Simple commission Agreement sample
8 Steps for buying Products from Alibaba to sell in India :Table of ContentsHow to buy products from Alibaba in India?8 steps for buying Products from Alibaba to sell in India are as follows,Be Prepared with the Important Documents,Getting Familiar with Alibabau2019s E-commerce store,How do we find a genuine supplier?Few steps to consider are as follows:Some Other useful Criteriau2019s to consider are:,How to ensure the quality of the product?Always ask for a Free product sample,Which shipping company should you choose?,Which method of payment should you choose?,How to buy products from Alibaba in India?(Alibaba wholesale India) This is general doubt people tend to have before buying the product from Alibaba before we jump to the answer lets see what is Alibaba about.
,Alibaba was founded on 4 April 1999, they provide E-commerce and retail service platforms for both B2B (Business to Business) and B2C (Business to Customers) The service includes Buying Products directly from the Factories / Industries in China at very minimal prices.
Alibaba ecommerce website is used worldwide and Alibaba wholesale India is used in India.
nWe can say that there is no such product which isnu2019t available on Alibaba.
People from all over the world buy products through Alibaba and many have been able to achieve greater profits due to very low price on products.
Buying from Alibaba is very simple if you know the steps to follow before buying products.
,8 steps for buying Products from Alibaba to sell in India are as followsBe Prepared with the Important DocumentsImport Export Code (IEC): Technically, this is the only document you need if you want to import anything from China.
You can apply for IEC on Directorate General of Foreign Trade or you can let delivery service handle it all.
,PAN card details or Aadhar card details.
,Goods and Services tax identification number (GSTIN) if opted.
Getting Familiar with Alibabau2019s E-commerce storeFirst, you need to search for the product, its recommended to use short tail keyword rather than long-tail keyword as by doing so many products will be shown with lower price along with many suppliers to choose from.
nFor Example letu2019s say we are looking for u201cBlack Medium size crop topu201d simply search for u201cBlack Crop topu201d as you will have many options to choose from with lower price rather than searching for u201cBlack Medium size crop topu201d as it may show you fewer results thus leading to less number of suppliers and higher price quotes.
,How do we find a genuine supplier?More than 80% of the suppliers on Alibaba are genuine so the chances of being cheated is very minimal.
However, you should never take this lightly and always deal with precaution as you will be dealing with unknown buyers.
,Few steps to consider are as follows:Trade insurance: Trade insurance is Alibabau2019s free service that protects your orders from payment to delivery.
It provides 100% buying security, but only from the providers that are assured of trade.
Always select buyers who have trade insurance to ensure that your item is delivered on time as per your provider or manufactureru2019s agreement.
It guarantees the quality of your product as per the contract with your supplier or manufacturer.
Almost all of the suppliers on Alibaba are under the Trade Assurance suppliers.
So, you need to consider some additional pointers before you select your manufacturer/supplier.
,Gold Supplier: A gold supplier does not necessarily imply the provider is real, but it is an indirect sign that the provider is reputable and confident in Alibabau2019s eyes.
Gold Supplier is actually a paid membership program under which a third party identifies the authenticity of the supplier or manufacturer by ensuring that it is legally registered.
It is believed that if a supplier has been a gold supplier for more than 2 years then it is almost impossible for him/her to be a scammer and you can completely count on this.
,Assessed Suppliers: Assessed Suppliers are China, Hong Kong & Taiwan Gold Suppliers that are verified by third-party inspection companies provides you with in-depth information on the Suppliers.
This involves verified videos, pictures and many other inspection criteria, itu2019s not going to be incorrect to say that not being genuine is nearly impossible for an evaluated provider.
But the issue is that very few suppliers on Alibaba are actually assessed suppliers as it is a very expensive membership plan and is only available to a certain number of countries on Alibaba.
,Some Other useful Criteriau2019s to consider are:Transaction rate: Transaction rate tells us about the total number of transactions a given supplier has made in a period of 6 months.
It is represented by orange-colored diamonds.
The higher is the transaction rate, the more experienced and skilled the supplier is.
nResponse rate: According to Alibaba u201cResponse rate is the number of buyers you responded to within 72 hours of receiving the inquiryu201d needless to say a higher response rate tells us that how active a supplier is.
nMinimum Order Quantity (MOQ): Every supplier has a specific MOQ on Alibaba but it is quite flexible, many times Iu2019ve brought various items from many suppliers on Alibaba which were less than the listed MOQ.
