Is Cutco a pyramid scheme? Cutco MLM Review with Pros, and Cons

Is Cutco a pyramid scheme?

If you are tired of the usual 9 to 5 job, selling products may be the next alternative. It helps you to make money with a flexible schedule. How does selling knives sound to you? It may sound odd but that is what Cutco MLM is all about. The Cutco MLM program involves the selling of knives and kitchen accessories. Is Cutco a pyramid scheme or a scam? Is it a rewarding opportunity to make money?

In this review, I will be giving you all that you need to know about Cutco MLM so that you can make an informed choice. Read on to find answers to all the questions.

What is Cutco? An Overview

Cutco is an MLM company that is based in the United States of America. The company was established in 1949 and sells a wide array of cutlery and kitchen accessories through its subsidiary, Vector Marketing. The products are mostly sold through direct selling.

College students who want to make extra income to support themselves are the main target of Cutco representatives. The commission rate is 10%.

How does Cutco MLM Program work?

Cutco produces a wide selection of knives and kitchen products that are of exceptional quality. The method of selling is through direct selling which helps Cutco to save a lot of money on marketing and advertising.

Their recruitment target is mainly students who are paid 10% commission for products sold. This is how Cutco entice students to join their MLM program:

  • Cutco puts out an advertisement claiming they pay students $15 per appointment
  • Students would be made to go through a long and tortuous interview which involve many stages
  • Selected students go on a 3-day training course
  • Cutco asks students to list people they know. These are the potential buyers of the products
  • Students are told to call people they know
  • Cutco prepares a sales script for students. This is about how to say the right things to sell the products
  • Students are made to make sales pitches which means sales presentation
  • Commission rate is between 10% and 50% on any sales made by the students

How can I register as a member of the Cutco MLM program?

To register as a member, you will need to visit the website at https://www.vectormarketing.com/ and click on “Apply Now”.

How much do I pay to join Cutco?

To join Cutco MLM is free as long as you are an active representative. You will be given a knife kit for the presentation.

What does it take to be an active representative? 

To be an active representative, you would have to sell $100 worth of knives or kitchen accessories monthly.

What happens if I do not sell up to $100 in a month? 

If you do not sell up to $100 in a month, there are two options open to you:

  • You either return the knife kit or
  • Pay $75 to purchase the kit

How can I make money with Cutco? 

Just like every other MLM model, there are two main ways to make money with Cutco.

  • Selling the products and get a commission or
  • Recruiting people into your team. You will get bonuses for every sale your team member makes.

Cutco Compensation Plan 

  • You will get between 10% and 50% sales commission or $15 for making a sales presentation

Below is the commission structure based on how many products you have sold:

  • Between $0 and $1,000 sales = 10% commission
  • Between $1,001 and $3,000 sales = 15% commission
  • Between $3,001 and $6,000 sales = 20% commission
  • Between $6,001 and $10,000 sales = 25% commission
  • Between $10,001 and $20,000 sales = 30% commission
  • Between $20,001 and $30,000 sales = 30% commission plus 5% bonus
  • Between $30,001 and $50,000 sales = 30% commission plus 10% commission
  • Between $50,001 and $150,000 sales = 30% commission plus 15% bonus
  • Between $150,001+ sales = 30% commission plus 20 bonus

The commission structure is based on career sales

Can I make money with Cutco MLM? 

Yes, you can make money with Cutco. But I must point out that it is not an easy job. You must have excellent sales skills and great charisma to succeed in any MLM business.

Joining the Cutco MLM means you would have to call friends and family members and book a presentation appointment with them. The only way to make money is by selling the products.

Are Cutco products worth the price? 

Though the products are pricey but they are worth the price since they come with a lifetime warranty.

Is Cutco a scam? 

Though, there have been bitter lawsuits in the past that portray the company as a scam. But, Cutco is not a scam.

The company sells legit products and rewards its representatives according to the above commission structure.

Is Cutco a pyramid scheme? 

Cutco is not a pyramid scheme since the company has products that are sold by its representatives.

Is Cutco MLM recommended? 

If you have thoroughly read my unbiased review about Cutco MLM, you would understand that the program is not a scam and not a pyramid scheme. But I won’t recommend it for the following reasons:

  • Cutco MLM is a hard sell since the products are expensive.
  • It saps a lot of energy from you and rewards you minimally.
  • You won’t earn $15 hourly as a starter.
  • Door-to-door selling is no longer fashionable since the advent of online stores.

Pros

  • Hourly rate payment – Cutco pays a $15 hourly rate. The hourly pay is for people who made no sales during their presentations.
  • Proven track record – The Company has been in operation since 1949. That is more than seven decades. This is no mean feat. It means Cutco is trustworthy and reliable.
  • High-quality products – The products are of high quality. There are a lot of customers you have testified to the longevity of the products.
  • Flexible schedule – You can choose to work part-time or full-time. You are at liberty to schedule your time.
  • Wide range of products – Cutco started with only knives. But now, they are into the sales of other kitchen accessories like cookware and tableware. They also sell garden tools.
  • Lifetime guarantee – All the products come with a lifetime warranty. If there is an issue with any of the products, Cutco will make a replacement.
  • No experience is required – Joining the Cutco MLM requires no experience. You will be adequately coached on how to do the job.
  • Great training – Cutco provides excellent training for its representatives to equip them properly for the task ahead.

Cons

  • Expensive products – The products are a bit expensive. but they are worth the price because all the products have a lifetime warranty

Conclusion: Is Cutco MLM worth joining?

It is a great attraction that Cutco has quality products backed by a lifetime guarantee. This shows that the company believes in what they sell.

However, their direct selling method is archaic in an era where selling through social media and online stores is the in-thing. The low commission also means it would be hard to make a living of Cutco MLM.

Generally, it is only one percent of the people that succeed with MLM. But there can be a breakthrough if you naturally like selling.

MLM model requires persistence, perseverance, and patience. If you don’t have these virtues, then MLM is not for you.

MLM is risky and not sustainable

If you’re looking to earn a 4-digit monthly income through an online business then

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