Is Cutco a SCAM or Pyramid Scheme? – Cutco Knives Review (2022)

Hello, and welcome to my Cutco MLM review. So what is it about? Is Cutco cutlery a scam or legit? Or maybe, is Cutco a pyramid scheme in disguise?

When you go to their website, you find there that they are selling knives. You probably got interested in their products, but yet you’re curious to know whether it is a real deal or not.

You’re in the best place to learn more… I spent hours and hours researching this business opportunity so you don’t have to waste your time learning the truth.

In this review, we will take an in-depth look at Cutco Knives company and see if Cutco is a legit MLM or a scam. So keep reading!

I have tried and tested 600+  courses, scams, and all sorts of schemes to find the best way to make money online.

In other words, I’m passionate about knowledge that helps to improve our lives, build a business online, and more.

Throughout my Cutco review, you can rest assured that you will get an honest and unbiased review from me.

In this review, I will answer all your questions. In addition, my analysis should give you a clear understanding of the company and answer your question; Is Cutco a scam pyramid scheme or legit MLM?

Is Cutco a SCAM or Pyramid Scheme? - Cutco Knives Review (2022)

 

Cutco MLM Review – Overview

  • Product: Cutco Knives
  • Type: MLM Opportunity
  • Owner: Vector Marketing
  • Price: Free to Join + Up to $2000 for products
  • Recommended?: Read my review and find out

Overview: Cutco is a company that sells different varieties of good quality knives and kitchen cookware.

The website is free to join. However, you need to invest in their knives before selling them through their MLM program. Their main target is students, and you’ll also get some proper sales training in this company.

Cutco is just like any other MLM company where you will earn money by selling their products and get commission bonuses from the sales of people you recruit into the company. 

We all know that knives and scissors can cut through anything but Cutco, they make a pair of kitchen scissors that can cut through a penny. Yes, you heard that right, a penny, and I will tell you that later on.

So is Cutco a scam? It is not. Cutco is a legitimate company that produces and sells high-quality knives. However, there are some red flags related to it, which are the reason why I don’t recommend this company.

To see these red flags, keep reading my Cutco MLM review!

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What Is Cutco?

Cutco Knives is a company that has been around since 1949, by Alcoa and Case Cutlery, and they manufacture their products in Olean, New York. 

Cutco is a direct sales company that offers kitchen knives through its multi-level marketing (MLM) company known as Vector Marketing.

The company not only makes knives but also produces and sells sporting, hunting, and pocket knives.

All their products are made in the USA and are touted as high quality with a lifetime guarantee.

Chances are you read about Cutco due to the fact that someone introduced you to the firm. Perhaps you went to an online workshop or webinar, or perhaps an in-person information session.

You’re told that the trick to constructing your own successful service is selling these items to family and friends, as well as getting them on a subscription (so you obtain “month-to-month persisting profits”).

Regrettably, like the majority of people that obtain taken in by these sorts of schemes, you’ll rapidly uncover that the well runs dry faster than you visualized.

So is Cutco a scam? Is it a pyramid scheme? Will this make you any money? Should you even join? Is Cutco legit? The answers are in my Cutco MLM review!

Related: Mary Kay Review

What Is Vector Marketing?

It stated that Alcoa purchased Case’s share of the company in 1972, Alcas’ management purchased the entirety of the company from Alcoa in 1982, and in 1985, Alcas’ acquired Vector Marketing Corporation.

Vector Marketing is a multi-level marketing company that handles the sales of Cutco Corporation.

Is Cutco a Scam? Vector Marketing

Its approach is direct sales, mostly advertising through newspapers, posters, and various media on the internet.

Vector Marketing targets stay-at-home students, especially graduate students, by luring them in with the possibility of employment to sell their products.

In addition, Cutco sellers may try to recruit people into the MLM model to earn extra bonuses. 

With that being said, you are hired to become their door-to-door salesperson. 

Here’s more information about Vector Marketing.

Vector Marketing was purchased by Cutco in 1985, making them their premier seller, and they duplicated Vector’s success all over the region. 

Now, if by any chance you see an Ad or receive a call from someone that offers you a job opportunity to sell Cutco products, that call is from Vector Marketing, not from Cutco.

Upon my research, I found out that there was a controversy about Vector Marketing that Wisconsin ordered Vector to stop providing dishonest information to students, not just that there were a handful of lawsuits.

In 1996, the Washington Post reported that almost half of the recruits earned nothing, and some of them even lost their money.

Despite the negativity they get, they are still operating today and are the premier seller of Cutco Cutlery.

