as a sales pitch.
- During the presentation, you will utilize a pre-made sales script to showcase and sell the knives.
- For each sale, you will receive a commission ranging from 10-50% or a minimum of $15, depending on which amount is greater.
Please note that while these basic steps are provided, Cutco’s requirements may not be explicitly stated beyond them.
Related Post: Primerica MLM Review
How To Start Selling Cutco Knives?
To join the Cutco MLM scheme and become a sales representative for their products, you need to go through the following steps:
- Apply for an Interview: Start by applying for an interview and meet their requirements.
- Participate in Training: Once hired, you will participate in a three-day training course.
- Provide Referrals: You’ll need to provide a list of referrals as requested.
- Receive Sales Script: You’ll be given a sales script and presentation materials to reach out to potential clients.
- Earn Commissions: You can earn from 10 to 50% commission on all sales or a guaranteed base pay of $15, whichever is higher.
Related Post: Doterra MLM Review
Cost Considerations for Joining Cutco
One of the perks of joining Cutco is that there are no membership fees required. However, becoming a sales representative involves completing a training program provided by Vector Marketing.
During this training, you’ll learn how to effectively demonstrate and pitch Cutco products.
After joining, Cutco provides a product sample for demonstration purposes. You can also borrow sample kits and return them if you decide to quit.
To stay active, you must sell $100 worth of knives or products each month. If you don’t meet this requirement, you have two options: return the knife kits or purchase them for $75, which is less than the original price.
Keep in mind, though, that you are responsible for your business presentation expenses such as travel, gas, and necessary equipment. These costs can add up quickly.
So, while there are no membership fees, be aware of the potential expenses you might face on your Cutco journey.
Related Post: Young Living MLM Review
Understanding Cutco’s Compensation Plan
Cutco offers a flexible compensation plan where you can earn commissions on your sales or a flat fee for each presentation. Here’s a detailed look at how it works:
You can earn a commission on sales ranging from 10-50%, or you can earn $15 for each presentation, whichever amount is higher. It’s important to note that the $15 is per presentation, not per hour, which is a common misconception.
Here’s how the commission structure breaks down based on your cumulative sales:
- $0-1,000: 10% commission
- $1,001-3,000: 15% commission
- $3,001-6,000: 20% commission
- $6,001-10,000: 25% commission
- $10,001-20,000: 30% commission
- $20,001-30,000: 30% commission + 5% bonus
- $30,001-50,000: 30% commission + 10% bonus
- $50,001-150,000: 30% commission + 15% bonus
- $150,001+ in career sales: 30% commission + 20% bonus
This tiered commission structure is designed to reward you for higher sales volumes, offering significant incentives as you progress.
Related Post: Forever Living MLM Review
Steps to Exit the Cutco MLM: Ensuring a Smooth Transition
Decided to move on from Cutco MLM? Here’s how to resign properly:
- Write a Letter of Resignation:
- Include your full name and ID number.
- State the final date of your employment.
- Clearly articulate your decision to resign.
- Hand Deliver Your Resignation Letter:
- Personally hand the letter to your supervisor.
- Retain a copy for your own records.
- Inform Human Resources:
- Send a copy of your resignation letter to HR via email or postal mail.
- Ask for written verification of receipt if it’s not provided automatically.
- Follow Up with HR:
- Make sure to follow up with HR to confirm that your resignation has been processed correctly.
By adhering to these steps, you can ensure that your resignation from Cutco is handled professionally and efficiently.
Related Post: Melaleuca MLM Review
Turn Your Passion into Profits
What I Like About Cutco MLM
Are you wondering if Cutco is a scam or legit? Keep reading this Cutco review to find out! Below, we have listed the pros and cons that you need to consider before proceeding any further.
#1 You Get Paid $15 per Lead
You will be paid $15 per effective visit, which is a promise they assure you of fulfilling if you engage in client discussions. Additionally, there is potential for extra earnings if your leads make a purchase.
#2 Cutco Knives are High-Quality Products
Cutco’s item quality has received a lot of positive feedback, and what sets it apart is the fact that cooks around the world are not only using them but also recommending them.
#3 Lots of Positive Product Reviews
While I have come across many complaints about the business, interestingly enough, I haven’t found a single person who has complained about the quality of the knives!
It’s a wonderful indication that Cutco is not a scam if individuals who use their products are satisfied and happy with them.
#4 Cutco Provides Training and Sales Material
Cutco provides comprehensive sales training for each recruit. They are given a well-written sales pitch script as a starting point, which can be personalised as needed. This training helps develop both your leadership and sales skills.
What I Don’t Like About Cutco MLM
In my review, however, here are some of the things I don’t like about Cutco MLM:
#1 Handful of Lawsuits
Cutco has a great line of products, but unfortunately, it faced legal issues when Vector Marketing entered the picture. For instance:
- In 1990, Vector was sued by the Arizona Attorney General because it misrepresented its compensation system.
- In 2014, a girl was violently sexually assaulted by one of her customers while working for Vector. As a result, she filed a lawsuit against the company for not providing adequate training to prevent such situations.
#2 Expensive Products
The products are quite expensive, with prices reaching thousands of dollars. This makes it challenging to sell them as not everyone can afford such high-priced items.
#3 No Compensation Plan on the Website
If you want people to join, this is the most crucial aspect of the business. However, it appears that this company pays little attention to considering the needs of potential members.
#4 No Income Disclosure
If you’re selling to make money with this company, how can you prove people are earning without income disclosure on your website?
#5 Low Commissions
Selling face-to-face, a 10% commission might not seem like much. However, to make it worthwhile, you need to sell over $150 worth of products. For instance, if you manage to sell $300 worth of products, you’ll only get a $30 commission. One member gives an example where the company promises a $15/hour job with good hours and benefits. However, in reality, the pay is only commission-based, and if you’re lucky, you might make minimum wage.
Wrapping Up: Is Cutco a Scam or a Pyramid Scheme?
After a thorough review, I’ve determined that Cutco MLM is a legitimate business opportunity, not a pyramid scheme or a scam. They offer high-quality products with a lifetime guarantee, which shows their confidence in what they sell.
However, keep in mind that Cutco products are quite expensive and might not be affordable for everyone. There is potential to make money with Cutco, but it requires strong sales and marketing skills, along with the ability to connect with others.
If selling isn’t your strong suit or you’re uncomfortable with the idea, you might want to explore other ways to earn money. Plenty of alternatives don’t involve pressuring friends and family to join for financial gain.
Thank you for reading my review of Cutco MLM. While it’s not a scam or pyramid scheme, I can’t fully recommend it.
How Do I Make Money Online?
If you’re looking to build a sustainable, profitable online business, I highly recommend you explore the affiliate marketing program that transformed my financial life. This platform provides everything you need to get started—from step-by-step, beginner-friendly training to world-class tools like web hosting, a website builder, and a comprehensive keyword research tool.
What sets this program apart is its leadership in the affiliate marketing training industry and its proven track record. It has empowered thousands, including myself, to earn substantial incomes by following its methods. With access to the largest online community of affiliate marketers, you’ll benefit from round-the-clock support and guidance from experts at every level.
Why consider getting tangled in the complexities and uncertainties of MLM when you can build your own venture with reliable, scalable tools and training? I went from earning nothing to pulling in thousands per month in passive income, all thanks to this exceptional program. Click here to start your journey towards real financial independence!
Thanks for reading my Cutco MLM Review! If you have any questions, or any experiences to share then please write them in the comments below. ;).
