Vector Marketing is popular for targeting College and High School students for job interviews.
But Vector Marketing doesn’t really offer you “a job.” It’s more of a business opportunity.
The misleading advertisement scheme has led to lawsuits and people accusing Vector Marketing as a scam.
Anyone who attended the job interview will get hired as a Vector Marketing independent contract.
Do you know why Vector Marketing calls this a job, not a business opportunity?
The answer will surprise you. I’ll explain the entire scheme in this Vector Marketing review.
Before you’re accepting this “JOB”, here’s the answer to your question, is Vector Marketing a scam or legit?
Tired Of Scams And Pyramid Schemes?
Vector Marketing Review Summary
Name: Vector Marketing
Business Type: MLM
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What Is Vector Marketing?
Vector Marketing is a sales division of Cutco Corporation. The company manufactures and sells Cutco knives through a network of sales representatives.
Vector Marketing was formed in 1981 to help Cutco recruit its own direct sales force.
Cutco purchased Vector Marketing in 1985 to primarily sell Cutco products.
The company uses a “job interview” scheme to target high school and college students.
This interview invitation is a recruiting event for the Vector Marketing MLM opportunity.
Vector Marketing reps are independent contractors operating their own business selling Cutco knives to friends and family members.
The company faced numerous lawsuits regarding this deceptive recruiting practice. You can find details of these lawsuits in the scam section of this Vector Marketing review.
According to the Wisconsin lawsuit, most Vector Marketing reps earned no money or lose money working for Vector Marketing.
Vector Marketing is not a job. This is an MLM business opportunity that is not easy to make money.
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Vector Marketing Products
Vector Marketing primarily sells Cutco products.
Cutco products include a high-quality line of kitchen cutlery, kitchen accessories, and sporting knives.
Vector Marketing’s most popular Cutco products are the knife sets.
The most expensive is the Ultimate Knife Set of 32 pieces and an oak cutting board of either honey or cherry finish.
You can purchase a smaller knife set such as:
- The Homemaker Set has 10 pieces.
- The Space Saver Set with 5 knives.
- The Studio Set offers 4 knives.
Sales reps make money by promoting and selling these exclusive Vector Marketing Cutco products.
Is Vector Marketing An MLM?
This company proudly announced they are a member of the Direct Selling Association (DSA). DSA members are MLM companies.
But when responding to the statement regarding Vector Marketing as a scam, here’s the company response:
It appears Vector Marketing considers all MLM companies as scams.
MLM companies are defined by the FTC as those selling products or services directly to other people.
The company compensation plan doesn’t determine whether it’s an MLM or not an MLM.
It is legit for MLM companies to compensate their representatives for recruiting activities.
An MLM company becomes a scam when it operates a pyramid scheme.
Since Vector Marketing is a direct sales company, it is an MLM.
But this company denies it’s a legit MLM.
Then, what is Vector Marketing?
Is Vector Marketing A Pyramid Scheme?
Vector Marketing claims the company is not a pyramid scheme.
Let me share with you the response that it gives regarding this issue.
The fact that reps are not recruiting other reps or purchasing Cutco products doesn’t mean Vector Marketing is not a pyramid scheme.
A pyramid scheme has nothing to do with reps recruiting others or purchasing products from the MLM company.
According to the FTC, “pyramid schemes are set up to encourage recruitment. Reps’ income is based mostly on how many people they recruit, not how much product they sell. Reps even have to buy products before they’re eligible to be paid or get certain commissions.”
Prior to 2018, Vector Marketing reps were required to purchase their own Cutco knife set to conduct sales demos.
Reps who did not purchase a knife set could not earn money.
It took a class-action lawsuit to stop Vector Marketing from forcing reps to purchase a Cutco knife set.
Today, Vector Marketing loans a Cutco knife set to reps for in-person sales demos. Reps are still responsible for the full cost of the set upon leaving the company.
How Does Vector Marketing Work?
Vector Marketing is responsible for recruiting a sales force for Cutco Corporation.
The company targets desperate college students looking to make money part-time.
Vector Marketing invites them to a job interview. However, the job interview is a business recruiting event.
The company offers everyone attending the Vector Marketing interview a position as an independent sales representative.
Working For Vector Marketing
Vector Marketing reps are self-employed. They are operating their own Cutco products sale and distribution business.