In case you prefer the video review, below is a very interesting video found on youtube:

What Kind Of Knives Is Cutco Selling?

Before I show you how Cutco MLM works, let me show you some of their products to better understand what Cutco offers.

Here is a list of the kind of knives Cutco is selling:

  • Kitchen Knives
  • Table & Steak Knives
  • Sporting Knives
  • Knife Sets
  • Table & Steak Knives
  • Knife Gift Sets

The popular products on the list are knife block sets. 

Cutco Knives review

This one is a bit expensive, but it comes 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 not ordinary because they are all made in the USA, and their handles are made of thermo-resin which means it has greater strength, dishwasher endurance, and long-term durability.

The biggest selling point of these products is possibly the Lifetime guarantee. 

There are a lot of people saying that they have had these knives for 60+ years!

But one of the main questions people who want to start selling these products ask is, is Cutco MLM a pyramid scheme or a scam? Keep on reading this review to find out…

Is Cutco a Pyramid Scheme?

Technically, Cutco is not a pyramid scheme. It is a registered and accepted business that is legal in most countries.

The conventional business model is a “straight sales” model where you can just make payment from anything they can offer.

There is no other way to earn money or rewards than recruiting others right into the business.

However, the newer “Cutco at home” provides bonuses for any type of sales that people you can hire make.

This often implies that the great cash is only made when representatives recruit even more individuals right into their “down line”. That said, Cutco resembles a pyramid scheme in camouflage.

So is it? Before answering that, you have to understand what a pyramid scheme is…

What Is Pyramid Scheme?

pyramid scheme is a fraudulent system of making money based on recruiting an ever-increasing number of “investors.” The initial promoters recruit investors, who in turn recruit more investors, and so on.

The scheme is called a “pyramid” because at each level, the number of investors increases.

As Cutco Cutlery does have various products and it is possible for employers to make money by marketing these items it is not a pyramid system.

If the only method for them to generate income was by hiring new members after that it would 100% be a pyramid system.

Is Cutco Cutlery Pyramid Scheme in Disguise?

Even though some reviews might make Cutco look like a pyramid scheme, they make sure only salespersons with solid histories sign up with the firm.

It is essential to keep in mind that the upfront cost is reimbursed if you don’t get an opportunity with Cutco.

Over the years, the firm has actually made a reputation in its niche and also gathered 1000s of independent agents in the United States and Canada.

So no, Cutco is not a pyramid scheme in disguise.

Related: Herbalife Pyramid Scheme

Is Cutco a Scam?

Cutco MLM is not a scam. I can tell that the company has a good set of products for you to sell to make money.

However, the problem with this MLM is that there are tons of red flags, which is why I don’t recommend it.

Cutco has been around for a long time making high-quality products, but since Vector Marketing joined in, the lawsuit starts pouring in, as you already saw above.

Not just that the misrepresentation of the company, mainly claiming that you will make $15 an hour, is not true as you will be only paid per appointment and not just that the job looks like it will be a “cold calling job.” 

Even though there’s a product for you to sell, there is still a possibility that you won’t earn. As I said earlier, not everyone can afford the price. And who in the right mind will buy a knife that costs $100 or more?

Selling knives are great because they are very useful and essential in every household. However, I just don’t think you will make good money with this kind of opportunity.

Is Cutco MLM Legit Business?

So, is Cutco Cutlery a scam? Not technically. You can earn money with this program, but it’s absolutely not as easy as the company makes it sound.

There’s a lot of work to be done upfront, no real assurance of success, and worst of all, the real commissions are pretty tiny.

There’s absolutely nothing incorrect with recruiting others and front-loading the work and making the cash later on.

But if you’re grinding it out for 3 months and afterwards your reward is a $50 compensation, it’s not really worth it.

That is why I don’t recommend Cutco to you or anyone. But at the end of the day, Cutco is legit, so the choice is yours! I hope my Cutco review has helped you to make a well-informed decision.

Alternative: On the other hand, if you’re looking for the best business model to earn passive income online as a beginner, there are other, more suitable, and cost-effective alternatives.

My top-rated course has helped me to go from earning $0 to $100’s per day!

 

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How Does Cutco MLM Work?

Like other MLM companies, Cutco doesn’t advertise their products, their members do the advertising for them by selling the products to save money.

In return, these people will earn a 10% commission.

However, they don’t clarify what you are actually required to do as a representative. 