So never be afraid to ask for a lower MOQ some factories might offer you that quantity without increasing the price too much.
,IN LAYMANu2019S Terms,When you search for products always use Long tail keywords and prefer asking for Quotations, in this way you can get information about MOQ (Minimum order quantity) and whether the Seller is Gold Seller and Trade assured, always prefer sellers with more than 2 years in service.
,Also, do check how many transactions have been made and reviews.
Once you are happy with all the information contact Seller ask them to send Live pictures or videos to see how they look without photoshop.
,After Satisfaction check, if they can send you a free sample and choose FedEx or DHL this two may seem expensive but trust me its worth it as they will take care of Customs Duty and provide you Faster Delivery.
,How to ensure the quality of the product?You canu2019t genuinely guarantee the value of the product by just seeing its pictures on Alibaba, Images might offer you a reference to what the product might look like, but you can never really be sure of the quality.
If you are planning to sell a product from Alibaba to Amazon, eBay, Flipkart or any other E-commerce platform it will be essential for you to choose a high-quality product.
And to do this, you just need to follow this one simple, but super-effective golden rule.
,Always ask for a Free product sampleIt is always advisable to get a free sample first before you buy in medium or large quantities.
Now here is the catch This free sample is not actually free.
What? Shocked???? Yeah!!! You need to pay for the shipping charges, those shipping charges might even exceed the cost of the product you are ordering this happens because every shipping company has a minimum weight slab limit but always get the sample no matter what.
If even by a slight chance you ordered something in bulk which does not meet your quality expectations then youu2019d be facing a crisis.
,Yes, you can return the products on Alibaba but that comes with its own charges, Alibaba is not like Amazon it doesnu2019t entertain you with free returns.
Even if you have to pay 60$ for a product which costs you around 10$ when you order it in bulk, Order the sample first then think about the bulk purchase.
,Which shipping company should you choose?Although every provider tends to have certain agreements with only a few shipping firms, DHL and FedEx are the two most common shipping firms used by Alibaba providers.
,You donu2019t need to worry about customs clearance as these businesses have their own CHA, which will manage all the customs clearing process on your part and ensure that the package is delivered at your doorstep.
,Personally, Iu2019ve never tried anything besides FedEx and DHL, yes, theyu2019re a little costly, but theyu2019re always making timely deliveries and ensuring free custom clearance.
,Which method of payment should you choose?When making a purchase on Alibaba, you should always pick the safest and most commonly known payment technique.
,Even though the provider may seem genuine and friendly, you should always first plan the safety of your company!,As you can see, Alibaba has a lot of payment techniques, but more than 80% of consumers use their debit/credit card and PayPal for business insurance providers.
,If you are using PayPal, you will not be covered under Alibabau2019s trade insurance system as PayPal is not yet integrated with Alibabau2019s website, but needless to say, PayPal is completely safe in itself and it protects your money from payment to delivery.
,Both of the payment methods charges come around to 4-5% (May wary) commission fees if you pay through them, which makes almost no effect on the cost of the product.
Personally, Iu2019ve never used anything besides PayPal and Debit card for trade assurance supplier, if the supplier is not under trade assurance, I wonu2019t even consider requesting for a price quote.
,To read more interesting stuff click here,If you like How to buy products from Alibaba in India? please share and support.
Broker commission Agreement PDF
The reasons for 911 are as follows:,1) The Marcos Gold Hearing began in Los Angeles, in August 1997.
The banks and accounts involved in that hearing, were the Swiss banks: UBS, and Bank Julius Baer.
,2) The Eizenstatz Report and a public campaign waged by the Simon Wiesenthal Center launched suits against three Swiss banks.
,3) The Reginald Howe suit- in which the U.
bullion banks were accused of dumping U.
Treasury gold on the market illegally.
The Reginald Howe & GATA Lawsuit was filed on Jan 8, 2000 naming Deutschebankn (a.
Deutschebank Alex Brown), U.
Treasury, Alan Greenspan, Federal Reserve, Citibank, and Chase, as defendants.
Also mentioned as having non-public knowledge of the scheme are Gerald Corrigan and Barrick Gold.
(The 2000 filing suggests investigations began long before.
