Most Oil Sellers and Brokers Fail – Crude Oil Selling Procedures That Sell in Today’s Internet Era
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 surprise Why?
A MAJOR “HIDDEN SECRET” OF OIL SELLERS & BROKERS: MOST DO NOT MAKE ANY SALES or INCOME
Crude oil and petroleum products sellers, and their brokers and agents, who function in the so-called “secondary market” of the international oil market today, do not usually speak about this, or like to do so. Or like the fact about this to be known. In deed, many of them would rather that it be kept obscured, or simply misrepresented. But, the fact is that one distinctive part of their business “reality” is this: as a group, they frequently close no deals nor make any sales for the oil product they purport to have obtainable to sell, and, in fact, the great majority of them often go for months, already years, or perhaps for ever, without ever landing already a single sales contract or deal. It is probably what might simply be called “the open secret” of the oil selling industry!
C. Keila Nakasaka, a California attorney and real estate investor and entrepreneur, who conducted extensive market research and investigations into the D2 diesel oil trade to see if he could prudently recommend taking up the commission broker’s job to his clients, says he came away from his research greatly disillusioned and disappointed. According to him, the “stories that these brokers concoct are that the seller has some direct connection with a refinery. Some already 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 already buyer and sellers.”
Probably the principal and most sensitive thing about which most such sellers and intermediaries (the agents, facilitators, mandates, brokers, etc.) are least “forthcoming” and “misrepresenting” about, is concerning the number and quantity of sales deals they have ever closed, if any, or the income they have earned in the trade, if any. Simply put, almost all of these operatives generally close no deals, and earn almost nothing. Most of them go for months, already years – or forever – without successfully closing any sales deals, not to speak of earning already a dime in commission income!
As Nakasaka put it, describing his findings: “Another factor which I thought was strange 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 explain WHY MOST “SECONDARY MARKET” SELLERS & THEIR INTERMEDIARIES NEVER CLOSE ANY DEALS
Why is this so – that they make no sales or income? Many factors explain it. They could approximately be summed up as follows:
1. MOST SELLERS (and their intermediaries) ARE FAKE, ANY WAY, WITH NO CRUDE OR OIL PRODUCT TO SELL
A fact that is by now well-established and not unprotected to any disputation whatsoever among credible experts in the industry, is that the overwhelming majority of selling offers peddled by crude oil and petroleum product “sellers” in the so-called “secondary” oil markets, and their brokers, agents, and other intermediaries, are fake and bogus. In deed, some objective studies and research have put its extent at a whopping level of some 99.999999 percent of all offers presented for sale. Probably the only thing of much redeeming value that could be stated about this, is that with particular respect to those who act as foreign brokers and intermediaries in the business, some of them may often be engaged fraudulently in the business but innocently and unwittingly, mistakenly believing that the deal or selling operation is authentic and authentic, when it truly is not.
2.without OF PROPER TRAINING, SKILLS OR KNOWLEDGE IN THE FUNDAMENTALS OF THE BUSINESS
Put very simply, perhaps nowhere is the saying that “we live in a wide interconnected world” more applicable today than in the world of the international buying and selling of crude oil and petroleum products. For the most part, virtually all that one needs in order to become a “seller” of crude oil or petroleum product, or his agent, authentic or not, who are operating out of any part of the world, is simply to have an access to a computer and an Internet connection. That’s just about all! Unfortunately, however, one dire negative effect of this so-called “dramatical change of the Internet” (among many others), has been that many who now claim to be, or function as, “sellers” or the sellers’ “brokers” or “agents,” are largely uneducated or semi-illiterate, untrained and unskilled, and are lacking in any knowledge of the proper fundamentals 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 one of the most authoritative texts on the occurrence, puts it this way:
“Have you noticed that as you’ve searched Google and libraries, and looked high and low, finding bits of information here and there, you encounter interesting occurrences: very little functional information on the art and science of dealing in International trade as an independent trader exists in any comprehensive way. Certain practices, documents, and procedures; mysterious acronyms such as “NCND” or “MPA,” are thrown back and forth, badly corrupted form documents and forms may filter your way, but the reality is that most attempted home based traders, brokers – or, more properly, intermediaries – learn by 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 brokers or trade intermediaries in the world, “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 enormous..”
