How to become an intermediary between a seller and a buyer

If you want to organize your own business, but the soul does not lie in production or trade, then try your hand at mediation. This is a promising and interesting area in which a lot of companies and people are involved, but with the right desire and the right approach, you can always enter this business and take your niche, winning a place in the sun. In this article, we will tell you about the sale of goods, as well as analyze how to properly deal with them.

Introduction

Mediation is an activity aimed at finding and bringing together two parties interested in each other's services. For such activities, the intermediary receives a percentage, a fixed fee from the transaction, or simply inflates the price of the product for the end user.

Mediation is widespread all over the world - this useful and popular service allows you to sell and buy anything you want. There are a lot of examples of such activities: real estate services, travel business, taxi service, dropshipping, etc.

Attention: an intermediary is a link between the buyer and the seller, which ensures the effectiveness of cooperation and minimizes possible risks. He takes on some of the responsibility and is rewarded for his services.

Of the key advantages of this area, 5 areas can be distinguished:

Minimum investment. You do not have to buy goods, build a building or invest in equipment - in fact, at the first stage, it is enough just to want to work.
A wide range of possibilities. There are a great many prospects for conducting such activities - in any locality you can find interesting options.
Growth prospects. With the right approach, a business can scale almost indefinitely.
Stable profit. The predictability of such a business is quite high, so you can always make plans for the future, taking into account possible risks.
Almost instant payback. With the right approach, the funds invested in the business will return to you in a couple of months, after which you can receive constant profit.

Attention: working as an intermediary in a certain activity, you will gain the necessary experience, knowledge and connections. In the future, this may develop into something more serious.

There are only two drawbacks:

The presence of certain risks that one of the parties will not fulfill the agreement. For example, a batch of 100 parts was ordered through you, which must be completed by the end of the month. But the manufacturer does not have time to make it for some reason, which leads to the breakdown of the contract or the revision of agreements.
Possibility of loss of reputation and subsequent extinction of the business due to serious mistakes made in the course of work.

However, the latter drawback is relevant for any business.

What types of mediation exist

So, you already know that an intermediary business is a third party interaction between a buyer or a seller. The profession of an intermediary appeared several thousand years ago - already in Ancient Greece and Rome there were special people who worked in the markets, helping visitors to buy and sell the necessary goods, giving advice and recommending people for cooperation.

How to make money on mediation? As a rule, people do not often think about the fact that there are many intermediaries around. This type of earnings has been used for many years, only in a different format, but the basis remains the same: a third party helps to conclude a deal with two interested parties, receiving payment for this. In other words, mediation is facilitating the conclusion of transactions, establishing relations between the parties for a fee.

An example would be a clothing or digital store that essentially makes a profit from intermediary work (buys a product from a manufacturer and then sells it to a consumer at a premium). At the same time, everyone can become an intermediary if he organizes the interaction of the buyer with the seller, having agreed in advance that the first will pay a commission for the client provided.

How to make money on mediation

Like other activities, mediation as a business has positive aspects and negative aspects. The pluses include the following points:

you can easily scale up by increasing the volume of transactions, the amount of interest payments, take transactions that have a higher value, because the intermediary spends time only on negotiations and finding clients, and not on the very work;
no need to invest (the product needs to be purchased if it is planned to be resold later);
the product pays off quickly (it is important to find the products in demand here);
easy start (no age or specific education restrictions);
you can get a large income by combining with another job or mediation in another area;
flexibility (if a specific market for goods or services has become uncomfortable, then you can easily reorganize to another market).

Among the disadvantages is the failure of the transaction or the absence of an agreed remuneration, which can be prevented if the transaction and the amount of the intermediary's commission are documented and legally secured in advance.

Mediation Fee is the reseller's commission for work, the amount of which determines the amount of goods or services sold. Therefore, the salary in intermediary activities may vary. It is important for the mediator to be active and be able to negotiate. How much I earned - so much I received. Also, work in the preferred direction will bring more results, because in this case, transactions are easier, the intermediary negotiates better, and therefore looks like a professional in the eyes of consumers.

How do resellers make money?

In order to earn directly through mediation, it is important to be able to negotiate, because they help to conclude a deal, this is the basis of activity. It is important to choose the right idea, analyze the market for the presence of demand, that is, you need to properly organize the work and then the results in the form of profit will not be long in coming. There is no need for economic knowledge or specific education. A competent approach to business, good awareness will help to take the right steps in the right direction.

Mediation as a business makes up a large part of the total business volume and is characterized by a high payback rate, because if you do not make investments, the resulting percentage will replenish the budget. Also, this business is promising, because there are many options for carrying out this activity, and you can choose what you like and work "with heart."

An intermediary transaction is drawn up in the form of various agreements. In most cases, a commission agreement is drawn up, which prescribes the procedure for calculating and paying remuneration to an intermediary, which is a fee for intermediation.

Mediation as a business

This business is considered a common idea among entrepreneurs for profit. This is facilitated by a number of the following factors:

Intermediary activity allows you to make good money, while not producing anything. The secret of the success of a businessman of this kind is the possession of information that is not available to all participants in the transaction. Only with this approach to business, it will be possible to manage it in your favor. How to become an intermediary between a seller and a buyer, what should be considered when doing this, and how to get around your competitors?

