Cutco Pyramid Scheme: Is It Legit Or A Scam?
What Is Cutco Cutlery?
Cutco Cutlery is an MLM (aka Network Marketing, aka Pyramid Scheme) Program whose primary goal is to sign you up, buy a product kit, and then get you to sign up your friends, family, and coworkers to do the same.
This review will go over Cutco to see if it really is the best Network Marketing course out there.
You’ll learn whether Network Marketing (MLM) is the right online business for you.
And at the end, you’ll find answers some of the most frequently asked questions regarding Cutco and Network Marketing in general.
But most importantly, you’ll see the exact system many others have used to build their own internet marketing business to over $40,000 a month in mostly passive income.
This system made them swear off Network Marketing for good, because it uses some of the same skills but in a much more powerful and profitable way!
But you’ll learn more about that later…
For now, let’s get into all things Cutco!
Table of Contents
Is Cutco A Pyramid Scheme?
So, first and foremost, let’s clear something up.
You’re reading this because you’ve probably heard that Cutco pays $15 per hour.
As more people become victims of scammers, I’ve become even more committed to teaching and reviewing money-making business opportunities like this one.
In this article, you’ll see some of the pros and cons of joining Cutco Cutlery, as well as answer the following question:
“Is Cutco a scam, a pyramid scheme, or is it really possible to make a lot of money selling knives?”
Cutco Review: The Overview And Rankings
Name: CUTCO CUTLERY
Founder: Alcoa was founded in 1949. (now owned by Vector)
Type: Cutlery direct sales company
Products (Including Pricing): 60 out of 100
Success Stories: 30 out of 100
Joining Fee: Free (formerly $300+) (100 out of 100)
Summary: Cutco is a cutlery and cookware direct sales company that pays you $15 for each successful presentation you arrange with potential customers.
Make Time Online has a rating of 60 out of 100.
What Is Cutco Cutlery?
Cutco Corporation, a privately owned company based in New York, is a cutlery direct sales company that sells through Vector Marketing, an MLM or multi-level marketing business model.
Its primary goal is to provide a business opportunity for stay-at-home parents, students, and employees to earn a 10% commission by selling knives as a side hustle.
They boast of high-quality cutlery and cookware made in the United States and backed by a lifetime guarantee.
Cutco, which was founded in 1949, was a product developed and designed by Alcoa and Case Cutlery.
As per history, Alcoa bought Case’s shares in 1972. As a result, Alcas management purchased the entire company from Alcoa in 1982.
Alcas purchased Vector Marketing Corporation in 1985 to serve as the MLM arm of the company.
What Is Vector Marketing?
Cutco’s MLM marketing division is Vector Marketing Corporation.
Vector Marketing Corporation manages the MLM operations and is Cutco and Cutco at Home’s sole distributor.
They target college students, stay-at-home moms, and high school graduates by offering a potential money-making opportunity that can be done as a side hustle.
As Cutco’s MLM arm, of course, they recruit people for them to earn additional bonuses. In other words, they are recruited to sell door-to-door.
Most people don’t think being a door-to-door salesperson will be sustainable in 2021.
Cutco Cutlery Product Line
Selling knives is a part-time job opportunity available through Cutco, one of today’s leading direct sales companies.
Anyone looking for well-designed blades should look no further than the Cutco line.
Indeed, because of the durability and high-quality materials used to make these knives and other kitchen products, they have grown in popularity.
Vector Marketing offers the following products:
- Kitchen knives: Cleaver, trimmer, table knife, french knife, and other tools ranges from $40 to $250.
- Shears: Specialty scissors range from $90 to $120.
- Cookware: Pots, pans, gadgets, baking tools, utensils, cutting boards, and so on range from $40 to $2,600.
- Tableware: Cutlery range from $30 to $1,500.
- Outdoor: Hunting knives, pocket knives, sporting knives, and garden tools range from $100 to $250.
