Hey bud, hope you’re doing well…
So, let’s get this straight. The reason why you’re seeing this article is that you have probably heard that CUTCO promises $15 an hour, which left you wondering…
Is CUTCO a pyramid scheme, or can I really make that much money selling knives?
With more and more people falling for scams, I have become more committed to educating and reviewing money making products/services such as this one.
You see, a quick Google search here and there may not be enough, but in this article, I will identify the pros and cons of Cutco Cutlery, and ultimately answer the question: “Is Cutco a scam or can I really make $15/hour by selling blades?”
Towards the end of this article, I will also share with you my number one recommendation for making money online and elaborate on why I think it’s a better choice for folks that are looking to earn a stable income online.
If that sounds good to you, then buckle up as we demystify this knife selling mystery.
What is Cutco Cutlery?
Cutco Corporation is a privately-owned company based in New York. It is a direct sales company that offers kitchen knives through its multi-level marketing (MLM) company known as Vector Marketing.
It basically aims to attract students, stay at home parents, and employees looking for side hustles by selling knives to earn a 10% commission. All their products are explicitly made in the USA and are touted as high quality with its lifetime guarantee. Let’s dig further into how the company came to be. Cutco was founded way back in 1949 by Alcoa and Case Cutlery (hence the name “Al-cas”) to manufacture knives.
History states that Alcoa purchased Case’s share of the company in 1972, and Alcas’ management purchased the entirety of the company from Alcoa in 1982. In 1985, Alcas’ acquired Vector Marketing Corporation.
What is Vector Marketing?
So, is Cutco a pyramid scheme? Well, let’s find out.
Vector Marketing handles the MLM operations as they are the sole distributor of Cutco and Cutco at home. Vector Marketing is known for targeting stay at home moms, college students, and recent high school graduates by luring them in with the possibility of employment.
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. I found a 6-minute video (below) explaining the income opportunity.
Cutco Cutlery Product Line
For people who are looking for beautifully crafted knives, the Cutco range is a no-brainer. In fact, many people recommend these knives and kitchen products due to its top quality materials and durability. Vector Marketing offers the following categories:
• Kitchen knives – $40-$250 for a knife i.e. cleaver, trimmer, table knife, french knife, etc.
• Shears – $90- $120 for specialty scissors
• Cookware – $40-$2,600 pots, pans, gadgets, baking tools, utensils, cutting boards, etc.
• Tableware – $30-$1,500 for cutlery
• Outdoor – $100-$250 for hunting knives, pocket knives, sporting knives, garden tools
But the flagship product in the line is the Cutco Knife Sets which retails between $280 – $1,212. The set features a patented “Double D”- recessed edge with a 440A stainless steel blades which offers precise cuts. All of the handles of the aforesaid products use thermo-resin for additional strength, dishwasher endurance, and durability.
Personally, I think that the biggest reason why people are purchasing knives from this company is that it they give out a “lifetime guarantee” which can be evidenced by some of the top reviews below.
DO CUTCO PRODUCTS WORK?
One thing that can guide us in answering the question, “is Cutco a pyramid scheme,” is checking whether the products work as advertised.
And to be honest, Cutco knives simply work! A quick Google search will land you on several sites that show that it is a recommended kitchen gadget.
Moreover, if you visit the company’s social media accounts, you’ll be delighted to see the number of organic followers in their community. As a matter of fact, their Facebook account has a skyrocketing 96K followers, which is not something you see every day. (especially from a cutlery company)
You can also check out their consumer affairs profile to see the actual reviews regarding the product. Please do note, though, that what we are dealing with here is the product’s quality. We are not discussing its money-making scheme yet.
HOW TO MAKE MONEY WITH CUTCO CUTLERY?
Joining the Cutco Cutlery is extremely easy since it is free to join. Back in the day, you needed to buy a “knife kit” for your presentations, but today, you can get it for free as long as the company deems you an “active representative.”
As I have stated earlier, the company saves money on advertising and marketing by hiring people (such as students and staying at home moms) to sell the knives. In return, they/you can earn a 10% commission.
It seems like a piece of cake, right?
