Most Crude Oil And Petroleum Product Sellers, Brokers, and Agents inside 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
Crude oil and petroleum products dealers and their brokers and sellers, who perform inside the so-called “secondary marketplace” of the global oil market today, no longer commonly speak about this or like to achieve it. Or like the fact about this to be recognized. Indeed, many would rather that it’s saved, obscured, or misrepresented. But, the truth is that one specific part of their business “fact” is this. As a group, they frequently close no offers nor make any income for the oil product they purport to have available to sell, and, in fact, the significant majority of them frequently pass for months, even years, or possibly forever, without ever landing even an unmarried income settlement or deal. It might be what would perhaps, in reality, be referred to as “the open secret” of the oil-promoting industry!
C. Keila Nakasaka, a California attorney and real property investor and entrepreneur, who conducted vast market research and investigations into the D2 diesel oil exchange to peer if he ought to prudently advocate taking on the commission dealer’s job to his clients, says he came far from his studies greatly disappointed and dissatisfied. According to him, the “testimonies that these brokers concoct are that the vendor has a few direct connections with a refinery. Some even claim that the vendor is, in truth, one of the leading power companies in Russia… [but] what bothered me [the most] is that almost each such a broker did not is impending. They often misrepresented themselves as mandates, direct representatives, or even customer and sellers.”
Probably the primary and most touchy factor about which maximum such dealers and intermediaries (the sellers, facilitators, mandates, brokers, and many others.) are least “drawing close” and “misrepresenting” approximately is regarding the variety and extent of income deals they have got ever closed, if any, or the profits they have earned inside the trade if any. But, almost all of these operatives generally near no offers and make nearly nothing. Most of them cross for months, even years – or forever – without efficaciously final any sales deals, now not to speak of incomes even a dime in commission income!
As Nakasaka placed it, describing his findings: “Another element which I idea changed into ordinary turned into that maximum of the agents I spoke with in no way closed a D2 deal despite their months and from time to time years on this business. One broker claimed that he had pending deals and stated that they did, in reality, close these deals. However, I did no longer locate them credible.”
MAJOR REASONS FOR THIS, WHICH ACCOUNT FOR WHY MOST “SECONDARY MARKET” SELLERS & THEIR INTERMEDIARIES NEVER CLOSE ANY DEALS
Why is this so – that they make no income or profits? Many elements account for it. They could be summed up as follows:
1. MOST SELLERS (and their intermediaries) ARE FAKE, anyway, WITH NO CRUDE OR OIL PRODUCT TO SELL
By now, a fact that is well-mounted and no longer challenges any disputation by any means amongst credible professionals within the industry is that the overwhelming majority of promoting gives peddled with the aid of crude oil and petroleum product “dealers” within the so-known “secondary” oil markets. Their brokers, sellers, and different intermediaries are fake and bogus. Indeed, a few objective studies and research have put its extent at a whopping degree of a few 99.999999 percent of all offers provided for sale. Probably the best issue of lots redeeming price that might be said approximately this is that with particular admire to individuals who act as foreign brokers and intermediaries inside the commercial enterprise, a number of them can also often be engaged fraudulently within the enterprise, however innocently and unwittingly, mistakenly believing that the deal or promoting operation is genuine and legitimate when it sincerely isn’t.
2. LACK OF PROPER TRAINING, SKILLS, OR KNOWLEDGE IN THE FUNDAMENTALS OF THE BUSINESS
Put very truly, perhaps nowhere is the pronunciation that “we live in an extensive interconnected international” more applicable these days than in the international shopping for and promoting crude oil and petroleum merchandise globally. For the most part, all that one desires on the way to emerge as a “dealer” of crude oil or petroleum product, or his agent, valid or not, who is running out of any part of the world, is without a doubt to have an get right of entry to a computer and an Internet connection. That’s just about all! Unfortunately, however, one dire negative effect of this so-called “revolution of the Internet” (amongst many others) has been that many who now claim to be or perform as “sellers” or the dealers’ “brokers” or “sellers,” are in large part uneducated or semi-illiterate, untrained and unskilled, and are missing in any understanding of the right basics of worldwide oil buying and selling.
Kamal J. Southall, one of the predominant specialists on the situation, whose e-book, “Trade Fraud, Financial Fraud, and the Joker Broker,” is one of the most authoritative texts on the phenomenon, places it this way:
“Have you observed that as you’ve searched Google and libraries, and appeared high and occasional, finding bits of statistics here and there, you encounter thrilling phenomena: minimal realistic records on the art and science of dealing in International trade as an independent dealer exists in any comprehensive way. Certain practices, documents, and methods; mysterious acronyms such as “NCND” or “MPA” are thrown to and fro; badly corrupted model files and bureaucracy may filter your manner. However, the reality is that most attempted home-based buyers, brokers – or, more properly, intermediaries – analyze via exceedingly steeply-priced ‘trial and mistakes,’… Frequently re-inventing the wheel every time, in that ever-elusive look for a deal and understanding on how to near that deal.”
