Chances are you heard about Cutco Cutlery because someone – a friend or family member – introduced you to the company. Maybe you attended an online workshop or webinar, or maybe an in-person information session.
Your head’s probably spinning. This might be the first time you’ve heard about a real way to make money outside of a typical job.
So first off, congratulations!
You’ve just entered a whole new world…the world of making money on your own terms.
However, you came in through the wrong door.
Because Cutco Cutlery is – plain and simple – an MLM. Throw whatever fancy name you want on it…multi-level marketing (MLM), network marketing (NWM), direct sales, or anything else, it’s the same concept:
You pay some money upfront for the “opportunity” to sell products.
The products are typically low-quality but with high price tags (because fancy labels and stuff).
You’re told that the key to building your own successful business is selling these products to friends and family, and getting them on a subscription (so you get “monthly recurring revenue”).
Unfortunately, like most people who get taken in by these types of schemes, you’ll quickly discover that the well runs dry faster than you imagined.
After all, they make it sound really simple. “Just get 5 people you know onto this magic widget, and things will just grow from there.”
And in your head, you think “How hard can it be? I know plenty of people, 5 will be easy.”
But then you do it, and you realize people look at you like you’ve joined a cult. You’ve become “that person”, who joined an MLM, and is now trying to sell questionable products or services to everyone they meet.
It puts a strain on your relationships, and you end up stuck between two worlds.
But it’s not your fault. These companies spend millions of dollars each year figuring out exactly how to brainwash and recruit people. And that’s why we’re here.
To help you find a better way before it’s too late.
So, what if there was a way you could build a passive income stream that’s actually passive?
An income stream that doesn’t require:
- Selling to friends and family
- Selling to strangers
- Recruiting people
- Dealing with questionable products that weigh on your conscience
An income stream that brings in consistent revenues every single month (from a couple thousand dollars to well over $10,000)?
An income stream you could actually build in your spare time, and grow as large or as small as you want to, without having to spend hours a day chasing, selling, or managing anything?
If that sounds like something you’d be interested in, check out Digital Real Estate.
This is nothing like MLM, and that’s probably a good thing.
However, if you’d still like to know more about Cutco Cutlery, keep reading.
Is Cutco A Pyramid Scheme?
So, let’s get one thing straight.
You’re reading this because you’ve likely heard about Cutco offering $15 an hour.
As more individuals fall victim to scammers, I’ve gotten especially driven to teaching and reviewing money-making business opportunities like this one.
In this article, I will outline the benefits and drawbacks of joining Cutco Cutlery, and eventually address these questions: “Is Cutco a scam, a pyramid scheme, or is it really possible to make much money selling knives?”
We’re going to review multiple aspects of Cutco to decide if it really is the best network marketing platform out there.
We’ll talk about whether network marketing is the right online business model for you.
In the end, I’ll answer some of the most frequently asked questions regarding Cutco and MLMs in general.
Cutco Review: The Overview And Rankings
Name: CUTCO CUTLERY
Founder: Alcoa company in 1949 (now owned by Vector)
Type: Cutlery direct sales company
Products (Including Pricing): 60 out of 100
Success Stories: 30 out of 100
Price To Join: Free- previously $300+ (100 out of 100)
Summary: Cutco is a cutlery and cookware direct sales company that pays you $15 per successful presentation you arrange with potential customers.
Rating: 60 out of 100
What Is Cutco Cutlery?
A privately-owned company, Cutco Corporation is a cutlery direct sales company based in New York that sells through Vector Marketing, an MLM or multi-level marketing business model.
Its goal primarily is to provide a business opportunity for stay-at-home parents, students, and employees where they can earn a commission of 10% by selling knives as a side hustle.
They boast of high-quality cutlery and cookware that are all made in the USA and come with a lifetime guarantee.
Founded in 1949, Cutco was a product developed and designed by Alcoa and Case Cutlery.
According to history, Case’ shares were bought by Alcoa in 1972. Consequently, the entire company was then bought by the Alcas management from Alcoa in 1982.
Alcas, in 1985, purchased Vector Marketing Corporation to act as the MLM arm of the company.
