Is the Agency Business with Low Agency Fees Worth Doing? Leave a comment

Case

I have just entered the company. The company arranges me to do some agency business operations. But I feel that our company has no control over these businesses, agency fees are not high, generally 1.5% ~ 2%. There seems to be no future in the agency business. So I’m not motivated to work. I want to talk to the leader and focus on my own business. Do you think this is appropriate?

Analysis

For the company, the business with little risk should be won over even if the profit is not much. Don’t underestimate the agency business. Perhaps the agency fee rate is only 1.5%. But if it is $4 million a year, the agency fee will be $60,000. This contribution to the company is also considerable. As a newcomer, before you have a stable business, through acting as an agent, you can familiarize yourself with the process and deepen your understanding of foreign trade. At the same time, through the implementation of these agency contracts, you can become familiar with products, suppliers, customers, and improve your personal ability, with little risk. Why not do it?

A large part of my business every year is the agency business. Although the profit is not high, it is very stable. And my company has little responsibility. So, I care much about these businesses. For example, there is a business of my own at $100,000, a profit of 10% and a gross profit of about $10,000. But now, I have an agency business with an export amount of $500000, an agency fee of 2% and a gross profit of also almost $10,000. Therefore, for the company, regardless of the size of the business, it brings the profit. There is no much difference.

Suggestion

You should be serious about doing the agency business at hand. Try to complete the task assigned to you by the company and realize profits. And improve yourself through these agency businesses. If you have the spare energy, you can focus on some businesses you want to develop and achieve sustainable development.

Do everything seriously. Opportunities may hide in businesses that you feel unremarkable. In fact, it is not easy to develop your own business. It takes time to accumulate. If your own business is enough for you to complete the company’s targets and the time is not enough, you can talk to your leader to let others take over part of the agency business. At this time, the time will be more appropriate.

 

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