The main concern most companies have when dealing with a product broker is “how much will it cost me?” If you’re dealing with a company that places business ethics at a high priority, the answer to that is “not much!”
An ethical broker will not want to drain your company for their own benefit; they will consider the relationship investment to be more important than immediate revenue. There are many brokers out there that will have enough faith in their work and your company to know that the investment will pay off.
It isn’t uncommon for product brokers to charge a retainer fee for time and other initial expenses that may be incurred – this typically is diminutive in comparison to what it would cost you in labor hours and more to do it yourself. Considering you have already cut down hours of research, desk fees, and preserving your company’s reputation (read: What is a Product Broker?) a nominal retainer fee is well worth the investment.
Keep in mind, the main source of revenue for these product brokers should be in the commission rate. This payment strategy is immensely beneficial for manufacturers, as it provides you with low-to-no cost representation based on successful placement.
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