Mr. R. Ambardar, a broker of over 10 years of wide experience in international market development and advisory sets, calls “without of experience and knowledge” one of the principal reasons why many 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.”
A great many number of brokers, Ambardar adds, forget that “To become a ‘Facilitator’ in oil business,… what you truly need is right knowledge and skill [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.”
consequently, one basic way in which this general without of competence or knowledge about the basics of the oil trade manifests itself, is in the inability of the average person among the string of brokers and agents and intermediaries that function in the trade, to craft good deals and successfully close sales deals already after several months or years in the 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 average current seller’s agent or broker, one other serious shortcoming and negative consequence that emanates directly out of the fact that the dominant source of their education and training by which they learn the workings of the oil trading business, is essentially the Internet. Again, Kamal J. Southall sums up these negative consequences this way:
“The skill in recognizing a questionable trade rule or tender request from a strong one, is generally lacking by the Internet, [and] there is no basic filtering of the leads you end up reading. Anything that can be put out there, is put out there, from the genuine to the questionable, to the fraudulent. additionally, the character of the “broker network” is such that information is often passed about with little basic filtering, without of knowledge of proper trading procedures and the general inclination 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.
Partly as a consequence of the virtual without of any objective requirements for qualification as an agent or middleman in the trade, and the ease of entry into it, these operators generally tend to function in a climate of little or no rules or standards, and of loose or no ethics, in which the “dog eat dog” mentality seem to prevail – a climate in which each broker, agent, or mandate, being only selfishly concerned with just his own personal gains and self-interest, is regularly trying to undercut and circumvent the other in deals. consequently, often leading to the ultimate unhealthy of ALL the parties involved in an offer, as ALL of them, as a whole, and not just one party or the other, always wind up the losers since NO deal 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 attorney and entrepreneur who investigated the industry in 2010 for possible recommendation of the trade to his clients, “is that there are multiple brokers involved in any given transaction; and they’re all afraid of circumvention. Hence, it’s almost impossible to know the end buyer or seller. Now, I understand that sometimes it requires teamwork to put a large transaction together, but what bothered me is that almost every one of these brokers failed to be forthcoming. They often misrepresented themselves as mandates, direct representatives, and already buyer and sellers.”
THE “JOKER BROKER” CHARACTER
Sure, admittedly, there’s no question that the occurrence of having a lengthy string of players, including brokers, agents and intermediaries, in a business transaction, is a necessary aspect of international business. already more so, especially, in today’s Internet world in which we are all so interconnected globally. Certainly, in oil sales transactions, it should come as no surprise or anything uncommon to anyone that such operations, because they often tend to include huge sums of money and elaborate logistics, would sometimes require teamwork to put the transactions together. And hence, should sometimes include a multiple number of parties – traders, agents, intermediaries, brokers, mandates, buyers, distributors, etc – to conclude a deal. However, what is different here, is not so much the fact that in the Internet crude oil dealings one encounters a string of too many brokers and middlemen. Rather, it is the fact that most of these brokers and middlemen or intermediaries that get involved in it, typically act and behave in the detrimental 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 trading meaningless offers and circumventing each other, left and right, illustrates well the term “Joker Broker” and resembles, often, a Zoo complete of monkeys.”
Adding that “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, the author of a typical on the “Joker Broker” character, gives a definition and explanation of the essence of this “Joker Broker” behavior, this way:
“Defined in the first example 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 great majority of instances, are non-existent, or badly defined. Characterized by a inclination to bluff his way by 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 however not a single one has verified the very existence of the goods at hand.”
.One meaningful consequence of this?
With a multiplicity of brokers and chain of agents often involved in a trade, and each party operating selfishly and undercutting and sabotaging each other in a working ecosystem in which each party is untrusting of the other in a transaction, and is scared of being circumvented by the other; most deals which the “secondary” market sellers and their brokers and agents attempt, are automatically doomed to failure, already from the very beginning. And often do fail.
