How Internet Brokers and Agents Kill Petroleum Deals and Oil Deals

Overzealous and Misguided Joker Broker Types and Agents Are Often the Biggest Obstacles in Successfully Closing Deals or Making Money in Oil Trading


According to studies, mainly due to the crucial position that the Internet has performed in international trading, the real market for the intermediaries or middlemen in the global ‘secondary’ marketplace trading has been collapsing quite rapidly these days. Estimates of such specialists and money owed by using a skilled dealer, assert that the yr 2000 became the final “good 12 months” for the middleman in the enterprise. Kamal J. Southall, for instance, maintains that “after 2000, the critical mass of agents and traders who had been ill-informed and poorly trained, in addition to of fraudulently carried out gives and scams, reached the point that actual cease-consumers manufacturers and providers without a doubt stopped responding [to intermediaries] besides in splendid cases.”

Southall estimates, mentioning any other professionals’ calculation, that out of some 1,000,000 people currently looking to make it as brokers or trade intermediaries inside the global, “possibly no extra than 1% has the training and ability needed to ever close a deal… [meaning that] the overpowering majority, are trading blindly, [hence] deals are collapsing… And more to the factor, [oil dealers are] being defrauded – now and again massively”

In factor of reality, the overall consensus amongst experts, is that previously, before the modern-day advent of the predominance of the Internet in international trading when facsimile and telex trading was the ideally suited medium for the commercial enterprise, there had existed a reasonably sturdy and possible marketplace, although small, for the middleman agent. Such that it changed into as a substitute commonplace for a middle man to occasionally get to a settlement closing level and to close offers and earn as a minimum affordable fee earning. But that there has NOT been such an intermediary marketplace these days for a few years now, since the new Internet technology. But alternatively, that such a marketplace for the intermediary has basically been dead for all but the most professional and experienced middleman within the market these days – killed in the element, even though never absolutely, by means of the preeminent use of the Internet medium via the Internet trader and intermediary.Internet

In brief, the brand new reality of nowadays is that while, within the days before the Internet, the average dealer, agent or other intermediary or ‘intermediary’ worried in global buying and selling typically and efficaciously closed deals and earned decent profits with at least a few modest frequency, quite to the contrary, such dealer or agent or other middleman who function on this current Internet era, on the other hand, rarely closes any offers or earns any profits in the business any extra.

And what factors account for this phenomenon – for the truth that these brokers and other intermediaries usually make no income or earnings on this Internet era?.


There are many factors which account for this. Briefly summed up, they range from the dramatically accelerated variety of scams and fraudsters inside the business, made much simpler by the defend of anonymity provided via the Internet, to relative loss of proper schooling, talents or know-how within the basics of the enterprise frequent a few of the contemporary class of agents and different intermediaries due to the easiness of requisite qualification for one to grow to be an Internet “dealer” or middleman, to the detail of the improved pervasiveness of “The Joker Broker” mentality and behavior most of the Internet-generation brokers, agents & different intermediaries. However, these types of numerous causative elements being duly taken into consideration, possibly the single, overarching, most paramount consideration accounting for the woeful failure and inability of the modern-day dealer and the intermediary to efficiently do commercial enterprise, should actually be subsumed into this one central subject matter and be summed up as follows: the use of, and reliance upon, badly flawed and inaccurate methodology, policies and methods for oil deals at the a part of the modern-day class of intermediaries in doing commercial enterprise – a class of intermediaries that is frequently commonly infamous for being mainly untrained, misguided and uninformed as to the real and right way of doing the enterprise.

Most lamentably, regularly the give up end result of the above reality, is that through largely depending upon and the use of such erroneous and badly incorrect method and tactics in doing enterprise, such agents, and sellers, who’re notorious, as well, for regularly being overzealous, self-consumed and desperate to discover a buyer or make a brief fee at all expenses, basically grow to be, themselves, sincerely the largest barriers to themselves and fellow brokers and marketers in efficaciously remaining deals or earning money in the oil trading enterprise!


Broadly speaking, there are a few basic identifiable most important approaches in which this rather high-quality phenomenon of the present day overzealous and erroneous Internet booking or agent constituting an obstacle in effectively doing enterprise, often manifests itself.


But, probably the most impactful however pervasive way and way wherein the overzealous and inaccurate dealer/agent middleman regularly constitutes himself (or herself), whether intentionally or accidentally, into a crippling impediment, as opposed to an aid or facilitator, to efficiently doing petroleum offers or final one, is basically by their use of technique and tactics which are badly fallacious and inaccurate, unrealistic, unreal, impracticable, and often downright pie-in-the-sky like and comical.

