Cutco MLM Review: Money Maker or Money Pit?
A friend or acquaintance may have introduced you to Cutco Cutlery and its business model. The thought of it may have stuck in your mind, and now you are curious to learn more about it. That is why you have landed here. With this Cutco MLM review, you will learn everything there is to know about this company. So, let’s dive in.
Cutco is a well-established US-based company that sells knives and other kitchen-related products. Here comes the exciting part: Cutco offers you the opportunity to make money by selling their products and hiring recruits.
The offer might seem too good to be true, especially when the scheme is labeled as a pyramid scheme. In addition, the company has been involved in various controversies. Which makes you question its legitimacy.
Throughout the following sections, you will learn more about how the company works, its product lines, earning opportunities, and whether it is a scam or legit. Before I start…
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What is Cutco MLM?
It is a cutlery direct sales company that has been selling products since 1949. It is located in New York and sells kitchen knives through Vector Marketing, its main distributor that uses a multi-level marketing business model (MLM).
It is perfect for students, stay-at-home moms, and anyone who wants to earn an extra buck through a side gig. Here, you can earn up to 10% commission on each sale. Apparently, the company’s products are high-quality. The price is a bit high, however.
What Is Vector Marketing?
Vector Marketing serves as Cutco Cutlery’s sales department. Initially, Cutco Cutlery’s products were sold by many independent, small direct-sellers. Vector Marketing Corporation was one of them. Eventually, it became Cutco’s main seller.
The Vector Marketing company conducts MLM operations for Cutco. They recruit people for house-to-house selling.
What Products Does Cutco Sell?
They’re quite popular because of their durability, well-designed blades, and high-quality material. On top of that, it offers a lifetime warranty for these knives.
Vector Marketing provides products in these categories:
- Kitchen knives ($40-$250): Cleaver, trimmer, table knife, and french knife, to name a few,
- Shears ($90 – $120): Specialty scissors
- Cookware ($40-$2,600): Pots, pans, gadgets, baking tools, utensils, and cutting boards
- Tableware ($30-$1,500): Cutlery
- Outdoor ($100-$250): Hunting knives, pocket knives, sporting knives, and garden tools
Their top-selling products are their “Cutco Knife Sets,” priced between $280 and $1,212. They have thermo-resin handles that are dishwasher-resistant, strong, and durable.
How Does Cutco Work?
Cutco is similar to other MLM companies in that members sell their products for them to save money instead of advertising their products. For their efforts, they will receive a 10% commission.
The application process is free, but there is a very low approval rate. During their approval process, you are more likely to be filtered out. Here’s the overview of how it works:
- They will publish an advertisement for a job at Cutco that pays $15 per appointment for students.
- It will take a student a long time to complete a multistage interview process.
- Followed by a three-day training course that lasts around 7 hours per day.
- They will first ask you to write a list of everyone you know and call them.
- You will receive a sales script and presentation to guide you during your client meetings.
Currently, Cutco Cutlery provides the kit to its active representatives for free. The active representative must sell $100 worth of cutlery or cookware each month. In case a sales rep fails to meet the monthly target, they have to either return the kit or buy it for half price to continue selling.
Can You Make Money With Cutco?
Cutco Cutlery promises easy money, but that’s not always the case. In reality, the majority of people aren’t interested in expensive kitchen utensils or knives. Most likely, they won’t invest so much in these knives.
This is where you could run into trouble. In order to succeed, you will need a market of people who like expensive kitchenware and have money to spend, which is quite challenging.
If you want people to buy knives from you instead of online marketplaces like Amazon, you need to convince them to do so. Your sales skills can help earn you some extra money. There is one downside to this: you will be offering sales to your friends and family, which could negatively affect your relationship.
Cutco Compensation Plan
You won’t become rich overnight by working with Cutco. In this business model, you can only earn if you are dedicated, show endurance, and work hard. According to Cutco, your ability to sell is directly related to your persistence and grit.
Here is the commission you are going to make.
| Career Sales | Commissions |
| $0-1000 | 10% |
| $1000-3000 | 15% |
| $3000-6000 | 20% |
| $6000-10,000 | 25% |
| $10,000-$20,000 | 30% |
| $20k-$30k | 30%+5% Bonus |
| $30k-$50k | 30%+10% Bonus |
Is Cutco a Scam or Legit?
Cutco is an MLM, not a scam. This is a legitimate MLM company that sells knives. Their products are high quality, and they offer a lifetime guarantee, so your chances of getting sales are higher.
Many MLM companies claim that they will develop your confidence and interpersonal skills while helping you make money simultaneously. However, their commission rates are very low.
Beware of Lawsuits
In the past, Vector has also been subject to controversy. The Arizona Attorney sued Vector in 1990 for misrepresenting its compensation program. Furthermore, in 1994, Wisconsin sued Vector, which ordered it to stop providing students with dishonest information.
In 2016, the company settled claims of unpaid training costs in California, Florida, New York, Illinois, and Michigan by paying $6.75 million in preliminary settlements.
Pros
- They do pay you $15 per successful appointment.
- The product quality seems pretty decent.
- There are many reviews of happy customers who have been using their product for years.
- There is a wide selection of products available for their customers.
- Cutco products are made in the USA.
Cons
- You will not be paid for the one-week training.
- The payment will be for the actual presentation, not for making calls or setting up meetings.
- The commission rates are pretty low.
- An extensive contact list is necessary for them.
Final Words on Cutco MLM Review
You can generate passive income from MLM organizations. However, it takes time to really make a full-time income. The Cutco platform offers the possibility for you to make money. It largely depends on your communication skills and your ability to market the product.
Moreover, these knives are in low demand on the market due to their high price. It’s unlikely that you’ll be able to live off of the earnings you make here, especially if you have a family to support.
