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Vector Marketing Review (MLM or Pyramid Scheme Scam?)

I have seen many people do door-to-door endorsement of their products over the past few years. And I’ve noticed they have been dwindling out as the years go by because now, we can do it virtually. Luckily, Vector Marketing has adapted to it. Imagine if they’re still do the traditional door-to-door endorsement of their product, the kitchen knives. Isn’t that scary? It will creep me out if someone in front of my doorstep is holding a knife and saying they wanted to introduce me to their product.

NEXT: Better Than Selling Knives

Vector was founded in 1977 by Don Freda. Not until 1981 that it was called Vector Marketing because it became an independent seller of Cutco Cutlery then soon became the marketing and sales department of it. President of Vector Marketing, Albert DiLeonardo was once mentored by the founder himself when he was still a college student. Proof that knowledge and wisdom can be passed through generations.

Cutco Cutlery is a manufacturer of high-quality kitchen cutlery, which Vector Marketing is selling. Their sales representatives meet one-on-one with potential customers through virtual appointments. How they locate potential customers is a mystery though. I’m having a wild guess that maybe these “potential customers” were people who inquired and emailed Vector, then told them that they will be contacted by one of their sales reps for demonstration. Sounds about right.

Vector Marketing sales reps are mostly those who just finished high school or are in college as of the moment. They’re known to be the largest recruiter of undergraduate students in the US. They don’t have any requirements nor any fee in order for you to join (that’s why their target recruits are students). You just need to finish your training and then you’re good to go. They will loan you a Cutco sample set for you to use in your demonstrations when meeting up potential customers. And if you quit, you just need to return it to them.

Sales representatives will still receive a base pay of $17.25 even if they didn’t sell anything after their appointments. Why is that? They don’t want their sales rep to feel pressured on doing sales in a way that is pushy. And they’re confident to say that anyone who has seen Cutco will definitely buy something (How gaudy was that?). That’s how they can afford the no sale, base pay method. And each successful sale the reps made will earn them 10% commission.

Even though the pay is little, successful sales representatives can become summer branch managers. They will be managing 30+ sales reps under their wing. And imagine being one as an undergraduate student. At an early age, you will be exposed to managing people. A great experience if you ask me. And a great boost in your resume when you apply in the future.

Several lawsuits have been filed to them and most of it concern unpaid and underpaid employees since they’re only viewed as contractors and you can incorporate deceptive recruiting practices in this manner. Back when they’re still doing door-to-door, one of their distributors was drugged and raped while on a sales call. She sued them for not giving training to prevent such situations. This just means that they haven’t done any background checks on their “potential customers”.

Since they’re known to be the largest recruiter of high school and undergraduate students, not everyone is pleased with all their email spams, phone calls and letters to recruit new reps. They have irritated a number of college students across the nation which then formed an alliance called “Students Against Vector Exploitations (SAVE)”, to bring to light their unethical business practices. They claimed that most of Vector’s profits came from the money the sales reps deposited to have the Cutco sample set (This was when Cutco sample set costs $99 before you can make sales).

Vector Marketing is neither an MLM nor a Pyramid Scheme Scam. It is a single-level direct sales company where your only way of earning money is through sales and appointments. And if my guess earlier was wrong, then you are the one who will look for people to do demonstrations yourself. Pretty hectic right? The most rewarding thing that you will get by joining them is the experience. An entry level job that gives extensive training that will help you with your job interviews in the future.

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Jessie Luna: If you want someone who will talk straight with you, respect your time, and show you a business that might actually work for you, you should watch this short video.