Nothing Is For Free

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Have you ever been asked by a friend or company to introduce someone to them?

We do, we have several these types of requests. So what will you do? You will randomly give your friends some contacts just because they asked for it? Hey! Please be considerate before you do it. If you ask why? I would like to congratulate to you that you are very lucky that you never suffer from it.

The referral isn’t an easy job.

If you didn’t do your homework, or background check, or KYC (Know Your Customer), you refer the wrong contact to your friends, and they suffered from it, or they even lose money on it, you ruined your reputation as well. Of course, you could say it is not your problem, it is the contact’s problem, however, there is definitely some effect on how people believe your judgment. We have some clients they lose money and efforts when starting a company in the new market, that is the reason you don’t refer anyone to anyone.

Sometimes, when companies expand to the new market, they would like to find a good distributor or partner to help them to sell their product, the initial stage starting with commission-based sales, meaning only rewards to partner once there is a sale. That is quite understandable why those companies choose this way of cooperation, because you could test the market and the partner’s capability, more importantly, there will be someone to help you promote your business for free, why not?

Nothing Is For Free.

For your partner’s perspective, if they have 10 products with commission-based sales, which product they shall sell as the first priority? Higher commission product? It depends, if your product pricing is too high and the process of getting paid is too long, your product won’t be the first priority, no matter how good is your product. Because your partner has bills need to pay every month, they will likely put more efforts into the product which could pay their monthly bill first. So you could imagine how is the effectiveness of commission-based sales.

Nothing Is For Free.

Many companies don’t know how to cooperate with a new partner in the new country, and they ask for a referral for free and take the introduction for granted. Please think in your partner’s shoes and try to give your partner more support in the initial stage by time-based sales, meaning you support them by how much time they will spend on your project, they will definitely help you to grow faster.

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