Since the founding of Cutco in 1949, over 1 million people have taken up the work of hosting informational parties and selling Cutco products. The fact that this company is able to stay in business for over 70 years and continues to sell products is impressive.
That being said you may have heard of the “Cutco scam” and wondered if this is a legitimate opportunity or another pyramid scheme that will leave you broke and frustrated.
In this Cutco review, we'll talk about what the company is and how it works. We'll also examine some of the challenges that come with trying to sell Cutco products and what you can do to boost your sales.
As always, Legendary Marketer is looking for ways to help online business owners improve their profits by employing the latest marketing techniques. Read on to find out how these techniques apply to Cutco and how much money you can actually stand to make as a Cutco sales rep.
What Is Cutco? Is It an MLM?
Cutco is a company that manufactures a variety of cutlery and then some. They are most famous for their kitchen knives, although they also sell other kinds of cooking utensils, eating utensils, and even knives that are designed for activities like fishing and hunting. Oh, and they also sell a pair of scissors that can cut through a penny.
Cutco is also the parent company of a group called Vector Marketing, which is responsible for the recruitment process. If you've ever received a phone call about becoming a Cutco sales rep, that call came from a Vector Marketing employee. There was a time when Vector Marketing was essentially the largest sales force for Cutco products, but they've now shifted to recruitment first and foremost.
Is Cutco an MLM?
A lot of people assume that direct sales and multi-level marketing (MLM) are synonymous. Usually, a company that utilizes direct sales is, in fact, an MLM.
However, in the case of Cutco, they use the direct sales model, in that individual sellers can opt in to start selling their products directly to consumers, but they are not an MLM. In order to qualify as an MLM, a company has to incentivize the process of bringing on new sellers, aka building a downstream. With Cutco, sales reps don't get any sort of bonus or commission for bringing on new members to the Cutco salesforce–meaning that you can only earn money by selling their products.
The Perks of Working for Cutco
Vector Marketing (remember, Cutco's recruitment team) tends to look for college students and other young people who may be hoping to earn some extra spending money. If you are one of these young people, you may find that working for a company like this is exactly what you're looking for. You can set your own hours and only take on the amount of work that suits you, making it a very flexible job.
Plus, Cutco is one of the only companies of its kind to offer anything that resembles a wage. Most direct sales companies only pay you a commission rate on anything you sell as well as a bonus or additional commission rate for anyone you bring into your downstream. (As we mentioned earlier, Cutco pays a commission, but don't expect any bonuses for trying to recruit your friends.)
How does this wage work? Cutco offers you an hourly rate (which seems to vary between $9 and $19, depending on where you live) for the presentations you give. Most presentations last about one hour, so that pay admittedly won't get you very far.
Unveiling the Myth Behind the Products That “Sell Themselves”
The truth is that a lot of these perks are what you'll be told when discussing your opportunity to join the Cutco team with a Vector Marketing rep. In fact, most of their claims about compensation–both on the phone and on their website–are vague. So, what's the real deal when it comes to selling for Cutco?
It Would Take a Lot of Work to Make Real Money With Cutco
From what we can tell, Cutco offers an unusually low commission rate compared to similar companies. If you're selling less than $1,000 of products, you'll make a 10% commission (so, no more than $100). You'd have to sell over $24,000 products to start making a commission of 30% or more.
Now let's talk about that hourly wage. Let's say that you can make the highest amount, $19, off of a presentation. You'd have to do at least 6 presentations a week to make more than $100. What Cutco won't compensate you for is the time you spend traveling to and from these presentations or the transportation money it takes to get you there.
In the end, making any real money with these products isn't as simple as your Vector Marketing rep made it sound.
The Products Are Good But Your Marketing Skills Need to Be Better
One good thing about Cutco is that they're selling quality, US-made products. Could you find similar products for a lower price? Yes, but they wouldn't come with the Cutco lifetime guarantee, which is a big selling point for some consumers.
That being said, kitchenware doesn't actually sell itself. You have to know how to put on a good show and tell a good story. You also need to know how to market your products to people other than your social circle, or you'll run out of interested customers fast.
In the end, the best way to reach the widest market is to master online marketing skills. How do you make that happen?
Go Beyond Our Cutco Review and Learn the Marketing Skills You Need to Succeed
As you can see from our Cutco review, Cutco isn't a scam or a pyramid scheme. However, Cutco and Vector Marketing aren't going to give you the skills you need to succeed.
If you've reached the end of this review and decided you'd rather try your hand at affiliate marketing, please consider checking out our free online webclass which will walk you through our #1 recommended way to earn money online from home and teaches affiliate marketing strategies including how to make multiple high-ticket affiliate commissions each month marketing valuable products people already want to buy.
