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Most Oil Sellers and Brokers Fail
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Most Oil Sellers and Brokers Fail
Most Crude Oil And Petroleum Product Sellers, Brokers and Agents, in the International "Secondary" Oil Market, Do Not Make Any Sales Or Income. Do You Ever Wonder Why? A MAJOR "HIDDEN SECRET" OF OIL SELLERS & BROKERS: MOST DO NOT MAKE ANY SALES or INCOME Petroleum products and crude oil sellers, along with their agents and brokers, who operate in the so-called "secondary market" of the international oil market today typically do not talk about this, or like to talk about it. They don't want the truth about this to be made public. Actually, a lot of them would prefer the matter be kept secret, or simply falsely portrayed. But, the fact is that the most distinctive element that defines their company "reality" is this: as a group they rarely close transactions or make sales for the oil product they claim to offer however, in reality the vast majority of them will go on for months, even several years, or ever, without ever landing even a single sales contract or deal. This could be called "the open secret" of the oil industry! C. Keila Nakasaka, an California attorney and real property investor and entrepreneur who did extensive market research and investigations on the D2 diesel oil market to determine if he would be able to prudently recommend taking up the commission broker's job to his clients. He came away from his research deeply disappointed and depressed. According to his research, some of the "stories that these brokers concoct are that the seller has some direct connection with a refinery. Some even claim that the seller is, in fact, one of the leading energy companies in Russia... [but] what bothered me [the most] is that almost every one of these brokers failed to be forthcoming. They often misrepresented themselves as mandates, direct representatives, and even buyer and sellers." Perhaps the most sensitive thing about which most intermediaries and sellers (the agents, facilitators mandats, brokers etc.) aren't "forthcoming" and "misrepresenting" about, is concerning the quantity and size of sales deals they have ever completed, if they have any or the revenue they have earned through the trade, if any. The truth is that the majority of them close no deals, and earn little or nothing. Most of them go for months, sometimes even years , or even for a lifetime and never close any sales transactions, and not even talk about earning a penny in commission revenue! As Nakasaka stated in a report of his observations: "Another factor which I thought was odd was that most of the brokers I spoke with never closed a D2 deal despite their months and sometimes years in this business. There was one broker who claimed that he had pending deals, and two who stated that they did in fact close these deals. However, I did not find them credible." MAJOR REASONS FOR THIS, WHICH ACCOUNT FOR WHY MOST "SECONDARY MARKET" SELLERS & THEIR INTERMEDIARIES NEVER CLOSE ANY DEALS Why is it that they don't make revenues or sales? A variety of factors can explain it. It is possible to sum them in the following manner: 1. MOST SELLERS (and their intermediaries) are not real, in any WAY, WITH NO CRUDE OR OIL PRODUCTS TO SELL The fact that is now well-established and is not in any doubt among the most credible experts in the industry, is that the overwhelming majority of selling offers made by crude oil and petroleum product "sellers" in the so-called "secondary" oil markets, as well as their brokers, agents, and other intermediaries, are fake and false. In deed, some objective studies and research have put the amount at a massive figure of 99.999999 percent of all deals offered for sale. The only thing that is of any redeeming value that can be stated about this, is that, with special regard to those acting as foreign brokers and intermediaries in the business, some of them could be engaged fraudulently in the business but unknowingly and without knowing, wrongly believing that the transaction or selling operation is authentic and legitimate, but it's not. 2.LACK OF PROPER TRAINING, SKILLS OR KNOWLEDGE IN THE FUNDAMENTALS OF THE BUSINESS Simply put, it is not in any other place is the expression "we live in a wide interconnected world" more appropriate to the present than in the realm of the international buying and selling of petroleum and crude oil products. Most of the time there is virtually everything is required to be a "seller" of crude oil or petroleum products or agent for one, legitimate or not, who is operating from any location in the world is an access to computers and an Internet connection. That's all! Unfortunately, however one of the most negative effects of this"so-called "revolution of the Internet" (among many other negative effects), has been that the majority of people who claim to be, or operate as "sellers" or the sellers' "brokers" or "agents," are largely uneducated or semi-illiterate, untrained and unskilled and have not any knowledge of the proper basic principles of international oil trading. Kamal J. Southall, one of the foremost experts on the subject, whose book "Trade Fraud, Financial Fraud, and the Joker Broker," is among the most authoritative books about the issue, describes it this way: "Have been noticing that as you've been searching Google and libraries, and looked everywhere, finding little bits of information here or there, you've come across fascinating phenomena: very little actual information about the science and art of dealing in International commerce as an individual trader is accessible in any way that is comprehensive. Certain practices, documents and procedures; and a few enigmatic acronyms, such as "NCND" or "MPA," are thrown back and forth, badly corrupted model documents and forms may filter your way, but the reality is that most attempted home based traders, brokers - or, more properly, intermediaries - learn through highly expensive 'trial and error ,'... often re-inventing the wheel each time, in that ever-elusive search for a deal and knowledge on how to close that deal." Southall estimates, citing another expert's calculation, that out of some one million individuals currently trying to make it as trade intermediaries or brokers across the globe, "perhaps no more than 1% has the training and skill needed to ever close a deal... [meaning that] the overwhelming majority, are trading blindly, [hence] deals are collapsing... and more to the point, [oil dealers are] being defrauded - sometimes massive.." Mr. R. Ambardar, an experienced broker with more than 10 years of wide experiences in the field of advisory and international development says "lack of experience and knowledge" one of the primary causes of why brokers and facilitators fail in crude oil endeavors. "Many people are attracted into this business because of [the tales they hear about the] kind of money one can earn on account of successful deals. Many agents fail, [however], to understand that requirements to succeed in this business are very demanding, [and that] Only those who have years of hands-on experience and thorough knowledge of the industry can strive to do well as middle-men." For more detail please visit:- Many brokers, according to Ambardar, ignore this "To become a 'Facilitator' in oil business ,... what you actually need is right knowledge and expertise [since this is what will help] you hook up genuine buyers and sellers. One should be in the industry for long to have acquired knowledge related to the dynamics of this business." Therefore, one of the primary ways in which this general lack of expertise or understanding about the fundamentals of oil industry manifests itself is the inability of individuals in the multitude of brokers and agents and intermediaries that operate in the field, to craft great deals and effectively close sales even after months or even years of business. 3. BYE AND LARGE, MOST BROKERS AND AGENTS LEARN THEIR CRAFT FROM THE INTERNET, AND THIS HAS SOME SERIOUS DRAWBACKS There is, for the typical broker or seller's agent, another significant flaw, and negative consequence that comes directly from the fact that the main sources of instruction and training , through that they acquire the fundamentals of the business of oil trading is in fact the Internet. Another time, Kamal J. Southall summarizes these negative outcomes this way: "The ability to distinguish an untrustworthy trade lead or tender request as distinct from a valid one, is generally absent on the Internet, [and] there is no critical filtering of the leads you're reading. Anything that can be released is made available and can be found in all forms from genuine the questionable, and even the fraudulent. Furthermore, it is the way in which the "broker system" is such that information is often passed about with little critical filtering, lack of knowledge of proper trading procedures and the general tendency of information to become corrupted as it trades hands, [and this] leads to dangerous results." 4.LONG STRING OF BROKERS, AGENTS AND MIDDLEMEN, MOST OF WHOM UNDERCUT EACH OTHER. Due to the fact that there are no standards for proving that 부동산 they are an agent or middleman in the field and also the ease of entry into it, these operators generally are operating within a culture with no or no rules or standards and with a lack of or even no ethics, where they operate with a "dog eat dog" mentality seem to prevail - a atmosphere where every broker or agent, being only selfishly concerned with his individual gains and interests and is always trying to undercut and circumvent one another in negotiations. Thus, often leading to the ultimate detriment of ALL those involved in an offer, as ALL of them as a whole and not only one or the other will always be the losers , since no agreement at all is had with any buyer. "[One] reason why it's difficult to ascertain