Vector Marketing Scam: Pyramid Scheme or MLM? [Review]

If you’re on the lookout for ways to make money online, you may have come across Vector Marketing. But with all the online scams out there, it’s natural to wonder if it’s a pyramid scheme or a legit opportunity.

It’s likely that you heard about Vector Marketing from a friend or family member, who may have encouraged you to work from home with the program. As an online entrepreneur, I’ve reviewed hundreds of similar programs like Vector Marketing.

To help you make an informed decision, I’ve done extensive research on Vector Marketing and am excited to share my findings with you. And just so you know, I’m not affiliated with Vector Marketing, which means I’m not being paid to write this review. You can trust that you’re getting an honest and unbiased assessment from me.

By the end of this review, you’ll have a better understanding of what Vector Marketing is all about, and I’ll even share the best alternative that’s helped me earn a full-time passive income online.

What is Vector Marketing?

Vector Marketing is a company that’s been around since 1948. They’re known for selling Cutco Cutlery, which is a popular brand of kitchen knives, kitchen tools, and hunting knives. The company has been around for a long time and is recognized worldwide as a top manufacturer of kitchen knives.

The company focuses on hiring students, especially those who have just graduated from high school. They offer them an opportunity to work and earn money by selling their products. If you work for them, you’ll be selling door-to-door. Vector Marketing promises competitive pay, flexible hours, training, personal development, and other perks that young people find appealing.

However, the company has faced controversy over allegations that they provide students with false information. There have also been lawsuits, and some people who were hired by Vector Marketing claim that they weren’t paid or lost money. These issues have raised concerns about whether Vector Marketing is a legitimate job opportunity or a scam.

Overall, it’s important to be cautious when considering job opportunities like Vector Marketing. Make sure you do your research and read reviews from people who have worked for the company before making any decisions.

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What is Cutco Cutlery?

Established in 1949 by the Cooking Utensils Company, Cutco has since expanded to produce a wide range of kitchen tools perfect for everyday use or special occasions.

Aside from their famous knives, Cutco also offers spoons, scissors, cutlery, cookware, and even sport knives. With over 600 employees in their factory and administrative headquarters, it’s safe to say that Cutco is a well-established brand.

Vector Marketing is Cutco Cutlery’s marketing and sales division. However, they weren’t always the sole direct sales partner for Cutco. Back then, hundreds of people were selling Cutco products on their own.

Based in Olean, New York, Cutco is a 65-year-old company that takes pride in the quality of their products. Vector Marketing was founded in 1981 as a separate company selling for Cutco Cutlery Corporation. After outselling every other independent seller, Cutco Cutlery Corporation bought Vector Marketing in 1995. The two companies then became partners.

Cutco products aren’t sold in any store, but you can purchase them at Cutco locations, local events, or during home demonstrations. They also have their own website, so you can easily browse their products online. 

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How Vector Marketing Works: Selling Cutco Knives and Making Money

Vector Marketing provides an opportunity for people to sell Cutco products and earn money. Applying is open to anyone, but there is a selection process involved. To get started, you’ll need to fill out an application and attend an interview, which may include a physical interview.

If you pass the application process, you’ll be working for Cutco, and your job will be to promote their products. However, it doesn’t necessarily mean that you’ll start making money right away. To get started, you’ll have to invest in Vector Marketing by purchasing a set of Cutco demo knives. They claim you can borrow the demo knives, but if you don’t take advantage of the opportunity or make enough sales, you’ll have to pay for them yourself, which could cost you $400 or more.

In addition to the knife set, you’ll have to pay for expenses like gas, equipment, and other items you’ll need for your business presentation. Although joining Vector Marketing is free, these costs can add up quickly.

As a Vector Marketing representative, your job will be to go door-to-door and set up times for people to come to your house and see the Cutco products. For each demonstration you perform, you’ll receive a guaranteed base pay, as well as a commission if you sell any of the products you demonstrated. Although the Vector Marketing website doesn’t state how much they pay, the word on the street is that they pay $15 per hour.

