Are you looking for a Cutco MLM review? Is Cutco a pyramid scheme? If you want to make money online, you might have heard of this program. But you may wonder if it is a scam.
There is a good chance that you heard about Cutco MLM through someone – a friend or family member.
Many people these days are looking for additional income, and you are most likely one of them. There was then an opportunity to work from home through Cutco MLM.
I have a passion to help people explore the best money-making opportunities online, so over the years, I have reviewed hundreds of similar online programs like Cutco MLM.
To help you make a more informed decision, I have thoroughly researched the Cutco MLM so I can tell you more about it.
As a disclaimer, I’m not affiliated with Cutco MLM. It means I’m not paid to write this review. So you can rest assured that you will get an honest and unbiased review from me.
At the end of this review, I’ll also tell you the best alternative to Cutco MLM that has enabled me to make a full-time passive income online.
What is Cutco MLM?
Since 1949, Cutco Knives has been in business. Alcoa and Case Cutlery own it, and its products are manufactured in Olean, New York.
Cutco is a direct sales company that sells kitchen knives through its multi-level marketing (MLM) company, Vector Marketing.
The company produces and sells items other than knives. They also manufacture and sell hunting knives, pocket knives, and sport knives. All of their products are made in the United States, and they guarantee that they will last a lifetime.
What Products Does Cutco Offer?
Here are some of the knives available from Cutco:
- Kitchen Knives
- Table & Steak Knives
- Sporting Knives
- Knife Sets
- Table & Steak Knives
- Knife Gift Sets
The knives were all made in the United States, and their handles are made of thermo-resin, which is stronger, dishwasher safe, and lasts longer. The Lifetime guarantee is possibly the best feature of these products.
What is MLM?
Before we get into Cutco MLM, I’d like to explain what MLM is and how it differs from traditional business models.
Multilevel marketing companies are also known as direct sales companies or network marketing companies.
An MLM company does not pay you a salary.
You make money by recruiting others to join your business rather than selling products. If you hire someone and they start making money, you get paid a commission on the sales and recruits they bring in.
There are several levels to this (hence multi-level).
Think about a triangle. If the person at the top of the triangle recruits ten people, and each of these ten recruits ten more, and each of these ten recruits ten more, you will receive commissions from everyone in the triangle because they are all in your direct downline (in an MLM, the people beneath you are known as your ‘downline,’ and you are their ‘upline’).
You can earn $1100 by recruiting 10 people.
Even if your MLM company offers a wide range of products, most people prefer to recruit others because they can earn a lifetime passive income from them, whereas if they sold a product, they would only receive a one-time commission.
People at the top make a lot of money because money trickles up to the top of the triangle, while people at the bottom make the least.
The ultimate goal of someone who works for a company like Cutco MLM is to have as many people in their ‘downline’ as possible, allowing them to earn large amounts of passive income.
How Does Cutco MLM Work?
Cutco, like other MLM companies, does not market its products. Instead, its members sell the products to save money and to promote the company. In exchange, these individuals will receive a 10% commission.
However, they do not specify what you must do as a representative.
In general, it works as follows:
- Students can work at Cutco for $15 per appointment.
- The student interview process will be lengthy and complex.
- They eventually send you to a three-day training course that lasts about seven hours each day.
- They will request that you write down the names of everyone you know.
- Contact family or friends.
- Create a sales script.
- Schedule a presentation, also known as a sales pitch.
- To sell the knives, use an already prepared presentation.
- Get between 10% and 50% of all sales, or $15, whichever is greater.
Is Cutco A Pyramid Scheme?
A pyramid scheme recruits members by promising them money or services in exchange for enrolling others.
A pyramid scheme is unsustainable and frequently a scam because members lose money as the number of recruits increases.
Those who want to join must pay a fee to an organization that runs a pyramid scheme. The organization will share a portion of the funds raised from each additional member they recruit as a reward.
The directors of the organization receive a portion of these payments (those at the top of the pyramid).
The scam is profitable for the directors whether or not they do any work. It is in the membership’s best interests to recruit and funnel money to the top of the pyramid.
Such organizations almost never sell valuable goods or services. The scam’s only source of revenue is from recruiting new members and soliciting more money from current members because it does not produce any goods or services.
Pyramid schemes are very similar to exponential growth mathematics. The size of a pyramid grows dramatically with each level. A pyramid scheme would have to grow indefinitely in order to make money for everyone who joins. This is impossible due to the planet’s finite population.