),4) The Bank of New York money laundering scandal: the Department of Justice was under pressure to investigate accounts of multiple individuals who benefited from these transactions: Loutchansky, Marc Rich and Berezovsky (Berezovskii.
) The FBI investigation started in the Fall of 1998, The investor lawsuit was opened in September 1999.
These investigations involved accounts at Credit Suisse, Union Bank of Switzerland (UBS), Dresdner Bank, Westdeutsche Landesbank and Banque Internacionale of Luxembourg.
All of these individual would at some point be mentioned as playing a role in the money laundering scandal at the Bank of New York, that would ultimately be reopened in 2002, after being buried for three years by federal prosecutor Mary Jo White, a first cousin to former President George Bush.
,5) The Avisma law suit was filed Aug 19, 1999 naming as defendants Bank Menatep, Harvard Institute for International Development, and the Bank of New York;,6) The federal investigation of Konanykhineu2019s European Union Bank: The Konanykhine investigation was begun by the INS in February 1999.
Other banks included in that investigation would have been the European Union Bank and Bank Menatep.
,7) Richard Giffen/Mobil Oil scandal- The FBI Probe began in 1999, and would have involved accounts at Credit Suisse, Bank of New York, Cayman Islands, and the Deutsche Bank (a.
Deutschebank Alex Brown).
,8) Yeltsinu2019s UBS accounts were being investigated for bribery.
,9) Kevin Ingram would testify that he had advised Bob Graham in advance that the World Trade Center was to be attacked.
This Deutsche Bank executive was convicted of laundering money for weapons purchases for Muslim terrorists through Pakistani agents; The Ingram investigation was begun by the FBI as early as July 1999, and involved the Deutschebank (a.
Deutschebank Alex Brown).
,The records for some of these investigations resided in Building Six, Building Seven and on the 23rd Floor FBI office in the North Tower.
The account structure set up by the U.
intelligence operations was besieged by investigations from nine different directions, any one of which may have exposed the source of that funding, and traced it to its Black Eagle Fund origins.
Those investigations needed to be diverted.
,What happened inside the buildings of the World Trade on September 11 is difficult, but not impossible to discern.
The government has put a seal on the testimony gathered by the investigating 911 Commission, and instructed government employees to not speak on the matter or suffer severe penalties, but there are a number of personal testimonies posted on the internet as to what happened in those buildings that day.
Careful reconstruction from those testimonies indicates the deliberate destruction of evidence not only by a targeted assault on the buildings, but also by targeted fires and explosions.
In the event that either the hijacking failed, or the buildings were not brought down, the evidence would be destroyed by fires.
In addition to the investigative evidence being destroyed, the Federal Register reported that the physical securities held by the brokers in their vaults had been destroyed.
,What would be even more revealing would be the actions of the Federal Reserve Bank and the Securities and Exchange Commission on that day, and in the immediate aftermath.
As one of many coincidences on September 11, the Federal Reserve Bank was operating its information system from its remote back-up site rather than itu2019s downtown headquarters.
The SEC and Federal Reserve system remained unfazed by the attack on September 11.
All of their systems continued to operate.
The two major security trading firms had their trade data backed up on remote systems.
Nevertheless, the Commission for the first time invoked its emergency powers under Securities Exchange Act Section 12(k) and issued several orders to ease certain regulatory restrictions temporarily.
,The Federal Reserve Suspends the Rules,On the first day of the crisis, the SEC lifted u201cRule 15c3-3 - Customer Protection--Reserves and Custody of Securities,u201d which set trading rules for the following processes:,The [seller] is not permitted to substitute other securities for those subject to this agreement an therefore must keep the [buyers] securities segregated at all times, unless in this agreement the [buyer] grants the [seller] the right to substitute other securities.
,Notification in the event of failure to make a required deposit.
,Physical possession or control of securities.
,Required Disclosure,Control of securities/Requirement to reduce securities to possession or control.
,Simply, GSCC was allowed to substitute securities for the physical securities destroyed during the attack.
,u201cu2026collateral substitutions can and should be made with regard to immediately maturing collateral.
u201d Subsequent to that ruling, the GSCC issued another memo expanding blind broker settlements.
A u201cblind brokeru201d is a mechanism for inter-dealer transactions that maintains the anonymity of both parties to the trade.
The broker serves as the agent to the principals transactions.
,u201cThe only repo transactions entered into by blind brokers should be those done in direct furtherance of clean-up and reconciliation efforts.
