Is Vector Marketing Scam or Legit? – My Review is Exposing It!

Is Vector Marketing A Scam?

Vector Marketing is a legitimate direct sales business. Their independent professionals earn money by selling a range of products, including knives, cooking area cutlery, and various other Cutco products.

The company’s service techniques involve “job interviews” to recruit university students as sales agents who then sell to family and friends.

It is worth noting that this is a legitimate practice used by many US-based companies such as 7K Metals and Enagic Kangen Water.

However, some young people who joined the scheme have claimed that Vector Marketing is a scam. For a firsthand perspective, let’s hear from the source. Keep on reading my review!

What Is Vector Marketing?

Vector Marketing is an MLM company that has been in operation since 1948. It was founded in New York over half a century ago.

In 1985, Cutco Corporation acquired the company, making it a wholly-owned subsidiary. For those unfamiliar with Cutco, here’s a link to my Cutco review.

Post-acquisition, Vector Marketing now focuses on selling Cutco Cutlery. The company expanded its product range to include kitchen cutlery, kitchen tools, and sporting knives.

With a long-standing presence in the industry, Vector Marketing has become globally recognized as the largest producer of kitchen cutlery.

As noted in my Cutco review, Vector Marketing predominantly targets students, especially recent graduates, enticing them with the prospect of employment and earning opportunities by selling their products.

If hired, you would join the company as a door-to-door salesperson, benefiting from promised advantages such as good pay, flexible hours, training, and personal growth opportunities.

There has been controversy surrounding Vector Marketing, as allegations suggest they provide false information to students. Furthermore, numerous lawsuits have emerged, which will be discussed later in my Vector Marketing scam review.

Another concern is that many recruited individuals ended up earning nothing and even losing money. Despite these negative aspects, Vector Marketing continues to operate, indicating a certain level of legitimacy.

However, there are still widespread complaints that label Vector Marketing as a pyramid scheme or scam. To determine the truth, let’s delve into the next sections of this review.

Is Vector Marketing a Pyramid Scheme?

Before diving into whether Vector Marketing is a pyramid scheme, let’s first understand what a pyramid scheme actually is.

What is a Pyramid Scheme?

A pyramid scheme is a business model that recruits members by promising payments or services in exchange for enrolling new members into the scheme, rather than providing investments or product sales, as stated by Wikipedia.

To understand how pyramid schemes work and how to identify them, check out this informative YouTube video! It provides valuable insights and guidance.

So Is Vector Marketing a Pyramid Scheme in Disguise?

Participants in Vector Marketing earn money by offering products and recruiting new members. However, the company cannot escape pyramid scheme allegations by emphasizing product sales to distributors.

The absence of a traditional workforce, as the company employs only independent contractors, contributes to this perception. Some may view Vector Marketing as a pyramid scheme due to its unique operational model.

There are no limits on the number of people you can invite, and once your downline is established, forming a team becomes a priority. Commissions are earned when your recruits invite new members or make product sales.

Vector Marketing operates by recruiting individuals to work in a pyramid structure.

This has led some people to question if it functions as a pyramid scheme.

Simply selling products is insufficient in MLM companies, where the primary method for earning substantial income is through recruiting.

To clarify, the only way to generate significant earnings within the company’s pyramid structure is by occupying a top position. The same principle applies to your downline if they recruit others. Commissions are earned from the sales of Vector Marketing consultants within your network.

However, if you have not recruited anyone, your income will rely solely on the commissions from the products you sell.

Vector Marketing Lawsuits

Vector Marketing has faced several lawsuits that raise concerns.

In 1990, the Arizona Attorney General sued them for deceptive recruiting methods. In 1994, they were ordered to cease misleading recruitment practices in Wisconsin. In 2008, a class-action suit was filed against them for failing to pay minimum wages to sales agents, resulting in a $13 million settlement in 2011.

In 2014, they faced another class-action suit for unpaid minimum wages in multiple states. In 2017, they paid $6.75 million to settle a class-action lawsuit for not compensating sales reps for attending training. Additionally, division managers filed a class-action lawsuit in the same year, arguing for employee benefits.

While Vector Marketing may not be a scam, given these concerns, I cannot recommend it.

Related Review: Plexus Worldwide

What Is Working at Vector Marketing Like?

