After careful research and learning and also trying out myself, I think export brokerage business is one business Nigeria youth need to be aware of, there are so much money to be made in this business, and it is same business aliko dangote the richest man in Africa started with before he finally go to the place you see him today.
Though I do mention aliko dangote but that doesn’t mean the business is a get rich quick business most that goes looking for “get rich quick business” ideas never get anything worthwhile rather they fail repeatedly, and get scammed far too often.
Some people wishes to make money yet they don’t want to do anything to achieve that, how is that possible. To make money you have got to do something. You don’t do work, you don’t get paid. And let me remind you aliko dangote himself works around the clock even as the richest in Africa.
But thankfully, this business opportunity is very easy to do, very simple to implement and it affords you LOADS OF FREE TIME!
So what is export brokerage business?
It is profession that involves been the middle man or link between an external importer and an exporter, also the clearing of goods through barrier for an exporter and importer according to Wikipedia.
Export brokerage is the same business that has made many Hausa and Fulani business men rich since the 1800.It made Alhaji Aliko Dangote’s GREAT-GRANDFATHER a multi-millionaire in the 1800’s. same goes for Alhaji Aliko Dangote’s GRANDFATHER, Alhaji Sanisu Dantata a multimillionaire in the 1900’s and also what Alhaji Aliko Dangote learnt and mastered from his mother’s immediate family that had him start growing his wealth in 1978.This business was the genesis of his wealth. And with the money he made from it, he has been able to expand it into other sectors of the economy which today has made him a place as the richest black man in the world and the richest man in Africa.
And before you start thinking this is only limited to the dangote family, in facts its not. Other rich families in the northern Nigeria like the Not only them but very rich families like: The Abudul Mutallab family, The Rabiu family and same goes to The Dasuki family and in fact every famously rich family in the Northern part of Nigeria.
And before you think this is everything, you will need to think again because almost Half of the Indians and Lebanese who troop to and live in Nigeria do this business EVERYDAY.
My point is, export brokerage business is such a money-maker you will be a coward not to get involved in it today because, today you have the internet. The telephone and an email address in your hands, tools to use to take advantage and score big with this opportunity. Tools that the Indians and Lebanese I just mentioned are using too every day.
Export Brokerage is a very lucrative business opportunity that lets you bring a foreign importer and a local exporter together so they can transact business between each other and you get paid commission for linking them up just as it is done with the regular estate agents here in Nigeria.
In synonym, your job is to link importers who are outside Nigeria and exporters from within Nigeria together for a commission. Most of the time the fees or commission are not some little cash but real cash in thousands of naira or sometimes millions! The importers most of the times are manufacturing companies who need these products for production. The exporters most of the times are middle men who source the product locally directly from the farmers and producers.
So what about the kind of good this set of people exchange, there are many of them but below is a little list of some;
Hides and Skin
Precious Metal (Gold, Silver, Copper)
Before you start thinking how can this be when this product are abundant in the country, why wouldn’t other country not have them abundant too? Of course climate and some other factor are the reason some of this are not seen in other countries hence the need for them to look for countries with abundance of it to buy from. So you can make thousands of dollars setting up deals linking exporters who have those exact goods to importers abroad who need them.
To be successful in this business, there are 5 important steps you will need, I will talk more on them as I go on in this post and make it as easy to understand as possible.
The Initial Critical First Step
When starting an export brokerage business, the very first thing you need to do to succeed is to ask yourself the following 3 critical questions.
- What products do foreign importers want most?
- How much is it sold for on the international market?
- Is it exportable?
What Products Do Foreign Importers Want Most?
It is important for you to know what products importers in other countries want to buy, this means that you have to find out which product is in high demands by manufacturers around the world.
So the question you will want to ask is how will I find out?
Of course I will tell you how, you do not even need to go far or to do too much before you find out what it is they want.
Two of the leading most source products in the world is this two;
- Agriculture and agro allied products
- Solid minerals
Though knowing this, there are things you must bear in mind and this are listed below;
- Companies only buy what they want, simple and short.
Obviously. You cannot expect a company which manufactures chocolate products for Example, to buy anything else apart from cocoa, its impossible
- Do not ever approach a company trying to sell them what they haven’t expressed an interest in buying.
This one relates to the last point. If you do this, you’ll be seen as an amateur and in this business; amateurs do not have a place.
So now let’s go to the second critical question which is how much is the product sold for in the international market.
How Much Is It Sold For On The International Market?
Of course you will need to find out exactly the price the product is been sold in the international market and you can do that in the following ways;
You should ask the sellers (they will tell you exactly the price they are willing to sell), you can also ask the exporter themselves how much the products are selling for on the international market, of course they too will tell you the price at which they themselves sell.
So where then will you get the information you need? Websites such as www.importexportplatform.com will help you with this; you can use this website above to check the prices of products in the international market. You need to know this because your need a base price to negotiate from. Am sure you don’t understand that but don’t worry I will explain what I mean as you read on.
Is It Exportable?
Ofcouse you will need to know if the product is exportable; what are the local and existing laws. You need to know what the existing law for each commodity is.