What Is Vector Marketing?
Vector Marketing Corporation is the MLM marketing division of Cutco.
The MLM operations are handled by Vector Marketing Corporation and is Cutco and Cutco at Home’s sole distributor.
They target college students, stay-at-home moms, and high school graduates by presenting a potential money-making opportunity which they can conveniently do as a side hustle.
As the MLM arm of Cutco, they, of course, recruit people for them to earn some additional bonuses. In other words, they are recruited for door-to-door selling.
I don’t think being a door to door salesman is something that would work today
Cutco Cutlery Product Line
Selling knives is a part-time job opportunity that’s available with Cutco, one of the leading direct sales companies today.
The Cutco line is a no-brainer for anyone searching for well-designed blades.
In fact, because of the durability and high-quality material used to produce these knives and other kitchen products, they’ve become quite popular.
Vector Marketing provides products in these categories:
- Kitchen knives: Cleaver, trimmer, table knife, french knife, etc. @ $40-$250
- Shears: Specialty scissors @ $90 – $120
- Cookware: Pots, pans, gadgets, baking tools, utensils, cutting boards, etc. @ $40-$2,600
- Tableware: Cutlery $30-$1,500
- Outdoor: Hunting knives, pocket knives, sporting knives, garden tools @ $100-$250
Cutco’s flagship product, however, is the Cutco Knife Sets valued at anywhere between $280 – $1,212, featuring a patented recessed “Double D,” 440A stainless steel bladed-recessed edge that can make very precise cuts.
The handles of these knives are made of thermo-resin which is a material that adds dishwasher endurance, strength, and durability.
In my opinion, the main reason why people keep buying knives from Cutco is because of the lifetime guarantee that they offer.
Cutco Online Reviews
The first block they want you to see goes a little something like this:
But not all reviews are created equally:
“I was interviewed by Vector Marketing and offered a job, I turned it down when I realized what they were. At the time I had to buy the demo-set of knives… and if I quit the job I could either keep them (since I paid for them) or they would give me my money back if I returned them. OR I could be sneaky and sell them to my last customer and pocket whatever money I made off that sale. Whatever.
The whole business model is hiring lots of young people every summer, to call on their friends and family. They’re hoping that you being all young & fresh faced is going to guilt your parents, grandparents, aunts uncles cousins neighbours… to at least buy SOMETHING for your time as you stumble through your appointments.
After that, you’re encouraged to get them to suggest OTHER people that you could bother and guilt into buying things.
Once you’ve exhausted your entire pool of potential customers? A lot of these sales reps get fired. Some of them might get a list of random potential customers, and now you’re cold-calling. But I believe you won’t get paid for any of this cold-calling time.
And back then there was a mandatory meeting once a week I think… that was 3 hours long, on a Friday afternoon… and yup. You wouldn’t get paid for that time either.
I told the recruiter chick no thank you, and she seemed pissed because she told everyone else in my group meeting to leave because I was the most neatly dressed (since I thought it was a real job and not a door-to-door sales thing when I walked in)”
“Cutco is a bit of an anomaly among MLMs. They actually have a good product and stand behind it, and in the long term, a set of cutco knives is worth what they cost.
But, they’re exceptionally bad when it comes to their sales force. If you went to college in the US, you likely saw ads for summer/break work, quoting a pay rate of “$17 base/appt.” They want you to assume that’s $17 per hour, plus whatever commission you earn – a reasonable assumption that most people make. But whether the appointment lasts an hour or six, you only get the $17 base pay…..IF your
marks customers give you contact information for their friends and family – I want to say it’s 5 or 10 names and numbers they have to provide. Someone correct me if I’m wrong, but I believe this is a requirement to get your commission if you sell anything, too. Also, you have to pay hundreds of dollars for your demo kit in order to even start, so you are highly unlikely to make your money back, much less actually get a decent wage for the time you’ll put in.
So it ends up being a great deal for the company – they get risk-free sales opportunities and pay almost nothing to generate leads, and even get to weasel out of paying commissions a large part of the time.”