the truth [concerning the oil product market]," reported C. Keila Nakasaka, the California lawyer and entrepreneur who analyzed the industry in 2010 in the hopes of possible recommendations on the trade to his clients "is it is the case that there's multiple brokers involved in any transaction, and they're terrified of circumvention. Thus, it's virtually impossible to pinpoint the exact purchaser or the seller. It's true the need for teamwork to put a massive deal together, but what did me numb was that almost every one of these brokers were not forthcoming. They often made false claims about themselves as mandates direct representatives, or even sellers and buyers." THE "JOKER BROKER" CHARACTER Yes, there's no doubt that the practice of having a large number of players, such as brokers, agents and intermediaries during a transaction, is a necessary part of international business. Even more so, especially, in today's Internet world in which we are all so interconnected worldwide. In transactions involving oil there should be no surprise or anything new to anyone to learn that these operations, because they often require huge amounts of money as well as complex logistics, would sometimes require teamwork to put those transactions into place. And hence, should sometimes include a number of individuals - agents, traders, intermediaries, brokers, mandates, buyers, distributors, and so on - to complete the deal. What is unique here, is not so much the fact that in online Internet crude oil business, one is confronted with intermediaries and brokers. It is more the fact that most of these middlemen and brokers or intermediaries who are involved in it, tend to act and behave in the negative manner of what is known as the so-called "Joker Brokers." As Kamal J. Southall put it, "But the experience of the underground string of international brokers that trade useless offers and bypassing one another, from left to right illustrates well the term "Joker Broker" and resembles, often, a Zoo full of monkeys." In addition "the character, [which is] often scorned as 'the Joker Broker,' is one thing most people encounter very quickly in their forays into the world of trading," Southall who is the creator of the classic about"the "Joker Broker" character, provides a definition and explanation of the essence behind this "Joker Broker" behavior, as follows: "Defined in the first instance as a bit of a time waster, the joker broker is an individual who knowingly or unknowingly peddles and plies deals and products that, in the vast majority of instances, are non-existent, or badly defined. Characterized by a tendency to bluff his way through transactions, the Joker Broker is one... [who goes about] plying deals often involving a string of brokers from one end of the planet to another, and yet not a single one has verified the very existence of the goods at hand." One significant result of this? With the plethora of brokers and chains of agents commonly involved in a transaction and every party acting selfishly and subverting and sabotaging one to the detriment of each other in an environment where each side does not trust each other's actions, and is scared of being deceived by another; the majority of transactions made by "secondary" market sellers and their agents and brokers enter into will automatically be doomed to failure, even from the beginning. In the majority of cases, they fail. 5. PERVASIVENESS OF "The Joker Broker" MENTALITY AMONG THE INTERNET BROKERS, AGENTS & OTHER INTERMEDIARES It is, however, the most fundamental reason is that most intermediaries involved in"secondary" markets "secondary" oil market are generally not able to and do not, close any sales transactions or earn any income or commission as brokers and agents, even after months or years of selling their oil product, could be simply condensed into a broad phrase: the powerful pervasive grip that is the "The Joker Broker" mentality has ensnared on the brokers and agents, majority of which are internet-based brokers and agents. What does it mean by this? The way to put it is that many agents and brokers are motivated and constrained by the reality that they have little experience or education in the fundamentals of international trade as well as the fact that in the current Internet age, their sole "qualification" for assuming the title of "broker" or "agent" in the oil business, is having an ability to connect to Internet and a computer. generally conduct themselves in the conduct of the oil selling operation, in a manner that "resembles, often, a Zoo full of monkeys" as per Kamal J. Southall, the creator of a classic book on "'the Joker Broker" character. A common characteristic of these agents and brokers are that they sell without knowing or knowingly crude oil products and deals that , on the face of them, appear in the majority of instances , not even remotely real or as well as poorly described, yet they act as if everything is fine in the service