Is Vector Marketing Legit? Investigating the Controversy


Vector Marketing is a sales and marketing company that operates through direct sales and referrals. The company has been surrounded by controversy over the years, with some calling it a pyramid scheme. However, many employees have vouched for its legitimacy, claiming that they have earned significant income through the program. This article is an investigative report into Vector Marketing’s business practices, policies, and legitimacy.

Investigative Report

Vector Marketing was founded in 1981 and has since then grown to become one of the biggest direct sales and marketing companies in the US. The company’s primary focus is to sell CUTCO knives, which are known for their high quality and durability. Vector Marketing works with a pool of young, enthusiastic, and ambitious sales representatives who are paid based on their performance.

Vector Marketing has been accused of running a pyramid scheme by some individuals and agencies. In general terms, a pyramid scheme is an investment scheme where members recruit others to join the scheme and earn income from the recruits’ payments rather than from profits earned in legitimate sales made to consumers. To examine the company’s legitimacy, this article delves into three main categories – history, business practices and policies, and customer and industry expert reviews.

Pros and Cons

Vector Marketing has some definite advantages for people looking for part-time work. The following are some of the pros of working for Vector Marketing:

Business model

Vector Marketing’s business model is such that representatives receive commissions based on the sales they make. This model has been credited with creating a healthy competition between sales reps. According to the company, the commission rates can go up to 50%, plus bonuses for top performers.

Compensation structure

The compensation structure is such that representatives are paid based on the work they do. This means that the harder they work, the more they earn. The pay varies depending on the number of sales made, the price of the product sold, and the productivity level.

Training opportunities

Vector Marketing has an excellent training program that equips its sales representatives with the necessary skills to succeed in their jobs. The training includes a mix of online modules and face-to-face training sessions.

Despite these advantages, there are several issues with Vector Marketing’s marketing practices and commission payouts that could be challenging for employees:

Lack of transparency

One significant challenge with Vector Marketing is the lack of transparency in the company’s operations. It is often difficult for new recruits to understand the compensation structure and how they earn their commissions. The company should provide better support for its recruits to help them understand how the model works.

Misleading job postings

Some former employees have complained of Vector Marketing’s misleading recruitment practices. They claim that they were promised full-time work and salary job but ended up doing part-time work without a steady salary. While Vector Marketing claims that it makes it clear that the positions available are for part-time work, such complaints create negative public perception and affect the company’s reputation.

High turnover rates

Vector Marketing is notorious for having high employee turnover rates. The company relies on young sales reps to sell its products, and many leave the company after a short period, usually a few months. This high turnover rate is often linked to the way the company recruits and manages its employees. Critics argue that Vector Marketing should do more to retain its staff, such as providing more stability and better remuneration packages.

Industry Analysis

Vector Marketing faces fierce competition from other direct sales and marketing companies, with some sharing similar business models and practices.

Comparison of Vector Marketing to other direct sales and marketing companies

Vector Marketing’s primary focus on CUTCO knives distinguishes the company from other direct sales and marketing companies. However, its compensation structure and focus on sales performance are similar to other direct marketing companies such as Avon, Mary Kay, and Amway.

Evaluation of business practices

The performance-driven business model can lead to unrealistic expectations for some employees. Vector Marketing should focus on more transparent communication with its employees, provide them with better support and training, and promote stronger relationships between sales reps and their supervisors to improve the business’s overall practices.

Employee feedback and overall reputation

Employee feedback regarding Vector Marketing is mixed, with some praising the company for its training programs and compensation structure, whereas others criticize it for its misleading job postings and high turnover rates. However, the company’s reputation is generally considered to be positive amongst recruiting managers and employers within the sales and marketing industry.

Success Stories

To investigate the legitimacy of Vector Marketing, it is important to speak directly with employees who have been successful with the company. Here are a few of their success stories:

Interviews with top-performing Vector Marketing employees

According to some current and former Vector Marketing employees, the job can be challenging but rewarding. They say that they have earned significant income through the program and value the training and professional development opportunities. Some top-performing employees credit their success to Vector Marketing’s comprehensive training program, valuable mentorship, and high-quality products.

Strategies for success

Vector Marketing employees often emphasize the importance of effective communication, maintaining a positive attitude, and building strong relationships with customers as strategies for achieving success in their roles. They also highlight the need to be diligent in following up with leads and cultivating long-term relationships with clients.

Challenges faced and overcome

Vector Marketing employees have faced several challenges, including objections from customers, losing sales, and struggling to find new business. However, they have developed strategies to overcome these challenges, such as taking a proactive approach to identifying and anticipating customer objections, following up with leads diligently, and leveraging the company’s resources and training tools.

Employee Reviews

Here are a few snippets of honest reviews from current and former Vector Marketing employees:

Company culture and training programs

Current employees praise the company’s training programs, leadership development, and focus on employee engagement. However, they express frustration regarding the lack of transparency in the company’s compensation structure and commission payouts.

Mix of positive and negative feedback

Some former Vector Marketing employees share negative experiences with unfair treatment and misleading recruitment promises. They express frustration with the company’s sales model and compensation structure, which can be perceived as unfair. While some former employees warn against joining the company, others have expressed that they had positive experiences and found the job rewarding.

Breaking News

There’s no recent breaking news to report on Vector Marketing’s legitimacy or business practices. While there were several lawsuits filed against them in the ’90s, no major charges have been laid against them in recent years.


Vector Marketing is a legitimate sales and marketing company. However, it has faced criticism and controversy over the years due to its business practices and recruitment methods. The company’s business model and compensation structure offer advantages for those seeking self-employment and opportunities to gain sales experience and training. Nevertheless, the issues surrounding transparency, misleading recruitment practices, and high turnover rates remain major concerns that the company should address. Before considering a job with Vector Marketing, potential employees should carefully consider the pros and cons of the company and make an informed decision based on their goals, expectations, and values.

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