Vector Marketing has come under intense scrutiny as of late because of some of its marketing practices which a lot of its users have taken issue with. There have been many complaints about how the company is not run properly and if you have seen this online, then you may be having questions about this.
Vector Marketing is known to reach out to people to promote their products. They use these tactics to bring in new people to their business so that they can increase their number of promoters. You may be reading this review because Vector Marketing reached out to you and gave you an invitation to their affiliate marketing program. On the surface, it does look like an attractive company to join because that is how most of these companies tend to promote themselves, however, you should educate yourselves more about it before you join the program.
And that is why I created this article. I want to give everyone who wants to join this program more information about it and what it can do for you. Then, you will be able to make an informed decision about it. If you are really serious about making money online is definitely one way to do it. It is a legitimate business model and can bring you success if done in the right way. After my review of Vector Marketing’s program, I will also give you my best recommendation for which platform you can use to improve your affiliate marketing career. Stay tuned till the end!
What is Vector Marketing?
Due to their name, you would think that Vector is a fully managed marketing company but rather they are a marketing company for only one set of products. These products are all the kitchen knives, utensils, and cutlery from a company called Cutco. Vector was created by Cutco for the sole responsibility of managing all the sales and marketing of their products and nothing else.
So, since Cutco is the one creating the products, you may be wondering why they need to create another company to sell their products. If they were not able to manage marketing in-house then they could have easily hired an outside marketing company to do their job for them right?
What is the purpose of Vector Marketing?
Rather than creating a company that is meant to hire new employees, pay them a salary, and get them to promote their products, what CutCo did was to create Vector that would instead employ people who will be working on performance-based incentives.
These employees will not be receiving a monthly salary but a fixed commission rate for every customer that they bring to the business. Vector doesn’t want to deal with hiring a few employees, renting out a building, and having them work from that building making phone calls. Instead, they want to maximize their reach as much as possible by hiring people from anywhere around their areas of operation to try and market their products for them. By making it an incentive-based sales strategy they are making people try their hardest to promote the sales of these products because that is where their money will come from. For the most part, these people will be cold calling strangers, people they know, and their family members.
Is Vector Marketing a type of scam?
First of all, let’s look at a pyramid scheme. What is a pyramid scheme? It is a business model that depends on recruiting as many people as possible who will ‘invest’ in (spend money to be a part of) the business. The company will first hire a bunch of investors, who in turn will hire more, and then the second batch will keep hiring more and so on. It is called a pyramid because as the business model grows, each level of investors will keep growing.
A multi-level marketing scheme is also somewhat similar to a pyramid scheme. However, pyramid schemes most likely will not last long and will eventually come crashing down affecting everyone except those at the very top. This is why these schemes are banned in certain cities across the world.
A multi-level marketing scheme (or MLM) is a business model that is similar to the pyramid model but what they do differently is that when you recruit people into the company, the recruiter will also be paid commissions for the sales that their recruits bring into the business. Therefore, if you work in one of these businesses, the more recruits you bring in the more potential for the money you can make.
However, Vector Marketing is not an MLM scheme as well because they do not pay commissions for bringing in new recruits. They will only pay you the commissions that you bring in yourself. Also, they do not request you or encourage you to recruit any newbies to the company. Vector manages this themselves by advertising to potential salespeople and so that means they are not using an MLM scheme.
Is this network marketing or affiliate marketing?
Since what Vector requires you to do means having to pick up your phone and call people you may know (your contacts) that would constitute network marketing as these are similar tactics employed by network marketers. However, just like I mentioned before, the salesmen are only selling the products and not trying to recruit people. Therefore, it does not conform to the networking marketing scheme tactics as well.
So that could only mean that Vector Marketing is an affiliate marketing business right? Well, to a point, yes. Affiliate marketing involves a commission basis business where an affiliate will use helpful content to promote these products to their readers who are interested in the product or content, and then make a commission on every sale that they make through these links.
However, what Vector Marketing is doing is slightly different from how the affiliate business works. Some things that are different is that affiliate marketing does not usually involve cold calling people on the phone, pitching these products to people who don’t actually want it, and they are not using a website or other platform to sell these products.
When you promote your products with Vector, you will be calling friends and family to make a potential sale. They may not necessarily want to even purchase the product but would do it as a favor to you to help you out. Vector Marketing actually tries to take advantage of this by promoting its service to college kids who will have a lot of their family around to sell these products to. It is these types of predatory tactics that I do not like from these kinds of companies as they are taking advantage of people out there.
Cutco products also tend to be more expensive than other counterparts out there. This makes selling them quite difficult as people will not be willing to part with that much money over the phone. There is only so much convincing you can do over a single phone call. There is no opportunity to build trust with the recipient or to convince them that they need the product.
All this can be done with a website/blog. You will have more time to nurture your potential clients, retarget them later on, or even try other promotional tactics that will be impossible over the phone. There is so much more to affiliate marketing than just picking up the phone and making calls. Cold calling these days is a marketing tactic that brings very little results.
What is the price of joining Vector Marketing?
In a move that brought suspicions about the company before, Vector Marketing wanted all their affiliate to first purchase a set of their items in order to be qualified to be a part of their sales team. This is a tactic that is used by MLM schemes and it is another highly predatory practice that puts affiliates at a disadvantage and only serves to benefit the company.
However, Cutco has decided to stop doing this as they realized that a set of their products are quite expensive and not many people could afford them. What this had led to on the offside is that there is now a more rigorous recruitment program. To join, you will have to go through two interviews or more to work at Vector Marketing.