Southall estimates, bringing up some other professional’s calculation, that out of some a million people presently seeking to make it as agents or change intermediaries inside the global, “perhaps no greater than 1% has the schooling and ability had to ever near a deal… [meaning that] the overwhelming majority, are trading unthinkingly, [hence] offers are collapsing… And extra to the factor, [oil dealers are] being defrauded – occasionally massive..”
Mr. R. Ambardar, a broker of over ten years of huge reveal in the global market development and advisory services, calls “lack of enjoying and expertise” one of the essential motives why many agents 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 you could earn due to a hit deals. Many agents fail, [however], to remember that necessities to reach this enterprise are very disturbing, [and that] Only those who have years of palms-on experience, and thorough expertise of the industry can strive to do nicely as centermen.”
Outstanding many brokers, Ambardar provides, forget that “To turn out to be a ‘Facilitator’ in oil enterprise,… You want the right expertise and information [since this will help] you hook up proper buyers and sellers. One needs to be in the industry for a long to have received understanding associated with the dynamics of this commercial enterprise.”
Consequently, one fundamental manner wherein this standard lack of competence or expertise regarding the basics of the oil change manifests itself is within the incapability of the common individual, many of the string of brokers and marketers, and intermediaries that operate in the shift to craft correct deals and successfully close sales offers even after numerous months or years inside the commercial enterprise.
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 present-day Seller’s agent or dealer, a further critical shortcoming and negative outcome that emanates without delay out of the reality that the number one supplier in their schooling and education by using which they examine the workings of the oil buying and selling commercial enterprise, is essentially the Internet. Again, Kamal J. Southall sums up these terrible consequences this way:
“The expertise in spotting a questionable trade lead or a smooth request from a robust one usually lacks thru the Internet, [and] there is no essential filtering of the leads you end up analyzing. Anything that may be placed available is accessible, from the genuine to the questionable to the fraudulent. Moreover, the nature of the “broker community” is such that data is frequently passed approximately with little vital filtering, lack of awareness of proper buying and selling approaches, and the overall tendency of records to end up corrupted because it trades palms [and this] ends in risky results.”
4. LONG STRING OF BROKERS, AGENTS, AND MIDDLEMEN, MOST OF WHOM UNDERCUT EACH OTHER.
Due to the digital lack of any goal necessities for qualification as an agent or intermediary in the alternate, and the benefit of access to it, these operators typically tend to characteristic in the weather of minimal rules or standards. Of free or no ethics, wherein the “canine consume canine” mentality seems to be triumphant – a climate wherein every booking, agent, or mandate, being only selfishly concerned with simply his non-public profits and self-interest, is continuously looking to undercut and stay clear of the other in deals. Thus, often mainly to the last detriment of ALL the events worried in a suggestion, as ALL of them, as an entire, and no longer simply one birthday party or the alternative, continuously land up the losers because NO deal in any respect is had with any purchase.
“[One] motive why it’s tough to check the truth [concerning the oil product market],” suggested C. Keila Nakasaka, the California attorney and entrepreneur who investigated the industry in 2010 for feasible advice of the alternate to his customers, “is that there are a couple of brokers involved in any given transaction, and they may be all frightened of circumvention. Hence, it is almost not possible to recognize the quiet buyer or supplier. Now, I remember that occasionally, it requires teamwork to place a large transaction collectively; however, I am that nearly every one of these agents didn’t draw close. They often misrepresented themselves as mandates, direct representatives, and even customer and sellers.”
THE “JOKER BROKER” CHARACTER
Sure, admittedly, there is no question that the phenomenon of having a prolonged string of games, which includes brokers, marketers, and intermediaries, in a business transaction is a necessary component of the global enterprise. Even more so, specifically in present-day Internet international, where we’re all interconnected globally. Certainly, in oil income transactions, it needs to come as no surprise or something unusual to every person that such operations, because they frequently tend to contain big sums of money and complicated logistics, could sometimes require teamwork to position the transactions together. As a result, every so often, there is more than one wide variety of events – buyers, sellers, intermediaries, brokers, mandates, shoppers, distributors, and so on – to conclude a deal. However, what’s exceptional here is not a lot because one encounters a string of too many brokers and intermediaries in Internet crude oil dealings. Rather, it’s beyond the fact that most of these agents and middlemen or intermediaries that get concerned in it commonly behave in the damaging way of what’s referred to as the so-called “Joker Brokers.”
