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What is the Cutco controversy?

The company has paid millions of dollars in lawsuits alleging deceptive recruiting practices. CutCo does sell products, but they derive a large portion of their sales from new employees, their families, and friends.

Is vector Cutco a pyramid scheme?

The TRUTH: Vector Marketing is not a pyramid scheme in any way, shape or form. Vector Marketing is the sales and marketing division of Cutco. Vector reps are not responsible for recruiting new reps or buying any sort of product or service.

How long is Cutco training?

Your training sessions are designed to introduce you to the ins and outs of working as a CUTCO sales rep. Trust us: youll learn a lot! New sales representatives participate in a two or three-day training session.

What is the lawsuit against vector marketing?

Plaintiff filed this class action against Vector in October 2008, alleging that Vectors failure to pay wages to participants in its three-day sales training seminar and its requirement that the participants purchase sample kits of knives violated federal and state employment law.

Who are some famous people from Cutco?

Some of Cutcos most successful alumni include Uber cofounder Travis Kalanick and David Plouffe, manager of Barack Obamas 2008 presidential campaign. We talked to four successful Cutco alumni who said their experiences selling knives taught them about rejection, framing, and salesmanship.

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Is Cutco a MLM company?

The company has been the subject of criticism and lawsuits for its deceptive recruiting and business practices, and has been accused of being a multi-level marketing company.

How much commission do you make from Cutco?

Cutco reps are paid a commission based on the sales they bring in. For example, those who sell up to $1,000 worth of merchandise receive 10%, while those who collect between $6,001 and $10,000 are paid 25%. Representatives like Mr. Kernus, who generate more than $20,000 in sales, earn a commission of 30% or more.

What is the lawsuit against Cutco?

Cutco Allegations and Lawsuits In 1990 the state of Wisconsin ordered the company to stop their deceptive recruiting practices. In 2008 the company faced a class action lawsuit for not paying minimum wages to their sales representatives, a case which was settled in 2011 for 13 million dollars.

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