For anyone who wants to make money with a flexible schedule, selling products can be an attractive option. This is appealing to people from many walks of life. But selling products isn’t as easy as it sounds. Perhaps, it depends on the products you are selling. Cutco is a company that has been selling knives and kitchen accessories for years. In this Cutco MLM review, I’ll take an in-depth look at whether this is a good opportunity for you. It may not be what you are looking for.
What is Cutco MLM?
Cutco is a U.S. based MLM (multi-level marketing) company that sell a variety of cutlery and kitchen accessories. The company was founded in 1949 and was previously a division of ALCOA. It is based in Olean, NY, which is also where they make their products. Cutco products are now sold through the Vector Marketing Company.
How Does Vector Marketing Work?
Vector Marketing was founded in 1981. Cutco is their parent company. Vector Marketing recruit representatives to sell Cutco products. They advertise in various media such as newspapers, posted advertisements, word-of-mouth, the Internet, and bulletin boards at colleges.
The representatives they recruit are mainly college students who want to earn a little extra money. The products are mainly knives but also include other kitchen utensils and accessories.
Are Cutco Products Worth Their Price?
While these products tend to be a little on the pricey side, they come with a lifetime guarantee which, to some people, may be worth a lot. The products tend to last for years and the knives can be sharpened for free which also extends their life.
That’s not to say that customers can’t find similar products at cheaper prices or find other quality knife sets online. As you can see by the product image above, all of the products are pretty expensive.
As you can see by the image above, the two vegetable peelers on the left are Cutco Vegetable Peelers that you can buy on Amazon. The peeler on the far right is the exact same vegetable peeler (model number 1501 in all three) at almost $10 more than the Amazon price. You can see why selling these products could be tough. This product gets good reviews in both cases. The difference is in the price.
The Cutco MLM Opportunity
Now that you know a little bit about the company, let’s talk about what the opportunity is for you. As a representative of the company, your job would be to demonstrate the products in small groups of family and/or friends with the anticipation of making sales. From those sales, you would earn a commission.
This type of direct selling usually means that if you don’t make any sales you don’t get paid. In the case of Cutco products, you will be paid an hourly rate but it’s only for the presentation. So if it takes you 30 minutes to get to the presentation, an hour for the presentation, then another 30 minutes afterwards for you to get home, your pay will be the hourly rate of around $15.00 depending on where you live. And that’s only if there are no sales from the presentation.
How Much Does It Cost to Join Cutco?
You won’t have to pay for training but you are also not paid for your training time either. There was also a time when you had to purchase a set of knives for demonstration purposes. But that is no longer the case. And don’t forget about the hidden costs of a business like this. You’ll also have to pay for your own gas to and from your presentations and any other expenses.
Can You Make Money with Cutco?
You really have to think about your target market here. Most people are not looking for fancy, high-priced kitchen utensils, knives, and accessories. When it comes to cooking and baking, people really only need tools that work. They don’t have to be expensive. This is where you could have a problem. Your target market will have to be people with money who like fancy kitchenware.
If you think you are really good at sales or can be, this could be a way to make some extra cash. It will provide you with training but ultimately you will be making cold calls–calls to friends and family that could be a strain on your relationship with them.
You Actually Get Paid
I know this might be hard to believe but this is the only MLM I’ve come across so far that actually pays an hourly rate between $9.00 and $19.00 per hour. But you will only receive an hourly pay if you do not make any sales from your presentations.
Good Quality Products
If the videos are to be believed, these are good quality products that seem to last forever. There are many happy customers who have had Cutco products for years.
Variety of Products
In the beginning, Cutco’s main product was knives. They now have a wide selection of knives, garden tools and other outdoor products, cookware, tableware and other kitchen accessories.
All the Cutco products comes with a lifetime guarantee. If for any reason you’re not happy with the performance of a product, Cutco will correct the problem or replace the product.
Made in the USA
All Cutco products are made in Olean, NY. The company has approximately 600 employees and more than 200 have been with the company for over 20 years. So the company seems to have happy employees as well.
Since the products have a lifetime guarantee, you can have your knives resharpened for free. All you need to pay is the return shipping fee. You can get your knives back within one or two weeks.
No Paid Training
The training is around a week and is not paid training.
Only Paid for Appointments
You will be paid but you will only be paid for any actual presentations where you demonstrate the products. You won’t be paid for making calls and setting up appointments.
Crappy Commission Rates
According to my research, the commission rate is only around 5-10% on your sales. So if you need $100 to make rent, you’ll need to sell $1,000 worth of product.
Beware of Complaints
Cutco currently has an A+/3-star rating with the BBB (Better Business Bureau). But there are plenty of complaints from customers who didn’t receive their products when promised and false advertising. In many of the complaints, customers ordered a particular product at a certain price only to be told that the price was much higher than the catalog price. Vector Marketing would not honor the price in the catalog and insisted that if the customer wanted the product they had to pay the corrected price. This left many people unhappy.
High Pressure Contact List
According to my research, representatives who are hired and make it through training are expected to come up with a list of names of people to contact. This list has to have at least 50 names of anyone you know that you call to book a presentation with.
Is Cutco a Scam?
Cutco is not a scam but it is most certainly an MLM. They have good quality products with a lifetime guarantee that may increase your chances of getting sales. MLMs try to rope you in with the promise of helping you develop confidence and interpersonal skills while making money. You have to remember that these programs are generally commission based only.
I’ll admit, it’s easy to fall in love with these products if you love to cook. The lifetime guarantee alone is quite persuasive. And you could almost turn a blind eye to the more expensive price. But you will have to ask yourself, is it worth demanding face time with your friends and family and their friends and family to sell kitchenware? The commission rate doesn’t seem to be worth it to me.
Having your own business where you get to decide where and when you work is certainly possible. There are plenty of people who are making money doing just that. But, in this case, is it worth the hassle? If you really want to own your own business check out my #1 recommendation on how to start your own business. You’ll get everything you need to build a successful business. You’ll get a website, hosting, 24/7 support, and excellent training. It’s a system where you really can’t go wrong.