Who can become an intermediary

Brokerage is not suitable for everyone who wants to do business. In order for it to become a source of profit, it is necessary to possess certain skills and qualities. A person should see the possibility of earning money in everything. For him, the data should be visual, interpreted as unique, which are not available for understanding by direct participants in the transaction. The intermediary presents them from an advantageous position to both parties, while each of them focuses on those positions that may be interesting or will make the deal profitable. This is the negotiating skill that underlies the operation of such a business.

Pros and Cons

The advantages of intermediary activities are that there is no need to invest in business.

Its implementation does not require special knowledge and skills. It is enough to be able to negotiate, speak beautifully and negotiate. The most significant advantage of the activity is the opportunity to make good money.

Among the shortcomings, human factors can be noted, as a result of which agreements on payment for the intermediary's services are ignored, and transactions are disrupted. An unpleasant development of events can be prevented by documenting all actions, which allows you to fix the arisen obligations and give them a legal status.

Where to start

To start an activity, you need to decide on its niche. It is recommended to focus on those areas that are familiar or belong to the category of hobbies and hobbies. It is always easier and more efficient to work in the preferred direction. With this approach to business, it will be easier to study and form a thematic-professional vocabulary, which will make it look like a high-class specialist in the eyes of potential partners.

As of today, it is possible to make money through mediation on the Internet or offline.

Online

How to make money on mediation

Like other activities, mediation as a business has positive aspects and negative aspects. The pluses include the following points:

you can easily scale up by increasing the volume of transactions, the amount of interest payments, take transactions that have a higher value, because the intermediary spends time only on negotiations and finding clients, and not on the very work;
no need to invest (the product needs to be purchased if it is planned to be resold later);
the product pays off quickly (it is important to find the products in demand here);
easy start (no age or specific education restrictions);
you can get a large income by combining with another job or mediation in another area;
flexibility (if a specific market for goods or services has become uncomfortable, then you can easily reorganize to another market).

How do resellers make money?

This kind of business as mediation originated in antiquity - everyone needed mediators. They did a very important job and connected the manufacturer and the buyer. Over time, intermediaries began to open their shops and offer their services to an ever wider circle of people. Of course, this is a rather complex type of business, but at the same time it allows you to provide its owners with high and stable profits. It is also important to take into account the factor that there is very high competition in the intermediary business. Below we will discuss the basic strategies of how to become a mediator, as well as some ideas of the mediation business.

What is an intermediary business

Let's say we have a meat manufacturer. They have their own farms where chickens, pigs and other animals are raised. They are also engaged in slaughtering cattle, packing it. But looking for stores and so on on their own is too difficult for them. Setting up your own sales force is too costly. Therefore, they turn to an intermediary who will buy a large batch of meat from the manufacturer and sell it to several smaller stores.

The essence of mediation

The idea of mediation is that one business works for another business, helping it at the stage of delivering the final product to the end customer. In this case, the end customer can also be an intermediary. Basically, virtually all modern business can be called mediation. Everyone works for their own benefit and for the benefit of each other.

Examples of intermediary business

For starters, it's worth dwelling on the fact that most business ideas can be described as mediation between the supplier and the buyer. In some cases, the supplier may be a manufacturer, in other cases, a larger supplier. The buyer can also be an individual or some kind of business. Almost all business can be classified as mediation, i.e. at a certain stage of activity, an entrepreneur is faced with the task of buying from one and selling to another. The only exception is the mining industry. Even the production of, for example, smartphones is an intermediary between the component manufacturer and the points of sale of these smartphones. Business intermediary services have long won their place in the market. Therefore, as examples of intermediary business, those types of business will be given that most clearly describe the very essence of intermediation and show how to become an intermediary between a seller and a buyer.

Construction Mediation

The construction industry is filled with intermediaries. Most often, their role is played by those who buy goods from the manufacturer and then sell them to the customer. Let's take a clear example: let's say we have company A, which produces lighting for industrial facilities. There is a construction company B that needs to install lighting on a construction site. And there is company B, which is engaged in the installation of lighting. She is an intermediary in construction.

At the first stage, Company B announces that they need to carry out work to stop lighting at their facility.
Company C learns that Company B needs their services and makes them an offer.
If company B agrees, then a contract for the provision of services is signed between them.
The next step is company B contacts company A and orders lighting from them.
Company A supplies the required goods to Company B.
Company B installs equipment at the facility of Company B.
If the parties are satisfied with the work, then you can return to the first point ...

This is an example of a typical mediation organization. He generally explains this phenomenon, and does not give instructions on how to become an intermediary in construction. At the same time, one must understand that the construction company in this example is also an intermediary for their client, who wanted to build some kind of object.

Wholesale

The whole point of the wholesale trade is precisely that wholesalers are intermediaries between the manufacturer and the stores. It is often too difficult for a manufacturer to sell his goods on his own: all labor resources are thrown into harvesting, raising livestock or production. At the same time, maintaining a whole department of managers negotiating with small stores, each of which will buy goods for a maximum of ten thousand rubles, is quite costly. Especially considering that the product was produced for several million. In this case, the manufacturer contacts an intermediary (wholesaler) and sells most of the goods to him. The intermediary is already negotiating with small shops for a small percentage. The percentage is usually small, therefore, in the wholesale trade, it is often common for a company to increase trade volumes for the sake of profit (working capital increases). The higher the turnover of a wholesale company, the higher the profit is. However, it is necessary to forget about profitability. Wholesale bookkeeping is one of the fundamental factors influencing the success of a business if you are thinking about how to become a wholesale intermediary.

Maybe you will be interested