Net R50,000 for making simple introductions

Money Making Insider | 7 September, 2009 | Hot Topics:

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Have you ever wondered what foreigners think of us? I mean really think of us?

We know we’re different.

We talk a little louder than most people. We discuss getting hijacked more than is probably healthy for us. But do “outsiders” notice these quirky characteristics too?

The short answer… Yes!

Howie Jacobson (the author of Adwords for Dummies) paid our company a visit this week. And this North Carolinian (can I say that?) made a few interesting observations…

For one, he noted just how sentimental we are... how we tend to take rules as suggestions… and that most Americans would find our sense of humour “a bit below the belt”. Another of my American colleagues so aptly said last year: “You South Africans… You just don’t know when to keep your mouths shut.”

And naturally, he was also overcome by the sense of “fear” we seem to carry around with us. Even the architecture of our cities reflects this: The high walls. Electric fences. Small dogs that bark incessantly at joggers (is anyone still brave enough to jog in our country?).

So… What do I think?

Well, I agree with Howie. But I have one more characteristic to the list.

It’s a quality I believe all Africans share. And I haven’t found it anywhere else in the world. What is it?

…The ability to be lighthearted – even in dire and difficult circumstances.

Perhaps, one of the best ways to explain this is using an analogy a little old English lady told me in the Grill Room one night…

You see, her husband had been in the military  and she’d lived all over the world. She explained to me (leaning conspiratorially close to me) that if a man were to fall off his bike in a (non-African) country, the folks around him would look away awkwardly. But if the same man fell off his bike somewhere in Africa… He and everyone else around him would burst into laughter.

Don’t we live in a fantastic country?

And that’s why (along a similar vein) I want to show you today how you transform the financial difficulties you may be facing right now. It’s a lucrative opportunity. And guess what? It doesn’t cost a single cent to start…

Net R50,000 for making simple introductions

Picture this …

You’re invited to a lobster bake at the yacht club by a friend who has four marinas in the area.

Half-hour into the party, you meet a guy who imports boating supplies and sells them to retailers. During your conversation, you find out he’s looking to expand. You ask your new acquaintance if he would be open to paying a small commission for any new business you might generate for him. He eagerly accepts your offer, and you reach an agreement. Over beer and lobsters, mind you!

Then you introduce your marina-owning friend to the boating supplies importer.

They hit it off immediately. Before long, they are discussing prices. In other words, negotiating. Within a few minutes, they have a deal. Your friend will buy some of the importer’s products wholesale and sell them at all four of his marinas.

The best part? You get a cut of the deal for making the introduction.

But that’s not all. Going forward, you get a percentage of each and every sale the importer makes to your friend!

My first year as a “connector” (also known as a “finder’s agent”), I made an extra R22,000. I made it by introducing high-profile advertisers to trade publishers … and by introducing business sellers to business buyers. When they struck their deals, I received my “fee.”

Before long, I was making an extra R50,000 a year … simply by making phone calls and sending e-mails. It took only a couple of hours a week of my time. I was still making nice commissions by introducing business sellers to business buyers and advertisers to publishers. Meanwhile, I had started helping print publishers slash production costs by outsourcing to India.

I stumbled into the “connecting” game. But I found I was perfect for the job because of my background as a successful entrepreneur. I’ve launched, bought, sold, and managed dozens of small businesses over the past 19 years. What’s more, I’m a former commodities futures trader. I learned a great deal about human psychology by monitoring and trading financial markets. (Not to mention how to steward large sums of money.)

Actually, anybody can be a “connector,” even with a very limited business background. It requires almost no capital to get started. You’ll be providing a service that’s in high demand. And you can run the whole thing from your home office.

You’ll have to test the waters to find the best way to structure your compensation. You can charge clients a flat fee, or you can charge a percentage of a transaction made as a result of bringing people together. If ongoing sales are involved (like the deal between my friend and the boat supplies importer), you can receive “residual” payments.

Either way, you can make good money!

Basically, here is how the “connector” service works …

Let’s say you hear about someone who is interested in buying a large parcel of land, a business, a commercial building, surplus merchandise … or any of the thousands of other products, services, or properties that are bought and sold every day.

Then let’s say you find someone who has that item or service or property for sale at a reasonable price.

You inform the prospective buyer that you’ve found an eager seller. You tell the prospective buyer that if a deal is made, and both parties are satisfied, you will be entitled to a finder’s fee or commission.

When you and the prospective buyer have an agreement, you introduce him to the prospective seller.

A buyer and seller will sometimes (rarely, in my experience) try to negotiate a deal without your help, even though you introduced them. Not to worry. You can keep this from happening by putting your agreement with the buyer in writing.

Nothing fancy. Don’t get tied in knots over paperwork and contracts. Keep it simple. My first agreements were less than a page long, and were sent by e-mail or fax. Just outline the terms of the deal (including your commission). Then have it signed by the prospective buyer before any introductions, negotiations, or transactions take place.

For the most part, you can trust people to live up to their end of the bargain. After all, you’re making money for them. So they’ll probably want to do business with you again in the future.

Here’s another example of a deal I completed as a “connector”:

I read about a man who was looking to purchase websites. Specifically, he was looking for travel websites with significant traffic that were also fully functional with e-commerce.

I contacted him by e-mail, introduced myself, and gave him a brief rundown of my business background. Then I told him about two travel websites I thought might interest him.

I explained my “connector” service, and presented my fee proposal. He agreed to the terms.

I then introduced the prospective buyer to the principals of both travel websites. One of the websites was a perfect fit, and he made an offer. The final sale price was negotiated in about a week.

When the sale was completed, R2,250 was electronically transferred to my bank account. That was 3% of the deal. My “connector” fee.

It’s that easy.

On top of that, this particular deal took less than 60 minutes of my time, from beginning to end.

Where do you find potential deals? The sources are almost unlimited.

You can find people and companies looking for products, businesses, property, surplus inventory, bankrupt companies, capital, etc. in all the national business papers.

There are hundreds of websites for finding deals, too. Alibaba.com, in particular, is an excellent source of clients looking for specific products.

Whatever niche you work in, this is a fun sideline business for anyone who enjoys putting deals together and introducing prospective buyers and sellers.


Editors note

Chris Densley
Business Opportunity Guru and contributer to Insider Secrets

"Every week, I'll scour my rolodex of industry contacts to bring you the hottest, business opportunity reviews, news, scam warnings and moneymaking tips!"

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