5. PERVASIVENESS OF “The Joker Broker” MENTALITY AMONG THE INTERNET BROKERS, AGENTS & OTHER INTERMEDIARES
However, probably the most basic and central factor which accounts for why most intermediaries involved in the “secondary” oil market are generally not able to, and do not, close any sales deals or earn any income or commission as brokers and agents already after several months or years of peddling their oil product, could simply be condensed into one general term: namely, the powerful pervasive grip that the “The Joker Broker” mentality has come to have on the brokers and agents, most of whom today are merely Internet-based brokers and agents.
What Is meant by this?
Put very simply, many brokers and agents, pushed and limited by the fact that they generally without much training or knowledge in the fundamentals of international trading, and by the fact, in today’s Internet era, that their only “qualification” for assuming the mantle of being a “broker” or “agent” in the oil business, is simply that they have an access to the Internet and a computer, often behave in their conduct of the oil selling operation, in a manner that “resembles, often, a Zoo complete of monkeys” – in the words of Kamal J. Southall, the author of a typical on “‘the Joker Broker” character. A shared characteristic of these brokers and agents, is that they peddle, knowingly or unknowingly, crude oil deals and products that on the confront of it, are in most instances seemingly non-existent or questionable, or at the minimum badly defined, while however acting as though all is well with the product they offer, and that there’s absolutely nothing for the prospective buyer to worry about concerning it. They are mostly blinded by greed and false belief that they “are going to be super high next week or next month” by doing nothing, other than, just shoving around a few copied documents on the Internet usually passed down to them from other jokers, none of which any of them has usually verified as to the very existence of the goods they purport to be selling.
except the fact that a good many of them would, whether they do it knowingly or not, frequently try to push fake deals on the Internet, they generally act out of many misconceptions and beliefs which are simply not true, usually passed down to them from other jokers. Many times, mainly concerned with “making a quick, fast buck,” they are innocently and naively trying to close a deal for someone who they believe or merely hope to be real, but who is, in fact really not. But oftentimes, they are too proud or conceited to simply accept or concede that their own beliefs and procedures are simply incorrect, refuse to change their ways, and continue to waste their time and others’ time for months and years nevertheless trying to push deals – until, perhaps, it finally begins to dawn on them that for so long no deals have been closed, or are likely to be closed, and not a dime of income has been, or would be, earned!
But above all else, perhaps the most detrimental factor that results in the without of business or income for most “Internet” crude oil brokers and agents, is the fact that, lacking much experience or real understanding of the true workings of international business or the way it truly works, they are often totally unrealistic and impractical about the conditions and requirements they need of, or expect that, prospective buyers would accept in order to buy the products they purport to have for sale. That is, they often present sales offers and proposals that are so impracticable, unworkable and outrageously unreal, and are totally contrary to the way normal and authentic business has traditionally been done in the real world.
As one analyst put it, “Some of them [the “Internet” brokers or joker brokers] are quite entertaining [in the notions about business workings they present], and remind us of the Nigerian scam artists. The world simply does not work like that.”
EXAMPLE OF JOKER BROKER OFFER THAT CAN’T WORK
The following is a good example of the Joker Broker-kind of offer that the oil sellers and their brokers and agents, most of whom function mostly online today, typically need of intending buyers. It is presented in the form of the transactions PROCEDURES they need that the would-be oil buyer should meet and follow, such as these:
1) The Buyer submits ICPO (Irrevocable Corporate buy Order) & banking details
2) Seller issues FCO (complete Corporate Offer) on his letterhead with complete contact details.
3) Buyer returns the FCO duly signed and stamped.
4) Seller and buyer sign contract.
5) Seller and buyer exchange the Proof of Product (POP) and Proof of Funds (POF) in the following ordern/order:
6). First: Seller issues POP to the buyer. Second: After buyer verification and within 7 banking days, buyer’s bank issues POF to seller’s bank.