“Vector is skeezy. I went to an “interview” based on a newspaper ad for a job and as a teen and they kept us there all day without ever telling us who they were or what the job was. Then I finally find out they want me to shell out over 300 for knives that we are supposed to guilt friends and family into buying from us. I had no money, hence why I needed a job! Luckily I didn’t fall for it. Even then it seemed like a bad business model. And I’m no door to door sales girl. I went to work at the pool where they paid me actual money, I got to keep my friends and had a wonderful summer. I never looked back at MLMs. I don’t understand how so many actual adults get sucked into these things.”
“I think it’s just the fact that they’re more or less available on the retail market without getting into the pyramid scheme BS. I’ve seen many stalls and booths at shows and exhibitions selling to the end user.
On another note, Cutco knives aren’t even as good as many think they are. They may seem like decent performers to casual users but 440A steel just doesn’t cut it when you have makers like Shun rocking steels like VG-10 for about the same price.
You’re even starting to see powder metal super steels like CPM154 and S35VN making its way into the world of kitchen knives nowadays. Cutco really doesn’t compare anymore.”
“I did cutco for a summer. At they time they were offering $17 per appointment. The main challenge is that they set the expectation of it being a referral based business. You start off demoing to your friends and family (of course they buy because they are your fsmily/friends). Then it becomes whether or not you are comfortable asking them for referrals. Once you get a few steps outside of your initial circle (referrals of friends who were referrals) you get into what essentially is cold calling. That’s fine and as long as you can keep asking for referrals there is potential to make money, but the odds of then buying goes way down. By the end the only way I was making money was by apoointment. Unfortunately I was only doing like 2-3 appointments per day and most of the time you’re driving 30-60 minutes back and forth to that appointment. In the end it wasn’t worth it. I would have been better off taking a minimum wage job that was giving me 20+ of steady work per week.”
“About 12 years ago I sold knives for Cutco.
Their product is excellent (I was 20 at the time I sold and had no idea how awesome they actually were back then). I made a lot of temporary friends, and I learned a lot about sales. I never made good money from it and I always felt weird asking people to let me demo for them (just not in my nature to feel like I’m putting someone out).
I didn’t do it long and my breaking point came when I realized my boss cared more about my appointments than me. I had a horrible issue with my car almost blowing up on a way to an appointment and she asked me if I could borrow a friends car to get there in time – no thanks.
With that being said, I did refer a friend and they made a lot of money from it, which in turn gave me another revenue stream (you get a portion of the money people you refer make). This person loved it so much she changed her major from pre-med to business and now happily does recruiting for an excellent company.
If it’s your only job, it will be risky. However, if you’re young, it’s always helpful to get a bit of sales experience to add to your catalogue if experience.
Let us know what you decide!”
“it’s neither. it’s technically not an MLM, and it’s not a job at all so it can’t be a shitty job, it’s just a scam.
now just because it’s not an MLM doesn’t mean it’s a totally legit enterprise. cutco is odd in that they have a very sneaky and unique modus operandi. they don’t use a downline or any of that crap, there’s only the company and the sellers. the best way to think about it is that they use proxies under the guise of a “job” to sell to the proxies’ social circle- their parents and maybe their friends’ parents.
if three cutco salespeople knocked on your parents door and tried to sell them a set of knives it would be a big waste of everyone’s time so what they do is recruit kids to sell to their parents. they get the kids in batches of 25 or so. this multiplies the effect of the recruiters time investment. the kids’ parents buy them the set as a demo set so they can sell. the recruiters then get the kids to try to sell to their families’ friends. and typically they have marginal success. then the kids basically wash out. if by some miracle a kid just happens to be a super charming and effective sales person, well great, they can do so as long as they can manage, but that’s bonus it’s not really part of the plan.”