A conventional example of that is the common hotel by way of many Internet brokers and marketers to apply the arcane procedures inclusive of the ‘LOI,’ ‘ICPO,’ ‘NCND,’ ‘BCL,’ and many others., in doing business. According to many respected experts and seasoned practitioners inside the buying and selling discipline, the employment of techniques which includes those with the aid of any supplier or middleman, is honestly an automatic marker which at once offers away the user as a trade beginner or intermediary and a failure who no longer best lacks the requisite education or information of the proper buying and selling tactics, however, who seemingly has never efficiently closed any offers, and by no means will. In deed, to a pro customer (or the agent of 1), getting an income offer from a provider or agent which opens with such terms and procedures, is usually a clear marker which automatically units off an alarm bell in any such customer’s head, spelling risk and capability doom to the purchaser. As one expert placed is, “In reality, the presence of many of those phrases are considered to be signs of Advance Fee Fraud, via informed players and regulation enforcement.”

This is how an intermediary who admitted to being a failed Joker-Broker with a prior record of a string of screw ups, however, who later obtained the proper schooling and have become a reformed broker, and is now a successful multi-deal closer, sums it up, writing within the jockerbroker.Com internet site:

“When a deal starts off evolved off with ‘ship ICPO with BCL or Soft Probe, NCND and IMFPA,’ that is ‘dealer language.’ Those that understand dealer language recognize what this indicates: ‘I’m a joker booking. I don’t have any actual product on the market, and I do not know everyone who has any, so I want you to give me an Irrevocable Purchase Order along with your full monetary details disclosed, so I can run around with your order and your cash in my arms, seeking out product, and the subsequent thing you see could be your organization and banking info exposed to the whole global, going for walks around unsecured on the Internet between heaps of different joker brokers.’ ”

Fundamentally, the number one cause that using such approaches are usually viewed by way of experts as badly incorrect and mistaken, and as frequently constituting the most important barriers to many a dealer or agent in successfully final deals or making money in oil trading enterprise, is as a substitute easy: the ones approaches and technique are absolutely beside the point or unworkable and impracticable, natural and simple! They are inappropriate and unworkable inside the context of the actual global of enterprise surroundings wherein they’re trying to operate or do enterprise. And consequently, due to the fact those tactics and technique are of such nature, they invariably fail, and necessarily by no means paintings. Why? Basically, because providers who acquire such stupid approaches from intermediaries or capacity consumers, being already sickened through those kinds of methods, simply can not be afflicted to answer to them, while in addition, the end shoppers won’t be afflicted with replying to equally silly and sickening offers from sellers. In outcome, the result is that the only humans supposedly ‘buying and selling’ is simply the misguided intermediaries passing around make-notion ‘offers’ from one misguided intermediary to any other, essentially consisting, for the maximum element, of shoving around the same old inappropriate or unworkable techniques just like the ‘LOI.’ ‘BCL,’ ‘ICPO,’ and unverified ‘POP.’

In deed, say some specialists – maximum of whom frequently represent those tactics in derogatory terms like ‘dangerous,’ ‘impracticable,’ ‘fault,’ and ‘misused’ – many a time even the intermediaries, themselves, who appoint those terms and strategies are completely well conscious that they have no longer been capable of near a deal for months, even years, of the usage of these badly incorrect terms and strategies, and probably never will. But yet, these experts upload, these intermediaries will now not admit that those techniques are flawed and feature not gotten them any offers within the beyond, and each new intermediary within the ‘dealer chain’ simply keeps, anyway, to pass the fallacious copied techniques down the unending ‘daisy chain,’ from one broker/agent middleman to the opposite in their make-notion ‘deals’ and ‘trading.’


Given the vital truth, we’ve simply sketched above to the impact that these methods and method are regularly inappropriate or unworkable, and that they invariably bring about failure and no earnings at the part of the Internet intermediaries, a major curious query of Titanic relevance, is this: Why then? Why then is it that those Internet intermediaries usually refuse to apply the ideal oil deal methods, however, plunge in advance, anyway, and nonetheless interact in doing business the use of exactly the ones identical badly improper and unproductive strategies? Or, to position it any other way, what forces or pastimes apparently impel them to keep conducting commercial enterprise that manner, any manner, such that, in effect, via conducting enterprise that manner, that specific function that such intermediaries play typically makes them, whether or not wittingly or unwittingly, a high impediment on their own course, and on the course of maximum different intermediaries, in being able to close offers or to earn earnings?

