What is Cutco Cutlery, a scam MLM? This network marketing company has had its fair share of controversies over the years, but it’s still going strong. So does that mean their products are great and that it’s worth joining their business opportunity?
I’ll be answering many questions throughout my review, but before we get right into that I’d just like to say congrats on being here. Chances are you won’t ever get conned or waste your time because you do your homework first before joining anything. That’s a smart move.
Now read on to discover the truth about the Cutco Cutlery opportunity…
Company Name: Cutco
Owner: Cutco & Vector Marketing
Price To Join: $425
My Rating: 3/10
~ Cutco Cutlery Reviews ~
In the past I was a member of a few network marketing schemes, but I don’t bother these days, despite how popular they seem to be. Everywhere you look there’s a company selling something through the MLM distribution model in the modern world.
When I came across Cutco Cutlery it caught my interest for two reasons. Firstly, I hadn’t come across a cutlery MLM before. And two, it’s refreshing to see a MLM company that’s NOT peddling health and wellness products.
Anyway, I decided to do some research on Cutco and write a review on what I discovered.
With so many scams going around out there – especially online – reading product reviews like this one is the best way to sort the good from the bad and make wise choices. I created my site to help people and that’s why I write so many reviews on here.
Let’s now dig into Cutco Cutlery and see if it’s worth your time or not.
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What Is Cutco Cutlery About?
As I said, this is a network marketing company that distributes cutlery, mostly knives, through the MLM method. The company was originally founded way back in 1949, so it’s one of the oldest existing network marketing companies there is.
The company has changed ownership a few times over the years, and in 1985 it was taken over by Vector Marketing, which handles the MLM side of things while Cutco deals with product manufacture.
The Cutco products are not available anywhere else except directly through the company and via its army of reps and its own retail outlets.
Rather than openly promoting this as a network marketing opportunity, Cutco (or Vector Marketing) tends to target school leavers and recent college graduates, making out like there is a lucrative job on offer, when in reality it’s just another scheme where you work for commissions mostly.
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The Cutco Cutlery Products
All products in the Cutco range are American made and have a lifetime quality guarantee, which is a very good start.
While the company specialises in a variety of knives for both indoor and outdoor use, Cutco also sells cookware, such as frying pans and pots.
I won’t go deep into the products here because this review is more focused on Cutco’s business opportunity, but we’ll take a snap shot of what’s available. For more detailed information on the Cutco products, just go over to their website.
Let’s list a few of the categories:
- Kitchen Knives
- Table Knives
- Outdoor Knives
- Knife Storage
- Knife Sets
- Cooking Utensils
A big focus of Cutco is selling knife sets, whether they be kitchen knives, steak knives and so on. The knives they really like to push are made of quality stainless steel and have the patented Double D recessed edge.
While all of us need to be careful and use common sense when using sharp knives, there have been reports that Cutco knives are just too sharp, like surgically sharp, and people have found themselves getting injured by them very easily.
Another thing to note is that these knives are all very expensive. True, it does cost money for quality knives, but some of these knives even top the thousand dollar mark, and we’ll discuss the reasons why in the next section.
Why Are MLM Products So Expensive?
Nearly every MLM schemes you come across will charge exceptionally high prices for their line of products. Occasionally prices are reasonable, but that’s rare.
If you ask anyone representing the company why the prices are so high, they’ll claim it’s because their products are so much better than everything else that’s on the market.
This is rarely true, and certainly not the reason why the prices are so high.
MLM products are generally mega expensive because of how their compensation plans are structured. Distributors build downlines and every time there’s a sale made, a whole bunch of people get paid a commission.
On top of that the company itself has to get their cut, so by the time you pay out all these slices of the money pie, there’s no choice but to charge sky high prices for the products just to cover costs.
In more plain English everyone is basically getting ripped off on price when they buy anything that’s distributed through MLM, because you’re not paying for exceptional quality, you’re paying a super high price so a whole string of people can get their commission.
Cutco works a little differently to your typical MLM, and I’ll try to explain that in the next section, so it’s a little harder to fathom why they need to charge such ridiculously high prices.
The Cutco Cutlery Compensation Plan
Normally with a MLM scheme you’ll either be making money from direct sales of the products, or you’ll be recruiting people, building downlines, earning residual commissions from your downline, and striving to achieve bonuses and climb the company ranks.
Cutco Cutlery operates a little differently.
Rather than jumping aboard as a distributor, Vector Marketing, the team that sells Cutco Cutlery, hires people as sales reps, or door-to-door salespeople.
Apparently you can earn a base rate of pay as well as make commissions.
The first thing you have to do when you sign up is go through their unpaid training, which takes 3 days. Once you have successfully completed that, you’ll be loaned a selection of products to the value of $425 for demonstration purposes.