The scam will fail in the absence of new recruits and other income sources. Because the largest terms are at the bottom of this geometric sequence, the majority of people live in the pyramid’s bottom layer.
Workers in pyramid schemes typically promote the company rather than the product they are selling. At some point, no one at the bottom of the pyramid will make any money, while only those at the top will profit.
People at the top of the pyramid usually make money, while those at the bottom usually lose money. Because they are at the bottom of a pyramid scheme, the majority of participants lose money.
Members at the scheme’s bottom will have no chance of profiting if the scheme fails, but they will have already paid.
Is Cutco, then, a pyramid scheme?
No. Cutco does not operate as a pyramid scheme. It’s possible for members of the company to make money by selling their products.
They don’t have to make money solely through recruitment.
Watch the short video below to learn more:
What is the Cutco MLM’s Compensation Plan?
Cutco allows you to make money in two ways: by selling products and receiving a commission, or by receiving bonuses from the sales of people you bring into the company.
- Commission of sales (20-30%)
- The bonus from your downline’s sales (1-10% if they sell $1,000 or more per month)
To be paid, you must submit a complete qualified presentation report to your office manager every week so that they can keep track of you.
In addition, you must sign a standard Sales Representative Agreement and deposit a $200 security deposit for your demonstration knives.
If you choose the second option, here is how you will be compensated:
Cutco offers a 10-50 percent commission on sales or $15 for a presentation (whichever is higher).
The presentation does not take an hour to complete. This is why most people do not comprehend what it means to be paid $15 per hour.
Here’s a strategy based on how much you’ve previously sold:
- $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
10 Reasons Why I Don’t Recommend Cutco MLM
1. The Good Reviews are Written by Cutco MLM’s Affiliates
You probably have found some other reviews of Cutco MLM and all of them are saying good words.
But all of them are actually paid to write, meaning they will receive a commission if you join Cutco MLM via their links. Therefore, their words are often biased and not trustworthy.
Those reviews are simply sales pages and do not tell you the hidden costs and the difficulties of really making money.
By common sense, should you trust someone who has a conflict of interest that receives huge compensation by “reviewing” the program? Probably not. They are not reviewing, but selling!
Therefore, I recommend reading the reviews of those written by the non-affiliates of Cutco MLM.
2. Very Few People Can Make Money With Cutco
Success is difficult to achieve with an MLM company like Cutco.
You can look at the statistic that says 72.5 percent to 99.9 percent of MLM members lose money.
The reason for this is that MLMs have sales quotas that require members to continue selling products in order to remain active and eligible for commissions.
They will not be paid if they do not meet the quota.
As a result, many MLM members lose a significant amount of money before even recruiting one person into the company.
3. Losses From Cutco MLM Are Reframed As Investments
Cutco MLM uplines often reframe their financial losses as ‘investments’ in their business so as to keep their reps in an MLM scheme, dangling the carrot of future financial freedom.
But the reality is that these are not investments. You are unlikely to get the money back. And the return on “investment” is negative in most cases. So saying that it’s an investment is cheating.
4. Cutco MLM is a Cult
Why do people continue to work for Cutco if it appears to be so bad? Our investigation of MLMs revealed that they all have cult-like company cultures.
Critical thinking is actively discouraged among MLM representatives. They are chastised and even isolated when they ask questions that deviate from the ‘this company is a-mazing’ mindset.
MLMs, like abusive partners, encourage you to isolate yourself from anyone who questions your involvement.
Those who leave an MLM are labeled as failures or bad people/influences, and reps are not allowed to contact them.
Rejection from people they once considered practically family is one of the most devastating losses experienced by former MLM representatives.
MLMs frequently expect their representatives to prioritize their events and business over their personal lives in order to further embed them in the business while separating them from their family and friends.
5. You May Need to Purchase Cutco Products Yourself
If you don’t have a large network of friends, family, neighbors, and so on, you may have to buy products yourself each month. It’s a losing proposition all around.
I think it’s quite ridiculous when you have to buy the products you are trying to sell. But this is very common for people who join MLMs like Cutco. That’s why in the long term, you are going to lose a lot of money, not to mention making money.
6. Cutco Products are Overpriced
As with other MLMs, Cutco offers overpriced products. There are many other brands that offer similar products but at lower prices.
Therefore, you may find it difficult to sell Cutco products because your prospects can buy the same product elsewhere at a much cheaper price. This explains why most people who join MLMs only focus on recruitment instead of selling actual products.
