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| Frequently
Asked Questions |
Over time many of our members have come to us and asked us all types of questions. this section provides answers to the questions most frequently asked by our members.
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From our home page [www.wbe.net] in the left-side column under User Options, click on [Members Sign-In]. Input your pass codes exactly as we gave them to you in lowercase letters and numbers. In the MEMBER SECTION, below study section click and print 1) Steps to Start, 2) Tips and Procedure, 3) Trade Contacts, and 4) Tips on Signing Up for Independent Databases. Use these items to set a firm foundation from which to work. Watch all online tutorial videos and read the Practical Study Guide For U.S. Export Trade Agents. Please read the Study Guide front to back three (3) times. This is necessary to get your thoughts familiar with new information. |
2. Who answers my ongoing questions? First you must understand and use the resources provided in the MEMBER SECTION. They provide valuable information that you can refer to again and again. Having read the Practical Study Guide three (3) times already, you should be very familiar with the Table of Contents. Most of your questions are addressed plainly in sections outlined there. Become familiar with the Trade Resources link. There you will find many links to U.S. Government resources that are very helpful. Our Coaching Staff is available to assist you through email and phone consultation. Make it a habit to call us for coaching on a regular basis. Get familiar with our different points of view; stay open; pray often; and, log on to www.wbe.net as often as possible. The world is changing, are you? Make up your mind to proceed with Faith, Focus and Follow-through. |
3. Are dates on the leads important? Don’t misjudge a trade lead just because you think it’s old. Just consider that all leads remain current until the party that entered it in the database requests it to be removed. A common mistake new agents make is to see a date that they consider old and disregard the lead as being outdated. Many of those leads have never been followed up on, or the buyers are looking for new suppliers on a regular basis. There are many reasons the dated request may still be valid. Supply and demand never changes. Sellers want to sell. Buyers want to buy. It’s an ongoing process. If a company has been in business 5, 10, 15 years or more, their product line must adapt to emerging markets: they make improvements; they produce accessories and add-ons; they grow through change. They evolve. They may have established long-term relationships with old standard suppliers of materials, but they welcome fresh new products and ideas that will help them appeal to new markets. The original dated request for product may have been fulfilled but the demand for supply never ends. This applies to all databases. Please, follow up on all trade leads that appeal to you regardless of the date of entry in the system. The resulting feed back you receive may be worth great income to you. Remember you are a dealmaker and business relationships grow with communication. |
4. How do I understand all the terms? Each request has basic terms that you will encounter regularly. In a short time, you will become familiar with standard terms. Refer to the Glossary and Acronyms and Abbreviations where these terms are defined. Contact your coach if you need more explanation. A few terms: ASWP - any sea worthy port |
5. What name do I give my business? As stated in your Practical Study Guide, it is most common to combine your name with something that refers to Global or International (Intl). |
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An agent or middleman may need a business license to conduct a home-based business. Check with your local City or County Clerk’s office to determine if you need one. Usually, the supplier, manufacturer or shipper has a license to export the product. |
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Only if you choose too. It is not required but it may offer more protection for your business and personal assets. Check with your legal and financial advisors before taking this step. |
8. How do I describe my business? Home based dealmaker engaging in International Trade. |
9. What products should I concentrate on? What's HOT? This answer is broad, so please read carefully. Your Practical Study Guide and local Yellow Pages Phone Directory give you categories from which to search for buyers. If you use these, your results will provide a wide variety of product requests. The good part is you get exposed to many different products to become familiar with. You also are out of your comfort zone. There will be products you know nothing about. The Procedure section of Tips and Procedure tells you what components to look for. Each time you locate a request you want to work, always - always find these components. If all are there, you have everything needed to move forward. If not you have a choice, get back to the buyer and request the missing info or go to the next request. Popular products are good, however; when you have a request in front of you, work that one. This is a buyer requesting your help to find a supplier to fill the request. |
10. What do I do after I find a buyer? Please follow the Procedure section of Tips and Procedure to make sure you have enough information to proceed. Then locate a supplier. |
11. What if the lead does not have an email address? Do an Internet search for the business name. If they have a web site it will show in the results and you can contact them from their web site. If email is not available, make contact by whatever means possible. |
12. What do I do when the email address is bad? Don’t assume that a lead is not real because the e-mail, phone number or address doesn’t work. It may have changed or there was an input error. Don’t become frustrated by circumstances beyond your control. Use the Phonebook of the World in the member section. If all else fails, simply let it go and move on. |
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When you find suppliers and buyers that only give fax numbers for communication look them up with an Internet search to see if they have a website. Then you can contact them from there. Or, search the Internet for fax-for-free services. If all else fails, U.S. Post Office can deliver mail almost anywhere in the world within a few days time. |
14. How do I find the right supplier? You will always find a supplier with a search by product name in the supplier section of any database (i.e., Thomas Net) or through Internet search. Look for the company profile whenever possible to see if the supplier company exports. You must check this each time to determine if they can deliver to a foreign buyer. |