Be sure that there is no restriction or a lot of bottlenecks on the export of the commodity from the originating country.
Ok let’s say for example, in Nigeria theirs is a law against individuals and companies without an oil license selling crude oil abroad. You can find out which other products are restricted or forbidden for export, so you can do that by visiting this website https://www.customs.gov.ng/ProhibitionList/export.php
So now this is everything about step one, so let’s move to step two.
So when I say the search what do I mean, I mean searching for exporters and importers alike
The next thing you want to do is you want to find companies locally that export products abroad, so
Where will you find these exporters?
you might want to ask, there are ways which you can do this and here is a list of them:
- Nigeria Export Promotion Council has an accredited list of exporters you’ll
Spend =N=13,000 to get but don’t worry I will offer it to you for a far lesser price.
The Nigeria Export Promotion Council (NEPC) is an agency set up by the Federal
Government and they have a list which contains a list of their accredited and registered export companies. This is is GOLD; if you can get it then you really have done half of your work.
- www.alibaba.com is a very vast business directory where exporting companies come to search for importing buyers.
For you to find exporter on alibaba.com, all you will be required to do is just to type in exporter+product+Nigeria. Say for example you are looking for an exporter from Nigeria who sell sesame seed, then you need to do the following, type in “exporter+sesame+nigeria”
See below the search I did.
And let me give you a warning note!
After doing this, the next thing you will want to do is you want to find exporters, companies locally that export products abroad.
So by now its time to look for importers and the question will be;
Where do you find Importers?
Previously we used alibaba to look for exporters; we can also use it again to look for importers. This time however, you will need to switch up the search keywords and replace the exporter with importer.
So here is how you do it importer+product+country. Say for example you’re looking for an importer of sesame seeds in Thailand, and then you need to type in “importer+sesame+thailand”.
It is worthy to take note that the importers you’re looking for are not those based in Nigeria. They are those based in other countries who buy the products that are produced here in Nigeria and sold by exporters, do you get it?
This is another website you can search for importers, all you need to do is to simply register on the website as a member, then you start searching for groups related to what you are looking to export and then you join them. After you must have done that, you can then search the groups for people looking for exact products.
You will need to search for these groups by typing in the following keywords into the search bar and search using industry specific keywords such as the one below;
- Export Nigeria
- Nigeria groups
- Import Nigerian
And here is a snapshot of the result I got after searching with those same keywords I gave you.
That’s it; now let’s go to the third step
Now this is the stage where you will now contact the exporter, and then the importer.
- You need to get approach the exporter FIRST.
You can either do so . . .
– As an independent agent.
So When you approach the exporter as an independent agent, you make will make it clear right off that you want to represent them and help them get buyers from abroad for their products. Of course you will need to tell them that you will not charge them any fees whatsoever as you will be adding your own fee to the price they wants to sell their products to your link. All they have to do is pay the fees you added to their price as your commission.
As an independent agent, you can then approach importers and tell them you are an independent export broker and can help them source quality products from Nigeria or whatever country your exporter is based.
There is only one issue with being an independent agent and that is this;
The importer will know you will be getting a commission out of the money is paying, so they will negotiate hard on the prices you give them. Just reassure them that you are acting as their mouthpiece and their representative, and make sure your loyalty is to them and them alone, not to the exporter. Reason being that . . . It’s the importer’s money that you will be paid with.
– As the exporter’s representative.
Another way which you can use to approach the exporter is by asking to represent their company, in a case like this you are essentially working for the company. This approach is not as good as it makes you dependant on the exporter and they can cut you out of any deal whenever they wish to
Please take note that you must request from the exporter, a written letter printed on their company Letterhead, signed and stamped authorizing you to represent them to represent them in any deal.
Never do business with any exporter who will not provide this letter. You must get it because it may come in very handy in the future and can save your ass.
So whichever method you choose to use, when you’ve done it,
- Then you contact the importer.
You can either choose to contact the importer by phone or via email address telling them you have a credible, cost effective and original source for accessing the products they want. And if they’re interested, should contact you immediately.
Lots of them will contact you because you are getting the stressful job done for them, you can also call them on phone and tell them
- Then you negotiate between both sides.
So when you have secured an exporter with a specific kind of product and an importer who want exactly that product, you can then start the . I know you also want to know you will do that.
How do you do that? You will learn that in the next step.
So now after you must have secured an importer with a specific kind of product and an importer that wants exactly that product, you can then start negotiation with both parties.
Not just negotiating anyone, there are four most important things you will need to do when you start negotiating between the importer and the exporter and here are the things;
- Speaking the import-export language
- The final price of the product (per metric ton) agreed to by both parties
- Which inspection company to use
- A payment plan for the product agreeable to both parties
But wait let me decode this so that you can understand them better.
- Speaking the Import-Export Language
Just as you know every business has its own language (terms, phrases and words) which practitioners
Use to communicate. And if you don’t speak that language you will look like an amateur and nobody wants to or will ever deal with someone they perceive to be an amateur, importer and exporter alike.
But no need to worry will show you how you can learn this language. You can learn import-export language, by visiting this link http://www.startimportexport.com/Understanding-international-trade-import-export-language
- The Final Price Of The Product (Per Metric Ton)
Now when you start negotiating with both parties, the exporter will have their own price.