“I had a job with Vector (the company that sells and markets Cutco). And while I no longer work with them, I never found them to be a “pyramid scheme”. A couple years back sure it might’ve been, but now you get the kits for free instead of paying for them and you’re not allowed to go door to door anymore. They pay per appointment you make wether or not you sell so each demo I did I still got paid 20.25$ and once you reach a certain level your commission goes up. In the district I used to work at, everyone was very supportive and encouraging and they tell you if you’re busy with school or life you don’t have to sell, sell only when you want to. My friend still works there and she’s selling so much of the product, she’s getting paid every single week and is in the scholarship race. I hate pyramid schemes but I never found Cutco to be one.”
“The thing about CutCo/Vector is that it’s been slammed with so many lawsuits and bad press that they’ve rebranded (and in a superficial way, restructured) into “network marketing.” So CutCo is a multi-level-marketing company and Vector is their broader direct sales arm. Like Avon and Tupperware, there is more focus on products and less on recruiting, so it’s a stubby pyramid with a much larger base and less pressure than, say, Lularoe or Amway. Nevertheless, within the constant (yes) recruiting, exploitation, bait-and-switch tactics, market-flooding, and turnover, there are rewards for recruiting. Their whole Vector phone app is made for recruiting in order to tap into and flood local markets and move on. So the teenaged kids aren’t rewarded for recruiting friends and family so much as their recruiter is. Tl;dr: It’s all upline for recruits.”
Do Cutco Products Really Work?
Based on the many positive reviews I’ve read online, the answer to this is yes!
Cutco knives do work!
In fact, several online websites recommend them.
This is backed up by the sizable social media following they have, with 96k followers.
If you want to see actual product reviews, you may go to their consumer affairs profile.
But first, let me remind you that I’m only talking about its quality.
The money-making scheme and the recruitment process will be discussed in the following sections.
Can You Really Make Money If You Sell Cutco Cutlery?
Yes, You can!
There’s a lot that comes along with this type of MLM program that many people struggle with.
Now, don’t get the wrong idea…
It’s not impossible to make money selling knives, but if you’re gonna put in the amount of grueling work to do this business (which, trust us, isn’t easy), you might as well bring in some REAL money while you’re learning the ropes.
But if you’re serious about Cutco, let’s take a closer look…
Cutco Cutlery membership process is pretty easy because it’s free.
About twenty years ago or so, agents were required to buy a kit for their presentations. Thanks to Cutco, they provide this kit for free for as long as you are an “active representative.”
The company is able to cut costs in marketing and advertising by recruiting people instead to do the promoting and selling.
You can earn a commission of 10% by doing this.
But first, what does it mean to be an active representative?
From what I’ve gathered, active sales reps are agents who are required to make a $100 worth of cutlery or cookware sales each month.
If the sales representatives fail to meet this requirement, they will have to return the kit or buy it for half the cost.
But what about the $15 per hour advertisement?
This is an outright overhyped ad.
What they really mean by it is that you can earn $15 for every successful in-person appointment with prospective buyers and members.
Sales reps would require their prospective buyers and members’ phone numbers and email addresses to be stored in their client database.
The actual process is quite easy:
- You will undergo multi-step interview process.
- They will give you a three-day training course after you have been hired.
- They will request a list of referrals from you.
- They will supply you with a sales script and presentation to reach out to your potential clients.
- Earn from 10 to 50% commission on all sales (or the guaranteed base pay of $15, whichever is more).
Cutco Cutlery’s Compensation Plan
If you go to Cutco’s official website, you’ll see that they emphasize that the business opportunity they offer isn’t a “get-rich-quick” gimmick.
Instead, it takes pride in qualities such as perseverance, effort, and commitment.
As such, Cutco states that the money you make from this side gig is highly dependent on your persistence and grittiness to sell.
The commission structure is shown in the table below based on the number of sales:
But Wait! What’s The “Cutco At Home” Compensation Plan?
According to my research, Cutco uses two types of compensation plans:
- Basic Cutco Compensation Plan
- Cutco At Home Compensation Plan
With the Cutco At Home Compensation Plan, there are two ways you can earn:
- Sales Commissions
- Bonus generated from your downline sales
Cutco Cutlery Ugly Truths Revealed
There are several downsides to Cutco’s money-making program which I want to highlight here.