15. Do I need a Freight Forwarder? If the transaction requires you to handle the arrangement of freight forwarding then yes, you need one. Most of the time, if the supplier can drop-ship to a foreign country, he probably already has this covered. |
16. Where do I find Freight Forwarders? You can find them in your local phonebook, on our website, and Internet searches. |
17. How much mark up should I use? Percentage mark ups range from 2% up to and including 15%. Fair and reasonable is always the rule of thumb. Your coach should always check your first deals. Too large a mark up can cost you money. |
18. Who does the Pro Forma Invoice? As an export agent, under agreement with the supplier to procure buyers for them, the supplier handles the invoicing. As a Middle Man with all paperwork flowing through you, you produce the invoice. |
19. When do I do the NCND (Non Circumvention-Non Disclosure)? This can be done at any time during the transaction usually before the invoicing. This document can be between you and the buyer and/or you and the supplier. Under some circumstances, this may be referred to as a fee-guarantee agreement. |
20. When do I submit the Non-Disclosure Agreement? This varies according to each situation. As a rule, submit this when you enter agreement to be paid by either the supplier or buyer. |
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Today almost all banking is done by direct deposit. The written agreement between you and the paying party will have clearly stated the agreed upon payment method |
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Typically, payment is released when the shipment has been delivered to the buyer’s destination and signed off by the buyer or his designated agent. You are paid according to the particular payment schedule agreement you have with the paying party, whether that be the buyer or supplier. |
23. How do I guarantee that I will get paid? Always have a written contract agreement that protects your position and secures your payment. The Non-Circumvention Non-Disclosure is usually included in this process. Check with an attorney familiar with international agreements. |
24. I am not getting responses from buyers or suppliers, what do I do? First check to see if you are following The Procedure section of Tips and Procedure. Review the correspondence you are sending out. Common problems include: misspelled words, unclear sentences, too generic (“form letter”), failing to provide the requested information. Check with your coach and don’t give up; keep trying. Learn from your mistakes and move forward with Faith, Focus and Follow-through. |
25. Can foreign buyers and foreign suppliers be used? Yes. |
26. What is a Performance Bond? A form of Insurance that covers the terms of an agreement will be followed and met. |
27. EXAMPLE: Negotiating A Deal – Step-by-Step Instructions “Please give me an example of negotiating a deal, keeping both sources confidential to earn a commission or finders fee, Please give me exact instruction in steps as to how it should be done.” Step 1: Search the Buyers databases to find out what people want to buy (just type a Step 2: Locate sellers in the Suppliers database. Ask them (by phone, fax or e-mail) for the lowest wholesale price of the product you need in the quantity your buyer is requesting. (Be sure to restate whatever information your buyer has supplied you with.) You can tell the supplier that you are purchasing the product for export to ABC-port or Name of Country. You don't tell them who the buyer is because YOU are the buyer. Ask for price quotes, product brochures, and anything else you need to assist you in giving the best price quote to your buyer. It is best to contact several suppliers if possible. That way, you'll find out the average price (some quotes will be higher or lower than the rest). A high quote may mean that you are dealing with another middleman. This is not the best way for you to make a profit. Try to deal with manufacturers and their authorized distributors only. (NOTE): Step 3: Contact the buyer and let him/her know that you have the product they need. Restate what the buyer was looking for from the information in the trade lead. When you receive the information from the supplier, remove all reference to that company before sending it off to your buyer. Any product information should come directly from your company. You may have to re-type or paste-up the brochures with your contact information and pricing. Step 4: Add your profit to the cost of the product. How much? We can't tell you that. It depends on the item, the quantity, and many other factors that are unique to each deal. You can ask the supplier what the retail value is, and if you establish a good rapport with them, they will tell you things you didn't even know you didn't know! A good rule is, if the item is large (motors, vehicles, heavy equipment, etc.) the profit is usually high -maybe twice or more than the wholesale cost. If the item is small (surgical needles, zippers, items that have a cost-per-piece) the profit can be small because the quantity purchased will be large. Example 1: One trader sells needles to a foreign buyer. The needles cost about 17 cents each. Her profit is about one or two pennies per needle. That may not sound like a lot of profit, but the buyer wants 10,000 or more needles per shipment on a monthly basis. Example 2: Another trader sells rebuilt motors across the world. The profit per piece is a few hundred dollars. How is that determined? In most cases it's a matter of what the market will bear. American-made auto parts are at a premium and those motors are hard to come by in foreign countries. Many countries simply don't have the technology to produce the items they need. They will spend BIG money to buy new and used items from the USA, then make on-going purchases in replacement parts and consumable supplies. Step 5: How do I get paid? In cash; up-front; through telex transfer (bank to bank) or Letter of Credit. Review the video and The Export Encyclopedia for the best information on LC's. In essence, when the product is at the shipping dock and the shipper has determined that the order is in compliance with the conditions of the sale, the shipper notifies the banks involved and the money transfer takes place. The buyer's bank releases the funds to your bank; your bank pays the supplier, the freight forwarder and insurance fees; the rest remains in your account as profit. Start sending out letters to buyers to let them know that you have what they need. Ask them to verify and clarify anything that you are not sure of. Assure them that you are capable of effecting a quick and painless transaction. Above all, remain confident, efficient and professional.
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