But how do we determine what an “active representative” is? Well, according to my research, representatives are expected to sell $100 of knives or kitchen products every month. Failing to do so will result in (1) you returning the knife kit or (2) buying the kit for half the price.
But what about the $15 per hour advertisement?
Let me be frank with you on this. There is no way you’ll get $15 on your bank account every hour. I’m not saying it’s impossible, but you can only achieve that by making appointments or sales presentations. You see, in Cutco, they guarantee a payment of $15 per face to face appointment.
The actual process is quite easy:
- You will go through a multi-stage long interview process
- Once hired, they will send you a three-day training course
- They will ask you to list referrals
- They will provide a sales script and presentation that you can use to attain each of your possible clients
- Earn 10-50% commission on any sales (or the promised $15, whichever is bigger)
What is Cutco Cutlery’s Compensation Plan?
If you will visit the company’s official website, you’ll get to see that they are highlighting that the process is not a “get-rich-quick” scheme. Rather, it prides itself on traits such as persistence, diligence, and commitment.
With this being said, Cutco ensures that the earnings you will make from this hustle depend on your grittiness and persistence to sell. The table below summarizes the commission structure based on how much you’ve sold.
But waaaaaait! What is the “Cutco at Home” Compensation Plan?
The thing is, you have to be sure about the type of compensation that you will receive from the company. Based on my research, there are two types of compensation, the basic Cutco compensation (above) and the Cutco at Home compensation plan.
Based on the Cutco at Home, you can earn income in two ways. The first way is through the commission of sales, while the other is through the bonus of your downline sales.
Cutco Cutlery Ugly Truths Revealed!
Before we answer the question, “is Cutco a scam and a pyramid scheme?”, let us dig into the downsides of this money-making program first. Of course, as I have promised you early on, I will also be listing here the things I find sketchy regarding Cutco.
- Expensive products. I do understand that the products exude good craftsmanship, but it also seems to be unreasonably priced.
- Outdated sales techniques. There will be training and specific scripts, but to be honest, that is not enough especially at this time. Technology is so widespread and I firmly think that Cutco allowed their salespeople to learn and use whatever strategy they know.
- You cannot earn a steady stream of income from commissions.
What do I like About Cutco Cutlery?
I listed below some of the major plus points for Cutco Cutlery:
- It ACTUALLY pays every time you make an appointment. Right off the bat, you can earn $15 just from presenting your sales pitch. You can earn even more if you actually sell the items!
- You can honestly find positive reviews on their products. You see, what sets this apart from other MLM products is that the knives are actually recognized by chefs all over the world. In fact, the company has a huge number of followers online which reflects how well-known and reputable the company is.
- They give you enough training and a starter sales pitch script which you can modify as the times come. More importantly, you get to develop your sales and leadership skills.
- They were recognized in the top 20 Direct Selling Associations in 2016! They are legit!
Is Cutco a Pyramid Scheme?
As someone wary about joining firms based on promises, I do understand why you need to answer the question “is Cutco a pyramid scheme?” Based on how Cutco works, it is definitely not a pyramid scheme.
It is a legit MLM in all aspects because they sell products that actually work and they pay their representatives exactly as they say they will. The traditional business model followed by the company is what we call the “direct sales” model. In this model, you only earn profits from the commissions from anything you can sell.
But on a realistic aspect, how many of those knives can you actually sell in a month? Can you really find enough people willing to spend a thousand dollars on some knives?
I hope that I was able to put justice on answering our leading question, “is Cutco a pyramid scheme?” For more information on money-making schemes and recommendations, be sure to check out the review section of our website.
How I Make a Living Online
Now that we have answered the question, “is Cutco a pyramid scheme?” let me share with you my most recommended way of earning passive income online. Unlike Cutco or MLMs in general, affiliate marketing is one surefire way that can help as an additional income stream.
Of course, building your website will take some time, but it definitely doesn’t require you to be an expert. Many everyday people like ourselves have done in the past, are doing it now, and will continue to do it in the future. The real question is, what’s stopping you?
At present, I am a member of a marketing community that seeks to train beginners like you and me in starting our own business and building our websites in a niche we are passionate about.
Oh! and did I mention that you do not need to shell out a huge capital as compared to MLMs? Sounds great right? If you’d like to know more about this caring community, then read this post.