7) Buyers bank opens non-operative Letter of Credit (L/C) to seller’s bank/or Bank Guarantee (at seller’s choice).
8) Seller issues 2% Performance Bond (PB) to activate L/C.
9) Shipment commences as per the agreed contract.
TO TODAY’S BUYERS, THIS IS WHAT THESE PROCEDURES ARE SAYING TO THEM
In point of fact, truly the procedures such as the above-outlined, are “standard” and should, in NORMAL and proper circumstances, ordinarily be a workable and permissible set of terms and conditions or requirements for a credible prospective buyer to do business by. However, here’s what brings about the big difference here: there is one very serious and basic factor that is grossly missing here. And that is this: typically, such offer requiring the intending buyer to comply with these procedures, is made, NOT by or from by a known or established or already freely identifiable person or entity, or necessarily by an AUTHENTIC crude seller or supplier. But merely by an Internet “seller.” It is typically presented by someone who merely writes (or phones) and claims, usually via some Internet connection or communication (a portal, email or website), that he is a crude “seller,” or the broker or agent of one, who presumably has some oil obtainable to sell. And it is typically presented by someone who, always, would present virtually no tangible evidence or proof whatsoever establishing his (or her) bona fides and credentials as an authentic seller, or an intermediary of one, nor shows any real track record of having before performed in the crude oil selling business, or any other products.
consequently, in effect, what is essentially happening here, is that a set of well-meaning procedures which have legitimately been designed by the industry professionals to be used by authentic crude sellers, and have traditionally been used by RELIABLE and respectable crude sellers and buyers alike to do business, have suddenly been hijacked by a new copy of “Internet” brokers and agents – Joker Brokers – who now need that prudent crude buyers are to adopt precisely those same procedures in transacting business with them! To put it another way, were these Internet brokers and crude “sellers” to have been some of the so-called oil Majors – such as Chevron, Valero, Shell Oil, Exxon Mobile, British Petroleum, Total Oil, etc. – meaning companies and business entities that are well-known, already established, freely recognizable, reputable and trustworthy, there would have been absolutely no problem or question about the crude buyers using those “standard” procedures and conditions set forth above in doing business with the Internet sellers and brokers. However, that is not the case all, here. Rather, quite to the contrary, these Internet-kind brokers and agents (and the purported sellers whose offers they peddle), are largely Internet-based; and are generally conceal operations, or already non-existent, with no known identity, no recognized base of operations, or established record or history of past performance as crude sellers.
WHY THE INTERNET BROKERS’ PROCEDURES LARGELY DON’T & CAN’T WORK WITH BUYERS
however, this is, in the great majority of instances, the kind of supposed crude “sellers” who want and ask that would-be buyers should be submitting to those same procedures and conditions in dealing with them. Clearly, that’s a ridiculous “Joker Broker” kind of day-dreaming – virtually no credible crude oil buyer anywhere in the world would accept to submit an ICPO (Irrevocable Corporate buy Order) to a insignificant unknown, unproven, dubious Internet “seller” of crude oil to request business with such an entity. And certainly, no credible crude oil buyer anywhere in the world would accept to submit its Proof of Funds or financial and banking details to such an entity, or to already sign a contract with it – an entity about whom it knows nearly nothing, and whose bona fides, credentials or existence as a supposed crude oil supplier, is largely dubious and unestablished.
A major, well-known, recognizable, or reputable entity or crude dealer, yes. But NOT an conceal, dubious, unknown entity, largely existing merely on the Internet.
Analysts at the JokerBroker.com website, which is a site concentrated on extensive compilation of a database of the most notorious “Joker Brokers” persons and companies, sums it up this way, describing why most credible crude buyers would generally reject accepting such procedures and conditions often demanded of them by Internet brokers, outright:
“When a deal starts off with “send ICPO with BCL or Soft Probe, [POF], NCND and IMFPA,” this is “broker language.” Those that know broker language know what this method: “I’m a joker broker. I don’t have any real product for sale, and I don’t know anyone who has any, so I want you to give me an Irrevocable buy Order with your complete financial details disclosed, so I can run around with your order and your money in my hands looking for product, and the next thing you see will be your company and banking details exposed to the whole world, running around unsecured on the Internet between thousands of other joker brokers.”… That is what this language method. I suggest you learn the language, and please do not send me already one “deal” which starts off with this procedure. Please just put them straight into the rubbish bin, which is exactly where I put them whenever anyone sends them to me.”