No new blind brokered business should be executed.
u201d,At this point in time, the Federal Reserve and its GSCC had created a settlement environment totally void of controls and reporting u2013 where it could substitute valid, new government securities for the mature, illegal securities, and not have to record where the bad securities came from, or where the new securities went u2013 all because the paper for the primary brokers for US securities had been eliminated.
,Thereu2019s much more.
You can read the full story which explains who perpetrated 911, how and why here:
Commission agreement Word format
The rubber, as they say, is hitting the roadu2026.
,Letu2019s examine this a moment shall weu2026?,A small dip into recent history is needed and it will be brief.
Back in February, Nancy Pelosi was setting up a Select Committee to investigate 1u20136.
This was in response to numerous pronouncements from the people and Congress itself.
,Even Repug Congressmen were onboard for an investigation, especially when the threat of insurrection had just subsided.
It wonu2019t be brief at all.
Iu2019m gonna expose the whole damn plot piece by piece because these fascists piss me off.
),Then McCarthy took a flight to Florida for a Bootlicking Summit with Trump.
The decree was simple.
Stop the investigation into 1u20136 at any cost.
So McCarthy got off his knees and did just that.
He claimed the Select Committee would be a tool of derision and politics against the GOP, much as the Benghazi investigations into Clinton had been five years earlier.
,And Pelosi capitulated.
She selected Ben Thompson to work with McCarthyu2019s pick, John Katko, to hammer out the details for legislation to create a 1u20136 Commission.
Katko himself made the announcement with pride.
He talked of bipartisan agreement that saw a commission with a 50u201350 power structure and a time limit.
,Almost everything McCarthy asked for.
What he did not get, despite his outlines, was investigation into BLM riots the summer before.
Somehow, in his mind, BLM violence in protests over a cause were synonymous with Insurrection over a LIE.
,But that was all the excuse he needed to claim the Commission was one sided, a political hit group that would do nothing but denigrate the GOP.
A witch hunt with no end.
A partisan effort with only one purpose : To convict Trump in the court of public opinion.
,Such are the thoughts of a party and its leader based in hypocrisy.
,Then McCarthy lobbied the Senate not to pass that legislation.
He actively denigrated its veracity and made untrue claims about its makeup, simultaneously throwing Katko under the bus and lambasting Pelosi in the media.
,But it worked.
McCarthy, ever the Good Dog, got approval from Trump himself who made no bones about his opinions over this commission.
And the Senate followed suit, negating the work of bipartisan inquiry based on the GOP standard.
,While people like myself thought the Commission gave away the farm to the GOP, when they had little rights or majority to make any demands, I thought Pelosi showed incredible integrity in agreeing to a compromise in the interests of investigation and exposure.
,But McCarthy and Trump pushed that little old lady too far.
And she responded immediately with a new Select Committee formation based on HER standards and the GOP could all go rot in Hell.
She would decide the parameters and time frame and she would appoint the majority of the panel and it would rest in completely partisan hands.
,Because thatu2019s what happens when you act like a duplicitous piece of shit to Pelosiu2026you get the Flying Forehand of Reality.
Grammau2019s in charge, here, TrumpStain.
,Pelosi set the parameters for the panel, and McCarthy, with full knowledge of the rules, sent in his picks.
Pelosi denied two of them.
These two were actively involved in supporting the fraud narrative and Trump apologists to the core.
It was opined then, and as subpoenas are proving, that both these picks are actually part of the investigation itself.
,Not the kind of people you accept on a committee to investigate 1u20136.
,This prompted McCarthy to make yet another mistake.
To call out Pelosi in the media, claim history itself was violated and that he would remove his picks from the panel.
Like a petulant child he cried and whined in his best Trump fashion, certain the Committee would fold.
,Except it didnu2019t.
,Pelosi, that sly old Gramma, had appointed a Repug herself and added another in Adam Kitzinger, and with two Repugs and four Dems was ready to proceed.
Despite McCarthyu2019s cries and Trumpu2019s bleats, she had outmaneuvered them both.
,It was at this point McCarthy knew heu2019d been beaten, his ill advised attempt to crush any investigative commission was doomed to fail from the start.
And secretly, without media fanfare, he tried to add five new members BACK on that Select Committee.
,I can see Pelosi just shaking her finger at Kevin and smiling smugly.
