Brokering Question (more of a John Durham Question)

Check a book by E. Joseph Cossman called "How I Made $1,000,000 in Mail Order" It's an old book but I think that you can benefit from some of the ideas in this book in regards to marketing your product. He goes into details about trade shows, mail order catalogs and how to promote products etc... You can find the book online for a couple of dollars. I wish you good luck!

Here's my take Jeremy,

Alot of people want me to start call centers for them on commission. And when I ask for earnest money to start the development for my own pay...they say "Why, if we are 50 / 50?"

Here's why, because I can do this on commission WITHOUT you, but you cant do it without me!

Lol.

Now, I know you have a friendship so being that hardcore isnt in your heart about this, but another thought is that Chinese idea of a commission structure is alot lower than Americas in general. I think if you are taking all the risk 15% is fair. I had a guy once from Bulgaria offer me 8% to rep his product and I was already selling products to HIM at an 80% markup.

Didnt make sense.

Last note,

If she really wants to develop you as a partner, she will give you a salary to develop on until sales start popping, in which case a guy like you would have plenty of time to learn the ropes of that industry and get good at selling... If thats not the case; you are already an experienced broker you can make alot more on markup than you can on that percentage.


Last, last note:

You can ask her nicely for a 90 day salary to make sure it will work for both of you, given her knowledge of your acumen she should know its a decent bet. On the other hand, if you happen to come acrosss a customer for her in your brokering prospecting, she will gladly take it and pay you Im sure, even without the big committment.

Im trying to stay off WF as much as I can today, but will come back and check this as much as possible because I have alot of interest in your success in this arena.

Good to see its leading to good things for you. If nothing else this is a seed, or confirmation that international professionals are head hunting guys like you!

You did the exporters proud!

Hope this helps.

Ps. If you mean importing product yourself on a purchase order by the word "distributor"... and warehousing it..., I wouldnt do it. Too risky unless you are already in a network of buyers for that.

Do you know DW's email?

I would ask him too. He like to mess with having tangible product, my advice is always "never touch it" as far as warehousing it yourself or paying anything for it out of pocket, or even being responsible to pay for it later... Only "sell".

If you have to commit to buy it (worse case scenario) then that is basically a rep selling you a load under the guise of making you a rep. They sold it whether you sell it or not in other words.

Ps. Shipping of $2600 from China sounds more in line with the cost for ONE 40 foot container rather than 4. I believe 21 tons is usually about a forty footer with most products, even with 20 foot containers, $2600 wouldnt cover 4 from china if Im right.

By the way, what is the price per ton that she wants you to sell it for?

Jeremy, if you have cash to invest in deals like that, i would invest it in a team of locators. Whereby you find the buyers and then stick a list in front of a couple of locators and have them going to town 8 hours per day finding deals for your buyers.

Again,

If you have a few k to train locators on , then its easy to find out what the buyers will buy by just asking "whats the perfect load for you if I could put it together?" then having your locators find it.

Well, I should have said "agent." She offered me 2 models - 1 to buy and store and resale, and one just to connect a buyer with her. I prefer the 2nd option. I don't have CASH!

Supposedly, her "boss" is the one that is orchestrating it - I honestly believe she's an "innocent bystander." I don't know if I can negotiate with her or not, but, I will try.

Let me ask - when you get paid from overseas, how do they pay? Wire? ACH? Paypal?

Don't get too friendly with her. Keep it professional. Get a contract in place....without it.. You will be by-passed for sure. You miust cover your-self

Even with one it might be difficult to hold up.

Try and snag a big market leader that needs this product. Is it in demand? Are they offering it cheaper? How will it be shipped etc? Who pays who? Who pays you? Got that in writing?

I have tried this kind of deal but with large bulk cargoes.....very tricky. The international trade terms/contracts and negotion are very hard. Not to mention snagging real suppliers and end buyers. Many do not like dealing with "agents."

4.5% of what total value?.........is it worth it? Going to have to be $150k+ I.M.H.O.) One off deal or revolving contracts? Get it in writing.

The huge problem with dealing with the Chinses is they are basically immune from International trade law. Their Governemt will protect them in all cases. not sayign you wil lget screwed but you might and you have no chance of fighting it.

I was looking at cargoes worth $10m+.No never snagged one yet but you have to think a bit bigger in his industry.

Crude oil/sugar/iron ore/Coal are huge markets!

oh...use a D.L.C. for payment top 100 ranked bank on sight clean documents F.O.B. at their port of loading....D.L.C.'s are safe for you and the supplier. NO excuses needed by the supplier unless they want to rip you off.

WIRE = NO safety to you at all! You will more than likely get scammed!

So you already sent the cash over? Have you got real proof they are the company holding the goods? What if they simply do not send the product? You have sent money over via emails? You are CRAZY! All due respect mate..you need to learn about safe procedures here. Look up Documentary Letter of Credit...that's what you should have sent it by.

I hope you do not get scamemd but if you do.....learn form it.

Hi Jeramy,

if you are looking to do International business you have to talk to people a grow your relationships. I have been doing business Internationally for years and have a network of friends and partners, they help me find new people and interested client/customers. If you can not talk well or have a fear of cold calling it would be good to find someone who can.

Most people like myself have a person who handles calls and meetings. This person should love to talk to people and do it well. They will become your right hand man or women. Women are very good at this they can flirt a bit on the phone or at meetings and open doors men could not open. It is a game and you have to be a player.

It would be good if the person could speak more than 1 language. My right hand women speaks 5 languages and I could not do business without her.

Hope this helps.