Kamal J. Southall, author of “Trade Fraud, and the Joker Broker,” describes the following as “some of the most notorious Joker Broker Documents”:
“The Irrevocable buy Order/IPO ICPO: Sometimes known as the Irrevocable Corporate buy Order, such a document simply does not exist. Or to put things more rudely, the ICPO is crap. There, we have said it, let the chips fall.”
Here’s what might probably be called “the open secret” of the so-called secondary market oil industry: as a group, the crude oil and petroleum products sellers, and their long string of brokers, agents and intermediaries, generally close no deals nor make any sales or income out of the oil product they purport to sell, frequently after several months, already years, or perhaps for ever, of doing the business. There are several reasons which explain this. They range from the fact that most oil sellers and their brokers and other intermediaries, are fake operatives with no crude or petroleum product to sell, in the first, to without of proper training and knowledge by these operatives in the fundamentals of the business, to the existence of certain serious drawbacks and shortcomings inherent in the fact that, bye and large, the principal source by which most brokers and agents today learn their craft today as oil dealers, is merely the Internet.
However, probably the most basic and most central factor of all which accounts for the above reality, could simply be condensed into one general term: namely, the powerful pervasive grip that the “The Joker Broker” mentality has come to have on the brokers and agents, most of whom today are merely Internet-based brokers and agents. Typically lacking much experience or real understanding of international business or the way it truly works, and frequently blinded by greed and false belief that they “are going to be super high next week or next month” by doing nothing, other than, perhaps, simply shoving around a few copied documents on the Internet, the conditions, requirements, and procedures often hypothesizedv by the “Internet” brokers and agents for prospective buyers to buy from a seller, are usually unrealistic, impracticable, outrageously unreal, already laughable and ludicrous atimes. They are unworkable conditions and requirements that are completely contrary to the way normal and authentic business has traditionally been done in the real world. And consequently, credible buyers generally reject outright the sales offers coming from such Internet sales operatives, consequently resulting in shared without of sales or commission income for such operatives, month after month, and already year after year.
For example, most of the selling offers one gets today for the sale of oil, are usually from Internet “sellers” – persons who merely claim, via an Internet communication, that they are “sellers” of crude or petroleum products with some product to sell, but typically have NO known identity, show no credible record or history of past performance as an AUTHENTIC crude seller or supplier, nor present any substantial evidence that the supposed seller already exists. however, these insignificant “Internet” sellers would typically need and expect a serious buyer of oil, to simply sign an “ICPO,” and go into into a binding contract with them committing itself to obligations valued in the several hundreds of millions of dollars with such a however unproven and dubious Internet “sellers” (or brokers and agents), or to submit its most sensitive financial and banking details to them, etc! Demands which, clearly, virtually no credible crude oil buyer anywhere in the world would accept or submit to with merely a dubious, unknown, however-to-be-established entity! On top of all that, add to that the reality that those harsh conditions are being demanded of intending buyers by the sellers and brokers in an oil industry that is, by all credible accounts, complete of too many fakes and fraud in the current oil selling industry!
And so, here you have it: why most supposed “secondary” market Internet oil sellers and their brokers and agents typically make no sales or income in their stint into crude oil and petroleum product selling business today in this Internet era, for months and years.
FOR A FOLLOW UP
WISH TO FOLLOW UP ON GETTING A CRUDE OIL OR PETROLEUM PRODUCTS SELLER OR BROKER WITH WORKABLE, REALISTIC PROCEDURES THAT A CREDIBLE BUYER CAN freely ACCEPT? Please see the instructional information in the author’s resource box below