THE ANSWER? The simple purpose, in a phrase, is essentially related to the non-public monetary self-hobby of the intermediaries, and the determined egocentric choice on their component to quickly land an actual supplier or comfortable a fee income with the aid of any and all method by any means.

Many insightful experts and keen observers have stated, for instance, that many of those arcane methods being hired by those Internet intermediaries (the LOI, ICPO, BCL, NCND, etc), are genuinely commonly not initiated or required with the aid of the essential investors (i.E., the client or the vendor) concerned within the commercial enterprise, however are simply the private innovations and projects of the overzealous intermediary sorts created, designed, improvised, and used largely via them to gain for themselves a few undue manage in the buying and selling process, and, most importantly for them, to keep away from “circumvention” via different intermediaries in a deal, and, thereby to create or justify getting paid a fee income, themselves, in a deal.


A properly working example for illustrating the above point is frequent into the use of the so-called “LOI” (Letter of Intent) by Internet marketers and intermediaries in starting up change gives. The use of the LOI (Letter of Intent) record is an imperative process commonplace among many gift-day Internet brokers and intermediaries, and a few dealers, as nicely. Basically, those brokers and intermediaries would regularly demand that any proceeding or involved consumer must first present the LOI file in displaying and starting up a hobby in a trade offer or creating a buy. And, consistent with such intermediaries, intending buyers ought to do so because, they say, by way of signing this kind of record at the very beginning of the selling system and handing it over (through them, of course!) to a supposed supplier of a product, that gesture, they declare, constitute an extremely good demonstration of legitimacy of hobby at the part of the might-be client, and would be displaying that he (she) is “critical” to making a buy.Petroleum

Yet, besides for those Internet buyers and intermediaries who habitually persist in the usage of those processes, genuinely all credible and revered professionals inside the industry point out – and, to my know-how, no credible sellers or consumers, or maybe intermediaries, dispute this reality or have proven in any other case – that this document is essentially a legally worthless, meaningless, and even dangerous piece of paper, that is of no legal force or impact by any means, and is legally nonbinding and truly unenforceable upon any of the applicable parties concerned in a deal, whether it be the signer of the report (the client), or the seller to whom it is given, or the intermediary.

Which, again, logically conjures up the original question, WHY? Why then do those Internet buyers and intermediaries keep to apply or insist on prospective customers the usage of the LOI system in initiating their change offers and offers, even though it isn’t always simplest an certainly worthless system this is of no real effect or felony meaning to any credible buyer, but essentially constitutes a major impediment to a serious intermediary in ever being capable of close a deal, and even though this report squarely falls underneath the notorious category of the kinds of methods that are, in the phrases of Davide Papa and different respected experts on the issue, so “dangerous, irrelevant, impracticable, unworkable and misused,” that “everyone trying to do enterprise with those types of intermediaries [who use them], may also be unable to shut a deal or gather a cent in commissions, irrespective of how long they trade for or how tough they try.”?

The answer is that the valuable clue actually lies at once inside the truth embedded in this statement by means of Toby Winson, a keen analyst of the problem, in his essay titled, the “Joker-Broker-Land”: “More than 95% of the time, the LOI is written by using a booking, now not through the seller, and, for the maximum component, these brokers have just cut and pasted information that they received from different brokers. Thus all the conflicts and mistakes inside the [LOI] are copied and pass[ed] along from joke to joke.”

In different words, continually, those intermediaries insist and persist in using the LOI and other further ill-fitted joker dealer type documents (while, in truth, all rational reasons could dictate in any other case), specially for reasons which are in reality selfish and particularly personal and feature surely NOTHING by any means to do with wanting to do exact, legitimate, a hit business or trying to gain any degree of wholesomeness relating to the enterprise, itself. Nor anything having to do with the securing, upkeep or “safety” of the legitimate hobbies of the supplier worried in the deal. But, as a substitute, have the entirety to do with their very own private, selfish financial self-hobby and agenda, and with their personal obsessive issue with landing for themselves a valid provider and/or buyer of a product and for incomes a commission.