As Kamal J. Southall placed it, “But the level in of the underground string of global brokers trading meaningless offers and circumventing every other, left and right, illustrates properly the period “Joker Broker” and resembles, often, a Zoo complete with monkeys.”
Adding that “the character, [which is] frequently scorned as ‘the Joker Broker,’ is one aspect the majority stumble upon in no time of their forays into the sector of buying and selling,” Southall, the author of a Traditional at the “Joker Broker” man or woman, offers a definition and clarification of the essence of this “Joker Broker” conduct, this manner:
“Defined in the first instance as a piece of a time-waster, a joker broker is a man or woman who knowingly or unknowingly peddles and plies offers and merchandise that, within the tremendous majority of instances, are non-existent or badly defined. Characterized by using a bent to bluff his way via transactions, the Joker Broker is one… [who goes about] playing offers frequently related to a string of brokers from one case of the planet to another. Yet, no longer one has tested the very life of the goods to hand.”
.One good-sized result of this?
With an assortment of agents and chain of agents regularly concerned in a change, and every party operating selfishly and undercutting and sabotaging each different in running surroundings wherein every celebration is untrusting of the opposite in a transaction and is scared of being circumvented by using the alternative; most deals which the “secondary” market dealers and their agents and sellers undertake, are routinely doomed to failure, even from the very beginning. And regularly fail.
5. PERVASIVENESS OF “The Joker Broker” MENTALITY AMONG THE INTERNET BROKERS, AGENTS & OTHER INTERMEDIARIES
However, probably the essential factor debts for why most intermediaries worried within the “secondary” oil market are generally no longer capable of, and do not, near any sales deals or earn any earnings or commission as agents and retailers even after numerous months or years of peddling their oil product, may want actually to be condensed into one large term: namely, the powerful, pervasive grip that the “The Joker Broker” mentality has come to have on the brokers and dealers, maximum of whom these days are merely Internet-based agents and retailers.
What Is meant by using this?
Put very actually, many agents and sellers pushed and confined using the fact that they normally lack lots of training or expertise in the fundamentals of international buying and selling, and by using the truth, in brand new Internet technology, that their simplest “qualification” for assuming the mantle of being a “dealer” or “agent” inside the oil commercial enterprise, is simply that they have access to the Internet and a computer, regularly behave in their conduct of the oil promoting operation, in a manner that “resembles, frequently, a Zoo complete with monkeys” – in the phrases of Kamal J. Southall, the writer of a conventional on “‘the Joker Broker” man or woman.
A not unusual function of these agents and dealers, as they peddle, knowingly or unknowingly, crude oil deals and products that, on the face of it, are in most instances seemingly non-existent or questionable, or at the least badly described, even as yet appearing as although all is properly with the product they offer, and that there is honestly nothing for the potential buyer to fear about regarding it. They are mostly blinded via greed and fake belief that they “are going to be a first-rate wealthy subsequent week or subsequent month” by way of doing nothing other than simply shoving around some copied files on the Internet normally handed down to them from others jokes, none of which any of them has usually demonstrated as to the very existence of the products they purport to be selling.
Apart from the reality that many of them could, whether or not they do it knowingly, frequently try to push fake offers on the Internet, they normally act out of many misconceptions and beliefs that are truly not real, usually handed down to them from other jokers. Many times, in particular, involved with “creating a short, fast greenback,” they may be innocently and naively trying to make a deal for a person who they believe or wish to be real, however, who is, in fact, honestly no longer. But many times, they are too proud or conceited to be given truly or concede that their very own ideas and procedures are genuinely wrong, refuse to alternate their methods, and continue to waste their time and others’ time for months and years still trying to push offers – until, possibly, it sooner or later begins to dawn on them that for goodbye no bids have been closed, or are possible to be completed, and now not a dime of income has been, or might be, earned!
But mainly else, possibly the most negative factor that results in the loss of business or profits for maximum “Internet” crude oil agents and sellers is the reality that lacks a great deal of revel in or real knowledge of the actual workings of a global commercial enterprise or the way it sincerely works, they may be regularly totally unrealistic and impractical about the conditions and requirements they demand of or anticipate that prospective buyer could be given to shop for the goods they purport to have for sale. They regularly present impracticable, unworkable, and unsurprising income offers and suggestions. They are opposite to how normal and valid commercial enterprise has traditionally been performed within the real international.
