Remington J Penman

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these data; all opportunities reported are subject to errors, omissions, obsolescence, or withdrawal without
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It is highly recommended that every reader exercise prudence and thorough investigation by, independently,
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TABLE OF CONTENTS
I. Introduction....................................................................................................................... 4
II. The Finder’s Fees Business ................................................................................................. 5
What Is A Finder?................................................................................................................................ 5
The Business of Finding ....................................................................................................................... 5
Why A Finder? .................................................................................................................................... 5
What Are Finder's Fees?....................................................................................................................... 6
Where Are Finder's Fees Opportunities? ................................................................................................ 6
III. Getting Started ................................................................................................................... 8
Office Supplies & Equipment ................................................................................................................ 8
How Do I Begin? ................................................................................................................................. 9
IV. Setting Up a Finder's Fees Business ................................................................................. 11
Going Solo........................................................................................................................................ 12
Develop a Relationship with Professionals............................................................................................ 12
Getting Off the Ground ...................................................................................................................... 13
Advertised Finder's Fee Opportunities ........................................................................ 13
Non-Advertised Finder's Fee Opportunities ....................................................................... 16
Find Before You Write ........................................................................................................................ 18
Qualify Your Contacts ........................................................................................................................ 18
The Ten Rules of Finding.................................................................................................................... 19
V. Protecting Yourself............................................................................................................ 20
Agreements & Contracts .................................................................................................................... 20
Bank Confirmations ........................................................................................................................... 21
VI. The Best Fields to Enter .................................................................................................... 22
What Are the Most Lucrative Fields?.................................................................................................... 22
Commodities & Minerals .................................................................................................................... 22
Precious & Semi-Precious Stones ................................................................................... 22
New Products............................................................................................................ 23
Inventions ............................................................................................................... 23
Collector's Items & Antiques ......................................................................................... 23
Real Estate & Financing............................................................................................ 24
Mergers & Acquisitions ................................................................................................ 25
Manufacturer's Reps ................................................................................................ 25
Custom Manufacturing ................................................................................................ 25
Specialty Mail Order Companies..................................................................................... 25
VII. The Obvious Pitfalls (Listen up here!).............................................................................. 26
Daisy Chains..................................................................................................................................... 26
Taking Legal Action ........................................................................................................................... 27
Here We Go - White Hats Vs the Black Hats......................................................................................... 27
VIII. In Conclusion .................................................................................................................. 29
Using the Telephone (landline or cell phone) ....................................................................................... 29
No-Fees Syndrome ..................................................................................................... 29
Add-On Fees Syndrome ............................................................................................... 29
Earning Your Fees ...................................................................................................... 29
A Final Word on Real Estate ............................................................................................................... 30
IX. In Retrospect - Finder's Fees Opportunities..................................................................... 32
FEES FOR FINDING SCRAP METAL ...................................................................................................... 32
FEES FOR FINDING CONCRETE FRANCHISES....................................................................................... 32
FEES FOR FINDING OFFSHORE FINANCING ......................................................................................... 32
FEES FOR REAL ESTATE TRANSACTION .............................................................................................. 32
FEES FOR FINDING UNPATENTABLE IDEAS ......................................................................................... 32
FEES FOR PRODUCTION FACILITIES OFFERED..................................................................................... 32
FEES FOR FINDING DISTRESS MERCHANDISE..................................................................................... 32
FEES FOR FINDING PRECIOUS STONES .............................................................................................. 33
FEES FOR FINDING ANYTHING ........................................................................................................... 33
X. International Trade Dictionary .......................................................................................... 34
I. Introduction

Although $100,000 - $200,000 may sound like a lot of money to you, it is not at all uncommon for
a "Professional Finder" to earn that much each year. Many good "Professional Finders" earn that much or
more on a single deal!! And in some cases, a single finder's fee can amount to $1,000,000 or more. Much has
been written and said over the past few decades about the easy money to be made acting as a finder. The
plain truth is that there are easy money fortunes to be made in this field. Among peers, this is the easiest
money making field in the world!!

