Is Vector Marketing a Scam Pyramid Scheme? Exposed!

Are you looking for a Vector Marketing MLM review? Is Vector Marketing 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 Vector Marketing 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 Vector Marketing 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 Vector Marketing MLM.

To help you make a more informed decision, I have thoroughly researched the Vector Marketing MLM so I can tell you more about it.

As a disclaimer, I’m not affiliated with Vector Marketing 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 Vector Marketing MLM that has enabled me to make a full-time passive income online.

What is Vector Marketing MLM?

Vector Marketing has been in business since 1948 as a multi-level marketing company. It all started in New York City over 50 years ago.

Cutco Corporation purchased the company in 1985 and made it a wholly owned subsidiary. For those of you who are unfamiliar with Cutco, here is a link to my review. Since being acquired, Vector Marketing has become known as a retailer of Cutco Cutlery.

As a result, the company expanded its product line to include kitchen knives, kitchen tools, and hunting knives.

The company has been around for a long time and is now known throughout the world as the leading manufacturer of kitchen knives.

Vector Marketing only targets students, particularly those who have recently graduated from high school, by offering them the opportunity to work and earn money by selling their products.

If they hired you, you would begin selling door-to-door for them.

They promise competitive pay, flexible hours, training, personal development, and pretty much anything else a young person would want to hear.

However, Vector Marketing is embroiled in a controversy over allegations that it provides students with false information.

Not only that, but there were a few lawsuits. Another issue was that the people they hired were not paid. Worse yet, some of them lost money.

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What is Cutco Cutlery?

Cutco Cutlery produces high-quality kitchen knives. The Cooking Utensils Company founded Cutco in 1949.

Cutco produces a wide range of kitchen tools that can be used both on a daily basis and for special occasions. There are spoons, scissors, cutlery, cookware, and sport knives in addition to knives. The factory and administrative headquarters employ over 600 people.

Cutco Cutlery’s marketing and sales division is called Vector Marketing. Vector Marketing, on the other hand, was not Cutco’s sole direct sales partner from the start.

At the time, there were hundreds of people selling things on their own. Cutco, headquartered in Olean, New York, is a 65-year-old company.

Vector Marketing was founded in 1981 as a separate company, selling for Cutco Cutlery Corporation. Cutco Cutlery Corporation bought the company in 1995 after outselling every other independent seller. Vector and Cutco became partners in this manner.

Cutco products aren’t sold in any store. These items can only be purchased at Cutco locations, at local events, or during home demonstrations. They also have their own website.

What is MLM?

Before we get into Vector Marketing 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 Vector Marketing MLM is to have as many people in their ‘downline’ as possible, allowing them to earn large amounts of passive income.

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How Does Vector Marketing MLM Work?

Vector Marketing works by allowing people to sell products on their own and be paid or receive a commission for it.

You can tell from what I’ve said so far that anyone can apply. But there is a procedure for selecting.

First, you must fill out an application and attend an interview. A physical interview could be part of the starting process. So you have a 50/50 chance of being hired by Vector Marketing.

Furthermore, when you apply, you must first prove yourself and go through the application process, which begins with an interview with a local manager.

If you pass the application process, you will be working for Cutco and will have the opportunity to promote their products. However, this does not guarantee that you will begin earning money right away.

Selling Knives

You must invest in Vector Marketing before you can profit from it. That means you must first purchase a set of Cutco demo knives. They claim you can borrow the demo knives.

However, if you don’t take advantage of the opportunity or make enough sales, you’ll have to pay for this yourself, which could cost you $400 or more.

Not only that, but you’ll have to pay for things like gas, equipment, and other items you’ll need for your business presentation. You will have to pay a high price for it.

Yes, joining Vector Marketing is free, but all of these costs will add up quickly.

Becoming Vector Marketing Representative

You will now go around knocking on doors and setting up times for people to come to your house and see your products.

You’ll now receive a guaranteed base pay for each demonstration you perform, as well as a commission if you sell any of the products you demonstrated.

Vector Marketing’s website does not state how much they pay, but I’ve learned that they pay $15 per hour.

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Is Vector Marketing 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 Vector Marketing, then, a pyramid scheme?

No. Vector Marketing 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 Vector Marketing MLM’s Compensation Plan?

Once hired as a sales representative, you are an independent contractor. This means you must pay for everything in order to promote the products.

This company does not appeal to me because it is expensive and there is no guarantee of success.

The catch is that you won’t make much money with this company, and you’ll only get a 10% commission. However, if you sell more, you may receive a 35% commission.

They said they’d pay you $15 per hour, but in reality, they’ll only pay you $15 per appointment, which is impossible because there won’t be one every week.

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10 Reasons Why I Don’t Recommend Vector Marketing MLM

1. The Good Reviews are Written by Vector Marketing MLM’s Affiliates

You probably have found some other reviews of Vector Marketing 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 Vector Marketing 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 Vector Marketing MLM.

2. Very Few People Can Make Money With Vector Marketing

Success is difficult to achieve with an MLM company like Vector Marketing.