However, Cutco’s flagship product is the Cutco Knife Sets, which range in price from $280 to $1,212 and feature a patented recessed “Double D,” 440A stainless steel bladed-recessed edge capable of making very precise cuts.
These knives’ handles are made of thermo-resin, which improves dishwasher endurance, strength, and durability.
Some people think that the main reason people continue to buy knives from Cutco is because of the lifetime guarantee that they provide.
Below are some customer reviews:
Do Cutco Products Really Work?
Yes, as per numerous positive online reviews online! Cutco knives are highly effective!
They are, in fact, recommended by a number of online websites.
This is supported by their large social media following, which has 96k followers.
Actual product reviews can be found by visiting their consumer affairs profile.
But, first and foremost, it should be made clear that this only refers to its quality.
The following sections will go over the money-making scheme as well as the recruiting process.
How To Make Money With Cutco Cutlery?
It is simple to join Cutco Cutlery because it is free.
Agents were required to purchase a presentation kit approximately twenty years ago. As long as you’re a “active representative,” Cutco will provide you with this kit for free.
The company can save money on marketing and advertising by recruiting people to promote and sell products.
This allows you to earn a 10% commission.
But first, what does it mean to be an active representative?
From what I’ve learned, active sales are agents who are required to sell $100 in cutlery or cookware each month.
If the sales representatives failed to meet this requirement, they must return the kit or pay half the price for it.
But what about the $15-per-hour advertisement?
This is an entirely overhyped ad.
What they really mean is that you can earn $15 for each successful in-person appointment with prospective buyers and members.
Sales reps would need to store their prospective buyer’s and member’s phone numbers and email addresses in their client database.
The actual process is quite simple:
- You will go through a multi-step interview process.
- After you’ve been hired, they’ll give you a three-day training course.
- They will ask you for a list of referrals.
- They will provide you with a sales script and presentation to help you reach out to potential clients.
- Earn up to 50% commission on all sales (or the guaranteed base pay of $15, whichever is greater).
Cutco Cutlery's Compensation Plan
If you visit Cutco’s official website, you will notice that they emphasize that the business opportunity they provide is not a “get-rich-quick” scheme.
Instead, it values qualities like perseverance, effort, and commitment.
As a result, Cutco claims that the money you make from this side hustle is highly dependent on your persistence and dedication in selling.
Based on the number of sales, the commission structure is shown in the table below:
But Wait! What's The “Cutco At Home” Compensation Plan?
Based on our research, Cutco uses two types of compensation plans:
- Basic Cutco Compensation Plan
- Cutco At Home Compensation Plan
There are two ways to earn money with the Cutco At Home Compensation Plan:
- Commissions on sales
- Bonus obtained from your downline’s sales
Cutco Cutlery Pros:
We’ve highlighted some of Cutco Cutlery’s key advantages below:
- They will pay you $15 for each successful appointment. This is one of the promises they make if you make client presentations, and they may make more if your prospects make a purchase.
- Cutco’s product quality has received a lot of positive feedback. They’re even being recommended. What makes it unique is that chefs all over the world are either using or recommending it.
- To top it all off, they have a large social media following, with 96k followers. These are some of the factors that contribute to the truthfulness of a product or service. To quote one user’s review from Los Angeles, “These knives are high quality pieces with very classy handles and come in multiple colors. I started cooking more once my knives arrived. I was also pleasantly surprised to find out Cutco sells gardening tools and other items.”
- Every new recruit receives proper sales training from Cutco. They come with a well-written starter sales pitch script that you can customize as needed. Your leadership and sales skills will be developed as a result of this training.
- Cutco was named one of the top 20 Direct Selling Associations in 2016.
Cutco Cutlery Cons:
There are some potential downsides to Cutco’s money-making program that We’d like to highlight here.
Here are three “ugly truths” about this business model that are a bit sketchy:
- Cutco products are incredibly expensive. Even if they are made of high-quality materials and craftsmanship, they are absurdly overpriced.
