Business of Intermediary in International Business Relationships (CHECKLIST)
Intermediary in international business is a custodian or broker or any other person that acts as an agent for another person. Intermediaries fill the gap between the buyers and sellers, between contractors and governments. They handle communication and connect sides to come together to business. There are both benefits and pitfalls. RCD Wealth has laid out the strategy for international business intermediaries that is to benefit each oer involved parties.
Parties In International Business Intermediation
Major parties for any international business are buyers and sellers, we can say suppliers and purchasers or service providers and service ordering parties.
There is always a party that pays for goods or service and other party that provides something for the value paid.
Often there are intermediaries who help both sides for business to take place.
The role of international business intermediary is to connect parties together so that business takes place.
Intermediaries may be working as agents for those parties or may be independent intermediaries working for themselves and hoping to be paid out of commissions.
Identification Of Principals
Sometimes the business appears very hot and there may be multiple intermediaries. Often those intermediaries may not even disclose their role as intermediary but will act in such manner as to appear to be the principal of the business. Such unprofessional international business intermediaries do not act in the best interest of real principals of the business.
When there are too many intermediaries business is often sabotaged by their unprofessional conduct and creation of problems in communication and understanding between parties.
It is thus for professional international business intermediary of utmost importance to insist to identify the principals as to put them together for business to take place.
Unsolved Commission Issues Often Hinder Real Business
Intermediaries may often work for one party like buyer or may even wish to work for the other party as the seller, and they may ask for commissions verbally or may not know how to solve the commission issue and payments for their work. They may invite other intermediaries and discover there are more and more intermediaries and may not even know the principals.
Because their relations to principals and other intermediaries are not solved, and because intermediary does not get any assurance of the commission payment, such people are prone to cause problems to themselves and others. In general we consider people with unresolved commission issues potential trouble sources.
(CHECKLIST) How To Ensure Yourself As International Business Intermediary?
✓ Verify if you have got the real principal as the party for which you will work for. And if not, insist to get the real principal with the purpose to sign your commission agreement.
✓ If you are in connection with any other intermediary, our suggestion is not to involve yourself in their relations. Tell them, they should handle their relations personally and with the principal. This of course causes conflicts and competition between multiple intermediaries. Only your insistence and right actions will bring you on the top as professional intermediary.
✓ Define your commission with the principal and make sure you have your agreement in place where it is defined what you are working upon. You should not decorate your commission agreement with too much “legalization”, make it simple, it can be even a paper where a buyer promises the amount of money to be paid for the successful connection to the seller with the date and signatures. Just make sure you have the real agreement.
It is also totally fine to have the unspoken and undefined agreement with the party for which you are working for as if intermediary is happy with any kind of award and is in good relation with the party this method will also work well.
But make sure you DO have some kind of agreement, be it written or verbal or unspoken agreement.
✓ Do not work for both sides. Decide which is your side. Don’t sit on two chairs. Work for one side and push business for one side.
✓ Always insist that accurate information is transmitted from principal to principal during negotiation stage. Do not ever transmit information inaccurately or intentionally deceptive. Always work with truth.
✓ Count your expenses as time will come that you have to repay it back. If your expenses are found to be too high, work with the principal party to be paid for your preliminary and negotiation work you do.
✓ Avoid unprofessional people and refuse their demands if they are not principals.
Contact RCD Wealth now. There is a simple rule at RCD Wealth: if we can help you, we do, whenever and wherever necessary, and it's the way we've been doing business since 2002, and the only way we know