As one analyst positioned it, “Some of them [the “Internet” brokers or joker brokers] are pretty enjoyable [in the notions about business workings they present], and remind us of the Nigerian scam artists. The world no longer works like that.”
AN EXAMPLE OF A JOKER BROKER OFFER THAT CAN’T WORK
The following is a great example of the Joker Broker-type of providing that the oil sellers and their brokers and agents, most of whom perform broadly speaking online these days, typically call for proceeding buyers. It is supplied in the shape of the transactions PROCEDURES they call for that the would-be oil buyer should meet and follow, which include those:
TRANSACTIONS PROCEDURES:
1) The Buyer submits ICPO (Irrevocable Corporate Purchase Order) & banking info
2) Seller issues FCO (Full Corporate Offer) on his letterhead with full touch details.
Three) Buyer returns the FCO duly signed and stamped.
4) Seller and client signal contract.
Five) Seller and customer alternate the Proof of Product (POP) and Proof of Funds (POF) within the following sequence/order:
6). First: The Seller issues POP to the client. Second: After purchase verification and within seven banking days, the consumer’s financial institution troubles POF to the vendor’s financial institution.
7) Buyer’s bank opens a non-operative Letter of Credit (L/C) to the supplier’s bank/or Bank Guarantee (at the dealer’s choice).
Eight) Seller issues 2% Performance Bond (PB) to spark off L/C.
Nine) Shipment commences as per the agreed agreement.
TO TODAY’S BUYERS, THIS IS WHAT THESE PROCEDURES ARE SAYING TO THEM
In reality, surely the strategies and those mentioned above are “popular” and must, in NORMAL and right situations, mostly be suited to the set of terms and conditions or necessities for a reputable prospective buyer to do enterprise by. However, there’s a large distinction: one very serious and essential issue is grossly lacking. And that is this: typically, such an offer requiring the intending client to conform with those procedures is made, NOT via or from a recognized or established or maybe a comfortably identifiable individual or entity, or always via an AUTHENTIC crude seller or supplier.
But simply with the aid of an Internet “dealer.” It is typically supplied via someone who merely writes (or phones) and claims, typically via some Internet connection or communique (a portal, email, or Internet site), that he’s a crude “seller” or the dealer or agent of 1, who supposedly has a few oils available to promote. And it’s miles typically presented through a person who, continuously, might gift virtually no tangible proof or proof in any organizing his (or her) bona fides and credentials as a true dealer, or an intermediary of one, nor indicates any actual song file of getting previously executed in the crude oil promoting commercial enterprise, or any other merchandise.
Thus, in impact, what is largely occurring right here is that a hard and fast of properly-that means strategies which have legitimately been designed by using the enterprise specialists to be utilized by LEGITIMATE crude sellers, and feature have historically been used by RELIABLE and decent crude sellers and shoppers alike to do commercial enterprise, have unexpectedly been hijacked through a new breed of “Internet” brokers and agents – Joker Brokers – who now demand that prudent crude shopper are to undertake precisely the ones same processes in transacting commercial enterprise with them! To position it in another way, those Internet agents and crude “dealers” have been many so-called oil Majors – such as Chevron, Valero, Shell Oil, Exxon Mobile, British Petroleum, Total Oil, etc. – that means businesses and business entities, which might be famous, already set up, comfortably recognizable, official, and sincere, there would be no trouble or question approximately the crude customers the usage of those “standard” methods and situations set forth above in doing business with the Internet sellers and brokers. However, that isn’t the case all here. Rather, quite to the opposite, these Internet-kind brokers and agents (and the purported sellers whose gives they peddle) are largely Internet-based and are usually difficult to understand operations, or even non-existent, without a recognized identification, no diagnosed base of operations, or set up report or history of beyond performance as crude dealers.
WHY THE INTERNET BROKERS’ PROCEDURES LARGELY DON’T & CAN’T WORK WITH BUYERS
Yet, the giant majority of the time, the meant crude “sellers” who want and ask that might-be shoppers must be filing to those same strategies and conditions in dealing with them. That is a ludicrous “Joker Broker” type of daydreaming. No credible crude oil client anywhere in the world might take delivery to put up an ICPO (Irrevocable Corporate Purchase Order) to an insignificant, unknown, unproven, doubtful Internet “dealer” of crude oil to solicit business with such an entity. And virtually, no credible natural oil purchaser anywhere within the globe would be given to put up its Proof of Funds or economic and banking details to such an entity or even to sign a contract with it – an entity about whom it knows almost nothing, and whose bona fides, credentials or existence as a supposed crude oil dealer, is dubious and unestablished.