Here’s the overview of how it works:

  • Cutco advertise a job for students that makes $15 per appointment
  • Students will go through a long interview process with multiple stages.
  • Eventually, they send you on a 3-day training course that spans around 7 hours each day.
  • They will ask you to write a list of all people that you know
  • Call your friends or relatives
  • Provide a sales script
  • Try to book a presentation, aka sales pitch
  • Use a done-for-you presentation to try to sell the knives
  • Get 10-50% commission on any sales or $15, whichever is more

Related Review: Is Kangen Water a Scam?

How To Start Selling Cutco Knives?

Before you can join the Cutco MLM scheme and start selling their products, you have to apply for an interview and pass their requirements. Below are the steps…

  1. You will undergo a multi-step interview process.
  2. They will give you a three-day training course after you have been hired.
  3. They will request a list of referrals from you.
  4. They will supply you with a sales script and presentation to reach out to your potential clients.
  5. Earn from 10 to 50% commission on all sales (or the guaranteed base pay of $15, whichever is more).

How Much Does It Cost To Join Cutco?

The good thing here with Cutco is that there’s no membership fee if you want to join.

To become a sales representative with Cutco, you need to complete the training that Vector Marketing gives. 

There they will teach you how to make sales demonstrations to pitch the products.

Once you become a member, Cutco will lend you a product sample for you to use to demonstrate the product, which is a good thing.

You can also borrow sample kits, and you just have to return them to them when you decide to quit.

If you want to remain active as a member, you need to sell $100 of knives or products every month!

And if not and you’re not active by the end of the month, you have 2 choices: give the knife kit back or buy the kit for $75 which is better than half price.

However, there’s a catch.

You have to shoulder the expenses you make when you do business presentations such as travelling, gas, types of equipment, and more that you need for your business presentation.

It will cost you a lot of money, I say.

Yeah, you won’t have to pay for a membership, but you’ll be lumbered with hefty money with all of these costs.

Related Review: 7K Metals 

Can You Make Money With Cutco MLM?

Some people make some money with Cutco, for sure. Selling products is not easy as it takes a lot of time and hard work to convince people that your product works.

Also, it takes a lot of time because you have to know more about the product you are selling, and once you know it, it will be easy for you to sell it.

Yes, you can earn some money here, but it might not be enough to sustain your needs.

Before you continue with my Cutco scam review, please, watch the video below to hear about this MLM from first-hand experience:

How To Make Money With Cutco MLM?

There are two ways you can make money with Cutco MLM, and that is by selling the products to earn a commission or getting bonuses from the sales of people you can recruit into the company.

With Cutco at home, it is different as you can earn money in 2 ways, and that is.

  • Commission of sales (20-30%)
  • The bonus of your downline sales (1-10% as long as they sell $1,000+ month)

To get paid, you must submit a complete qualified presentation report every week to your office manager for tracking purposes. 

Also, you are required to sign a standard Sales Representative Agreement and put down a security deposit ($200) for your demonstration knives.

In case you decide to follow the second route, here is the compensation plan:

What Is Cutco Compensation Plan?

With Cutco, you can earn a 10-50% commission on sales or $15 for a presentation (whichever is higher).

The presentation doesn’t last for around an hour. This is why the confusion over getting paid $15 an hour exists.

Here’s a structure based on how much you have sold before:

  • $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

Cutco MLM Review - Compensation Plan

How Do I Get Out From Cutco MLM?

To quit your job as a Cutco MLM representative, you have to write a letter of resignation including appropriate identification information (Full name, ID number, and so on) with the final date of your employment.

Then, you have to hand deliver it to your supervisor, with a copy sent to the Human Resources function in your organization.

It is important that this letter is written and that you keep a copy, along with either emailing or posting a copy to HR. Ask for written verification of receipt when you do not automatically receive such.

Alternative: My #1 recommendation is a top affiliate marketing course that helps to build a successful online business from scratch! I used this exact system to go from $0 to earning $100’s per day! Learn more below!

 

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What I Like About Cutco MLM

So is Cutco a scam? Or is it legit? Keep reading the Cutco review to find out! Below is the set of pros and cons that you need to go through before going any further.

You Get Paid $15 per Lead

They do pay you $15 per effective visit. This is one point that they promise they would certainly do if you make client discussions and also might make extra if your leads make a purchase.

Cutco MLM Scam or Pyramid Scheme

Cutco Knives are High-Quality Product

There’s a lot of favourable feedback about Cutco’s item quality.

And what makes it stick out is the truth that cooks around the world are either utilizing them or recommending them also.

Lots Of Positive Product Reviews

I have actually checked out plenty of complaints about the business however I have not located one individual that has actually grumbled regarding the top quality of the knives!