My name is Remington J. Penman and I have been a "Professional Finder" for over 25 years before switching
to full-time publishing of business opportunities, including finder's fee opportunities. I have earned generous
finder's fees for locating gold, railroad ties, scrap metal, distress merchandise, and many other commodities.
I have seen finders come and go in this business. Many were successful like myself and many were failures.
The successful finders were those who followed the "10 Rules of Finding". The failures were those who didn't.
You will learn and heed these 10 rules of finding in Chapter 3.

The purpose of this book is to educate you to the real world of "Professional Finders", not dilute you with
useless rhetoric pertaining to flowery-puff, make-believe nonsense that prepares you for doom and failure.
I am making a sincere attempt to give you the fact-related, nuts and bolts of this business from my own
personal experiences as a "Professional Finder."

No theory or conjecture reading in this book – only the "real world" reading to build you a solid foundation and
make you very successful in this business. This is a practical "short-course' in perhaps the most lucrative of all
fields of business - Finder's Fees. Once you finish reading this eBook, you will have a thorough understanding of
this highly profitable business and begin to see how energetic, exciting, and fast this field is, as one and many
others have.

It really doesn't matter where you live – in Seattle, Washington, to Sao Paolo, Brazil, to New York City, to
Sidney, Australia, or small town anywhere - you can and will earn constant and sizable finder's fees all year
and every year. And you can take that to the bank.

We wish to express our appreciation to the entire hard-working finder's whose experiences we are relating
in this book. Now read on and start "Striking Gold in the Finder's Fees Business."

To your wealth,

Remington J. Penman
II. The Finder’s Fees Business

What Is A Finder?

Would you believe that most people, even people who call themselves finders, do not really know what a
finder is. Although so much has been written about the easy money fortunes being made as a finder, most
people do not know what a finder is, or how to earn finder's fees. Well, let us stop for a darn minute here
and explain. In order to define what a finder is, let's first point out what a finder is not.

 A finder is not a dealer. Dealers take-on a product, or service for sales and promotions. Dealers are only
responsible for distributing the product, or service, from the main source to the end user.
 A finder is not a pre-seller. Pre-sellers take a selling price from a product source and add-on what they
feel to be a fair margin of profit, and sell it. When a sale is made, the pre-seller buys the product from
the source and ships it to the buyer.
 A finder is not a representative of, or agent for, either buyer or the seller. Representatives and agents
are authorized by their clients to negotiate the purchase, or sale, of specific services and products. They
can legally sign documents obligating their clients.

There you have it. Very many people who call themselves finders are not really finders at all. They are really
Salesmen, Agents/Representatives, and/or Pre-sellers. The answer to the question is; that a finder is nothing
more than a "match-maker" for a fee. The Professional Finder simply matches qualified buyers with qualified
sellers, or vice versa. In business life also, the meaning of the word "find" is just that. Where a sale of
something is involved, you find a buyer.

The Business of Finding

Where an acquisition of something is involved, you find a seller. We have found that the best way to find
one party to a business transaction is to look in your own community (buyer or seller). Then match up his/her
needs with those of another party (buyer/seller) in another city, state, country and away from your local
community.

But you don't have to stop here. You can also bring together two parties - one in Florida, and the other in
Singapore, even if you live in Kansas City. Many Professional Finders are doing this and making a fortune.
The advent of the Internet has brought the world of communications to your fingertips. So Google away my
friend and bring together a buyer and seller of any commodity!

Why A Finder?

And why not? You ask, "Why would anyone or company pay a Finder's Fee?" Good question. There are over
300 million people in this country of ours, and millions of small, medium, and large companies. Now - do you
think that these businesses can know of all the sources of supply, service providers, potential buyers, and
potential sellers? Of course not!

Does it really make sense that companies spend thousands and hundreds of thousands, and tie up important
employees to do nothing but research the existence of these suppliers, buyers, and service providers?

