Vector Marketing Is Not A Scam
Still, The Job is Far From As Advertised
Petitions, facebook groups and dozens of websites have labelled it a scam - though not entirely true, some negative aspects of Vector aren't so clear on job postings.
No experience necessary, flexible hours and potential for large earnings; these are the words on a pamphlet put forth by Vector Marketing, just one of thousands littered across university campuses to target students.
Vector Marketing is the sales firm subsidiary of Alcas Corporation, a company that manufactures a diverse line of kitchen knives and accessories by the name of Cutco. The company doesn’t sell its product in stores, but rather through a one-on-one approach that involves personal demonstrations in the homes of potential customers on an appointment basis – the no cold-calling strategy is just another attractive aspect of job.
The opportunity for large profit is undeniable. Vector offers a guaranteed base pay of $16 per appointment or a weekly commission if it exceeds the money you earn from appointments. Commission varies from 10-30% based on your success, and even if you don’t make a sale you are guaranteed the $16 base pay. Considering that Cutco’s most popular knife set costs just under $1200, a Vector representative can earn well over $100 in just one appointment based on commission.
Troy Winkelman, a 19-year-old student from Wisconsin who worked at a ventilation fans manufacturer prior to Vector, was able to make $550 in just three hours of work.
“[Through Vector] I just paid for tuition, room, meals, gas, insurance, and repairs on my car,” said the Wisconsin Colleges sophomore.
Still, there seems to be more unsatisfied ex-Vector recruits and harsh criticisms of Vector than there are supporters of the company.
One website blames the company for unethical business practice and scamming young students because they are “trainable, ignorant of corporate practices, non-threatening to potential customers, and don't have many other work options.” There are also over a dozen websites labelling the company as a complete scam.
Numerous facebook groups are targeted towards boycotting the company, one of them with over 500 members posting their negative Vector experiences. To further encourage the boycott, an online petition to stop the company was started and now boasts over 7500 signatures.
In a 1996 Washington Post article, Wisconsin Consumer Protection Department supervisor David Tatar said that a 1992 survey of 940 Vector recruits found out “that almost half either earned nothing or lost money working for Vector" and that "workers in [Wisconsin] earned less than $3 a day on average selling cutlery for Vector."
The truth is, is that Vector is not a scam. All of their claims are legitimate, but there are some aspects of the job that one needs to consider before applying that aren’t necessarily covered on the job posting:
Unpaid Training
Right after the interview, all employees are required to attend mandatory training and seminars. Unfortunately, these are three unpaid days spent in an office for 6-8 hours each day. There are friendly competitions and some fun interactive activities, but the overall training isn’t something to look forward to.
You Pay Them to Start
All Vector representatives are required to purchase a sample knife set to demonstrate for customers. This ranges from $100-$150 and needs to be paid before you receive any money from Vector.
Make Your Own Appointments
Your first appointments will be done with family and close friends, and after each demonstration you are expected to ask request 15-20 contacts that would also be willing to see your presentation. You tell them that you get paid whether or not you make a sale, so most people will give you approximately 10 names and phone numbers of people just willing to view the presentation, regardless of interest.
To schedule demonstrations, you need to call the people on the list and explain to them who you are, how you got their number and the reason for your call. Determining who to call, making the phone calls and arranging a meeting that suits your own schedule as well as the schedule of the potential customer is all done on your own time.
Travel to Destinations
Once your appointments are set, you’ll need to get to the homes of your potential customers – wherever they may be. The time to travel to and from their house could take just as long as the approximately one-hour presentation. If you don’t make a sale, suddenly your $16 base pay turns into a measly $8/hour.
Weekly Meetings
Mandatory weekly meetings are arranged for Vector representatives to reflect on their sales of the week. Again, they are unpaid and are done your own time. The necessary travel time to branch offices may not be worth the hour-long bragging conference. On top of the meetings, Vector representatives are required to call their managers before 8:00 a.m. every day to discuss the day’s scheduled appointments and previous sales figures.
Vector does provide opportunity for great earnings, but remember that the key word is opportunity. Nothing is guaranteed and to fully benefit from the job at Vector, be prepared to put a lot more work into it than you expect.
Extra travel, meetings and phone calls all take away from the flexible schedule you thought you had.