Yes, a primary, famous, recognizable, or reliable entity or crude supplier. But NOT a difficult-to-understand, dubious, unknown entity largely existing on the Internet.
Analysts at the JokerBroker.Com website, that is a domain dedicated to the widespread compilation of a database of the most infamous “Joker Brokers” men and women and groups, sum it up this way, describing why most credible crude customers could normally reject accepting such processes and situations frequently demanded of them by using Internet agents, outright:
“When a deal starts with “send ICPO with BCL or Soft Probe, [POF], NCND and IMFPA,” that is “dealer language.” Those who recognize the booking language know this: “I’m a joker booking. I haven’t any actual product for sale, and I don’t know everyone who has any, so I need you to give me an Irrevocable Purchase Order along with your full monetary info disclosed so that I can run around with your order and your money in my hands seeking out the product. The subsequent issue you spot can be your organization and banking details exposed to the whole international, running around unsecured on the Internet between lots of other joker agents.”… That is what this language means. I recommend you research the language. Please do not send me even one “deal” which begins off with this process. Please put them directly into the garbage bin; that is exactly where I place them whenever anybody sends them to me.”
Kamal J. Southall, writer of “Trade Fraud, and the Joker Broker,” describes the subsequent as “some of the maximum notorious Joker Broker Documents”:
“The Irrevocable Purchase Order/IPO ICPO: Sometimes called the Irrevocable Corporate Purchase Order, one of these reports no longer exists. Or, to place matters greater rudely, the ICPO is crap. We’ve got started there; allow the chips to fall.”
SUMMARY
Here’s what would possibly, in all likelihood, be referred to as “the open secret” of the so-called secondary market oil enterprise: as a collection, the crude oil and petroleum products sellers and their long string of brokers, dealers, and intermediaries, typically close no offers nor make any income or profits out of the oil product they purport to promote, often after numerous months, even years, or perhaps forever, of doing the business. There are several reasons which account for this. They vary from the fact that most oil sellers and their agents and other intermediaries are faux operatives with no crude or petroleum product to promote, inside the first, to lack of right schooling and knowledge by way of those operatives inside the fundamentals of the enterprise, to the existence of certain severe drawbacks and shortcomings inherent within the reality that, by and large, the important source through which most brokers and dealers nowadays learn their craft as oil dealers, is merely the Internet.
However, likely the most essential and most critical element of all, which money owed for the above reality should certainly be condensed into one broad period: namely, the effective, pervasive grip that the “The Joker Broker” mentality has come to have on the agents and marketers, maximum of whom nowadays are merely Internet-based totally, agents and retailers. Typically lacking an awful lot of experience or real expertise of global enterprise or the manner it sincerely works, and regularly blinded with the aid of greed and the false perception that they “are going to be an exquisite rich subsequent week or next month” by using doing not anything, other than, perhaps, sincerely shoving around a few copied files on the Internet, the situations, requirements, and approaches often proposed via the “Internet” agents and sellers for prospective buyers to shop for from a seller, are commonly unrealistic, impracticable, outrageously unreal, even laughable times. They are unworkable situations, and necessities that might be opposite to ordinary and valid commercial enterprise have traditionally been done inside the actual global. And consequently, credible customers reject outright the sales offers from such Internet sales operatives, resulting in common loss of sales or commission income for such investigators, month after month or year after year.
For example, most of the promoting offers one gets these days for the sale of oil are typically from Internet “dealers” – humans who declare, through an Internet conversation, that they’re “dealers” of crude or petroleum merchandise with some product to promote, but generally have NO known identification, show no credible record or records of beyond performance as an AUTHENTIC crude supplier or dealer, nor gift any stable proof that the meant Seller even exists. Yet, these mere “Internet” sellers would commonly demand and assume a serious buyer of oil, to signal an “ICPO,” and enter right into a binding settlement with them committing itself to duties valued inside the numerous loads of thousands and thousands of bucks with any such but unproven and dubious Internet “sellers” (or agents and sellers), or to publish its most touchy monetary and banking information to them, etc.! Demands that virtually no credible crude oil buyer anywhere within the international might receive or post to with merely a dubious, unknown, but-to-be-installed entity! On top of all that, add to the truth that the harsh situations are being demanded of intending shoppers via the sellers and agents in an oil enterprise that is, by all credible debts, complete of too many fakes and fraud inside the contemporary oil selling industry!
And so, here you have it: why maximum meant “secondary” marketplace Internet oil dealers and their brokers and sellers commonly make no income or profits in their stint into crude oil and petroleum product promoting commercial enterprise today in this Internet generation, for months and years.
