Is Cutco a SCAM or a Pyramid Scheme? – Cutco Knives Review

Welcome to the ultimate Cutco scam review.

Cutco Knives is one of the most notorious MLM business opportunities in the world today.

If you are interested to learn:

  • Is Cutco a scam
  • Is Cutco a pyramid scheme
  • How it works
  • The real cost to start
  • Whether users are successful
  • And much more!

You’ve clicked on the right website!

I’ve dedicated a few days to analyzing this MLM, taking notes, uncovering hidden info, and thoroughly going over the program so that I can provide you with the most helpful Cutco scam review.

📘 About

Knives and cutlery MLM company.

💰 Cost

Free to start.

Pros

Long-standing company. You can start for free. High-quality products (knives). Lots of positive reviews. You get training first. 

🛑 Cons

Cutco has been sued many times. Their knives are expensive (hard to sell). Unattractive compensation plan. No income disclosure is available publically. They target young students.  

⚠️ Verdict

Cutco may sound great at first, but it is a notorious MLM that is best for those who run it. 

📈 Rating

I Want To Know…

About the Reviewer

Hey, I’m Ivan Brozincevic!

Since 2018, I’ve been making a full-time income online, which allowed me to quit my old job (about me).

Initially, I struggled to identify legit courses and avoid ones that were just out for my money.

That’s why I created this website – my main goal is to help you steer clear of pitfalls and discover the top online business courses.

Every week, I invest hours reviewing online courses and writing reviews based on my fact-driven review guidelines to assist you in making an informed choice.

Related: Check out my FREE training program for making money online.

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.

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.

So, is Cutco a scam or a pyramid scheme? Will it make you any money? Should you join? Is Cutco legit? Find out in my Cutco MLM review!

Related: Mary Kay 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.

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
  • Table & Steak Knives
  • Knife Gift Sets

Knife block sets are among the popular products on the list.

Cutco Knives review

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…

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 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 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.

Related: Herbalife Pyramid Scheme

Is Cutco MLM Legit 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 meagre $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.

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 Review: Is Kangen Water a Scam?

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:

  1. Apply for an interview and meet their requirements.
  2. Once hired, participate in a three-day training course.
  3. Provide a list of referrals as requested.
  4. Receive a sales script and presentation to reach out to potential clients.
  5. Earn from 10 to 50% commission on all sales or a guaranteed base pay of $15, whichever is higher.

How Much Does It Cost To Join Cutco?

Cutco offers a great advantage: no membership fees are required to join. Becoming a sales representative, however, requires completing training provided by Vector Marketing.

During this training, you will learn how to effectively demonstrate and pitch Cutco products.

Once you become a member, Cutco provides a product sample for demonstration purposes, which is quite helpful. Additionally, you can borrow sample kits and return them when you decide to quit.

To remain an active member, you are required to sell $100 worth of knives or products each month.

If you fail to meet this requirement, there are two choices: return the knife kits or purchase them for $75, which is more affordable than the original price.

However, there is a catch. You are responsible for your business presentation expenses such as travel, gas, and necessary equipment. These costs can add up and become quite expensive.

While there are no membership fees involved, keep in mind the potential expenses you may incur during your Cutco journey.

Can You Make Money With Cutco MLM?

Cutco can be a source of income, but it requires time and effort to sell the products convincingly.

Familiarizing yourself with the product is crucial. While you can earn some money, it may not be sufficient for your needs.

Before proceeding with my Cutco scam review, please watch the video below for a first-hand experience with this MLM.

How To Make Money With Cutco MLM?

With Cutco MLM, there are two ways to make money:
Selling the products to earn a commission.
Getting bonuses from the sales of people you recruit into the company.

For Cutco at home, the earning opportunities are as follows:

  • Commission on sales (20-30%).
  • Bonus on your downline sales (1-10% as long as they sell $1,000+ per month).

To receive payment, you need to submit a complete qualified presentation report to your office manager every week for tracking purposes. Additionally, signing a standard Sales Representative Agreement and a security deposit of $200 for your demonstration knives are required.

If you choose the second route, here is the compensation plan:

What Is Cutco’s Compensation Plan?

With Cutco, you have the opportunity to earn a commission on sales ranging from 10-50%. Alternatively, you can earn $15 for each presentation, whichever amount is higher.

It’s worth noting that the duration of the presentation is not around an hour. This misconception may have confused the $15 per hour payment.

Here’s a breakdown of the structure based on your previous 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
Cutco MLM Review - Compensation Plan

How Do I Get Out From Cutco MLM?

To quit your job as a Cutco MLM representative, follow these steps:

  1. Write a letter of resignation including the necessary identification information such as your full name and ID number. Mention the final date of your employment.
  2. Hand deliver the letter to your supervisor. Make sure to keep a copy for yourself.
  3. Send a copy of the letter to the Human Resources function in your organization, either through email or postal mail.
  4. Request written verification of receipt from HR if you do not receive it automatically.

It is important to follow these steps to ensure a formal and proper resignation process.

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.

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.

Cutco MLM Scam or Pyramid Scheme

Cutco Knives are High-Quality Product

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.

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!

Cutco knives Positive Product Reviews

It’s a wonderful indication that CUTCO is not a scam if individuals who use their products are satisfied and happy with them.

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 personalized 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:

Handful of Lawsuits

Cutco has a great line of products but unfortunately, it faced legal issues when Vector Marketing entered the picture. Here’s why:

In 1990, Vector was sued by the Arizona Attorney General because it misrepresented its compensation system.

Furthermore, 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.

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

Expensive Products

The products are quite expensive, with prices reaching thousands of dollars.

Cutco Knives Expensive Products

How can you sell that knife at such a low cost? Furthermore, not everyone can afford it.

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.

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?

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. That can be a significant amount to spend on knives.

For instance, if you manage to sell $300 worth of products, you’ll only get a $30 commission, not $15.

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.

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

After conducting an in-depth review, I’ve established that Cutco MLM is a legitimate business opportunity and not a pyramid scheme or a scam. They offer high-quality products with a lifetime guarantee, demonstrating their confidence in their offerings.

However, it’s worth noting that Cutco products tend to be quite expensive and may not be affordable for everyone. While there is potential to make money with Cutco, it’s important to have good sales and marketing skills, as well as the ability to connect with others.

It’s worth considering alternative ways to earn money if you’re not comfortable with selling or don’t possess strong marketing abilities.

There are many alternatives available that don’t require pressuring friends and family to join a company solely for financial gain.

Thank you for taking the time to read my review of Cutco MLM. While it’s not a scam or pyramid scheme, I don’t wholeheartedly recommend it.

📘 About

Knives and cutlery MLM company.

💰 Cost

Free to start.

Pros

Long-standing company. You can start for free. High-quality products (knives). Lots of positive reviews. You get training first. 

🛑 Cons

Cutco has been sued many times. Their knives are expensive (hard to sell). Unattractive compensation plan. No income disclosure is available publically. They target young students.  

⚠️ Verdict

Cutco may sound great at first, but it is a notorious MLM that is best for those who run it. 

📈 Rating

The Best Way To Make Money Online

I earn online by creating simple affiliate websites that I use to connect people with products they are already looking for.

It’s called affiliate marketing and it is the best way to make money online (at least in my humble opinion).

If you want to learn more about how you can start making money online with affiliate marketing, I would strongly suggest you sign up for the free training on the next page.

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

All the best, Ivan @freeaffiliatemarketingbusiness.com

Related: Primerica Pyramid Scheme

Leave a Comment