So here’s something important!
You MUST not give the importer the exact price the exporter gave you. At all! You don’t the price you give the importer is. . .
The Exporter’s Price + The Commission You Want
So let me further explain this so you will understand
For instance the importer want to buy sesames seed which we earlier search for and the exporter you found said the cost of their sesame seed is $1600 per metric ton. You do not just go ahead and tell the exporter the price is $1600. You will have to add your own commission which is what you want to be paid to that price and then you present it to them.
This is all because you are paid that extra amount which you added on top when the deal is completed and closed.
So in this case, I could give them (the importer) a price of $1800. This means that I Added $200 to the price the exporter says they will sell which is $1600.
If the importer agrees to the $1800 price I give them, I will be making $200 multiplied by how many tons of the products they buy.
It’s straight forward! But Sometimes the importer will not agree on the price. No problem. Just negotiate it with them and make sure you do not fall too close to or on the same price the exporter gave you.
Please it is important to take note that you should not add too much money as commission to the exporter price. If the price you give the importer is higher than the price in the international market, they will flatly refuse it.
So it will also make some sense to be sure how much the product is selling on the international market for two reasons;
- So you’re sure the exporter is not charging too much. If they are, there’s always another exporter you can contact. There are plenty of them.
- So you’re sure that when you add your own commission, it’s not above the international price.
The point is not to get too greedy because if you do you will spoil almost everything
DON’T FORGET! The exporter will NEVER pay you out of their earnings. You MUST add what you want to earn to the price they give you and then negotiate the final price with the importer.
The great about this is that most importers buy many tons at once. So even if you’re making just $100 per ton, when multiplied by how many tons the importer is buying, it becomes a lot of money!
- Which Inspection Company To Use
So another point of conflict may be the inspection team to be used. Some importers have their favorite inspections teams which they trust and use always. Likewise the exporters on the other hand, also have theirs. Where the two parties have different inspection companies, you have to negotiate with them and get them to agree to use one.
For me, I would rather both parties use the importer’s inspection company. This is because my loyalty is to the importer 100%. If the importer’s inspection company is not in Nigeria, then suggest they use the exporter’s own.
Inspection companies are companies that go to the warehouse and ports to inspect the goods and assure they’re of top quality before they are shipped.
- A Payment Plan For The Product Agreeable To Both Parties
And now after you must have done the first two things I described earlier, you will now need to reach a payment plan agreeable by both parties
Most importers will want to pay only 30% FOB and the remaining 70% when they take
Possession of the goods.
FOB means Freight on Board and it is a term indicating that delivery will be made on board or into a carrier by the shipper without charge. The abbreviation FOB is followed by a shipping point or destination. The invoice price includes delivery at seller’s expense and seller’s risk to the specified location. For instance “FOB our warehouse in Paris, France,” means to a buyer requesting Paris, France delivery that the seller who might have its headquarters and billing office in Lagos, Nigeria will pay shipping costs from Lagos to Paris. Title (ownership) usually then passes from seller to buyer at the FOB point. Please read the earlier link I gave you to understand the import-export language better.
So like I said earlier in the post, most importers will want to pay only 30% FOB and the remaining 70% when they take possession of the goods.
This is because they want to minimize their risk, and feel safe.
On the other hand, most Nigerian exporters want importers to pay them 50% FOB, and the remainder of 50% when they take possession. When such a situation arises, you will have to negotiate between both parties to get them to agree to one payment plan.
So that is it , now its time for the fifth step.
So y now after you must have gotten the two sides to both reach an agreement, its time you link both the importer and the exporter together so they become aware who they are
Without this, your deal will not go ahead. You need to trust them to handle everything else from this point going forward, especially because the banks will get involved in the deal to send money, raise LPOs, and do the many other little things that is required to make the transaction a success, so you can get paid.
But wait, you don’t just link them up just like that. No.
You should only do this after:
You should approach the exporter telling them that your contact has agreed to their requests and you give them a SOLID agreement drawn up stating how much you’re getting paid for bringing them that client.
The agreement will state the quantity of products the importer is buying, how much the final price is, how much your exporter is charging and how much you are going to get paid when the deal is closed.
It should also contain stipulations that you get briefed on the progress of the deal or otherwise and shown proof, and that you get paid IMMEDIATELY the deal is closed and the exporter receives FULL PAYMENT.
It is after all this that you can then bring them together otherwise you will NEVER GET PAID
That is it…
VERY HOT OFFER
So now like I said earlier , I offer to give you the accredited list of performing exporters of over 40 pages and a total of 529 exporters of different product by the Nigeria Export Promotion Council as seen below
As well as the format of the message to send to the seller as seen below, you can type it out if you want but if you get the list of exporter its will come along with it free..
And also this below which is the letter of authorization as stated in the post
You will get all this for just 5500 Naira only and you can get it by sending a mail to email@example.com
Also please I will so much appreciate if you drop your comment on this post after reading, whether for appreciation or to ask questions, I will be ever willing to answer all your questions.
Credits: RONALD NZIMORA