How Internet Brokers and Agents Kill Petroleum Deals and Oil Deals As Intermediaries in Trading
Overzealous and Misguided Joker Broker Types and Agents Are Often the Biggest Obstacles in Successfully Closing Deals or Making Money in Oil Trading
A. THE AVERAGE BROKER/AGENT INTERMEDIARY TODAY, FAIL & EARN NO INCOME
According to studies, typically due to the imperative position that the Internet has performed in global buying and selling, the actual market for the intermediaries or middlemen within the global ‘secondary’ market trading has been collapsing pretty hastily nowadays. Estimates from such specialists and debts with the aid of skilled dealers assert that the year 2000 became the last “good 12 months” for the intermediary within the commercial enterprise. Kamal J. Southall, as an example, maintains that “after 2000, the critical mass of brokers and investors who have been ill-knowledgeable and poorly educated, in addition to of fraudulently carried out offers and scams, reached the factor that real quit-consumers manufacturers and providers sincerely stopped responding [to intermediaries] except in exceptional instances.”
Southall estimates, bringing up another experts’ calculation that out of a few a million people currently trying to make it as brokers or alternate intermediaries in the world, “possibly no more than 1% has the schooling and ability had to ever close a deal… [meaning that] the overwhelming majority, are trading blindly, [hence] offers are collapsing… And greater to the factor, [oil dealers are] being defrauded – every now and then hugely.”
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In factor of reality, the overall consensus among professionals is that previously, before the modern-day introduction of the predominance of the Internet in global trading when facsimile and telex trading was the ideally suited medium for the business, there had existed a fairly sturdy and possible marketplace, even though small, for the intermediary agent. Such that it became alternatively commonplace for an intermediary to, from time to time, get to a agreement at the last stage and to close deals and earn at least reasonable fee earning. But that there has NOT been such a middleman marketplace for a few years now, since the new Internet generation. But instead, that this type of marketplace for the intermediary has basically been lifeless for all; however, the most skilled and skilled middleman in the market these days – killed in part, although never absolutely, via the preeminent use of the Internet medium by the Internet trader and intermediary.
In short, the new fact of today is that whilst, inside the days earlier than the Internet, the average broker, agent or different intermediary or ‘middleman’ involved in worldwide buying and selling typically and successfully closed offers and earned first-rate earnings with at least some modest frequency, pretty to the opposite, such booking or agent or different intermediary who function in this modern Internet technology, alternatively, hardly ever closes any deals or earns any profits within the commercial enterprise any greater.
And what factors account for this phenomenon – for the fact that these brokers and different intermediaries usually make no sales or income in this Internet era?.
B. MAJOR REASONS ACCOUNTING FOR THIS
Many factors account for this. Briefly summed up, they range from the dramatically elevated wide variety of scams and fraudsters in the commercial enterprise, made a great deal easier utilizing the shield of anonymity supplied with the aid of the Internet, to relative lack of right schooling, capabilities, or information within the fundamentals of the business familiar many of the modern-day elegance of agents and different intermediaries as a result of the easiness of needful qualification for one to grow to be an Internet “broker” or middleman, to the element of the expanded pervasiveness of “The Joker Broker” mentality and behavior among the Internet-technology agents, agents & other intermediaries. However, these kinds of diverse causative factors being duly taken into consideration, possibly the single, overarching, most paramount consideration accounting for the woeful failure and incapacity of the modern dealer and the middleman to efficiently do business, ought to simply be subsumed into this one significant topic and be summed up as follows: the use of, and reliance upon, badly improper and inaccurate technique, policies and approaches for oil deals at the part of the modern elegance of intermediaries in doing business – a class of intermediaries that is often generally notorious for being specifically untrained, erroneous and uninformed as to the real and right manner of doing the enterprise.
Most sadly, frequently the stop result of the above truth is that by using largely relying upon and the use of such misguided and badly fallacious methodology and methods in doing business, such brokers and agents, who’re notorious, as nicely, for frequently being overzealous, self-fed on and desperate to discover a buyer or make a short commission in any respect expenses, basically emerge as, themselves, actually the most important boundaries to themselves and fellow agents and dealers inefficiently final offers or earning money within the oil trading commercial enterprise!
C. THE BASIC WAYS MISGUIDED BROKERS & AGENTS BECOME THE MAIN OBSTACLES
Broadly speaking, there are some simple identifiable important ways wherein this as an alternative high-quality phenomenon of the cutting-edge overzealous and inaccurate Internet broker or agent constituting an obstacle inefficiently doing business regularly manifests itself.