Below are three three “ugly truths” about this business model that I find really sketchy:
- Cutco products are so expensive. Even if they are of high-quality material and craftsmanship, I still think that they are ridiculously overpriced.
- Cutco uses very old-fashioned sales tactics. Their salespeople go door-to-door and are given scripts which I strongly feel are not enough to make significant sales in our technology-driven industries.
- Earning a passive income is just not feasible with Cutco’s compensation plans.
What Do I Like About Cutco Cutlery?
I’ve highlighted some of Cutco Cutlery’s major benefits below:
- They do pay you $15 per successful appointment. This is one thing that they promise they would do if you make client presentations and may make even more if your prospects make a purchase.
- There’s a lot of positive feedback about Cutco’s product quality. People are even recommending them. And what makes it stand out is the fact that chefs across the globe are either using them and recommending them as well.
- To top it off, they have a large social media following, with 96k followers to be exact. These are some of the things that make a product or service trustworthy. To quote one particular review from a user 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.”
- Cutco provides proper sales training for every new recruit. They are provided with a well-written starter sales pitch script which you can customize as you deem necessary. Through this training, your leadership and sales skills are developed.
- In 2016, Cutco became one of the top 20 Direct Selling Associations.
Bottom Line: Is Cutco A Scam or A Pyramid Scheme?
So, is Cutco Cutlery a scam?
Not technically. You can make money with this program, but it’s definitely not as easy as the company makes it sound.
There’s a ton of work to be done upfront, no real guarantee of success, and – most importantly – the actual commissions are pretty small.
Now, there’s nothing wrong with front-loading the work and making the money later.
But if you’re grinding it out for 3 months and then your reward is a $50 commission, it’s not really worth it.
What if, instead, you could do that same 3 months of work (in your spare time), and your reward was a $500 to $2,000 payment that came in every single month?
And what if you actually didn’t need to wait 3 months? What if you could get started today and have your first payment in a week?
And what if you could double it next week?
Well, that’s the power of Digital Real Estate.
And, unlike an MLM, you can legitimately do this from anywhere. It’s a true lifestyle business.
Your laptop and an internet connection is all you need.
Some of the most successful students in this program run their entire 6-figure businesses from:
- A camper in the middle of the woods
- A beach chair on the water in Mexico
- A small villa in Greece
They’re able to travel around, living their lives first, and focusing on their income second.
Because even if they stop working for an extended period of time, the money keeps coming in.
So adventure, memories, and experience are the top priority.
And they never have to worry about how to pay for the next trip, or consider asking for time off.
If this sounds more like the type of life you want to lead, just click here to find out more about Digital Real Estate.
Are There Any Alternatives To Cutco Cutlery?
Yes, there are plenty of MLM companies to choose from if you want to pursue this business model. Here are just a few:
What Is Our #1 Recommendation For Making Money Online In 2023?
The ScamRisk team has spent months researching, reviewing, and vetting dozens of business models and thousands of programs.
While there may be no “perfect business”, the research IS conclusive:
Digital Real Estate is the #1 online business model for those just starting out.
Whether you’ve never made a dollar online, or you’ve been in this space for a while but never really “made it,” Digital Real Estate is for you.
1) It’s Flexible: got an hour a day? You can do this. Ready to drop everything else and dive in full time? You can do this. Yes, the more time you put in, the faster you see results. But even with a little time each day, you can move the needle in a Digital Real Estate business.
And because this system is so flexible, you don’t have to constantly be working to make more money. It’s called PASSIVE INCOME because if you stop working, the money doesn’t.
Imagine taking 3 months off to just tour around Europe, rent a cabin in the woods to write a book, hike the Appalachian Trail, or live on the beach and surf all day.
This is only possible if you have an income stream that’s not tied to your time.
2) You Own & Control EVERYTHING: With MLMs and Network Marketing, you don’t really own anything. You have no control over the quality of products. You don’t even own your “team”.
Look at the fine print for most of the agreements folks sign when they join one of these companies. At any point, the company can change your commission structure, reduce your profit margins, or kick you out entirely.
With Digital Real Estate, you own the assets, which means you have all the power and all the control.
