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Cutco peeler7/27/2023 “We think this is where the confusion lies,” he said. Joel Koncinsky, a Vector spokesman, told me that even though the company’s salespeople are rewarded for bringing in new recruits, the compensation system is different from that of some other multilevel marketing companies in which higher-level employees profit from the cash flow of subordinates. “Your job will be to sell the company’s product and, in many cases, to convince other people to join, invest and sell.” “If you join an MLM, you’ll be a salesperson,” the agency says. That means you’re selling directly to other people, maybe from your home, a customer’s home or online.” Indeed, Vector goes to elaborate lengths to insist it’s not a multilevel marketing company, although that’s precisely what it is.Īccording to the Federal Trade Commission, multilevel marketing companies “sell their products or services through person-to-person sales. It also doesn’t require new salespeople to purchase their own knife sets for demonstrations - a classic ploy for what are known as “multilevel marketing” operations, such as Amway or Herbalife. The company has a legitimate product to sell and the reviews for its knives are generally positive. He also said managers such as himself receive a share of sales made by underlings.īut that doesn’t make this a pyramid scheme, in which money flows upward to the highest-level employees, leaving few proceeds for those at the base of the pyramid.Īs best as I can tell, Vector doesn’t rely on an endless stream of raw recruits to generate cash. Williams said salespeople are encouraged to recruit friends who would be a good fit for the organization. The internet is dripping with posts from former Cutco salespeople who say the company is little more than a pyramid scheme aimed at enriching senior managers. We’re looking for people who work hard and take the initiative.”Īnd perhaps who won’t ask too many questions. “I understand selling knives might sound weird or different,” Williams acknowledged. The people who succeed at this game are the ones who are naturally gifted at moving product - any product. If that sounds like a well-honed sales pitch, bingo. “We take people from where they are to where they want to go.” “I like to say we’re in the transportation business,” he told me. “Anybody can sell Cutco,” said Ryan Williams, 21, who started as a rank-and-file salesman after being recruited by a friend two years ago and now manages the company’s Northridge operations. Salespeople earn about $21 for each appointment they book, or they will receive a sales commission of at least 10%, whichever amount is higher. Vector/Cutco temporarily switched from Avon-style home visits to virtual sales calls because of the COVID-19 pandemic. What the company is doing is recruiting young people to sell cutlery that costs an average of $366 but can run more than $2,700 for a high-end set. Vector is actually Vector Marketing, the New York sales arm of a privately held company called Cutco, which manufactures kitchen knives and claims over $200 million in annual sales. Here’s what you need to know if you or your kid got one of these things. Is this a dubious way to recruit people? Yes, absolutely. The only clue is the firm referring to itself as Vector, “an international company established in 1981.” It says it has openings in Santa Monica, Los Angeles, Pacific Palisades, Venice, Marina del Rey, Beverly Hills “and surrounding areas.” Such as: What is this company? And what does it do? Except for just a few teensy-weensy things.
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