USE OF BADLY FLAWED & IMPRACTICAL METHODOLOGY AND PROCEDURES IN DOING BUSINESS
But, probably the most impactful however pervasive manner and way wherein the overzealous and erroneous broker/agent intermediary often constitutes himself (or herself), whether intentionally or by accident, right into a crippling impediment, as opposed to aid or facilitator, to efficaciously doing petroleum deals or ultimate one, is basically via their use of method and strategies that are badly wrong and erroneous, unrealistic, unreal, impracticable, and in many instances downright pie-in-the-sky like and comical.
A conventional example is frequent in using many Internet brokers and marketers to use the arcane strategies along with the ‘LOI,’ ‘ICPO,’ ‘NCND,’ ‘BCL,’ and many others in doing commercial enterprise. But, according to many reputable experts and pro practitioners inside the buying and selling subject, the employment of approaches together with those with the aid of any provider or intermediary, is truly an automated marker which without delay gives away the user as a alternate amateur or intermediary and a failure who now not only lacks the needful education or knowledge of the right buying and selling techniques, but who apparently has never successfully closed many deals, and in no way will. Indeed, to a pro purchaser (or the agent of one), getting a income offer from a dealer or agent which opens with such phrases and strategies is typically a clear marker that mechanically units off an alarm bell in any such consumer’s head, spelling threat and capability doom to the client. As one expert positioned it, “In truth, the presence of many of those phrases are considered to be signs and symptoms of Advance Fee Fraud, with the aid of knowledgeable gamers and law enforcement.”
This is how an intermediary who admitted to being a failed Joker-Broker with a prior report of a string of disasters, but who later received the proper training and became a reformed broker, and is now ca success multi-deal closer, sums it up, writing in the jockerbroker.Com internet site:
“When a deal starts off with ‘ship ICPO with BCL or Soft Probe, NCND and IMFPA,’ that is ‘booking language.’ Those that know dealer language recognize what this means: ‘I’m a joker broking. I haven’t any real product on the market, and I don’t know everybody who has any, so I need you to offer me an Irrevocable Purchase Order together with your complete monetary details disclosed, so I can run around along with your order and your money in my fingers, seeking out product. The subsequent issue you see might be your organization and banking details uncovered to the whole international, running around unsecured at the Internet among thousands of different joker brokers.’ ”
Fundamentally, the primary cause that the use of such tactics are commonly regarded via experts as badly wrong and incorrect, and as frequently constituting the largest obstacles to many a broker or agent incorrectly remaining deals or making a living in oil trading business, is rather simple: the one’s tactics and methodology are actually beside the point or unworkable and impracticable, pure and easy! They are inappropriate and unworkable within the context of the real international commercial enterprise surroundings they’re trying to perform or do enterprise. And consequently, due to the fact those techniques and methodology are of such nature, they invariably fail and inevitably by no means work. Why? Basically, because providers who acquire such silly methods from intermediaries or capacity customers, being already sickened utilizing the one’s forms of strategies, simply can not be troubled to reply to them, whilst similarly, the quit customers might not be stricken with replying to similarly stupid and sickening gives from sellers. In result, the result is that the most effective human beings supposedly ‘trading’ are simply the erroneous intermediaries passing around make-perception ‘deals’ from one misguided middleman to any other, basically consisting, for the maximum component, of shoving around the standard irrelevant or unworkable tactics just like the ‘LOI.’ ‘BCL,’ ‘ICPO,’ and unverified ‘POP.’
Indeed, say some specialists – most of whom often signify those strategies in derogatory phrases like ‘risky,’ ‘impracticable,’ ‘inaccurate,’ and ‘misused’ – many a time even the intermediaries, themselves, who appoint these terms and tactics are fully well conscious that they have got not been capable of close a deal in months, even years, of the usage of those badly wrong terms and techniques, and probably by no means will. But, those specialists add, these intermediaries will not admit that those strategies are flawed and feature not gotten them any offers in the beyond. So each new middleman in the ‘booking chain’ simply keeps, in any manner, to pass the incorrectly copied strategies down the endless ‘daisy chain,’ from one dealer/agent intermediary to the alternative of their make-perception ‘deals’ and ‘trading.’
SO, WHY DO THESE JOKER BROKER TYPES INTERMEDIARIES STILL PERSIST IN USING THESE FLAWED PROCEDURES NEVERTHELESS?