All they would have to do is get a finder to go to the expense and trouble of locating the contacts they need.
The fees will be much less than what they would have spent if they had done the research them-selves.
Many limp-wrist finders complain that its hard work, difficult to weed through hundreds of unqualified leads
before they find one good solid source. They continue complaining that this time wasted is keeping them from
earning their fees. Now! Whoever said it was that easy? If it was that easy, do you think anyone would have
a need for a Professional Finder, or even consider paying a Finder's Fee?

Do you remember in the beginning of the book, I mentioned the successful finders and the failures? The
finders who complain are the failures. Keep this in your mind; a finder earns his/her fee by weeding through
the unqualified leads or losers; by following all of the dead-end paths; and by, eventually, getting hold of a
real genuine source, buyer, seller, or whatever.

This is what a finder gets highly paid for doing. The company or individual that pays these Finder Fees pays
it so they will not have to chase down all of those unqualified leads, and dead-ends. That is the name of this
game.

What Are Finder's Fees?

Finder's Fees are basically a fee for providing a service to an individual, or company. For example, let's look
at some situations:

 A Texas man earned $43,000 on a single business transaction. This transaction consisted of making 3
telephone calls, several emails, and about 7 hours of his time. The transaction being the closing of a
scrap metal deal involving a seller in Pittsburgh, PA and a buyer in Houston, TX. Not a bad days pay!

 A California woman collected a Finder's Fee of $225,000 for the sale of beautiful mountain retreat in
Santa Cruz, California. This transaction dealt with the sale of prime real estate that involved the seller
in California and the buyer from Egypt. It took this young woman 2 telephone calls and 2 emails to
close this baby.

 A New York couple collected a Finder's Fee of $80,000 on a single sale of precious stones from Brazil
to a buyer in Reno, Nevada. The sales continued and earned this couple an average yearly income of
$34,000 for the next 3 years.

 A New Jersey man collected a Finder's Fee of $60,000 for matching a buyer of distress computer
merchandise in Louisville, KY from the seller in Santa Clara, CA. This transaction involved 2 telephone
calls, 2 emails, and one letter of correspondence.

 An Arizona woman collected a Finder’s Fee of $14,700 for locating 48,000 travel mugs in closeout
merchandise. This transaction consisted of only 2 telephone calls and about 2 hours of work.

Each of these situations in which the above individuals collected money, was in Finder's Fees. As you can
see, the possibilities are endless. If you keep your eyes and ears open, you can make a killing in this
business.

Where Are Finder's Fees Opportunities?

Walk through a shopping center, a discount store. Drive through any industrial complex; visit any dock where
longshoreman is unloading cargo. Watch any office building or high-rise business structure of any type. Attend
an auction. Read the classified sections of any newspaper. Research the Internet. Get listed on chat/blog sites.
Excellent sites to find buyers and sellers are Facebook, Twitter, and YouTube.
Read the ads and contents of trade and business magazines in many fields. Chances are great that a finder
somewhere along the line had much to do with the creation of the business momentum that you will have
observed. The "Finder" reaches into every remote area of American and International business and collects his
fees. The horizons are as broad as the composite whole of our American economy itself. Here are just a few
examples of finders' fee offerings:

 Fees for finding insurance policyholders willing to convert their insurance premiums into
tax-deductible items
 Fees for uncovering hidden estates
 Fees for finding buyers, sellers and traders in blocked, frozen or restricted foreign currencies
 Fees for finding those willing to rent letters of credit
 Fees for renting your own collateral, and having it too
 Fees for finding big quantities of cosmetic and pharmaceutical products available for resale
 Fees for finding sellers or buyers for any kind of production tools or equipment and earn a 5% fee for
each "closed" deal
 Fees for locating financing

Rare? Unusual? Odd? Yes! But, we have presented this small handful of way out examples merely to show
you the long tentacle "reach" of the Finders' Fee business.

You can earn tremendous fees in the "finding" business if you set it up "right," work at it "right," and cash-in
on it "right." The purpose of this book is to show you the way. We will tell you about the most lucrative fields,
how to set up your own finder's service, the equipment and supplies you'll need, the know-how and where-
how you'll need.

