What's the story behind Vector Marketing?
To understand the story behind Vector Marketing, you first have to understand the story behind CUTCO.
In 1949, two companies (ALCOA and Case Cutlery) started a joint-venture with the goal of producing the absolute best houseware knife on the market.
They succeeded, and the result was the first CUTCO knife, created with the help of Industrial Designer Thomas Lamb.
Two things made CUTCO’s knives particularly special.
For one, it has the perfect handle, custom designed by Lamb.
Two, its knives are made in America and come with a “forever guarantee,” meaning, at any point in time after purchase, you can send it back, and CUTCO will polish and sharpen it. If it’s defective, send it back, and they’ll replace it.
This is how the mantra: “Buy once; use everyday; never replace,” came to be.
So CUTCO had this phenomenal product, now, they had to figure out how to sell it.
At the time, the encyclopedia direct sales model was a popular way of selling products because it was very convenient.
You had a product expert visit your home, where you could try the product before you bought it, and the expert would answer any of your pressing questions about the product.
CUTCO adopted this direct sales model and worked with a bunch of independent companies that sold its products for them. One company stood out among the rest—Vector Marketing.
Vector Marketing was so successful because of its systems and processes, so CUTCO acquired Vector Marketing as its own direct salesforce.
How does the pay work?
Reps earn a guaranteed base pay that starts at $25 every time they show Cutco to a qualified prospect, whether that be in-person or virtually. This is NOT an hourly rate as the meetings with customers don't take "exactly" an hour. The average meeting with a customer takes between 45-60 minutes.
Why is there a guaranteed pay AND commission?
Our product sells itself. We don't need (or want) reps to pressure someone to buy from them, so we offer the $25 base pay as a guaranteed incentive. This allows for a more "laid-back" and "low key" approach to showing products to customers. Even when a rep completes an appointment and doesn't make a sale, they are still compensated for the time they spent demonstrating the products.
If you work for Vector Marketing, are you classified as an employee?
No, our sales representatives are paid as independent contractors, aka a freelancer, which 50.9% of America's workforce will be by 2027 (or 86.5 million people.
Being a freelancer, or independent contractor, our reps have the luxury of setting their own schedule around classes and extracurricular activities. We also encourage them to take the skills they learn with Vector Marketing to build their own freelance career in the future.
How do taxes work for independent contractors?
Independent contractors do not get taxes taken out of their regular pay, so they are responsible for handling their taxes at the end of the year.
Because an independent contractor is like a small business owner, they have the benefit of writing off business expenses when tax season rolls around.
We encourage reps to save year-round so they are prepared to pay their taxes once tax season rolls around. Additionally, we prep reps with filing best practices.
How often do sales reps get paid?
Reps submit their orders and timesheets, which includes a list of their appointments, every Monday. They are then paid the following Friday through direct deposit or paper check.
Are there any upfront costs to work for Vector Marketing?
No. None. Our sales reps that meet with customers in-person get loaned a Cutco sample kit at no cost to them. Sales reps conducting virtual presentations do not need a sample kit. They simply use a tablet or computer to walk through product options with customers virtually.
Is there training provided for new hires?
Yes, we are one of the few companies who provide professional training. Initial training takes place between two days and there are also ongoing training opportunities for reps to continue learning and growing.
How do sales reps find customers?
Reps start by practicing demos (either virtually or in-person) with close family and friends so they feel comfortable and relaxed in a safe, low-pressure setting.
On average, each customer refers five people to a rep after the presentation. So while they start with friends and family, they're quickly introduced to friends of friends. As such, reps are far from running a "friends and family business" and reps are NOT having to continually "come up with" new people. Our customer referral program, when done properly, is self sustaining and is how we've been conducting business since 1981.