In summary, Vector Marketing provides an opportunity for people to make money by selling Cutco products. To get started, you’ll need to go through a selection process, invest in a set of demo knives, and pay for expenses related to your business presentation. Although there are costs involved, if you’re willing to put in the effort, you can make money as a Vector Marketing representative.

• Learn more about the legit ways to make money online

Is Vector Marketing an MLM?

Yes, Vector Marketing is an MLM company. But what exactly is MLM, and how does it differ from traditional business models?

Multilevel marketing (MLM) companies, also called direct sales or network marketing companies, offer a unique compensation plan. Instead of getting a salary, you earn money by recruiting others to join your business and selling products.

Here’s how it works: when you recruit someone and they start making sales, you earn a commission based on the sales and recruits they bring in. This creates several levels of recruitment, hence the term “multi-level.” Essentially, if you’re at the top of the recruitment chain, you earn commissions from everyone in your direct downline.

For example, if you recruit ten people and each of these ten recruits another ten, and so on, you’ll receive commissions from all of them because they’re all in your downline. With Vector Marketing, you can earn up to $1100 by recruiting just ten people.

While MLM companies may offer various products, most people prefer to recruit others because they can earn a lifetime of passive income. In contrast, if they sold a product, they would only receive a one-time commission.

The people at the top of the recruitment chain tend to make the most money, while those at the bottom make the least. Therefore, the goal of someone who works for a company like Vector Marketing is to have as many people in their downline as possible, allowing them to earn a substantial passive income.

In summary, Vector Marketing is an MLM company that compensates its employees based on recruiting others and selling products. While it offers an opportunity to earn passive income, success often depends on building a large downline.

You may also want to read our article on the top MLM companies.

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Is Vector Marketing A Pyramid Scheme?

No, Vector Marketing is not a pyramid scheme. Here’s why.

First of all, let’s define what a pyramid scheme is. It’s a fraudulent business model that recruits members with the promise of making money by enrolling more members. The scheme is unsustainable, and participants lose money as it grows, except for those at the top of the pyramid.

In contrast, Vector Marketing is a legitimate company that sells products. They offer a range of kitchen and household products, such as cutlery, cookware, and BBQ tools. As a sales representative, you’ll be promoting and selling these products to customers, not just recruiting others to join the company.

While Vector Marketing does have a multi-level marketing (MLM) structure, it doesn’t operate as a pyramid scheme. MLM is a legal business model where members earn money through product sales and by recruiting others to join the company. However, the emphasis is on product sales, not recruitment.

In Vector Marketing, you earn a commission on the products you sell, and you can also earn bonuses for meeting certain sales targets. You don’t have to recruit others to make money, although you can earn additional income by building a team and mentoring others.

It’s worth noting that working as a sales representative for Vector Marketing isn’t for everyone. You’ll need to be comfortable with direct selling, as you’ll be reaching out to potential customers to sell them products. You’ll also need to be self-motivated, as you’ll be working on a commission-only basis.

In summary, Vector Marketing isn’t a pyramid scheme. While they do use an MLM structure, their focus is on product sales, not just recruitment. If you’re interested in direct sales and enjoy promoting household products, it might be a good fit for you.

• Learn more about the differences between MLM and pyramid scheme. 

Watch the short video below to learn more:

Vector Marketing’s Compensation Plan

If you’re considering a job at Vector Marketing, it’s important to understand their compensation plan. As an independent contractor, you’ll be responsible for covering all expenses associated with promoting the products. While this may not be ideal for everyone, it can work for some.

One thing to keep in mind is that the commission structure is tiered. You’ll start out with a 10% commission, but if you sell more, you may be able to earn up to 35% commission. This means that the more you sell, the more you can earn.

It’s also worth noting that Vector Marketing advertises a starting pay of $15 per hour. However, in reality, you’ll only be paid $15 per appointment. This can make it difficult to earn a consistent income, as appointments may not be available every week.

Ultimately, whether or not Vector Marketing is the right fit for you depends on your individual circumstances and goals. While some people have found success with the company, others have found it to be expensive and not worth the effort.

How Much Does It Cost To Join Vector Marketing?