3) Little To No Startup Costs: It’s possible to get into Digital Real Estate with zero dollars upfront. Because, using the strategies outlined in this program, you can get a client to pay you BEFORE spending a penny out of your own pocket…even before you do any work.
Even without getting paid in advance, you can have your first Digital Rental Property up, running, and generating profits for less than $100.
4) No Inventory: Alright, so most MLMs don’t make you buy the products and fill your garage with them anymore (unlike the good ol’ days), but you’re still in a physical products business.
And physical products always have physical limitations. Even if you don’t have to manage the inventory, you still have to deal with supply chain shortages that cause major delays.
Imagine finally landing your first customer, and then losing them after one sale because they had to wait 6 weeks to get their order.
With Digital Real Estate, a 100% online business, you never even have to think about that risk.
5) Easy To Duplicate: Ok, here’s the best part: once you have your first Digital Rental Property up and running, you can literally DOUBLE your income with a few clicks, a couple keystrokes, and a single phone call (and you don’t actually need the phone call).
Remember: each Digital Rental Property is worth $500 to $2,000 a month in semi-passive income (over 95% profit). Every time you decide to create another one and increase your income, it gets easier.
Because you have more knowledge, more experience, more results, and more momentum.
If you wanted to double your income with an MLM, you’d have to double your customers OR double the average order size of your existing customers. And, guaranteed that’s a lot harder than a few clicks and a few minutes of your life.
6) Make Money Helping Real People: This part is what makes it all worth it. In an MLM, your “upline” might convince you that what you’re selling improves people’s lives, but deep down, you likely know that’s not true.
Most of the time, you’re either selling a dream or a poor-quality, overpriced product with a fancy label.
And that makes it pretty hard to sleep at night.
But with Digital Real Estate, you’re actually helping people by solving your clients’ biggest problem:
Small, local businesses need more customers, and with Digital Real Estate, you are unleashing a flood of happy, paying customers for these businesses.
You make money by helping them make money.
Not a big, faceless corporation either…a small business owner who’s using that money to put food on the table for their family, start a college fund for their kids, or take care of a sick parent.
Once you see how Digital Real Estate makes a real impact in the lives of real people, you’ll sleep like a baby with a big smile on your face.
Now, the choice is yours.
You could continue browsing, looking at opportunities like Cutco which could one day make you money.
You could continue researching, never making a decision.
OR, you could take a look inside, consider what you really want, and join a program that makes your dreams a reality. At the same time, joining a community of over 2,000 successful students that are living life on their own terms thanks to Digital Real Estate.
A consistent, reliable, semi-passive stream of income that doesn’t depend on you or your time to keep producing profits.
All while genuinely helping real people who are grateful and happy to pay for it.
If this sounds more like what you want out of life (or if you just want some nice side income), click here to learn more about Digital Real Estate.
There is some information in here that is incorrect, just so you know. People are not hired to do door to door selling anymore, they have made a transition to the online environment in 2020, in the midst of the pandemic, and at this point it has become the primary way that they train new members to sell. Just as well, there is no advertisement for 15 an hour, they explicitly state that they offer 15-18 dollars per appointment, which usually takes an hour. Just wanted to clarify that.
None of the information presented is incorrect. It has all been fact checked. Secondly, door to door sales is still a thing with cutco. Speaking from personal experiences of my younger friends and others who have emailed me…the online meetings did nothing but increase their “no show/cancellation” rate so they had to go back to door to door. Also, I was giving cutco the benefit of the doubt with $15 per hour. If you look on job boards like indeed or monster, you’ll notice that $15 is in fact advertised as such. The true hourly rate of cutco is much less than $15 per hour. I just didn’t fully put them on blast. I just wanted people to be informed of the commission structure before joining.
Appears that the quality is there for the customer, but the incentives aren’t there for the employees.
THank you, I was considering trying out CUTCO but will look for something a little more legit.
The knives are pretty decent though.
im 16 these ppl were gonna ruin my life hahaha at least from some things i am reading…thanks for the review man
just buy ur knives from a store n get a real job LOL
i do like the passive work tho, will check out ur recommendation