While researching the legitimacy of Vector Marketing, I came across numerous YouTube reviews.

Here are some videos where former participants share their genuine experiences working with the company.

Based on these Vector Marketing reviews, many users claim it to be a scam. However, legally speaking, there are no grounds for these accusations. It ultimately depends on your personal experience.

Having reviewed numerous MLMs and pyramid schemes, it is evident that these companies prosper through the efforts and investments of others.

Unfortunately, most participants end up failing and losing money. Consequently, the majority of Vector Marketing reviews label it as a scam.

I will delve further into this matter in my review, discussing the ideal candidate for this job and how it operates.

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Who Is Vector Marketing Best For?

To work effectively with Vector Marketing, the ideal person should possess excellent sales skills and enough financial resources to cover associated costs.

This individual must have extensive experience in MLM and selling products and services to others.

It’s worth noting that if you’re solely looking for an online money-making opportunity, this may not be the right fit for you. Making money with Vector requires a long-term commitment.

As an associate, your role involves presenting knives and other products through in-home presentations, for which you’ll receive a base salary.

Additionally, you’re encouraged to share the items with family and friends, earning compensation from any resulting sales.

They also offer comprehensive training to familiarize you with their products and enhance your communication skills. The company’s goal is to build your confidence and equip you with skills applicable to your job.

As you’ll discover in this Vector Marketing review, the company primarily targets recent graduates by promising competitive pay and more opportunities.

I wouldn’t say that it is for them. Yes, you can start selling their knives and master all the skills along the way. However, is it the way a young person wants to start in life?

I personally wouldn’t recommend this to my kids, a family member, or a friend. See the rest of my Vector Marketing review to see why not!

How Does Vector Marketing Work?

At Vector Marketing, individuals have the opportunity to sell products and earn compensation or commission based on their efforts. As mentioned in my Vector Marketing review, anyone can apply; however, there is a selection process involved.

Application and Interview

Here’s how Vector Marketing works:

First, you need to undergo an application and interview process. The initiation process could potentially involve a physical interview. It’s 50/50 that you will get hired by Vector Marketing.

When you apply, you have to prove yourself first and make it through the application process, which starts with an interview with a local manager.

Once you successfully navigate the application process, you will be employed and allowed to promote Cutco products.

However, it is important to note that earning money may not happen right away.

Getting Started With Selling Knives

Before you can start making money with Vector Marketing, you need to invest some upfront. This involves purchasing your own set of demo Cutco knives.

Vector Marketing claims they will loan these demo knives to you.

Based on my research, if you choose not to pursue the opportunity or fail to generate sufficient sales, you will have to personally bear the cost, amounting to around $400 or more.

Additionally, you will also be responsible for covering expenses incurred during business presentations, such as gas and equipment. All of these costs can significantly impact your finances.

Although joining Vector Marketing is free, it is important to consider the substantial financial investment associated with these expenses.

Becoming a Vector Marketing Representative

Anyway, let’s say you get hired. Your task will be to go around, knocking on doors, and setting up appointments to demonstrate the products.

It’s important to note that you won’t be paid for this and will be responsible for the expenses. However, for each demonstration you perform, you’ll receive a guaranteed base pay and a commission if you manage to sell any of the products.

While Vector Marketing doesn’t specify their pay rates on their website, based on my research, they pay $15/hour. However, in reality, your pay is primarily commission-based, and you might only make minimum wage if you’re lucky.

In the following section of my Vector Marketing review, I will explain how you can make money with this MLM.

Related Review: Herbalife

How Can You Make Money With Vector Marketing?

In my previous Vector Marketing review, I mentioned that upon being hired as a sales rep, you work as an independent contractor.

As an independent contractor, you are responsible for covering all the costs associated with promoting the products. Unfortunately, this company’s approach does not sit well with me because it requires a significant financial investment without any guarantee of success.

Consequently, if you do fail, all your efforts in promoting the products will go to waste.

During my research, I discovered that many people were dissatisfied with the independent contractor set-up and accused the company of engaging in deceptive practices.

In fact, there was a controversy surrounding Vector Marketing where Wisconsin authorities issued an order for the company to cease providing false information to students.

Moreover, as I alluded to earlier, almost half of the recruits ended up earning nothing and even lost their own money in the process.