The point is that the proof is robust that often times, many overzealous, remarkably ambitious, competitive brokers and marketers, in particular the difficult to understand or scam-orientated ones, who constitute themselves as sellers’ representatives or mandates largely thru Internet contacts or communique, or maybe claim to be the real crude Sellers, themselves, hire the LOI merely as a tool to fast “corner and container in” a potential buyer to commit to a buy deal with them proper prematurely. That is, to dedicate before the possible buyer might also in all likelihood call for that they offer their commercial enterprise profile or show him some thing tangible to demonstrate that they, in reality, represent, or are, legitimate sellers. Thus, such intermediaries, or dealers, would persistently demand that the prospective buyer’s hurry and difficulty them an LOI right up front purportedly as proof that they’re “severe” about making the purchase. And, as for the intermediary himself, what he deems because the most severely crucial rely for him is that, by having that LOI file signed and submitted to him (presumably for the intermediary’s onward transmission of it to the supposed “supplier” of the product), the middleman himself – and NOT always the supposed supplier or seller – shall have quick “cornered and boxed in” the prospective buyer and secured his commitment to the middleman, even if no longer to the customer.

Many a time, especially in a case related to an intended seller who’s either a fake dealer or does now not honestly have any crude in hand but, or an unscrupulous aspiring vendor’s agent or broker who honestly has now not obtained a crude supplier (seller) yet, shoppers might also issue a purported ‘dealer’ an LOI most effective to discover that there may be no dealer on the other end. This takes place loads in situations in which you have got a hungry or overzealous agent or facilitator who is still suffering to get an actual supplier, and by way of extracting this LOI from an unsuspecting customer, this facilitator can commit the purchaser to the agent or facilitator best for him then to begin hustling to find a supplier or dealer.


There is every other fundamental essential way wherein the brand new function of the overzealous, erroneous Internet dealer or agent as an obstacle to correctly doing business, regularly manifests itself. And this is the pernicious outcomes frequently introduced approximately by way of the phenomenon of the long string or chain of agents, retailers, and middlemen regularly involved within the system, with most of them undercutting every different.

Many a time, the gives supplied with the aid of an intermediary for an oil deal, might come with one long chain after every other of too many people who cross by means of one-of-a-kind titles, together with “dealer,” “mandate,” “agent,” “facilitator.” But, what’s worst, is that, partly because of the digital loss of any objective necessities for qualification for carrying the mantle of being a “booking,” or “agent” or “middleman” within the trade these days, and the ease of access into Internet buying and selling, such Internet intermediaries typically generally tend to feature in a climate of very little guidelines or standards at all and of unfastened or no ethics, wherein the “dog devour canine” mentality appear to succeed – a weather in which each broker, agent, or mandate, being handiest selfishly worried with just his own personal gains and self-interest, is continuously looking to undercut and keep away from the opposite in offers. Thus, frequently leading to the final detriment of ALL the parties involved in a suggestion, as ALL of them, as an entire, and now not just one birthday party or the opposite, continually wind up the losers on account that NO deal at all is had with any purchase.

To be sure, the difficulty of an middle man probably being “circumvented” via some other, or by using a important, is a valid difficulty simply worthy of subject and interest by any middleman concerned in a buying and selling deal, extra in particular in a petrol deal that is an enterprise this is particularly notorious for being a hotbed of get-rich-quick day dreamers and unscrupulous gold diggers who aren’t, in particular, referred to for his or her brilliant ethics, excessive education or schooling, or tremendous person. Absolutely and categorically so! However, the significant point to be made here is that valid concern about viable circumvention need now not necessarily be allowed, but, to degenerate into obsessive paranoia that must cripple making all progress in a deal, and that there is, simply, an extra right and effective manner and method by using which that each one-essential ‘circumvention’ trouble may be higher addressed and would simply eliminate the possibility of circumvention of any intermediary in a deal.

For our present purposes right here, what’s relevant to be aware is that the characteristic phenomenon of having a long chain of too many human beings as intermediaries in a deal, each egocentric, distrusting and suspicious of the other and unwilling to collaborate and yield needed statistics to the alternative, regularly provides profound and insurmountable problem, essentially making the middleman, himself, the major obstacle and obstacle to working out a deal or ultimate one. Principally, when such phenomenon rears its unlucky head in a deal, it severely slows down the distribution of data, or maybe brings it to an absolute halt, accordingly absolutely crippling and finishing any prospects of having any deal. Furthermore, the issue of ‘commission charge splitting’ arrangement becomes more extreme and furiously contentious in such conditions, as most of the intermediaries within the chains, gripped by means of fear, selfishness, frustration and personal greed, tussle over the problem of which institution takes how a lot or what percentage of the fictional “commission” – a fee that’s, inside the first region, simply a figment of each person’s creativeness at this point for the reason that not anything is but to be, and nothing can also, in fact, ever, ever be in the long run, in any case that empty noise and hype is finished!