Given the valuable fact we’ve got simply sketched above to the effect that those techniques and methodology are frequently inappropriate or unworkable, and that they continuously bring about failure and no earnings on the part of the Internet intermediaries, a first-rate curious question of sizeable relevance, is that this: Why then? Why then is it that these Internet intermediaries commonly refuse to use the right oil deal methods, however, plunge beforehand, anyway, and nonetheless interact in doing business using exactly the ones equal badly fallacious and unproductive strategies? Or, to place it another manner, what forces or pastimes reputedly impel them to hold accomplishing commercial enterprise that manner, anyway, such that, in impact, through carrying out commercial enterprise that way, that specific position that such intermediaries play commonly makes them, whether or not wittingly or unwittingly, a top obstacle in their personal direction, and on the path of most other intermediaries, in being able to close offers or to earn earnings?
THE ANSWER? The simple reason, in a phrase, is largely associated with the personal economic self-hobby of the intermediaries and the determined selfish desire on their part to quickly land a actual dealer or comfortable a commission income by any and all means whatsoever.
Many insightful experts and keen observers have referred to, for example, that many of these arcane methods being employed utilizing those Internet intermediaries (the LOI, ICPO, BCL, NCND, and so forth) are absolutely commonly now not initiated or required with the aid of the fundamental investors (i.E., the purchaser or the seller) involved inside the enterprise, but are merely the non-public inventions and initiatives of the overzealous middleman sorts created, designed, improvised, and used largely by way of them to benefit for themselves a few undue control inside the trading method, and, most significantly for them, to avoid “circumvention” utilizing other intermediaries in a deal, and, thereby to create or justify getting paid fee profits, themselves, in a deal.
THE ILLUSTRATIVE CASE OF THE USE OF THE LOI BY OVERZEALOUS INTERNET SELLERS & INTERMEDIARIES
A right case in point for illustrating the above factor is the frequent hotel using the so-called “LOI” (Letter of Intent) with the aid of Internet agents and intermediaries in beginning exchange gives. The LOI (Letter of Intent) document is a vital method common among many present-day Internet agents and intermediaries, and a few sellers, as nicely. Basically, those agents and intermediaries could frequently call for any proceeding or interested customer to first gift the LOI document in showing and initiating an interest in a change provide or creating a buy. And, according to such intermediaries, proceeding shoppers must accomplish that because, they say, through signing one of these reports at the very starting of the promoting process and handing it over (through them, of course!) to a meant provider of a product, that gesture, they claim, represent a great demonstration of the legitimacy of interest on the part of the would-be buyer, and would be showing that he (she) is “critical” approximately creating a purchase.
Yet, except for these Internet buyers and intermediaries who habitually persist in the use of these tactics, genuinely all credible and respected specialists within the enterprise point out – and, to my knowledge, no credible dealers or customers, or even intermediaries, dispute this fact or have established in any other case – that this document is largely a legally nugatory, meaningless, and even dangerous piece of paper, that is no legal pressure or impact in any way and is legally nonbinding and certainly unenforceable upon any of the applicable parties worried in a deal, whether it’s the signer of the report (the customer), or the vendor to whom it’s far given, or the intermediary.
Which, again, logically inspires the original query, WHY? Why then do those Internet investors and intermediaries maintain to use or insist on prospective customers the usage of the LOI method in beginning their trade offers and gives, even though it isn’t most effective and certainly nugatory procedure this is of no actual effect or felony that means to any credible purchaser, however essentially constitutes a prime impediment to a serious middleman in ever being capable of near a deal, and although this report squarely falls beneath the infamous category of the sorts of techniques which might be, within the words of Davide Papa and different respected specialists on the challenge, so “hazardous, beside the point, impracticable, unworkable and misused,” that “anybody attempting to do enterprise with these kinds of intermediaries [who use them], can also be not able to shut a deal or acquire a cent in commissions, regardless of how lengthy they change for or how tough they are attempting.”?
The solution is that the imperative clue, in reality, lies at once within the truth embedded in this statement through Toby Winson, a keen analyst of the problem, in his essay titled, the “Joker-Broker-Land”: “More than 95% of the time, the LOI is written by way of a dealer, not by way of the vendor, and, for the most part, these agents have simply cut and pasted facts that they acquired from different agents. Thus all the conflicts and mistakes in the [LOI] are copied and bypass[ed] alongside from Joker to joke.”
In different phrases, always, those intermediaries insist and persist in the use of the LOI and different in addition ill-geared up joker broker type files (when, in truth, all rational reasons could dictate otherwise), especially for reasons which can be in reality egocentric and particularly non-public and feature virtually NOTHING in any way to do with trying to do desirable, valid, a successful enterprise or wanting to achieve any degree of wholesomeness regarding the business, itself. Nor something has to do with securing, maintaining, or “safety” of the valid pursuits of the provider worried inside the deal. But, alternatively, have the entirety to do with their personal private, egocentric financial self-hobby and timetable, and with their very own obsessive situation with landing for themselves a legitimate supplier and/or client of a product and for earning a commission.