With that said, let’s return to our main topic.

So how can you make money with Vector Marketing?

With this company, there’s a kicker – you won’t earn much and you only get a 10% commission.

Selling knives can be challenging, especially for recent graduates or those without sales experience. While the possibility of earning a 35% commission exists if you sell more, it is important to note that most sales reps typically earn 60% per product sold.

Additionally, organizing product demos can be costly. Although they initially claim to pay $15 per hour, you will only receive $15 per appointment, making it difficult to earn a reliable income.

Working with Vector Marketing may offer very limited earning potential. Moreover, the management can become aggressive when sales are low, resulting in added pressure.

If you’re still unsure about the opportunity, you can read more in this article.

Vector Marketing Reviews

To determine whether Vector Marketing is a scam or a legitimate business opportunity, I would recommend reading online reviews. This is exactly what I have done.

In truth, opinions regarding this company are quite divided. It comes as no surprise to me, considering their extensive customer and business bases, which naturally attract both positive and negative feedback.

Vector Marketing Praise

Glassdoor is one of the platforms where you can find legitimate Vector Marketing reviews. Out of 5.5K reviews on this website, 92% of people recommend this business to a friend.

In terms of overall rating, the company received a 4.4-star rating on Glassdoor. Here are some of the most common positive reviews…

Here is another popular public review site called Consumer Affairs. On this platform, Vector Marketing has gathered 111 reviews with an average rating of 3.9 stars.

After reading these positive reviews online, I began to consider that Vector Marketing might actually be legitimate. Even though they do have issues, it’s clear that those who take them seriously are generally satisfied.

Here is another glowing review…

The situation is similar across various sites. However, there are also some negative complaints where people claim Vector Marketing is a scam.

Let’s take a moment to listen to their experiences as well.

Vector Marketing Complaints

Below is a complaint that I found in the Better Business Bureau (BBB) from a customer who alleges that they sent a letter to her daughter in an attempt to recruit her.

The person in the complaint expressed their dissatisfaction with Vector Marketing’s sales representatives harassing his daughter, pressuring her to become a prospector.

Any company that disregards privacy is conducting business improperly.

The image above depicts a complaint about the low pay. Katherine highlights how selling their products barely allows for minimum wage.

This is the primary reason why I dislike Vector Marketing. Despite the absence of distributor costs, I still cannot recommend this company.

Now, let’s explore some red flags to determine if Vector Marketing is a scam.

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Vector Marketing Things To Consider

Vector Marketing Lawsuits

The company is facing a few lawsuits. In 1990, Vector was sued by the Arizona Attorney General for misrepresenting its compensation system.

Click on this link to Wikipedia if you want to know more about the rest of the lawsuits.

Unpaid training Lawsuit

Vector Marketing Corp allegedly violated the Fair Labor Standards Act and state laws in California, Florida, Illinois, Michigan, and New York. They did so by mandating unpaid training.

Click on this link if you want to know more about the story of the unpaid training lawsuit.

No Compensation Plan

When you visit their website, it becomes evident that there is no compensation plan.

As mentioned in my Vector Marketing review, it appears that this company lacks consideration for the needs of potential members.

No Income Disclosure

Without income disclosure on their website, how can they provide proof that those individuals actually earn money?

Expensive products

Vector Marketing only offers sales of knives as their primary product. However, Cutco’s products are quite expensive, costing thousands of dollars.

This raises the question of how feasible it is to sell these high-priced items when not everyone can afford them.

Verdict – Vector Marketing Review

I don’t recommend Vector Marketing because of its troubled history with lawsuits and complaints, as well as its questionable practices in recruiting graduate students and marketing approach.

MLM companies, in general, involve recruiting people, which can strain personal relationships.

Additionally, MLMs often require significant financial investment for things like creating a website, running ads, and purchasing products to meet sales quotas.

This can result in spending more money without guaranteed returns.

It’s important to note that MLMs tend to benefit those at the top. Regarding Vector Marketing, while their product (knives) may not be affordable for everyone due to the price, I suggest exploring other money-making opportunities that don’t involve pressuring others to join a company.

This is my Vector Marketing review, and I’d love to hear your thoughts. Do you think Vector Marketing is a scam? Have you been or are you currently a member?

Feel free to share your reviews below.

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