- Cutco uses old-style sales techniques. Their salespeople go door-to-door and are given scripts that, in most professional’s opinion, are irrelevant for making significant sales in the majority of technology-driven industries.
- With Cutco’s compensation plans, earning a passive income is simply not possible.
Bottom Line: Is Cutco A Pyramid Scheme? Is It A Scam?
Cutco Cutlery is unquestionably not a pyramid scheme, owing to the way their system works.
It is also not a scam but rather a legitimate multi-level marketing company that sells high-quality products that their customers actually recommend.
In fact, many people wouldn’t hesitate to recommend it to a friend. That is how confident they are in its quality and performance-based solely on positive customer feedback.
Cutco operates on a direct sales business model, which means that your only source of income is sales commissions.
Given the extremely high prices of the products, how many knives can you realistically sell each month?
How many people can you find who are willing to spend that much money on a set of knives, with your family and friends being your most likely first customers?
We hope this review has helped you in deciding whether or not to invest in this company.
We’d like to tell you about some other legit money-making opportunities and recommendations.
It is totally possible to build a profitable and successful network marketing business… There are, however, better ways to build a business than network marketing or affiliate marketing.
Because, unlike network marketing, it provides actual proof of real success from real people just a few days ago.
What Is Our #1 Recommendation For Making Money Online In 2021?
Our review team has come across a program in the real estate industry that is next level!
Although it’s not real estate in the traditional sense, it’s all digital.
Where Cutco Cutlery falls short in helping you make money online is in scalability.
There’s only so much time in a day and there’s only so many people you can reach to sell by yourself.
MLM companies know this!
Which is why they push so hard for you to recruit for your downline…you can’t get rich with it as a one man/woman show.
But what if you could make even more money off of little local websites without having to spend hundreds of dollars on overpriced products and a bunch of time recruiting people to sell under you?
With this digital real estate program, you can make recurring monthly income without constant sales to your friends and constant recruitment!
Sound too good to be true?
Of course it does!
But it isn’t…in fact, business owners wish they had this skill!
All you have to do is build and rank a LOCAL website and forward the jobs off to a business owner in town, you could even email it to them!
This works for literally any service based business, tree service, plumbing, towing, etc.
How do you get paid and how much?
Simple, after you forward the jobs off to a business owner and he makes some money off of them, you simply ask to make the deal beneficial for each other.
A fair price to charge per lead, depending on the industry is 10-20%…let’s just use the tree service industry for example and go by worst case scenario.
Let’s say you build and rank the site and only 10 jobs a month come in. The average tree service job is anywhere from $500-$2000!
That means at bare minimum you have an asset worth $500 a month!
See why they call it digital real estate now? That’s a rent payment.
The great thing is how easy it is to scale. You don’t have to worry about:
- Your upline getting paid before you
- Begging your friends and family to buy from you
- Recruiting people all the time
But as it is with Cutco Cutlery… You only get what’s left of the pie if you meet a monthly quota…
The program we recommend actually allows you to collect HUGE FLAT RATE DEALS. Truly passive income!
The training program takes making money online to a whole other level. The owner of the program walks you through how to build and rank a site hand in hand, with the occasional voice over when he is sharing his screen.
You will learn the importance of keywords, website name, how to send call notifications via email, backlinking, etc.
Once the training program is completed you will also have access to a Facebook group much better than the Cutco Cutlery group in our opinion. This group is much more active.
Unlike Cutco Cutlery, where you’re getting maybe $100 per sale, you could be getting 10-20X THAT.
A business will always want more leads and another job. In fact it doesn’t even matter that the job isn’t coming from their website name…they see it as it is…expanding digital real estate.
Unlike Cutco Cutlery, more people have been able to walk away from their 9-5 job as well.
Digital real estate allows you to have total passive income with most of your day being spent WITH your friends, NOT selling to them.
Now, you probably have tons of questions…