The biggest scam part is that you have to buy your own "demo" set. $150ish out the door before you even start booking appointments and making any money. Other than that, their knives are somewhat decent (though you can get better for the money) and the only reason why it is overpriced is because most people really don't need a whole knife block/collection. Most people just need a good santoku knife, a paring knife, and maybe a serrated knife; not a whole assortment of butcher knives, filet knives, boning knives, chef knives of various sizes, and steak knives.
(Rant: why does a kitchen knife block need steak knives? I use steak knives at the dining table, not in the kitchen!)
I knew a few people in college who did it (this is back in 00-04), most of them only lasted a month or so but one did crawl up to some kind of district or regional manager type and made a lot of money, towards the end she made more recruiting other students (and selling them their starter kits) than actually selling herself. If you are a good salesman it could be a good gig, if not then it'll end up costing you money.
my understanding of these programs is that you have to form your own clientele. its hard to find people willing to buy $1000 sets of knives. i bought one knife from a friend who worked for cutco and it was 80 bucks!
$80 for a quality knife isn't that bad. I'm not saying the Vector/Cutco knife is worth $80, I don't know the quality of your knife and it's been years since I've seen a Vector knife, but Shun/Henckel/Wusthof knives go for that and much more. People who actually use $1000 in knives usually don't buy Cutco though.
Also quality knives take a lot of effort to keep in good shape, you should be using a sharpening steel on it before every use and have it whetstone ground every 3-6months. I ended up getting one of those serrated Forever Sharp knives (the ones you see at the fair where they cut through cans and nails then cut through a tomato to show it's still sharp), it is gimmicky but it cuts a lot better than a dull straight knife for every day use.