What is Vector Marketing?

Vector Marketing is a multi level marketing subsidiary corporation and the subsidiary domestic sales arm of Cutco Corporation, a leading cutlery manufacturing company based in Olean, New York. The company was established in 1981 in Philadelphia, Pennsylvania by Peter C. Deutsch. Mr. Deutsch’s efforts to bring together international marketing agencies under one roof had a positive impact, as several companies merged and formed the” Vector International” entity. In more recent years the Vector Group has branched into selling consumer direct marketing products. There are presently approximately 80 retail outlets worldwide. It should be noted, however, that in order for retailers to market products in countries outside of the United States, an additional license is required, otherwise known as a “local marketing authority.”

Vector Marketing uses a network of independent distributors and retailers to promote their products through the local market. This independent network provides a customer base large enough to cover all regions, but small enough so that costs to the retailers do not exceed those of the distributor or his or her agency. The company uses a unique methodology, one which is referred to as “weighting” in order to obtain a worldwide presence. The following is an in-depth look at what is vector marketing and how it works.

A network of independent vendors is used, rather than the typical middleman commission structure, because the actual distribution and marketing of the product is kept as low as possible. Each time a customer buys a set of cutlery from the company, then the money comes directly out of their pocket, without having to be paid to the distributor or the company itself. This method of compensation allows them to maintain very high margins on their products. As a result, the company maintains a very high bottom line, even though the products they sell are extremely well priced compared to what you would pay at your average store.

This system has been implemented by companies throughout the entire globe, including Direct Mark, Snap-On, and Weight Watchers, to name a few. In fact, the concept took root at Weight Watchers, where it was discovered that the vast majority of their sales representatives were nothing more than enthusiastic young college kids. In their desire to be part of something bigger than themselves, these college kids would go on to purchase equipment, which then required an expensive monthly fee to remain with the program. Once they were paid their commission, they would then disappear from Weight Watchers, never to be seen again.

It took a group of guys from Australia, however, to take this concept and apply it to the business world. They found that when they changed the type of advertising that they were doing, namely using incredibly low resolution pictures and trying to get as many people as possible to view their ads, that the amount of sales that the company saw dipped significantly. Because of this, and because the company was so dependent on college kids buying their multi-use kitchen knives, they realized that a simple marketing fix such as this could change the amount of revenue that a company received for just pennies on the dollar.

What is Vector Marketing? The idea of what is vector marketing was that instead of having the average person seeing an advertisement for a network marketing company, they should instead see an image of a piece of kitchenware. In turn, once someone purchases the multi-use kitchen knives, they are then automatically funneled into a sales funnel where they receive other pieces of gear from the company as they pay their monthly fee.

So, how does this work? Basically, instead of paying a commission to a salesman who is going to try to sell you the multi-use cutco knives that the company represents, you will be paying your monthly fee to the company itself. They will then send you an invoice every month, and every time you purchase any of the gear that they recommend, a portion of it will go to them as well. Sounds great, doesn’t it? However, there is actually a hidden aspect to this method of getting paid that many people don’t realize.

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The way that this in-home business opportunity works is that when you get a certain percentage of the money that you are paying out, they will send you a check each month for that same amount. Now you might ask, why would they do that? Basically, they are compensating themselves for the fact that you haven’t quit your job yet! However, if you take the time to learn what is MLM and what is passive income marketing, then you can easily take advantage of this type of in home business model for yourself!

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