The point is that the proof is powerful that often instances, many overzealous, first-rate bold, aggressive brokers and agents, in particular, the difficult to understand or scam-oriented ones, who represent themselves as dealers’ representatives or mandates largely through Internet contacts or communication, or maybe declare to be the actual crude Sellers, themselves, employ the LOI simply as a tool to quickly “nook and box in” a potential customer to commit to buying cope with them right up front. That is, to commit before the potential customer might also likely demand that they provide their enterprise profile or display him something tangible to illustrate that they definitely constitute, or are, legitimate sellers. Thus, such intermediaries, or sellers, could constantly call for the prospective customer’s hurry and difficulty them an LOI proper upfront purportedly to prove they’re “severe” about making the purchase. And, as for the middleman himself, what he deems because the maximum critically crucial matter for him is that, via having that LOI document signed and submitted to him (probably for the middleman’s onward transmission of it to the supposed “seller” of the product), the intermediary himself – and NOT necessarily the intended supplier or dealer – shall have quickly “cornered and boxed in” the possible buyer and secured his dedication to the intermediary, even though not to the purchaser.
Many a time, mainly in a case concerning a intended dealer who’s both a fake vendor or does no longer truly have any crude in hand but, or an unscrupulous aspiring supplier’s agent or dealer who in reality has no longer acquired a crude supplier (vendor) yet, consumers might also issue a purported ‘vendor’ an LOI handiest to discover that there is no supplier on the opposite end. This takes place plenty in situations wherein you have a hungry or overzealous agent or facilitator who’s still struggling to get a real provider, and by extracting this LOI from an unsuspecting consumer, this facilitator can dedicate the purchaser to the agent or facilitator only for him then to begin hustling to discover a supplier or supplier.
C. SECOND BASIC WAY IN WHICH SOME MISGUIDED BROKERS & AGENTS CONSTITUTE THE MAIN OBSTACLE
There is any other primary fundamental way in which the new position of the overzealous, faulty Internet dealer or agent as an obstacle to correctly doing business regularly manifests itself. And that is the pernicious effects regularly delivered approximately with the aid of the phenomenon of the lengthy string or chain of agents, agents, and middlemen frequently worried in the method, with most of them undercutting each different.
Many a time, the offers provided with the aid of an intermediary for an oil deal might include one lengthy chain after another of too many those who pass with the aid of special titles, along with “booking,” “mandate,” “agent,” “facilitator.” But, what’s worst, is that, partially as a result of the digital loss of any goal necessities for qualification for carrying the mantle of being a “broker,” or “agent” or “intermediary” in the alternate these days, and the ease of entry into Internet buying and selling, such Internet intermediaries commonly generally tend to feature in a climate of minimal rules or requirements in any respect and of unfastened or no ethics, wherein the “dog consume canine” mentality appears to be triumphant – a climate in which every broker, agent, or mandate, being simplest selfishly concerned with just his very own private profits and self-interest, is constantly looking to undercut and keep away from the other in deals. Thus, frequently leading to the last detriment of ALL the events concerned in a suggestion, as ALL of them, as a whole, and now not just one birthday party or the opposite, invariably wind up the losers for the reason that NO deal at all is had with any buyer.
To make sure, the issue of an intermediary probably being “circumvented” through some other, or via a major, is a legitimate problem certainly worthy of situation and attention by using any middleman concerned in a trading deal, more especially in a petroleum deal that is an enterprise that is particularly infamous for being a hotbed of get-rich-short daydreamers and unscrupulous gold diggers who are not particularly referred to for their terrific ethics, excessive schooling or schooling, or wonderful character. Absolutely and categorically so! However, the central point to be made right here is that valid concern approximately feasible circumvention need not necessarily be allowed, but, to degenerate into obsessive paranoia that must cripple making all progress in a deal, and that there is, sincerely, a extra proper and powerful way and strategy employing which that every one essential ‘circumvention’ issue can be better addressed and might absolutely do away with the opportunity of circumvention of any middleman in a deal.
For our gift functions here, what is relevant to word is that the function phenomenon of having a long chain of too many human beings as intermediaries in a deal, every egocentric, distrusting and suspicious of the alternative and unwilling to collaborate and yield wished statistics to the other, frequently affords profound and insurmountable hassle, essentially making the middleman, himself, the primary predicament and obstacle to running out a deal or ultimate one. Principally, while such phenomenon rears its unfortunate head in a deal, it seriously slows down the distribution of facts or maybe brings it to an absolute halt, as a result completely crippling and ending any prospects of getting any deal. Furthermore, the issue of ‘commission rate splitting’ association turns into greater excessive and furiously contentious in such conditions, as most of the intermediaries in the chains, gripped through fear, selfishness, frustration, and private greed, tussle over the issue of which institution takes how lots or what percentage of the fictitious “commission” – a commission which is, within the first region, merely a figment of every person’s imagination at this point when you consider that nothing is but to be, and nothing can also, in reality, ever, ever be ultimate, despite everything that vacant noise and hype are finished!