Tough Nuts, BootLicker, you had your chance.
,Why is this importantu2026? Because waiting in the wings, with information he could not reveal, was the AG of the Justice Department, Merrick Garland.
And his silence for six months was not based in fear nor cowardice as some were saying but patience.
,Patience to allow the Congress to create a Commission or Committee or a damned Needlework Club, as long as it had power to investigate 1u20136.
It was then he sent down his edict.
That no executive privilege would be allowed in testimony or artifacts during the Committeeu2019s duration.
,That the DoJ itself would compel testimony by prosecuting those who refuse to testify with obstruction and contempt.
This is an enormous amount of power passed to the Committee and the best way to get transparency.
,Had Garland made this edict previously it would have been fought in court, paraded through the media, spun, twisted and lied about before any panel could be created.
This is testament to his shrewd thinking and demand for justice.
Whatever the Committee finds, he can prosecute.
,This is like handing Thoru2019s Hammer to Congress.
,And now the subpoenas are coming out.
Except this isnu2019t a small affair with a select few having their phone records retrieved and a few documents from various sources.
,This is the whole enchilada, folks.
This is everybody in the DoJ, DoD, Pentagon, Congress, White House staff, appointees, aides and, yes, Trump and his Crime Family.
,And they arenu2019t just looking at the days around 1u20136, oh no, they want EVERYTHING on martial law, troop movements, contacts with BG state legislators, election fraud, rally organization, oh my the list is long.
Every damned coup attempt we wondered about during those last two months, every opportunity Trump took to overthrow that election is now being subpoenaed.
,And, of course, Trump is suing to stop all this.
To claim executive privilege after the DoJ explicitly rescinded it.
To muck up the works and stall the Committee.
To fight the DoJ itself on their own policy is a labor in futility.
,It will keep his voice in the mix, give fodder to his indoctrinated drooling StromTrumpers who will defend him to the death.
They will parse words and claim his belief and opinions allow him unfettered power to do what he thinks is right, to overturn an election lostu2026.
,And they will all fail.
,Because justice MUST be done.
A criminal mafioso disguised as a real estate mogul infiltrated our highest office and he must pay the price.
,Him and every damn one of those fascists who enabled himu2026
Broker commission Agreement sample
Oh, this isnt the first time Ive come across this question.
At first, it was also difficult for me to choose a broker and doubts about honesty have always worried me.
nI have come not a long, but a thorny path in Forexs field of investment and knowledge.
Fortunately, I met one cool guy when I went on vacation to the sea in the summer of 2020.
nThis was completely coincidental as I forgot my sunblock in the room.
I came back, and on the way, I met a little puzzled guy sitting on the sofa in the hotel hallway and writing something down or drawing in his notebook.
I decided to take an interest, and I thought maybe he was drawing something (I often met artists who also drew in a notebook).
nTo my surprise, he wrote out the strategy.
He wrote down absolutely everything, the schedule, possible losses and their causes, possible earnings in percentage .
I was amazed at its accuracy and literacy.
This is a trustworthy professional trader.
nIt was only then that I found out that he was trading on AAFX Trading.
He did not say that this broker is the best in his life.
But, he mentioned that AAFX is reliable, and the leverage allows him to increase his usual earnings several times.
Therefore, he painted everything so clearly in his notebook.
nRecently, I remembered this and decided to try the conditions from AAFX Trading.
I registered on the site on the eleventh of March.
On the same day, I got acquainted with all the terms and conditions.
nSo, choosing a broker is one of the first severe decisions of a novice trader.
Unfortunately, it is not uncommon for beginners to accept it hastily, so they then face unpleasant consequences.
The reason is that in addition to bona fide resellers, there are also fraudulent brokers on the market whose goal is to make the most of their clients.
nAlas, cooperation with such brokers often results in significant losses of funds and disappointment.
How to choose a broker wisely and avoid problems?nTo understand what to look for when choosing, you need to remember the primary brokers goal? We know that it is a trading intermediary that brings a traders trades to the market.
Consequently, the broker must have sufficient technical equipment to have uninterrupted access to the market and promptly execute the traders orders.
nThe broker should also provide the trader with a convenient way to replenish the balance and withdraw funds and fair prices for their services.
Keeping these conditions in mind, consider what else you need to check before starting to cooperate with a broker step by step:,Check the legal status of the broker.
nI think this is the most important thing when choosing and checking a broker.
