CUTCO Pyramid Scheme: Honest Facts That You Should Know!

Is CUTCO Pyramid Scheme is legit? or Is CUTCO a Pyramid Scheme or MLM? From an honest point of view of mine, MLMs are not scams or illegal. However, I’m not a big fan of these schemes because of the fact restrictions that are applied and of course.

It is tough to convince people to buy expensive products that you have to promote in order to earn the specified commission and make a place of yours on the pyramid scheme.

Apart from this, let’s have a look at what CUTCO is all about and what you are going to earn, what challenges you are going to face, and the related pros and cons of this pyramid scheme. So, let’s begin!

What exactly is CUTCO?

CUTCO is a Direct Selling business that began in 1949 and specializes in kitchen knives and accessories. The business hopes to recruit students who are looking for a way to make money by selling knives to friends and family and earning a 10% commission.

Their marketing, on the other hand, often suggests that people receive $10-$15 an hour and misleads them into believing it would be a “cold calling job.” As a result, the firm has been hit with many lawsuits. However, things aren’t as they seem!

All of their goods are manufactured in the United States and are of exceptional quality, with “lifetime assurances.” CUTCO is distributed solely through “Vector Marketing,” and a version called “CUTCO at Home” was launched in 2015.

This company’s primary model is targeted at housewives who can earn some profit by selling kitchen wares to their relatives and friends and then enlist them to the marketing chain to earn additional incentives.

What is a pyramid scheme?

A corporation that pays members for hiring new members rather than selling goods or services. Most countries have made these illegal because it is difficult for anyone to make money.

According to the newer “CUTCO at home” scheme, for each sale the representative you enlist makes you will be given an incentive. This also means that the good money comes from hiring more people into one’s “downline.” This is analogous to a “deceptive pyramid scheme.”

CUTCO Pyramid Scheme Description:

As a CUTCO representative, the only way to make money is to market their goods and collect a 10-50 percent commission.

So, if you sold one of their knives for about $100, you’d make $10. This business model requires you to make numerous calls to potential customers, setting up meetings, giving them presentations, and persuading them to buy some of your products.

And all of this for just $10! So, if you were convinced by the scheme, by listening to the fact that you need to pay much attention to it, you can earn “easily”. Think again! It is not as easy and less time-consuming as it is presented to be!

Surely the percentage increases with the number of sales that you are making and the no. of sales that you have already made. For example, over $10,000 sales will earn you a 30% commission.

But being honest, How many of these conversations will actually lead to conversions? How many people do you know that you think can be convinced to buy these expensive products?

How does CUTCO Work?

CUTCO manufactures high-end knives and kitchenware at a high price point. They then save money on ads and promotion by enlisting the aid of others (usually students) to sell the knives.

In exchange, these students can receive a 10% commission if they are in need of financial assistance and have plenty of free time. However, they do not specify what the responsibilities of a representative are.

So, basically, students are provided with intense training of around 7 hours per day in the beginning and are insisted to call every single person on their contact list and convince them.

Can you make money with CUTCO Pyramid Scheme?

CUTCO is profitable for only a few people. It’s relatively a difficult job, and the persons who succeed are charismatic and have excellent presentation skills.

After this, you’ll have to contact your friends and family and then schedule a face-to-face “conversation” with them. Basically, there’s no other way to make money other than selling!

How much you will be charged to join CUTCO Pyramid Scheme?

Joining is absolutely free and secure. The “Knife pack,” which could be used for presentations, used to cost about $300. However, as long as you are an “involved delegate,” you can now get this for free.

To stay involved, you must sell $100 worth of knives or items per month. You have two options if you are not online by the end of the month:

  • Give the knife kit back
  • Buy the kit for $75

Is CUTCO Pyramid Scheme a scam?

CUTCO is not a rip-off. They sell genuine goods and pay their members exactly as promised. The litigation and misunderstanding stem from their misrepresentation of the company, which includes allegations that workers will be paid $15 per hour and that the work will always appear to be a “cold calling job.”

This isn’t the case at all. You will be forced to sell knives to your friends and family, which could come as a surprise to them, resulting in a lawsuit! The rest of this CUTCO analysis will go through the advantages and disadvantages so you can determine if it’s right for you. 

CUTCO Advantages

  • Reputable firm
  • Consumer ratings that are favorable
  • Improve your sales and leadership abilities with a guaranteed commission.
  • Go straight to the benefits portion.


  • Items are costly
  • Out-of-date distribution techniques
  • Commissions are poor.
  • Troughs and peaks
  • If you miss working, you won’t get paid.

CUTCO Pyramid Scheme Conclusion:

CUTCO has a lot of quality goods. Their lifetime guarantee demonstrates their trust in their products, and there are several positive reviews of their knives available online. Are direct sales or multi-level marketing (MLM) business models, on the other hand, appropriate?

The best part will be the skills you’ll learn from selling and stepping outside of your comfort zone. However, unless you are a natural salesperson, it is extremely difficult to make any decent money from CUTCO due to obsolete methods and low commissions.

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