You saw a poster of hiring people for summer work and got the phone call for a job interview, and you are told to sell knives for Cutco Cutlery. So, you became curious about this company and wanted to know “Is Cutco A Scam?”
If yes, congratulations, I would provide you everything you need to know about Cutco. You could make a better decision once you read till the end. I am not an associate from Cutco, so you won’t see me selling any knives or other kitchenware in this article. What I am sharing today is to evaluate whether it suits me or not when it comes to making money. Deal?
I am also seeing you did your researches well and landed here for more details about Cutco. To be honest, this is the first step to filter out bad ones and find a legitimate way to make money online or offline. You are on the right track.
Let’s explore this business opportunity further down.
What is Cutco?
-Summary of Cutco-
Product Name: Cutco
Founders: founded in 1949 by Alcoa and Case Cutlery
Product Type: Kitchenware MLM(similar to Pampered Chef)
Price: $300 above to buy the demonstration knife kit.
Rating: 10 / 100
Cutco Corporation, formerly known as Alcas Corporation, is a company that sells knives through another multi-level marketing company called Vector Marketing. The company was founded back in 1949 by Alcoa and Case Cutlery (hence the abbreviation of “Al-cas”) to manufacture knives.
Alcoa purchased Case’s share of the company in 1972, and Alcas management purchased the company from Alcoa in 1982. In 1985, Alcas acquired Vector Marketing Corporation. In 2009, Alcas changed the name to Cutco, the name of the primary product.
What’s inside Cutco?
Many kinds of knives, of course. I have to admit that there are so many knives that I don’t know before I check on Cutco’s website, and I am very grateful for my mother who in charge of the kitchen in our family. Thank you, Mom. Since there are tons of knives, I don’t think I could list all knives in this article. So, I would only talk about the major product lines of Cutco.
- Knives: All kinds of knives you need in the kitchen.
- Knife Sets: Small knife sets, large knife sets, knife sets with a block or a tray, etc
- Shears: Super shears or gift shear sets.
- Cooks’ Tools: Vegetable peeler, sharpener, ice cream scoop, pizza cutter, etc.
- Tableware: Table knives, steak knives, table knife sets.
- Cookware: Sauce Pans, fry pans, skillets, woodblocks, etc.
- Outdoor: Sheaths, knife for fisherman, knife for hunting, lock back knife, pocket knife, etc.
Do Cutco Products Work?
Yes, they work quite well. If Cutco provides low-quality products, there is no possibility that they could survive over 71 years. They must have the know-how to do things right for the business.
I don’t have any experience with knives from Cutco, so I went online to know about what other customers said. Taking Cutco Model 77 Super Shears 2.0 as an instance, here is what I found on Amazon. It got 4.7 out of 5 ratings on Amazon, which shows very positive feedback toward the product itself.
How Does Cutco Work?
When Vector Marketing Corporation is the primary company that sells Cutco’s products, so every job interview you got is from Vector Marketing.
The recruiters ask you some questions about yourself via phone calls, then you are invited for interviews. If you are asking some questions during the phone call, the recruiters will not answer you but tell you “our manager does cover that in the interview!” This is where you start your journey to sell Cutco’s knives.
- You need to join a group interview. Normally, 9 out of 10 could pass the group interview, the one who doesn’t pass might act weirdly or like a fool.
- They will invite you back for a private interview, and you need to answer some normal questions about your dreams, goals, and skills.
- Once you get the job, there is an unpaid 3-day training waiting for you. You will know the skill and understand all kinds of knives you are about to sell.
- The last, you will be asked to buy your starter kits of knives for the demonstrations to your future customers. After the third day of training, you are able to go out and start selling.
The Compensation Plan
Unlike other MLMs in the industry, Cutco’s compensation plan is very simple and easy to understand.
You earn 10%-30% retail commission if you are lucky to sell any knives. The more you sell, the more commissions you can earn:
- $0 – $1,000: 10%
- $1,001 – $4,000: 15%
- $4,001 – $7,500: 20%
- $7,501 – $12,000: 25%
- $12,000 – $24,000: 30%
- $24,000+: 30%+(unspecified)
Cutco gives a guaranteed wage of approximately $17 to $19 per appointment and completed by sales representatives(you). YES, per appointment. Although every appointment might take longer than one hour, you cannot refer them as hourly wage.
We also need to consider the time and the props we prepare for the presentation, fuel to drive there, and parking fees, etc. If we calculate all the other costs, the wage is close to half or less of $17 to $19.
Ugly Truth About Cutco
If you do your researches online about Cutco, it’s easy to find out there were many lawsuits against it. just to name a few:
- In 1990, Arizona’s attorney general sued Vector Marketing for violating the Arizona Consumer Fraud Act.