After all, there is no point in researching other parameters of a broker until its legal status is confirmed - the fact that it legally operates on the territory of the country and in the financial sphere.
nMany excellent sites display ratings, legal statuses of brokers.
I dont remember exactly where I looked back then, but I noticed that AAFX Trading is listed as a licensed broker.
If you go to the brokers official website, you will find all the necessary AAFX proof of honest brokerage services.
,Checking the reliability of the broker.
nThis is also an important criterion when choosing a brokerage service.
The brokers reliability determines how long it will exist - whether it will go bankrupt at the most inopportune moment, depriving the trader of his money.
nAll this is taken care of by the regulatory authorities, who constantly monitor the brokerage activity.
On the other hand, the regulator may not give the broker permission to increase trading opportunities.
For example, leverage.
nThe regulation does not approve of high leverage.
On average, it should be no more than 1: 500.
I can understand why most traders are newbies who can tilt and drain the entire balance.
But what about the professionals who have learned to control themselves then? The regulator does not think about this since it is not so important.
nIn the case of AAFX Trading, the broker has not been regulated.
Otherwise, the leverage and such pleasant trading conditions were simply absent.
nYou can see for yourself what the broker gives - zero commission, tight spreads and many options for withdrawing funds.
If AAFX were to gain regulation, we would most likely be in for an inevitable disappointment.
I think traders who have been using this broker for more than a year do not need its regulation)),Trading conditions of the brokerage company.
nIn my opinion, any beginner or professional trader will think first all pay attention to the terms of cooperation with the company.
Nobody wants to receive pig in a poke :)nTo do this, you can find out the terms of cooperation with a broker on the official website by contacting the manager or reading the sample service agreement.
Read the terms carefully, especially the items marked with an asterisk and in small print.
So you can get the complete picture of tariffs, prices and the presence of hidden commissions :),Customer rating and feedback with ratings.
nOne of the best indicators when choosing a broker is the opinion of his real clients.
So take the time to research the ratings and user ratings to get an unbiased view of the brokerage firms account.
Pay special attention to the issue of withdrawing funds from the account and the speed of order execution.
If there are many complaints about technical problems or delays in withdrawing funds, it is better to look for a reliable broker.
nFor AAFX Trading .
com, I suggest you type your question into Google research or type AAFX Trading scam - reviews.
I have visited several sites with a lot of testimonials.
You can even start a small dialogue with the clients of the service and find out all the necessary details :)nBy the way, be objective and filter information.
It is essential to distinguish between negative reviews of novice traders, written on emotions, and reviews, which set out facts confirming fraudulent actions.
,I want to draw your attention to the software from brokers.
They all offer to install their software.
However, It can have a virus, for example, a Trojan that will make trades for you and drain your balance unnoticed.
,When I installed AAFX Trading MT4, I had an antivirus problem.
It indicated that the application I downloaded had viruses or something like that.
I have Windows 10.
But, I blame this problem on my antivirus program.
As before, he suggested removing simple editors or games.
Although I bought everything with a license :)nDespite this, if you do not know the broker, better reinsure yourself and trade via the web version)nSo, my opinion about the AAFX Trading scam or not u2014 I think there are no problems with this service.
Sample commission Agreement Letter
A few areas to see a sampling of the the range of options:,Contract Law,Statute of Frauds,Title,Bankruptcy,Foreclosure,Commission Agreements,Diligence,Letter of Intent/Purchase and Sale,Disclosure Requirements,Loan Servicing Requirements,Loan Compliance,Tenant Law
Broker commission Agreement template free
If you are unlicensed, you cannot receive any fee or commission that is contingent on the transaction/financing happening successfully.
,The language used by the SEC here is extremely vague, giving them all the opportunity to crack down on you should they get wind of the transaction.
The consequences can be severe-- not only are the potential fines significant, but your unlicensed involvement can invalidate the transaction altogether, which can be quite damaging to the parties you are bringing together.
True enough, unlicensed folks receive finders fees all the time, many without even knowing that they are operating illegally, and enforcement is relatively rare, but operating illegally is never advisable.
,As far as the parties you are bringing together, they are free to pay commissions irrespective of any licenses involved.
However, if one of the parties is licensed as a broker dealer, you may consider registering with them as a broker representative, and receiving your commission from them legally.