they provide and there is no thing for potential buyers to be concerned about. They're mostly blinded fear and a false sense that their clients "are going to be super rich next week or next month" through doing nothing, other than, just passing around a few copies of papers on the Internet usually passed down to them by fools, and none of is usually verified as to the very actuality of the product they claim to be selling. Other than the fact many would, whether they do it intentionally or not, frequently try to push false deals on the Internet, they generally act out of many misconceptions and opinions that are not real, and are usually passed on to them by other people who are joking. Most of the time, they are concerned in "making a quick, fast buck," they attempt innocently and in a naive way to close a deal for those they believe or merely hope to be genuine, but who is in reality not. Of course, they are too proud or arrogant to accept that their own beliefs and methods are untrue, refuse to change their ways, and then continue to waste their time and others' time for months and years pushing deals - until, maybe the day comes when it starts to be apparent that, for the longest time, no deals have been completed, or are likely to be closed, and not a dime of revenue has been or will be! But above all else what is perhaps the most harmful reason for the deficiency of earnings or revenue for the majority of "Internet" crude oil brokers and agents is the fact that, lacking much knowledge or experience in the actual operations of international business or how it is conducted, they are usually extremely unrealistic and ineffective about the terms and conditions they demand from and expect prospective buyers would take into consideration in order to purchase the products they claim to offer for sale. That is, they often provide sales offers and propositions which are so unpractical, unworkable and outrageously unreal, and are totally contrary to how normal or legitimate commerce has traditionally been done within the actual world. According to one analyst, "Some of them [the "Internet" brokers or joker brokers] are quite interesting [in their thoughts regarding business practices they provideand also are reminiscent of Nigerian scammers. The world simply does not operate like that." EXAMPLE OF JOKER BROKER OFFER THAT CAN'T WORK The following is a fantastic illustration of the Joker Broker kind of offer that oil sellers and their agents and brokers, many of them operating online, usually solicit from prospective buyers. It is offered in the form of transaction procedures they require that buyers of oil should comply with for example: TRANSACTIONS PROCEDURES: 1.) The Buyer sends ICPO (Irrevocable Corporate Purchase Order) and banking information2) The Seller issue FCO (Full Corporate Offer) on his letterhead with all contact details. 3) The buyer returns the FCO in a timely manner, signed and stamped. 4.) Buyer and seller both sign the contract. 5) Buyer and seller exchange the Proof of Product (POP) and Proof of Funds (POF) in the following sequence/order: 6). 1. Seller gives the POP. Second: After buyer verification and within 7 business days the buyer's lender issues a POF to the bank of the seller. 7) Buyers bank creates a non-operative Letter of Credit (L/C) to the seller's bank/bank Guarantee (at the discretion of the seller). 8.) Seller issues the 2% Performance Bond (PB) to enable L/C. 9) The shipping date is determined by the contract. TO TODAY'S BUYERS, THIS IS WHAT THESE PROCEDURES ARE SAYING TO THEM In reality these procedures, as well as the ones above, can be described as "standard" and should, in NORMAL and in the right circumstances, ordinarily be a reasonable or acceptable agreement of the terms, or guidelines for a trustworthy prospective buyer to do business through. But, here's the thing that brings the biggest difference There is a important and essential element that is grossly missing here. And that is this: typically, such solicitation to the prospective buyer to comply with these guidelines, is created and is not made by an established or well-known or even easily identifiable individual or company, or by an AUTHENTIC unauthentic supplier or seller. However, it is only made by someone who is an Internet "seller." It is usually given by someone who composes (or telephones) and then claims, typically via some Internet connection or communications (a portal such as email or a website) or email, that they are an insignificant "seller," or the broker or agent of one, who supposedly has oil to be sold. This is typically done by someone who in all likelihood does not present any tangible evidence or any evidence whatsoever establishing his (or his) credibility and legitimacy as a genuine seller or intermediary for one, or a actual track record of having previously performed in the crude oil selling industry or any other type of product.

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