Vector Marketing: Uncovering the Truth Behind the Pyramid Scheme

Vector Marketing: Uncovering the Truth Behind the Pyramid Scheme. Vector Marketing is a well-known direct sales company that claims to offer flexible working opportunities for students and recent graduates. However, many people have raised concerns about its business practices and whether it operates as a pyramid scheme. In this article, we will explore what Vector Marketing is, how it operates, and whether it is a legitimate business or a pyramid scheme.

What is Vector Marketing?

Vector Marketing is a direct sales company that sells Cutco knives, kitchenware, and accessories. The company was founded in 1949 and has since grown to become one of the largest direct sales companies in North America. Vector Marketing claims to offer flexible working opportunities for students and recent graduates, as well as a chance to earn high commissions and advance within the company.

How Does Vector Marketing Operate?

Vector Marketing operates by recruiting sales representatives, who are mostly students and recent graduates. These representatives are then trained on how to sell Cutco products and are required to purchase a starter kit, which contains sample products and marketing materials. The representatives are then expected to sell these products to their family, friends, and acquaintances, and earn a commission on each sale. Additionally, representatives can earn bonuses for meeting certain sales targets and for recruiting new representatives.

Is Vector Marketing a Pyramid Scheme?

Many people have raised concerns that Vector Marketing is a pyramid scheme, which is an illegal business practice that involves recruiting members who pay to join the scheme, with the promise of receiving payment for recruiting others. Pyramid schemes rely on the recruitment of new members to generate revenue, rather than the sale of products or services.

Vector Marketing does require representatives to purchase a starter kit, which has raised concerns that it operates as a pyramid scheme. However, the company argues that the kit is necessary to provide the representatives with the tools and training they need to sell Cutco products effectively. Additionally, Vector Marketing claims that its representatives earn commissions based on their sales of Cutco products, rather than on the recruitment of new representatives.

Vector Marketing’s Controversies and Criticisms

Despite Vector Marketing’s claims that it is not a pyramid scheme, the company has faced numerous controversies and criticisms over the years. One of the main criticisms is that its business model relies heavily on the recruitment of new representatives, rather than the sale of products. This has led many people to question whether Vector Marketing is a legitimate business or a pyramid scheme in disguise.

Another major criticism of Vector Marketing is that its sales tactics can be misleading and aggressive. Many former representatives have reported feeling pressured to sell products to their family and friends, and to recruit new representatives, even if they did not feel comfortable doing so. Some former representatives have also claimed that the company’s training materials and marketing strategies are deceptive and misleading, and that they do not accurately represent the quality or value of Cutco products.


In conclusion, while Vector Marketing is not technically a pyramid scheme, its business practices and sales tactics have raised concerns and criticisms from many people. The company’s heavy reliance on the recruitment of new representatives, rather than the sale of products, has led many to question its legitimacy as a business. Additionally, the aggressive and sometimes misleading sales tactics used by the company have left many former representatives feeling exploited and misled. It is important for anyone considering joining Vector Marketing to carefully research the company and its practices before making a decision.

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