This sort of scenario could occur even though, and wherein, a deal seems real and otherwise promising and entire with all the factors of being potentially a success. Thus, a legitimate purchaser would possibly need a product and require the booking or agent who brought him the deal to provide certain critical records, or to authenticate it. But due to the fact the customer, or the intermediary, has to go through a protracted chain of many arms earlier than he could get the needful facts – a trouble which, by the manner, a skilled, skilled and self-assured intermediary may want to easily resolve by using putting in place a ‘step lower back’ arrangement – it quickly makes the deal not able to transport ahead and the consumer to lose agree with, or in any other case destroys accept as true with the various principals and the intermediaries concerned in the deal, accordingly effectively killing the deal.


Other simple ways in which the new role of the overzealous, erroneous Internet dealer or agent as an obstacle to efficaciously doing business, often manifests itself, would include the following:

1. Presentation of Unverified Material with No Due Diligence

This is one of the most notorious hallmarks of the ‘joker broker’ type agents and agents who generally operate on the Internet these days – they generally present offers, ‘SPA’ contracts, and ‘offers’ that lack any VERIFICATION whatsoever, or one upon which any DUE DILIGENCE has been accomplished as to their authenticity, genuineness or intrinsic well worth or price, if any in any respect. Thus, as those intermediaries are capable of ship masses, even lots, of e-mail gives simultaneously to several dealers, with clearly none confirmed or may be verifiable, one most important result of this is that, inside the referred to phrases of 1 expert, “Suppliers can not be to answer to doubtful purchase offers or requests for charges. Similarly, the end shoppers might not reply to similarly stupid gives.” And thus, resulting in a failed marketplace, and not using deals normally closed through maximum intermediaries, nor any fee income ever being earned with the aid of any!

2. Lack of Knowledge of Product:

Frequently, the middleman who comes supplying a ‘deal’ or bearing a ‘SPA’ Contract form, woefully lacks any running understanding of the petroleum product or marketplace that he (or she) purports to be promoting – matters like the usual satisfactory specification of the product, or its current price within the world marketplace, the manufacturing capability of crude for a rustic, and the like (no longer to speak, of direction, of having expertise of the right methodology, policies or processes of the commercial enterprise). Clearly, how can one marketplace a product that one is aware of not anything about? Often, the stark ignorance of the middleman is quickly uncovered when such an intermediary receives requested sure basic, primary questions through the involved client or his agent and the intermediary comes returned, normally after numerous days of state of no activity, with some thing like, ‘I’ve despatched your inquiries to my dealer, and I’m ready to get supplier’s respond’!

Or, even worse nevertheless, a purchaser whose interest in a suggestion may have end up ignited inside the deal, might location a cell phone call to the middleman wanting to ascertain if he’s knowledgeable approximately positive aspects or data of the product or provide that the intermediary purports to marketplace given that it’s been amply shown that an experienced dealer could get an honest evaluation of the seriousness or genuineness of a supplier or the provider he is peddling with the aid of simply ‘feeling the heartbeat’ of the dealer or his purported consultant through a trifling smartphone conversation. However, being that the common Internet middleman often lacks the needful know-how about the petroleum product he purports to marketplace (not to talk of expertise of the rules and approaches for the area of international alternate, normally), a ways extra frequently than no longer, the middleman losses the possibility to cultivate the essential agree with and credibility element with the consumer through mere demonstration of know-how approximately the product or offer he purports to marketplaceinternational


In sum, the overriding, pivotal, important mission of every Internet middleman or seller, booking, agent or different intermediary who operates inside the “secondary” global oil trading market these days and wants to succeed, is to make certain to use the suitable petroleum deal approaches, and that he (or she) does NOT, himself, for motives of parochial egocentric concerns, represent the real impediment to conducting legitimate commercial enterprise with credible consumers. But instead, that he constitutes, instead – basically with the aid of debt of the kind of working processes he employs and proffers – a useful resource, comfort, and real facilitator to valid enterprise operatives and to doing valid enterprise with valid shoppers.

About author

I work for WideInfo and I love writing on my blog every day with huge new information to help my readers. Fashion is my hobby and eating food is my life. Social Media is my blood to connect my family and friends.
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