If you’re considering joining Vector Marketing as a sales representative, you’ll be pleased to know that there are no upfront costs to get started. However, before you can start selling Cutco knives, you’ll need to go through their training program.

During the training course, you’ll learn about Cutco’s products and sales techniques. Once you’ve completed the program, you’ll be given a sample set of Cutco knives to showcase to potential customers. It’s important to note that you’ll need to return the sample set at the end of the training.

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Is Vector Marketing a Scam?

Legally speaking, Vector Marketing is not considered a scam. According to the Oxford Living Dictionary, a scam is a deceitful scheme or fraud, which is not the case for Vector Marketing.

However, it’s no secret that most Vector Marketing reps don’t earn any money. While some people do make money, it requires a lot of hard work and dedication. It’s also worth noting that those who make a lot of money from Vector Marketing usually do so by aggressively recruiting new members.

Additionally, Vector Marketing has been criticized for making misleading and irresponsible marketing claims to attract new recruits. This has led some people to view Vector Marketing as a scam.

Legal Troubles: Lawsuits Filed Against Vector Marketing for Deceptive Practices and Unfair Compensation Policies

Vector Marketing, a direct marketing company, has faced several lawsuits in recent years due to its deceptive practices and unfair compensation policies. The company has been sued in multiple states, including New York, California, Florida, Illinois, Michigan, Minnesota, Missouri, and Ohio, for failing to pay its employees minimum wage.

One of the most damaging lawsuits against Vector Marketing was a class action lawsuit filed in 2008. The company was accused of not paying its sales representatives the minimum wage, and the case was settled for $13 million in 2011.

In 2014, the company faced another lawsuit from one of its distributors who was raped and drugged during a sales call. The distributor claimed that Vector Marketing did not provide adequate training or protection, leading to the assault.

Vector Marketing also settled a second class action lawsuit in 2017, paying $6.75 million to participants in the training program who were not compensated. The following year, department heads filed a second class action lawsuit, claiming they should be paid as employees rather than contractors.

Vector Marketing has a history of deceptive recruiting practices. In 1990, the Arizona Attorney General discovered that the company was using deceptive methods to recruit employees. Wisconsin also ordered Vector Marketing to stop its deceptive recruiting practices in 1994.

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Reasons Why I Don’t Recommend Vector Marketing

The Good Reviews are Written by Vector Marketing’s Affiliates

Many reviews of Vector Marketing you may come across are actually written by the company’s affiliates. These reviews are often biased and not trustworthy since the reviewers are paid to write and will receive a commission if you join Vector Marketing via their links. Therefore, it’s recommended to read reviews written by non-affiliates of Vector Marketing.

Very Few People Can Make Money With Vector Marketing

Success is difficult to achieve with an MLM company like Vector Marketing. According to statistics, 72.5 percent to 99.9 percent of MLM members lose money. This is because MLMs have sales quotas that require members to continue selling products to remain active and eligible for commissions. Many MLM members lose a significant amount of money before even recruiting one person into the company.

Losses From Vector Marketing Are Reframed As Investments

Vector Marketing uplines often reframe their financial losses as ‘investments’ in their business 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.

Vector Marketing is a Cult

MLMs like Vector Marketing have a cult-like company culture that discourages critical thinking among representatives. MLMs encourage representatives to isolate themselves from anyone who questions their involvement. Those who leave an MLM are labeled as failures or bad people/influences, and reps are not allowed to contact them. 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.

You May Need to Purchase Vector Marketing 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, which is a losing proposition. This is quite ridiculous when you have to buy the products you are trying to sell.

Vector Marketing Products are Overpriced

As with other MLMs, Vector Marketing offers overpriced products. This may make it difficult to sell Vector Marketing products since your prospects can buy the same product elsewhere at a much cheaper price.

Vector Marketing’s MLM Business Model Has a Bad Reputation

MLMs like Vector Marketing are 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 Vector Marketing to be a legitimate business opportunity.

Exaggerated Claims Of Income

Vector Marketing makes exaggerated income claims, but in reality, very few people make a good living by promoting Vector Marketing. Vector Marketing’s low retention rate can also be discouraging, as less than 41% of its distributors are active.