- In May 2010, Alicia Harris sued Vector Marketing, the company that recruits students to sell Cutco cutlery, for not paying her the time she spent in the training.
- In Feb 2017, Vector Marketing settled a class-action lawsuit with sales representatives who were required to attend training sessions but were not paid.
TOP#2 Prey On Naive Students
Vector Marketing aims to recruit as many college students as possible to keep the business running. For them, the stable supply of recruits and leads is an important factor because many students quit in the first two weeks.
Once you got the phone calls, the recruiters will use a script to get you to the second and third interviews. The script is so natural that all students get hooked, and all new recruits will learn the whole script in the training such as asking specific questions to obtain a wanted answer or memorizing canned responses to deal with objections.
TOP#3 Low Income Potential
When you only get approximately $12.50 to $17.50 per appointment without deducting the extra expenses, it’s easy to spend more than you can make with this business. That’s the reason why students quit the jobs once they run out of their friends or family to sell knives.
There is also no official income disclosure from Cutco & Vector Marketing, so it may imply the low-income potential from this business. Otherwise, they would provide some documents on the website for thorough consideration.
I am sure there must be someone who made lots of sales with Cutco & Vector Marketing while the majority fail and quit in the first two weeks.
What I Liked About Cutco
TOP#1 Made In USA
In the world of “Made in China” we are living, it’s really nice to see that Cutco keeps manufacturing in the USA. By doing this, it stands for the high-quality of Cutco cutlery, and that’s probably the reason why they are providing a lifetime/forever guarantee. This gets us to my next point.
TOP#2 Forever Guarantee
Yes, you don’t hear me wrong. Cutco offers a lifetime guarantee if you are not completely satisfied about the performance of the products. You don’t need the receipt or registration for the replacement or the sharpness services.
If at any time within 15 days after receipt of your Cutco products you are not satisfied with your purchase for any reason, you can get a full refund of your purchase price. Check HERE for more details.
TOP#3 Partner With Alzheimer’s Association
It’s nice to see Cutco tries to be socially responsible to support the Alzheimer’s Association of the USA. During Alzheimer’s & Brain Awareness month(Jun 2019), Cutco offered limited-edition purple products.
They will donate 10% of every Cutco purple product sale, with a minimum guaranteed total donation of $50,000, to the Alzheimer’s Association.
Who’s Cutco For?
No one, to be honest. I cannot recommend anyone to this MLM since I think there are too many red flags I saw from the business model and the only recruitment of naive college students.
Is Cutco A Scam?
No, Cutco is not a scam based on my findings. Cutco provides real knives for students to sell and maybe some of them did make sales during the summer vacation which we don’t know the actual numbers. We cannot call it’s a scam or a pyramid scheme.
If you still want to join after this review, good luck to you. Think twice and be responsible for every decision you make. But, if you give up the thoughts, congratulations, you might be interested in my alternative way to make money online.
My Alternative Way to Make Money Online
My alternative way to make money online is through Affiliate Marketing instead of promoting Cutco products in person. Try to imagine you sell Cutco knives to your friends, family, or anyone you know, don’t you feel embarrassed and nervous? They might avoid you ever since.
Doing affiliate marketing will save you from that:
- You don’t even need to buy any physical or digital products to stock in your basement or storeroom.
- You also don’t need to show people how good the products are face to face.
- You are not restricted to only promote Cutco knives. You can promote anything you like!
What you need to do is to create a website, YouTube channel, or Facebook/Instagram with quality content that makes your target audience trust you then purchase through your affiliate links. If they do purchase, you earn commissions. Simple as that!
The platform I am using is Wealthy Affiliate. The reasons for “Why Wealthy Affiliate?” are for all the WA training courses, LIVE training sessions every Friday night, 24/7 SiteSupport, and the world-famous/awards winning WA community!
For more details or top secrets about Wealthy Affiliate, you could check my full review below.
Wealthy Affiliate Income Proof
Here are some of the most active members from Wealthy Affiliate. Each of them did succeed in generating a sustainable income to replace their 9-5 jobs. You are more than welcome to check their stories HERE.
- I Made Over $1 Million With Affiliate Marketing.
- Can someone make a full time income promoting WA? You bet they can!
- What Does $1000 Per Day Look Like?$
- 40,000 In One Weekend
- A Very Humbling $12,803.26 Month – August Progress Report
- It’s Getting Better: $500+ in 2 Days
- Newbies Pay Attention! $5,195.20 Affiliate Check for June: Thanks WA!
- Joined the 10K Per Month Club. January Earnings $13,481.39
- New Record: $1,300+ Per DAY! Affiliate Marketing Works & Rocks!
- Made $7,395 in a WEEK: First Black Friday Results!
I hope you find this article useful and helpful to guide you on the right track. If you have other opinions, you are more than welcome to leave a comment below. I will try to reply as soon as I can, cheers.