This kind of state of affairs might manifest even if, and wherein, a deal seems authentic and in any other case promising and entire with all the elements of being doubtlessly a hit. Thus, a legitimate customer may need a product and require the dealer or agent who brought him the deal to offer positive critical information or authenticate it. But because the customer, or the intermediary, has to undergo a long chain of many arms earlier than he ought to get the considered necessary statistics – trouble which, with the aid of the manner, a educated, skilled and self-assured intermediary could without difficulty remedy by way of setting up a ‘step lower back’ arrangement – it quickly makes the deal unable to transport ahead. As a result, the purchaser loses belief or otherwise destroys acceptance as true with the various principals and the intermediaries concerned in the deal, consequently effectively killing the deal.
D. OTHER BASIC WAYS IN WHICH SOME MISGUIDED BROKERS & AGENTS CONSTITUTE THE MAIN OBSTACLE
Other simple ways in which the brand new function of the overzealous, erroneous Internet dealer or agent as an impediment to correctly doing enterprise frequently manifests itself could consist of the subsequent:
1. Presentation of Unverified Material with No Due Diligence
This is one of the most notorious hallmarks of the ‘joker dealer’ kind agents and dealers who typically operate at the Internet today – they typically gift gives, ‘SPA’ contracts, and ‘deals’ that lack any VERIFICATION in any respect, or one upon which any DUE DILIGENCE has been accomplished as to their authenticity, genuineness or intrinsic really worth or price, if any in any respect. Thus, as these intermediaries can send hundreds, even thousands, of electronic mail gives concurrently to several sellers, with truly none tested or maybe verifiable, one fundamental result of this is that, in the mentioned words of 1 professional, “Suppliers cannot be to reply to doubtful buy offers or requests for changes. Similarly, the quit buyers might not respond to stupid gives.” And hence, resulting in a failed marketplace and not using deals typically closed by most intermediaries, nor any fee profits ever being earned by using any!
2. Lack of Knowledge of Product:
Frequently, the intermediary who comes providing a ‘deal’ or bearing a ‘SPA’ Contract form woefully lacks an operating understanding of the petroleum product or market that he (or she) purports to be selling – matters like the usual quality specification of the product, or its modern charge within the world marketplace, the manufacturing capacity of crude for a rustic, and so on (now not to speak, of the path, of getting the expertise of the proper methodology, rules or processes of the enterprise). Clearly, how can one marketplace a product that one is aware of, not anything approximately? Often, the stark lack of information of the intermediary is soon uncovered. In contrast, such an intermediary receives requested certain primary, basic questions by the interested buyer or his agent, and the intermediary comes lower back, normally after several days of the state of being inactive, with something like, ‘I’ve despatched your inquiries to my supplier, and I’m waiting to get seller’s respond’!
Or, even worse nonetheless, a client whose interest in an offer would possibly have come to be ignited inside the deal would possibly region a smartphone call to the middleman wanting to examine if he’s knowledgeable about certain elements or facts of the product or provides that the middleman purports to marketplace given that it has been amply proven that a skilled dealer should get a truthful assessment of the seriousness or genuineness of a provider or the provider he is peddling through merely ‘feeling the heartbeat’ of the provider or his purported representative via a mere telephone verbal exchange. However, being that the average Internet middleman regularly lacks the considered necessary expertise about the petroleum product he purports to marketplace (now not to speak of know-how of the rules and techniques of the area of global alternate, commonly), some distance more frequently than no longer, the intermediary losses the possibility to domesticate the essential trust and credibility factor with the purchase via mere demonstration of understanding approximately the product or provide the purports to the marketplace.
In sum, the overriding, pivotal, important assignment of every Internet middleman or vendor, broker, agent, or another middleman who operates within the “secondary” worldwide oil trading market nowadays and wants to be successful is to be sure to apply the ideal petroleum deal techniques, and that he (or she) does NOT, himself, for reasons of parochial, selfish concerns, constitute the actual impediment to conducting legitimate business with credible shoppers. But as an alternative, that he constitutes, instead – basically by dent of the type of running processes he employs and proffers – a resource, consolation, and real facilitator to valid commercial enterprise operatives and to doing valid enterprise with valid buyers.