7. Cutco’s MLM Business Model Has a Bad Reputation
Some people have benefited financially by joining a network marketing/MLM company. Unfortunately, most people who join MLMs are left with nothing but regret and a lot of useless products that they were unable to sell.
MLM like Cutco is fundamentally flawed. The distribution of commissions is skewed toward the top.
The majority of those in the top tier and pioneers make the most money, while those at the bottom will not even break even after a few months.
As a result, many people do not consider Cutco to be a legitimate business opportunity.
8. Exaggerated Claims Of Income
Cutco, like any other MLM company, makes exaggerated income claims, but in reality, very few people make a good living by promoting Cutco.
Cutco’s low retention rate can also be discouraging, as less than 41% of its distributors are active.
According to Cutco’s payouts to distributors, over 99 percent of Cutco distributors never make a profit.
9. Cutco Is Like A Pyramid Scheme In Disguise
If you want to avoid losing money every month, the MLM will actually encourage you to recruit people.
Every system that requires you to recruit people in order to make money eventually looks like this.
Cutco is not a pyramid scheme in the traditional sense because you can earn money by selling their products.
However, in order to make a living, you will need to hire others in reality.
10. Recruiting is Required to Succeed
I don’t recommend MLMs to people for this reason. MLMs like Cutco put a lot of effort into recruiting. Eight out of ten ways to earn money with Cutco require recruiting. If you don’t recruit, you are destined to lose money at the end of the day.
My #1 recommended platform is different. You can make a 4-figure, 5-figure or even 6-figure passive income by promoting and selling products you truly like. You don’t have to recruit people but recommend useful and great products. I will tell you more at the end of this Cutco review.
How Much Does It Cost To Join Cutco MLM?
The great thing about Cutco is that you don’t have to pay anything to join.
To become a Cutco sales representative, you must complete the Vector Marketing training. They’ll teach you how to do sales demos to pique people’s interest in your products.
Cutco will lend you a sample of the product once you become a member so you can show it to others. This is a positive development.
You can also borrow sample kits, and if you decide not to use them, you simply return them.
To remain a member, you must sell $100 in knives or other products each month.
And if you don’t use the knife kit and aren’t active by the end of the month, you can either return it or purchase it for $75, which is less than half the price.
However, there is a catch. When giving business presentations, you must pay for expenses such as travel, gas, equipment, and anything else required for the presentation. I can assure you that it will be very expensive. You will not have to pay for a membership, but all of these costs will add up quickly.
Cutco MLM Positive and Negative Feedbacks By Real Users
- Joining is completely free.
- High-quality products
- The company has been in operation for a long time.
- Opportunity for low-income people
- Several legal actions
- There is no income disclosure.
- More funds will be required
Is Cutco MLM a Scam?
I cannot say Cutco MLM is a scam for legal reasons. A scam is defined as “a dishonest scheme; a fraud” by the Oxford Living Dictionary.
Can you make money selling Cutco products? We already know that a majority of Cutco reps did not earn any money. A few people do make money but only if you put in a lot of effort. And usually, the way they make a lot of money from Cutco is by recruiting aggressively.
Also, Cutco blatantly makes disingenuous and irresponsible marketing claims to recruit members. Therefore, some people do consider Cutco MLM a scam.
My #1 recommended platform, however, has seen a lot of beginners earn four figures a month after joining it for a year.
I will tell more about my #1 recommended platform at the end of this review.
Final Verdict: Cutco MLM Review
Here comes the conclusion of my Cutco MLM review. Overall, I don’t recommend joining Cutco MLM to make money.
You will have a tough time at the beginning when you are prospecting and trying to find recruiters to add to your Cutco commission.
The worst part is that you practically have to ask your family and friends to join your Cutco business opportunity. It’s not fun.
Your upline is constantly following up with you to encourage you to buy more Business Support Material even as you struggle to get people to join your downline.
The reality is that you’re likely to lose more money. Statistics confirm this as well. 99% of people who join an MLM break even or lose money, according to a case study on the FTC’s website.
People who join these MLM-type businesses often feel under pressure to succeed, and that is one of the main reasons they leave.
Why not consider starting your own online business if you want to earn money and have a flexible schedule?
Thus, you can choose what you want to promote rather than having someone tell you what you must promote.
Let me tell you how to build an online business in a legit way to make passive income online in the next section. This has allowed me to make a full-time income in a year. Most importantly, unlike MLM models, It’s 100% legit and sustainable.
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