Recruiting is Required to Succeed

Eight out of ten ways to earn money with Vector Marketing require recruiting. If you don’t recruit, you are destined to lose money at the end of the day.

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Pros and Cons of Joining Vector Marketing

Are you considering joining Vector Marketing but aren’t sure if it’s the right decision for you? Here are some pros and cons to help you make an informed decision.

Pros:

• Joining Vector Marketing is completely free, which means you don’t have to worry about investing any money upfront.
• By joining Vector Marketing, you can learn valuable skills such as selling and leadership, which can benefit you in various aspects of your life.
• Vector Marketing has been in operation for many years, which indicates its stability and reliability as a company.

Cons:

• Vector Marketing has faced several legal actions in the past, which could be a cause for concern for potential employees.
• There is no income disclosure available, which means you won’t know how much money you can expect to earn.
• Unfortunately, many people claim Vector Cutco Marketing is a scam, which could make it challenging to build trust with potential customers.

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FAQs About Vector Marketing

What’s Vector Marketing’s BBB Rating?

Good news! Vector has an A+ rating with the Better Business Bureau.

How Many Vector Marketing Distributors Are There?

Currently, there are 5,590 distributors in the Vector Marketing family.

Final Verdict

If you’re thinking about joining Vector Marketing to make some extra cash, you might want to reconsider. From my experience, it’s not worth it. At the beginning, it’s tough to find recruiters to add to your Vector Marketing commission. Plus, you’ll have to ask your family and friends to join your business opportunity, which can be awkward and not fun at all.

Your upline will constantly encourage you to buy more Business Support Material, even though you’re struggling to get people to join your downline. The truth is, you’re more likely to lose money than make any. In fact, statistics show that 99% of people who join MLMs break even or lose money, according to a case study on the FTC’s website.

Being part of an MLM can be stressful too. Many people feel under pressure to succeed, which can lead to them leaving the business. So, why not start your own online business instead? You can earn money and have a flexible schedule without having to promote products that you don’t believe in.

In the next section, I’ll share how you can build a legit online business to make passive income. It’s what I did, and I’ve been able to earn a full-time income in just a year. Unlike MLMs, it’s sustainable and 100% legit.

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Is There a Better Way to Make Money Online?

If you’re thinking about starting an online business, Vector Marketing might not be the best option for you. But don’t worry, I have a recommendation that I think you’ll love – Wealthy Affiliate.

Wealthy Affiliate is an all-in-one platform that provides everything you need to build your affiliate marketing business from scratch. With Wealthy Affiliate, you get access to first-class web hosting services, keyword research tools, community support, comprehensive training, writing tools, and other software to help you build your online business step-by-step.

The best part? You can sign up for a free account and get started with affiliate marketing right away without paying a penny. If you like the platform, you can upgrade to a premium membership to access everything on the platform. There are no upsells or hidden fees.

You may read our article about the difference between MLM and affiliate marketing.

But the question on everyone’s mind is, “How much can you earn with Wealthy Affiliate?” Well, let me tell you, the success stories are incredible. For example, a 21-year old student from Wealthy Affiliate was able to earn $7,395 in just 1 week! That’s over $1,000 a day. And that’s just one example of the many success stories from Wealthy Affiliate’s more than a million members.

You can read our full review of Wealthy Affiliate here.

Wealthy Affiliate has been established for 15 years and has a much longer history than Authority Hacker. So, if you’re looking for a platform with a proven track record, Wealthy Affiliate is the perfect choice for you.

Wealthy Affiliate has a simple pricing scheme – a free and premium membership. The premium membership only costs $49/month or $395/year. But, if you want to get a feel for the platform, you can sign up for the free starter membership with no credit card required. As a starter member, you get instant access to the community, live chat, over 500 training modules, 2 classrooms, networking, commenting, 1 free website, and access to the keyword tool. All of this for free!

In conclusion, I strongly recommend that you register a free account with Wealthy Affiliate and see it for yourself. You won’t be disappointed.

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