Vector Marketing

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Vector Marketing is the domestic sales arm of Alcas Corporation, the Olean, New York-based company that manufactures Cutco products.

Salespeople, many of them college students and recent high school graduates^[1]market Cutco products (mainly kitchen knives) to customers, especially their friends and family members^[2] via one-on-one demonstrations, fairs & shows and through business-to-business sales.^{[citation needed]} Vector builds its force through advertising via newspapers, Craigslist, direct marketing, MySpace, Facebook, word-of-mouth, posted advertisements, unsolicited mass text messages, and letters sent to students and recent graduates. Their fliers advertising "student work" are a common sight on many college campuses in the United States and Canada.

Commissions start at 10%, increasing in 5%-per-promotion increments up to 30%. Promotions beyond that are monthly bonuses (10%, 15%, and 20%) which are paid only if the sales representative meets a sales threshold for the month. This bonus is then added to the rep's regular commission. Straight commission plus the monthly bonus means that the top representatives are paid at a 50% rate. Promotions are dependent upon career sales, and remain permanently; i.e., one could leave the company and, upon returning, receive the same commission rate. Sales representatives may refer their friends to join as a new sales reps which allows them to gain 2% of their friends' sales, but this bonus comes out of the manager's paycheck and not the friend's paycheck. The company's average order is $250, and the average conversion ratio or closing percentage is 60% meaning that representatives should typically make more on their commissions than from the base pay. The Vector Marketing company provides professional assistance with creating and generating formal appointments with customers.

Vector is a member of the Direct Selling Association and the Better Business Bureau.^[3]

A promote-from-within policy proved popular for many students looking to earn real life business experience and advancement. Those that are selected can go through Vector's management training program after beginning at the bottom entry level position of a sales representative. Many Vector offices are managed by recent college graduates, and assistant managers are generally college students, although the company does have a Branch manager program that allows current students to open and run an office while on summer break, gaining all business skills that are essential to learn when running a real life business. This allows students to be able to better connect with their managers (given they shared similar experiences)and also build on their resume setting them apart from most college students when searching jobs in their later careers.

Vector Marketing possesses an advisory board currently consisting of seven college professors: Dr. Joseph Hair (Kennesaw State University), Dr. Victoria Crittenden (Boston College), Dr. David Downey (Purdue University), Dr. Robert Peterson (University of Texas), Dr. Mike Williams (Illinois State University), Dr. Derek Hassay (University of Calgary), and Dr. Deborah MacInnis (University of Southern California). These board members "assist in evaluating and enhancing Vector's sales, training, and promotional programs for college students and sales representatives."

Like many direct selling organizations, the overall success of representatives is based on performance. Representatives receive a presentation booklet during the course of the training seminar which consists of the word for word demonstration that reps are encouraged to follow in order to develop necessary skill-sets within the company.

Several writers have argued that Vector Marketing is a scam pointing to dishonest and unethical practices.^[4] Vector Marketing in the past has required sales representatives to make a deposit ranging from C$99+tax to US$147 depending on location in order to procure a set of knives for demonstrations, prompting some to complain about this policy, even though the deposit is fully refundable if a representative chooses to quit or the contract is terminated.^[5][6][7] As students who work for Vector Marketing are considered independent contractors rather than employees, they are responsible for their job-related expenses (which students may use as tax write-offs). Moreover, Vector Marketing predominately hires young people, often still in high school or entering college, to sell its products. Because Vector does not provide potential buyers to its independent contractors, the young people it hires often end up selling products to their friends and family. However, customer recommendations can be obtained from these appointments as well.

Managers of Vector have also been criticized for telling prospective employees during group interviews that Vector is a Fortune 500 Company. In reality, neither Vector Marketing nor Cutco are a top 1000 company.^[8]

• Vector Marketing site
• Application website
• Vector Marketing Scholarships