Cutco knives Positive Product Reviews

It’s a wonderful indication that CUTCO is not a scam if individuals utilize their items are happy with the product.

Cutco Provides Training and Sales Material

Cutco gives correct sales training for every single new recruit.

They are supplied with a well-written starter sales pitch script which you can personalize as you deem essential. Through this training, your leadership, as well as sales abilities, are established.

Related Review: Digital Prosperity Movement

What I Don’t Like About Cutco MLM

On the other hand, below are some of the things I don’t like about Cutco MLM in my review:

Handful of Lawsuits

Cutco has a great line of products, but it got tainted with some lawsuits when Vector Marketing came along.

Here’s why. In 1990, Vector was sued by the Arizona Attorney because it misrepresented its compensation system.

Not just that, in 2014, a girl got violently sexually assaulted by one of her customers while working for Vector.

As a result, she sued the company for not providing her with adequate training to prevent the situation.

There’s a lot more. If you want to know the rest of it, click on this link.

Expensive Products

As you can see, the products are not that cheap as they cost thousands of dollars.

Cutco Knives Expensive Products

So how can you sell that knife at that cost? And also, not everyone can afford that.

No Compensation Plan On The Website

This is the most important part of the business if you want people to join.

But with this company, it seems that they don’t care much about considering what potential members might need from them. 

No Income Disclosure

You can make money with this company by selling, but how can you prove that people are earning if you don’t have income disclosure on your website?

Low Commissions

10% commission is not a lot when you are selling face to face.

You have to sell more than $150 worth of products to make it worth anything, and that is a lot of money to spend on some knives.

For example, if you sell for $300, you only get a $30 commission. You do not get $15.

BBB complaints

Here is an example: one of the members says that the company promises a 15$/hour job with good hours and benefits, but in reality, your pay is only commission, and you make minimum wage if you’re lucky.

Alternative: My #1 recommendation is a top affiliate marketing course that helps to build a successful online business from scratch! I used this exact system to go from $0 to earning $100’s per day! Learn more below!

 

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Cutco MLM Review PROS

  • Free to join
  • Develop sales and leadership skills
  • Good quality products
  • The company has been around for years

Cutco MLM Review CONS

  • Expensive
  • Low-income opportunity
  • Handful of lawsuits
  • NO income disclosure
  • Targeting fresh graduate students
  • It will cost you more money 

Final Words On Cutco Review – Is Cutco A Scam or A Pyramid Scheme?

As I have established in my in-depth review, Cutco MLM is not a pyramid scheme or a scam. It’s a legit MLM business that you can take a part in to make money.

Cutco has some good high-quality products and a lifetime guarantee, which shows how much they believe in their products.

However, most of their products are pretty expensive, and not everyone can afford them.

Yes, there is a possibility that you can make money with Cutco. If you’re good at facing other people and have good marketing skills, then there is a possibility that you can earn.

However, the amount you will earn here won’t be enough for you, especially if you have a family to feed, bills to pay, and more.

If you’re not good at selling or don’t have any marketing skills, then I suggest finding another way to make money where you don’t have to harass family and friends to join the company just to make money.

Thanks for reading my Cutco review. Is Cutco a scam or a pyramid scheme? No. Do I recommend it? Not really. There are many better ways to start a legitimate income online!

Related: Primerica Pyramid Scheme

Is There a Better Way To Make Money Online?

I know how hard it is to trust websites these days. There are too many scams out there, especially in the make-money-online world. I know, because I reviewed over 600+ sites so far!

See, Cutco Cutlery is just one of the many online companies I have reviewed…

While searching for the best ways to make money online myself, I bumped into a platform where you can start making money online in the best way possible.

It is a 100% legit company that helps people to create a successful affiliate marketing business.

So if you want to succeed online and make money finally, my best and only recommendation is affiliate marketing. Best of all, all you need is an email address to get started.

Keep reading for more info…

How I Make Money With Affiliate Marketing

The program that I recommend as my #1 solution for making money online with affiliate marketing is based on a 100% proven and tested system.

The best thing about this method is that it is passive in terms of results and income.

In other words, you could be earning an income from your site for years and years to come because this method is so POWERFUL and overlooked by many marketers.

Just take a look at commissions that I earn passively all thanks to affiliate marketing.

If you want to learn more about how you too can start making money online with affiliate marketing, click the button below!

After evaluating over 600+ programs on the web, my conclusion is easy. This is the best course to learn about ins and outs of affiliate marketing.

And if you’re looking for the very same, click the button below!

