How to make an income from Brokering and what is it anyway?
Brokering really is a Service. You are introducing yourself as a service for anyone but the product that is looking for ways to sell to a market they don’t already have. You are providing a broker service that puts together two interested parties for a common goal of selling or purchasing a product or service.
Here’s a great practical example:
Company or person A has an asset they want to sell, lease or gain new clients from. Person or Company C is in the market to purchase or obtain the services of Company A. Let’s assume they both do not know of each other or have been introduced.
You are a Broker or ‘B’ for short. You approach ‘A’ and let them know you have a ‘C’ client looking for exactly what ‘A’ has and can do an introduction. The seller ‘A’ is excited and agrees to pay you a percentage of any completed sale to ‘C’ as a broker fee.
Here you can see that it now looks like… A + B = C
I know it sounds simple and, in all fairness, it really is. If you notice, it can also be a potential buyer approaching a broker to find a seller or vice versa. Brokering benefits from both scenarios. Income is earned either way.
Just to clarify, I am talking about brokering services and products that do not require a license of any kind, like real estate, mortgage or stockbroker. I have personally have been an active broker for over 25 years now and have never been required to have any type of licensing.*
I’m confident you can see how profitable this concept could be. In the next article, I will discuss what brokering is not.
* Note–Depending on where you are located and what market you target for brokering, you may need to check with your local departments for their licensing requirements.