There are 2 ways of earning money as a Cutco Cutlery sales rep and they are:
- Making commissions on actual sales that range from 10% up to 35%
- Earning a base rate of pay of $17.25 per qualified home demonstration you perform
There is no actual recruiting or building downlines with Cutco, so I’m not sure why Vector Marketing classifies itself as a multi level marketing company.
The main way they teach you to sell these products is by going door-to-door and arranging in home demonstration appointments.
This sounds like it would be a really tough gig, as nobody is fond of door-to-door salespeople these days (if they ever were). It’s pretty old school.
However, they do also teach you some Facebook marketing and social media marketing as well.
Is There An Income Disclosure Statement?
I couldn’t find any form of income disclosure statement on their website. I generally like to look at these and include some details, so my readers know what the average person at Cutco is actually making.
In the absence of any form of disclosure, I have no idea, but I can’t imagine it would be very easy to make decent money selling expensive knives door-to-door on a commission basis.
The Reasons Why I’m Not a Fan of MLM
I normally include a really detailed section here covering the major negatives of MLM, but since Cutco doesn’t really operate in the same way, this section is a little pointless in this instance.
Instead, just in case you are thinking of joining anything else that is traditional MLM, I’ll list some key points in bullet form just for reference, because traditional MLM compensation plans and business schemes are a pretty terrible deal for distributors.
- The company gets all the advantages and is the reason why so many companies choose network marketing to sell their products
- On average, around 95% of MLM distributors fail to make any profit, and less than one percent make a sustainable living from MLM
- MLM companies suck people in with sales hype, making it all sound super quick and easy to make tons of money, when the opposite is true
- Everyone works for free, with no salary or even a retainer, and distributors have to pay for all their own expenses
- Distributors work on the promise of commissions and bonuses only
- It’s the distributors that do most of the promotions and advertising for the company
- The distributors grow the company for free with the constant need to recruit new members to get anywhere
- Distributors usually have to pay the company a joining fee just so they can work for the MLM company for free
- MLM companies always make the claim that you’ll have your own business, when in fact you own nothing and never have your own business with MLM
- Most MLM companies force their distributors to buy X amount of product every month or they won’t be eligible for commissions and bonuses. This effectively turns the workforce into the main customer base as well
That’s a snap shot in brief regarding why I’m not a fan of the typical MLM deal, but like I said, Cutco operates more on a sales rep basis rather that a distributorship.
Is Cutco Cutlery A Pyramid Scheme?
Typical MLM schemes often get accused of being illegal pyramid operations because they compensate members based on a pyramid structure.
However, to be a true illegal pyramid scheme, the company has to rely only on recruiting new members to make money and have no real products.
Just about all MLM companies have products, so can’t be illegal (naked) pyramid schemes.
Cutco Cutlery doesn’t work on downlines and a pyramid structure anyway, so it can’t even be accused of being a pyramid scheme in the first place, but I just thought I’d mention what the illegal variety actually is.
Vector Marketing target their scheme at younger people, generally school leavers and college graduates. They advertise their opportunity as an easy way to make really good money part-time.
The reality of what they’re peddling and asking people to do is way, way harder than they make it out to be. Selling mega expensive knives door-to-door is going to be super hard, even if you do get a base rate for doing an in-home demonstration.
To me it sounds like an incredibly hard way to make some money.
What I Do Like
- Their knives live up to the promise of being super sharp and staying sharp
- The company has a good range of products
- Cutco has been operating in America since way back in 1949
- Lifetime guarantee on Cutco products
What I Don’t Like and Red Flags
- People complain the knives are far too sharp and are dangerous to use
- The prices of the products are way too expensive for what they are
- Vector Marketing has been in trouble with the law in various states in the USA for a variety of reasons, ranging from: unpaid training, misleading advertising, misleading recruitment methods, a misleading compensation plan
- Vector Marketing claims to be a MLM company, but doesn’t operate in a typical MLM fashion
- The company preys on young, naive school leavers to build its workforce
How Much Does It Cost To Join Cutco Cutlery?
While you can technically join for free, the company doesn’t pay you for the training you have to do when you join up. Apparently training should be paid in some states in America. You are also given a demonstration set of products to show people.
All expenses incurred in earning an income with Cutco Cutlery are the responsibility of the sales reps.
Is Cutco Cutlery a Scam or Legit?
Some people have been running around calling this a scam, but I don’t think so. Cutco itself has been operating since 1949, and Vector Marketing, which handles the sales and distribution, has been doing so since 1985.
If either of these two companies were a scam, they would have been put out of business a long, long time ago.
As far as I can determine the knives are of a high quality, just way over-priced. Getting people to make appointments, sell door-to-door and perform in-home demonstrations is not a scam either, just not a great way to try and make some money.
Vector has been in trouble with the law a number of times for using misleading tactics, but most companies out there will do the same thing to one degree or another. Unfortunately, embellishing things is often just a part of the sales game.
At the end of the day I don’t recommend Cutco Cutlery as a viable option for making money, but I don’t believe it’s a scam at all either.
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