As an independent contractor, you are responsible for all expenses and business costs.
You are responsibilities includes:
- Scheduling sales appointments by contacting people that you know, usually family, friends, neighbors, etc.
- Conducting a sales presentation to potential customers. It requires traveling to the customer’s place. The demo takes anywhere from 45 to 75 minutes. The most difficult part is asking for an order. If you get a “NO”, you earn zero commission.
- A “Yes” requires you to write up an order form and submit it to Vector Marketing for processing.
- You must ask for 5 referrals from each customer. This is how you generate leads for the next sales presentation. It is hard to continue this business if you cannot get referrals.
Vector Marketing offers three to five days of unpaid training to all sales reps. This training will teach you the process of selling Cutco knives.
Vector Marketing Job
Vector Marketing doesn’t offer you a job. It offers you an opportunity to make money selling Cutco products.
The Vector Marketing job interview is a trick to recruit you into an MLM business.
Vector Marketing refers to this as a job, because people will not come to the recruiting event if they know is a business opportunity.
Vector Marketing is a scam when the company uses a job interview to trick people into accepting a business opportunity.
Vector Marketing Pay
Vector Marketing offers two types of payments, a base pay and sales commission.
Reps earn a base pay between $15-$18 per appointment and 10 to 30 percent commission on product sales.
To receive the base pay, reps are required to submit a weekly report of qualified sales presentations. Vector Marketing will calculate the base pay using this report.
The sale commission rate is determined based on Rep’s overall career sales.
You can use this commissions table to determine your own Vector Marketing pay rate:
|Career Sales||Commission Rates|
|$6,000||20% – 25%|
The Vector Marketing pay rate is low compared to other MLM companies and affiliate marketing opportunities.
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Is Vector Marketing Legit?
Vector Marketing is a legit sale and marketing division of Cutco Corporation.
However, this company employs a deceptive method to recruit desperate college students into its MLM opportunity.
When people attend the Victor Marketing job interview, they realize it’s a scam. This job interview is a recruiting event for an MLM business.
Vector Marketing A Scam Complaint
Most Vector Marketing scam complaints relate to the company’s deceptive recruiting practices.
In response to the scam complaints, Vector Marketing has written a blog post to defend itself. However, it doesn’t change the fact that the company continues to advertise its business opportunity as a “Job Opportunity.”
The top complaints against Vector Marketing with the BBB have to do with the illegal use of personal contacts and information.
You can find hundreds of scam complaints against this company by doing a simple Google search.
Vector Marketing Lawsuit
Most of the lawsuits against Vector Marketing have to do with deceptive advertisement and recruiting methods.
The first lawsuit was filed in 1990 by the Arizona Attorney General accusing Vector Marketing of employing deceptive marketing techniques to recruit desperate college students.
Wisconsin filed a lawsuit in 1994 ordered Vector Marketing to stop their deceptive hiring practices.
In 2008, Vector Marketing agreed to pay $13 million to settle a class-action lawsuit for requiring a sales representative to pay over $100 for a Cutco knife kit and unpaid training.
The company paid $6.75 million to settle a lawsuit for violations of the Fair Labor Standards Act in California, Florida, New York, Illinois, and Michigan.
I believe there will be more lawsuits against this company if they continue using the same deceptive recruiting method.
As a Business Review writer, I have evaluated hundreds of home-based and MLM business opportunities to expose scams.
I will tell you this, Vector Marketing offers a business opportunity, not a job.
You must understand Vector Marketing reps are independent business owners.
Unless you want to start your own business, don’t waste your time attending the Vector Marketing job interview.
My Final Review Of Vector Marketing
Vector Marketing sells knives by conducting in-home demos.
Would you invite a stranger carrying Cutco knives into your home?
Not me, never!
It becomes more and more challenging for Vector Marketing reps to make money.
If you are looking for a home business opportunity, you need to ask these questions.
Why do you want to start a business?
To make money, right?
But to make money you need to invest in a legit and profitable business opportunity.
You want to be a part of a business that has strong growth and healthy demand for its products.
Vector Marketing sells knives. This MLM business will ruin your relationship with friends and family members. Is this what you want?
Why take so much risk with Vector Marketing?
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I hope this Vector Marketing review answers your question, is Vector Marketing a scam or legit?
Until next time.
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