 

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And don’t forget to share this Cutco review with your friends and family! 

All the best, Alex. contributor @freeaffiliatemarketingbusiness.com

Related: Consumer Opinion Institute Review

21 thoughts on “Is Cutco a SCAM or Pyramid Scheme? – Cutco Knives Review (2022)”

  1. While Cutco may not be a scam or an MLM, it does not have a good reputation with the young people they hired as salespeople. My son actually went to work for them a few years ago and found that any sales he made had to be closed by his “coach” which prevented him from receiving his commissions. It is widely known among the new hires that the commission they are due will not come to them but to their coach instead. This secret is closely guarded among the employees.

    Jerry

    Reply
  2. It was my first time seeing an MLM company involved in household equipment like knives. I like the marketing strategy where Cutco only signs up salespersons with good marketing histories. Still, this does not change the usual MLM structure where people at the bottom only work for those on top. It points to why they will continue to have a lot of law suites because marketers and clients are aggrieved. Thank you for pointing out a better way to make money – affiliate marketing

    Reply
  3. Cutco is not a scam; it’s just another classic MLM company to me. I don’t necessarily like the MLM system because I prefer selling something that I’ve created. But I understand that it can be a good experience to refine your sales skills. I don’t know how they can sell knives sets all the time. I could understand that for beauty products, but for knives???

    Reply
  4. Thank you for this review over Cutco Knives.  I have never tried to get a job with them before, but I have a friend who uses the kitchen knives and he loves them.  However, you are right, in that it’s great they don’t have a startup fee, but doing all the presentations and all that, moving around, that will cost a lot of money.

    Reply
  5. I never understood how all these MLM companies can make enough sales and make profit like this. Ok, I know that not all MLMs are the same and some of them have some actually good products but most of them sell overpriced items and you need to have a big enough network to succeed in it. In my opinion anyone who want to start an online business should stay away from any kind of MLMs. This is not a beginners job and is very hard to be successful this way.

    Reply
  6. This review on ‘Is Cutco a Scam or Legit?’ provides a thorough background an history of the company. I appreciate the fact that it includes facts about issues within the company itself. Although this company is legit and the offerings are not a scam, as a consumer $1,500 is a lot to pay for some knives, in my opinion. The commission for an affiliate is even less tasteful at 10%. I would definitely pass on this opportunity.

    Reply
  7. After reading your review and looking at Cutco website, basically, this is an MLM company. Where if you signup if you earn anything at all be very small, and to really make money with this company got to recruit and harass people to signup. I think going to stay away for now, as too not sure if their products are of good quality. 

    Reply
    • Cutco has been a popular MLM for ages, but in my opinion, there are much better ways to make money. Affiliate marketing is my top recommendation.

      Ivan

      Reply
  8. Thank you for this indepth review of Cutco knives. I worked for a MLM company and know how difficult it is to make money with the MLM business model if you are not continously recruiting and building a downline. The fact that Cutco doesn’t even have a compensation plan, immediately makes me suspicious about the earning possibility. Combined with the law cases they have faced, and the lack of an income disclosure, will make me avoid Cutco. 

    Reply
  9. The pattern is very similar with most MLM companies. They have a highly priced product that may be of good quality or not so good and use sellers that try to sell the products to gain commissions. Also by recruiting others you get percentages from their sales also. It may not be a pyramid scheme exactly but I have seen the same pattern again and again. The most obvious problem here is the highly priced products. When there are so many cheap alternatives in the market it is almost impossible to sell their products and also you need to have a vast network in order to get enough in return. Not worth it in my opinion.

    Reply
  10. As a DIY self proclaimed chef, I can appreciate a good knife set. Cutco sounds like a legitimate company with a good set of knives. If the products work then they’re easier to sell in the long run; so I personally would give Cutco a try. It’s pretty hard to mess up selling knives, unless you’re just uneducated on how they work.

    Reply
  11. My little sister sent me a link through WhatsApp to Cutco. My dad is a chef, and we have all been fans of high-quality knives and kitchen products. I like that it’s free to join, but the handful of lawsuits you have mentioned have discouraged me a lot. I think I’ll keep my feet away from these guys. Thank you!

    Reply
  12. HI Alex. Thank you for very interesting article. I haven’t heard about Cutco program before but looking on your review its clear to me that its outdated model with limited possibilities of earning decent money. With so many online possibilities I can’t imagine people would be actually interested in direct sell. Maybe company is not a scam (as they are producing high quality knives) but I wouldn’t recommend this program to anyone

    Reply

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