We hope this book will lead you to eventually becoming the self-made millionaire you'd long dreamed for,
but could never really grasp.
III. Getting Started

Office Supplies & Equipment

If you really want to become a Professional Finder and make yourself an easy money fortune - you will need
to have the right attitude and approach this in the right way. When you start a business or are already in
business, you must present yourself to your clients as a professional. Since a majority of your business will
be done using email, fax, telephone and some snail mail, the very first task on your list is to have some
professional letterhead, envelopes and business cards made as soon as possible. An excellent source and
one that I continuously use on a regular basis is:

www.vistaprint.com

Your letterhead and envelopes should be on good quality paper with well-prepared lettering. I suggest white
letterhead and envelopes using black ink. Remember - your business letterhead is a good indicator of your
business professionalism to your prospective clients. You may be conducting transactions from the beginning
To the conclusion by written correspondence. So – it’s very important to be professional.

Choose a company name appropriate to your line of business. Since you will be conducting business as a
Professional Finder, I would suggest NOT using the word "FINDER" as part of your business. It does not have
the professional image necessary to your image. Examples used can be:

 Smith & Associates Research Specialist

 John Doe - International Business Consultant
 Independent Research Consortium
 Commodities Unlimited

If you take the time and think about it, you will come up with a business name that will give you the proper
"professional" and "sophisticated" appearance.

The next item on your list is a computer with very good word processor software. There are tons of them
out there, but don’t go overboard on spending lots of money on them. I would suggest using something like
Microsoft Word or PageMaker. This is a must. You do not need a super fast computer. Computers today are
very affordable and can meet everyone's budget. If you are still in the Ice Age and are not familiar or
comfortable with computers, a good electric typewriter will do.

Since 90% of your Finder's Fees deals may begin, proceed, and conclude with written correspondence or
email, you must know how to write a business letter. You can have the best letterhead in the world, but if
you have a problem with the written word, no one will understand what you are saying. Prospective clients
reading your letter will begin to wonder who they are dealing with.

There was one case back in the old day where I received a letter from a finder claiming to have a lock on
the scrap metal industry. His letters were atrocious. There were long incomplete sentences with dangling
modifiers and such, if you get the picture! . There were sentences that began nowhere and ended nowhere
and tons of misspelled words. The typewriter ribbon that he used must have been a few years old. To make
a long story short, this letter went straight to trash. It did not peak my interest at all.
As time went one, business letters came in different flavors via a business letter on business letterhead,
fax, email, and even through chat or Skype. No matter what media your business letter is coming from, it
must be a well written, professional, and to the point. So learn how to write a proper business letter. There
are many fine manuals at the bookstores that pertain to business letter writing. Pick up a copy. There are
many websites/links you can Google on the Internet to find good information on properly putting together a
good business letter. When writing to a prospective client, write your thoughts with pen and paper first. Get
your sentences and paragraphs in order and transcribe it onto your computer. A neat, well-written business
letterhead will get tremendous results.

You may say, "Well Remington, I can't get or find a good computer to use!" or "I can't type without breaking
my fingers!" You may want to consider having a desktop publisher assist you. Run an ad in the classified
section of your local newspaper, or put up 3x5 cards at community colleges/schools, Laundromats &
grocery stores. One of the best resources I have used in getting plenty of responses is through
“Craigslist” – www.craigslist.org. The heading would be under “Help Wanted”. It could go something like
this:

“DESKTOP PUBLISHER WANTED”

Excellent command of English required. Must have computer skills
and be familiar with business letter writing

Leave your name, telephone number, email address and/or Skype address on the ad and stay by your
telephone or computer. You will get many calls and emails from people who have the necessary skills required
to do the job for you.

This person may also correct your grammar, structure your sentences to give that professional touch. And
you gained a new friend. You will also need a few office supplies, carbon paper, file folders, a dictionary, and
a system to catalog your contacts, leads, sources, and correspondence. A telephone and fax machine would
be nice but not necessary in the beginning stages of your business, but will most likely be required once you
are well into your business. And last but not least, an office to work from. This can be your kitchen table,
bedroom, or a small area in your garage.