All you need to do is register with FINRA, and take your Series 7 (Series 62, which is shorter/easier, might work as a substitute, but I dont completely recall) and Series 63, and you are good to go.
Alternatively, you may find another broker dealer that handles back office/compliance for independent brokers and hang your licenses with them.
From personal experience, both securities tests can be done with 2-3 weeks prep, but I dont know how much time you have, and if your 1% commission is worth the effort.
,Agreements: emails are typically not considered very robust contractually, so a finders fee or commission agreement would be appropriate here.
Templates are available online for free.
Of course, if one chooses to act illegally and receive a finders fee without a license, he or she would probably be better served with a verbal agreement.
This entails the risk of not being paid at all, but reduces enforcement risk.
Mind you, this remains a shady, bad idea, and is in no way advisable.
Get licensed instead (you might end up using those licenses for future business, who knows?)
Commission Agreement doc
The cost of a private placement offering, when being run by your in-house Investor Relations Department can cost no more than 15% of the offering.
,For instance, a cost break down may look something like this: ,Offering: $2MnVP Commission: 10% ($200k)nAVP commission: 3% ($60k)nLegal, printing, & organizational costs: $38kn,The hard cost of doing an offering, generally depends on the check size of the investors.
The smaller the check size the higher the cost of raising the capital.
If $25k checks then 10% commission to your VP of I.
If larger checks than ~3-5% would be fair.
,So yes, ~$80k in commission + $80k in warrants (4% of $2M) sounds fair.
Assuming they do 100% of the pitching, collecting checks, subscription agreements, and associated docs.
n nBut it really depends whether or not the rep has a book of business or not.
If they already have investors in their book then 3-5% commission would be fair.
If not, and If the investors are writing $25k checks than 10% cash commission is more fair.
,Note: You did not disclose the cash commission % so a more accurate answer could not be given.
Middleman commission agreement
What APMC is?An Agricultural Produce Market Committee is a marketing board established by state governments of India, one main function of which is basically to provide a platform for farmers to sell their produce.
,Why do we need one?nWhat we often saw in old Bollywood village movies, there being one Lala / Muneem type character who lends money to farmers for seeds/cattle/marriage expenses, then arbitrarily purchases his wheat/rice @throwaway prices and high interests leading to farmers always being indebted to these Cartels, was not far from reality.
n,n, nAnd to protect and empower the farmers, the state governments since 1950s started enacting APMC which runs on two principles:n n1.
Ensure Farmers are not Exploited,2.
Ensure Farmer gets good Money n,nWhat else does the APMC do?n nThese Market Committees are engaged in development of market yards for the benefit of agriculturists and the buyers.
n,nThey may also provide storage structures, godowns, etc.
n, nThey may also arrange farmers markets which help farmers sell their produce directly to consumers.
Examples of Farmer Market initiatives in Indian states include: Rythu Bazar in AP, Apni Mandi in Punjab and Haryana, Kisan Mandi in Rajasthan, Shetkari Bazar in Maharashtra, Uzhavar Shanthigal in Tamil Nadu, etc.
n n,nThey may also provide training to farmers on various aspects and help control price fluctuations in the market when properly managed.
n nHow is it formed?nA State is geographically divided and Market (Mandis) are established at different places within the states where farmers have to sell their products through auctions.
,State APMC Market Committees have 10-17 members elected or nominated by Government in accordance with provisions of the respective State APMC Act.
n nSo, where the problem?nTo operate in an APMC Market (Mandi), you need to get a license, the pre-conditions for which is you must own a shop or warehouse in the Mandi.
But Shops / warehouses are limited n number and very expensive.
nCommission agent/middleman/trader have to make heavy investment to start a business in APMCs.
Even weighmen, Paddlers, Hamals have to get license.
nAnd we all know of the bribe culture in India that goes along with all License requirements.
nThe Mandi people sometimes overcharge the farmers to recover their (bribe+) investment.
n nAnd?nIn several Indian States, regular elections of APMCs are not held and APMC board are administrated by bureaucrats.
nThere is wide variation in the governance of the Mandis.
Some states run them under Panchayati Raj institutions, some states put them under supervision of district administration.
nIn every Mandi, every transaction is subjected to market tax + market cess.
To avoid tax/cess, the traders donu2019t give sale slips to farmers.