Also, you need to keep in mind that you will need to bear all the costs that come with promoting the products. Vector Marketing will not compensate you for any of this. All of your phone bills, meetings with clients, and transportation costs will all have to be borne by you. Therefore, this would be the true cost of joining Vector Marketing.
Will you really be able to make money with Vector?
Because this model depends on a performance-based incentive and the way you conduct business, there are a few factors you need to consider when figuring out how much money you can make:
- How much time you spend promoting their products
- Your network or number of contacts
- The amount of experience you have selling products
- How much support you receive from Vector themselves
On top of making the commissions through sales that you bring to the company, there is also a way how you can receive commissions through the number of leads that you bring in. Of course, this will still depend on those customers actually spending money on the store.
These commission structures are not advertised well on their website. You will need to do some digging to get these numbers. I went through their materials and this is what I found:
|Sales Value||Percentage of Commission|
|Between $999 – $2,999||15%|
|Between $2,999 – $5,999||20%|
|Between $5,999 – $9,999||25%|
Even if you haven’t made any sales from the leads that you brought in, you can still be paid around $17 for every qualified lead. And yes, they need to be qualified. They have to meet certain criteria and they need to be verified before you are paid.
The criteria are that the lead is a person who is over 30 years old, is able to support himself, has a steady paying job, and, believe it or not, has to have his/her own home.
However, you should note that is really difficult to keep making money selling Cutco products. The products are quite expensive and it is going to take you an extensive amount of time and effort to even make a few sales. Also, don’t forget that you have to pay for all your expenses yourself so you will not end up with a lot of money in hand for yourself.
What are the pros of Vector Marketing?
It follows a business model that is similar to affiliate marketing and offers performance incentives that you can build on. There are also other methods to gain commissions such as through the leads you generate which is good.
This is a company that has stood the test of time. It’s been over two decades since they started in 1990 and during that time they haven’t had much bad rep for the way it is run.
What are the cons of Vector Marketing?
The products that Cutco makes is quite expensive and not very easy to sell and make commissions. When compared to affiliate marketing, there is a lot more that you have to do with your potential clients before you can sell to them – such as setting meetings with them and spending your own money for these visits.
It is true that Vector Marketing has good reviews for its business but they also have a lot of bad reviews on review platforms from Cutco’s customers and Vector’s employees. This is in itself is not a good indicator because it suggests that even though Vector is open about the commissions they pay, their payout is generally not that good. Also, selling a product with bad reviews is only going to make your life that much harder.
The whole program is advertised as something you can do from home. But most of the time, you will need to leave home for meetings.
Having to pay for the expenses by yourself with no compensation is not a good business building tactic.
Their whole program is built around an affiliate marketing business but there are a ton of features that are missed and you don’t learn as much about the market as you would with an affiliate business.
Unlike affiliate marketing, your business is tied down to one client and that doesn’t have much potential to create more money-making chances.
If done right, affiliate marketing will be able to generate passive income for you without you having to work all the time. However, with Vector you need to be working constantly to make money.
Who can benefit from this program?
This program can be useful for those who are in a spot and need a way to make some money online to supplement their current income. It is not going to be the number one recommendation but since it is a legitimate company, you don’t have to worry about being duped by them. If you are able to make this work for you, then kudos to you. You managed to beat the odds.
Do they provide employee support?
Being a company that is employed with young people who are trying to make a living, you would assume that they have a consistent support system to help them. However, because of the way they employ people, you may find that even managers are inexperienced young college kids who may not be the best person for the job. So you have to keep in mind that you may not always get answers to any queries immediately.
Can you trust the company?
In short, yes you can. After my research into the company, I didn’t come across anything that warrants suspicion about the way they run the business.
However, I still don’t recommend this business model for you. There are a few other options you could try that would be able to give you better results. Here are the top reasons why you shouldn’t join them:
- The need to make constant cold calls and go to meetings
- Your potential is highly limited because its only one product
- You won’t be able to make any passive income streams using this
In today’s day and age, there are a ton of gurus selling scams promising you to make millions of dollars overnight without putting in any work and a lot of them are for making money online.
I have tried and reviewed a lot of these garbage programs on my website and in saying that I must admit there are still some programs which are actually worth it and are quite good.
Out of all the legit programs that I have personally seen, one of the best ones I always recommend to almost anyone starting out is Wealthy Affiliate. This is one of the best places to start as a beginner.
It is one of the most comprehensive training out there teaching you almost everything you need to get started making money online. Not only do they teach you everything, but they also provide you with almost all the tools you need. It’s like an all in one platform.
One thing I love about this is that there is really no limit to how much income you can earn and it’s quite simple, requires no experience to get started so anyone can do it.
Guys, I have tried many different legit business models including dropshipping, social media marketing, drop servicing and more!
And to be fair, I have actually lost a lot of money trying out guru courses, training, webinars and things just not working/making any money.
Trust me, while those other businesses are legit and do work, they are a lot more cash-intensive and harder than affiliate marketing.
This here is NOT to brag but, to show you a small chunk of what I make online with affiliate marketing just to show you proof that I have done it.
Quite a few wealthy affiliate members actually earn over 5-figures per month! (That’s crazy, I am not there yet.)
Keep in mind that this is NOT a get rich quick scheme, you will NOT make money by just clicking a button.
This does require work like everything in life worth getting but, it’s worth it because eventually, you can not only work from the comfort of your home earning a full-time income but, start making passive income from this business.
If your looking to get started in a proper legitimate long term business you should definitely look into joining wealthy affiliate. It’s FREE to get started!
Read my comprehensive review on Wealthy Affiliate to basically see if it’s something you want to join or not.
And if you have any questions or concerns, feel free to let me know, I will be more than happy to help you out!