Is Cutco a Pyramid Scheme – Can You Make Money With It?

What can lead someone to reading a Cutco review? A few reasons come to mind:

  • One of your family members has bought a set of Cutco knives
  • Some sharp-dressed college student is trying to sell you Cutco
  • Someone introduced you to Cutco and you’re thinking about working for them

You’re probably left wondering is Cutco a pyramid scheme or is it a legitimate company? 

In today’s post, we’re going to try and answer this question for you. You’ll see that the truth about Cutco might be a little more complicated to find out than you might have imagined. Let’s start with the explanation how the Cutco scheme works…     

What Is Cutco?

At some point, you’ve probably heard someone talking about Cutco. More often than not, people hear about the high-quality knives from their parents. Cutco Knives is one of the biggest kitchen accessory sellers of the 20th century. They’ve continued the tradition to this day.

Originally founded more than 70 years ago, the company manufacturers kitchen cutlery, accessories, and knives. Their manufacturing isn’t limited to kitchen utensils. As a matter of fact, they also manufacture and sell hunting and sporting knives as well.

The company was created as a joint venture between Case Cutlery and Alcoa Aluminum back in 1949. Since the beginning, they have manufactured their knives in the state of New York. These days, with 16 million satisfied customers, they’re as relevant as ever.  

With more than $226 million in revenue, they’re ranked as the 56th biggest direct selling company in the world. Seeing how successful the company is, why is there is so much controversy surrounding it? 

How Does the Cutco Scheme Work?

Cutco Knives is what you may call single-level sales company. While some think that it’s an MLM – or multi-level marketing company – Cutco functions differently. As the company officials are quick to point out, Cutco doesn’t allow you to create a downline and earn money from people beneath you. Instead, they rely on single, direct sellers. 

Ever since the company was launched, they had hundreds, if not thousands of independent sellers across the United States. The myth about Cutco Knives came from peculiar situation, that dates back almost 40 years. 

Back in 1981, one of the biggest Cutco sellers was a small company named Vector Marketing. In the early 80s, they managed to sell more Cutco knives than any other direct seller out there. That’s why, in 1985, Cutco decided t purchase Vector Marketing and make them their premier seller. Nowadays, if someone calls you, offering a Cutco selling job, they’re working for Vector. 

Vector Marketing, however, was the company responsible for all of the controversy. Over the years, Vector saw it’s fair share of controversies. Three years ago, they paid $6.75 million to settle a class action lawsuit with sales reps who didn’t get paid. 

Is the Cutco Program Safe?

Some people refer to sales tactics as the “Cutco Knife pyramid scheme” however, are claims such as these true? Do you have to worry about your money when dealing with Cutco? 

As you could see from the examples above, all of the controversy comes from Vector Marketing and not Cutco Knives. The company only works with direct sellers. That’s why you don’t have to worry about being involved in a pyramid scheme if you opt to work with them,

Every multi-level marketing company require you to establish a buyer chain, train them to become sellers, and make money off a percentage of their sales. When the product doesn’t have any real market value, the company is considered a pyramid scheme. 

Since Cutco Knives doesn’t operate like that, you have no reasons to be worried, whether you want to buy or sell their knives. 

Is Cutco a Scam?

The next question on everyone’s mind is whether Cutco Knives is a scam or not? Again, you can’t say that Cutco does anything to deceive their customers. Their products actually have a great reputation as some of the best blades on the market. 

And yes, their knives actually can cut through pennies, just as advertised. Although, you shouldn’t try that more than once if you don’t want to risk damaging your blade.

Even Vector Marketing isn’t a scam. Even though some people don’t agree with their marketing and recruiting tactics, a few controversies they were involved in can be considered isolated incidents and should be viewed as a representation of the company as a whole. 

Cutco Reviews

You can find a lot of discussion concerning Cutco knives on the Internet. While some people that have had a bad experience with Vector Marketing aren’t the biggest brand ambassadors for Cutco, most of them will agree that the product has a real-world value. 

Here’s what the people have said about Cutco knives:

  • Andrew Palermo of Prudent Reviews says that the fact that Cutco knives come with a lifetime warranty is the biggest reason to trust the company. Furthermore, since there’s free sharpening involved, it’s safe to say that you shouldn’t worry too much about being scammed 
  • As Chef Resource writes, the fact that professional chefs use Cutco knives is the biggest stamp of quality. If a knife is quality enough to be used in the kitchen of a five-star restaurant, it’s definitely good enough to be used in your kitchen. 
  • According to Food Shark Marfa, most kitchen utensils nowadays aren’t manufactured in the United States. Cutco knives, however, are still proudly produced in America, which guarantees that only high-quality materials are used, and they are handled with care. 

That’s what some of the best reviewers have to say about Cutco knives. If you’re still not sure whether their products are worth your time, the only thing you can do is go out there and get a live  demonstration to see the effectiveness of these knives in person. 

How Much Does Cutco Pay?

Although being a Cutco customer has obvious perks if you’re in the need for sharp blades, what about the sellers? Are the people working for Cutco getting compensated fairly? Can selling Cutco knives help you earn a steady salary? 

Unlike most MLM companies out there, Cutco gives its sellers a guaranteed wage. Depending on your location, your starting wage will be between $12.50 and $17.50 per customer appointment. An average presentation lasts an hour, so it’s safe to say that the payment is per hour. 

Of course, you have to be aware that the amount of money doesn’t really translate into an hourly wage. You have to spend additional time planning your presentation, driving to the appointment, and driving back after you’re done. 

Of course, you earn commissions from each sale. Here’s how commissions work:

  • From $0 to $1,00 you earn a 10% commission
  • From $1,001 to $4,000 you earn a 15% commission
  • From $4,001 to $7,500 you earn a 20% commission
  • From $7,501 to $12,000 you earn a 25% commission
  • From $12,001 to $24,000 you earn a 30% commission

Compared with an average MLM company offers – which is no guaranteed wage – the money sellers receive for appointments are great. However, if you’re looking for a serious job, selling knives door-to-door won’t do you any good. That’s why mostly students work for Cutco. 

Conclusion

There you have it: that’s the truth about Cutco. The company is legitimate. If you’re a student looking for some real-word experience, Cutco provides a great way to earn money. And if you want to buy some new knives, again, Cutco is a safe way to go, since their products are used by tens of millions people around the country.