Later it becomes difficult for farmer to prove his u2018incomeu2019 to get loans from banks.
nEven after receiving the fruit/veggies/grains, they delay payment to farmers for weeks and months.
nMiddlemen @Mandi charge commission on both seller (farmer) + buyer (the urban retailer / food processor).
nBasically, Middlemen have no facilities to do grading/sorting, all they do is pass the produce from farmer to final consumer and charge truckload of commission in between.
nAnd what has the government done to address these problems?nGovernment declares minimum support prices (MSP) for many cereal, pulses and oilseeds crops so, middleman @APMC cannot exploit the farmers beyond a level (otherwise he can sell it to the FCI).
nBut for fruits and veggies, government doesnu2019t declare minimum support prices (MSP) gives plenty of opportunity for the middleman to exploit farmer (as well as end consumer).
nIn 2003, the Union Agricultural Ministry introduced a new reformed model of the APMC act.
n nSo, what does the new APMC act say?nFarmer doesnu2019t need to bring his produce to APMC Mandi.
He can directly sell it to whomever he wants.
(Although, if he doesnu2019t bring his produce to Mandi, then he cant run for election in that APMC marketing committee.
)nFarmers Processors, exporters, graders, packers, etc.
can buy agricultural produce directly from farmers.
nDestroy State monopoly of Mandis and permit private market yards, Direct Purchase Centers, farmersu2019 market for doing trade in agriculture produce.
nAllow Public Private Partnership in the management and development of agricultural markets in the country for post-harvest handling, cold storage, pre-cooling facilities, pack houses etc.
nIncrease the responsibilities of APMC committee.
n nOk this new Model APMC act sounds all well and good, so where is the problem?nBecause Agriculture is a state subject, it is up to the States to adopt it and reform their laws.
n nAnd what has been happening so far?nAccording to Agriculture Ministry data, out of 35 states and Union Territories (UTs) only 17 states have amended their APMC Act to allow direct marketing, contract farming and markets in private and cooperative sectors.
Key grain producing states, such as Haryana, Punjab and Madhya Pradesh, have initiated only partial reforms.
nAlso, seven states and UTs dont have any APMC Act to govern agricultural trade.
n nWhy?nOne reason is that because middle-men and traders who make their money from exploiting farmers and consumers often fund the ruling parties in the states.
nIn addition to this, different states have different priorities.
n nSome examples?nAndhra Pradesh permitted private markets but theyu2019ve to pay a license fee of Rs 50,000 and project must be min.
10 crores =discourages small farmer/trader associations from setting up their own private markets.
nHaryana only adopted Contract farming related provisions.
Contract farming is a forward agreement between farmers and buyers wherein the buyer may provide inputs, technology, etc so produce meets his desired quality and the farmer agrees to produce and supply the buyer at pre-determined prices.
nOnly Madhya Pradesh abolished commission agent system.
nBihar repealed its APMC act in 2006 and now no market fee are charged from the farmers, but other charges for loading/unloading/Hamal charges are uncontrolled.
nIn some states, even private markets are subjected to Mandi Tax.
n nSo, what are the pros and cons of having an APMC?nThe Pros and Cons of having an APMC are many as discussed above and vary based on specific laws the APMC lays down and the issues faced by individual producers and sellers, regions, markets, etc.
,The Main Con being:nThe mandis are usually managed/controlled by a few traders, who often collude and form cartels, and thereby prevent the farmer from selling to the best buyer.
Furthermore, not only are trading licences given according to the norms set by the market governing councils, these entrenched interests also dont allow private mandis to operate, that would allow for free competition in the market.
n nAnd the solution?nThe large geographical area of India and its relatively weak infrastructure are also among the most important constraints on creating a proper distribution system for farm produce, which can only be corrected by proper functioning APMCs.
nA reform of the APMC Act will require huge political will to break these agricultural cartels, in addition to harmonizing the implementation of the Act in the different states that create market distortions.
nAs the APMCs were created to protect the interest of farmers it would be in the fitness of things to secure farmers the choice to go to the APMC or not.
nAs easy as it may seem, eliminating the APMC or delisting produce from the APMC cannot provide long term solutions to the problems of price inflation and farmer suicides.
nWithout a government regulatory board to protect the interests of small farmers, producers and traders the cartels will only shift from mandi operators to large-scale distributors and retailers who will not be under the direct control of the government.