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 Vector Marketing MLM Are Reframed As Investments

Vector Marketing 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. Vector Marketing MLM is a Cult

Why do people continue to work for Vector Marketing 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 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. 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 Vector Marketing. That’s why in the long term, you are going to lose a lot of money, not to mention making money.

6. Vector Marketing Products are Overpriced

As with other MLMs, Vector Marketing offers overpriced products. There are many other brands that offer similar products but at lower prices.

Therefore, you may find it difficult to sell Vector Marketing 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. Vector Marketing’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 Vector Marketing 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 Vector Marketing to be a legitimate business opportunity.

8. Exaggerated Claims Of Income

Vector Marketing, like any other MLM company, 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.

According to Vector Marketing’s payouts to distributors, over 99 percent of Vector Marketing distributors never make a profit.

9. Vector Marketing 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.

Vector Marketing 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 Vector Marketing put a lot of effort into recruiting. 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.

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 Vector Marketing review.

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How Much Does It Cost To Join Vector Marketing MLM?

You do not have to pay anything to join, but you will have to go through training to become a sales representative. Cutco will give you a sample set of knives to show off after you complete the course. You must return the sample kit at the end of the course.

Have Any Lawsuits Been Filed Against Vector Marketing MLM?

Vector has been sued a few times in recent years. Each lawsuit has been more damaging than the last.

In 1990, the Arizona Attorney General discovered that their recruiting methods were deceptive. Wisconsin ordered Vector to stop its deceptive recruiting practices in 1994.

A class action lawsuit was filed against them in 2008. Because the company did not pay its sales representatives the minimum wage, the case was settled for $13 million in 2011.

In 2014, the company was sued in several states, including New York, California, Florida, Illinois, Michigan, Minnesota, Missouri, and Ohio, for failing to pay minimum wage.

In addition, one of their distributors sued them in 2014 for failing to provide adequate training. She was raped and drugged during a sales call.

Vector Marketing then paid $6.75 million to settle a second class action lawsuit in 2017. Participants in the training were not compensated. The following year, department heads filed a second class action lawsuit. They claimed they should be paid as employees rather than contractors.

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Vector Marketing MLM Positive and Negative Feedbacks By Real Users

Positive Feedbacks

  • Joining is completely free.
  • Learn how to sell and how to lead.
  • The company has been in operation for many years.

Negative Feedbacks

  • Several legal actions
  • There is no income disclosure.
  • Many people claim Vector Cutco Marketing is a scam.

Is Vector Marketing MLM a Scam?

I cannot say Vector Marketing 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 Vector Marketing products? We already know that a majority of Vector Marketing 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 Vector Marketing is by recruiting aggressively.

Also, Vector Marketing blatantly makes disingenuous and irresponsible marketing claims to recruit members. Therefore, some people do consider Vector Marketing 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.

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Final Verdict: Vector Marketing MLM Review

Here comes the conclusion of my Vector Marketing MLM review. Overall, I don’t recommend joining Vector Marketing 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 Vector Marketing commission.

The worst part is that you practically have to ask your family and friends to join your Vector Marketing 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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The Best Alternative of Vector Marketing MLM To Make Passive Income Online

If you’re beginning your online business journey, you deserve a programme much better than Vector Marketing MLM.

My #1 recommended platform is called Wealthy Affiliate.

Wealthy Affiliate is an all-in-one platform for building your affiliate marketing business from scratch.

When you join Wealthy Affiliate, you can get access to the first-class web hosting service, keyword research tools, community support, comprehensive training, writing tools, and other software to help you build an online business step-by-step.

You can register a free account with Wealthy Affiliate, which enables you to get started with affiliate marketing right away without paying a penny.

If you like the platform, you can then upgrade to the premium membership to get access to everything on the platform. There are no upsells afterwards.

But How Much Can You Earn with Wealthy Affiliate?

A 21-year old student from Wealthy Affiliate was able to earn $7,395 in just 1 week, which means he made more than $1k a day…all while applying what is taught inside Wealthy Affiliate.

Vector Marketing MLM Review

Compared with Authority Hacker, Wealthy Affiliate has a much longer history, which has been established for 15 years and there are many success stories in the past decade. Actually, Wealthy Affiliate has more than a million members so far, so you can see how popular this platform is.

To give you more examples, here are some of the other inspiring success stories of Wealthy Affiliate members.

Where to Join Wealthy Affiliate?

Wealthy Affiliate has a very simple pricing scheme. It has a free and premium membership. The premium membership only costs $49/month or $395/year.

If you want to feel about Wealthy Affiliate, you can sign up for the free starter membership here (no credit card required). You can select to be a free member with no time limit.

And as a starter member, you can get instant access to the community, live chat, over 500 training modules, 2 classrooms, networking, commenting, 1 free website, access to the keyword tool.

You can enjoy all these values without paying a penny.

So I strongly recommend you to register a free account and see it yourself.

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FAQs About Vector Marketing

What Is Vector Marketing’s BBB Rating?

Vector has a BBB rating of A+.

What Is Vector Marketing’s Revenue?

Vector reported sales of $273.8 million in 2019. The company has not yet released its 2020 revenue figures.

What is the number of Vector Marketing distributors?

There are 5,590 distributors in this group.

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