How Do I Begin?

Ok. You now have your office supplies, equipment, and that spare room in which to operate, etc. Now what?
There are many ways you can start in the Finder's Fee field. It is possible to find finder's fees opportunities
offered in magazines, newspapers, and newsletters. You can find additional opportunities by doing your own
research. Use your contacts, reference and phone books at the library, the Internet, persons you know (or
don't know) who might have the information you need, as well as other sources to find what is needed.

You can promote your business through paid advertising and in most cases free advertising.
Again, get on the Internet and search for free advertising sites. There are tons of websites/links
available where you can post your services as a professional finder. So what ways are there??
From the biggest of corporations to the smallest of mom and pop shops, word of mouth has the
biggest affect on a business. Businesses are relying on different advertising methods that are much
more economical and fresh. What are some of the new, effective ways businesses advertise?

 Social Bookmarking
 Article Marketing
 Online Directories
 Blogging
 Squido
 MySpace/Facebook
 Forums
 Email Marketing
 Email Signatures
 eBay
 Classified Online Ads
 YouTube

There are all kinds of finders deal all around. For example, consider the following:

 Real estate - find a choice property for a gas station where 5,000 cars pass every day during daylight
hours.
 Agricultural products - find red beans, green beans, corn, barley, wheat, apples, oranges, etc.
 Petroleum - find crude oil or refined products such as Diesel (D2), lube oil, jet fuel (JP54),
# 2 heating oil, etc.
 Money - find funding for business or real estate to buy, rehab, expand, finance or otherwise inject cash
into an existing situation or property needing money.

Your biggest finder fees will come from the largest deals! So pick only those deals you believe you can complete
and which are the largest in terms of dollar value. For example:

 A 10% Finder Fee on a $1,000,000 deal will bring you $100,000 for successfully completing your
assignment.
 But a 10% Finders Fee on a $100,000 deal will bring you only $10,000 when you "deliver the goods".
 Often the work you do on the $100,000 deal will take longer than on the $1,000,000 deal. So pick the
most lucrative deal for yourself and your business.
 But when big deals are scarce, look for smaller deals to "fill in" open "chunks" of time so your income
is steady.

Finder's Fees can be earned in any situation. In other words, every ad or comment you hear, or things that you
see, can lead to Finder's Fees. And now while we are talking about leads, let's continue on to Chapter 3, "Setting
up a Finder's Fees Business”.
IV. Setting Up a Finder's Fees Business

In chapter 2 - we talked of Embryonics - a working area, computer or typewriter, supplies, etc. And we
touched the surface about entering this field. Now we must decide what areas - commodities, minerals,
gems, real estate, mergers/acquisitions, new products, inventions, imports, exports, financing, or distress
merchandise interests you. Each of these areas is covered in detail in Chapter 5, “The Best Fields to Enter”.

But for right now, it's best to specialize in one of these areas particularly in the beginning. Learn your chosen
area of interest well. Begin by reading on the subject. Go to the library and obtain books relevant to the
subject. Get on the Internet and check out Amazon.com or eBay. These sites have literally thousands upon
thousands of books that are available in every subject and you can order online.

Pick up copies of, or subscribe to the daily newspapers in the business field, The Wall Street Journal, Barron’s
and The Journal of Commerce are outstanding periodicals. You will find these online as well. Each one of these
newspapers is jam-packed with current up-to-date minute data, prices, statistics, and figures of all and every
sort. For specialized fields, pick up a copy of Income Opportunities, Home Business Opportunities, The Coin
Collector, The Antique Trader, Entrepreneur, The Mining Journal, etc. Again, check for these online as well.

But the bottom line is - know your field of interest. An old professor friend of mine of many years once told
me when I started as a finder, that to be successful in any endeavor, you must read on the subject, and then
read on the subject again and again and again.

In other words, READ, READ, READ! He said that if you read one book on any given subject, you will know
more on that subject than 10% of the population. If you read two books on that subject, you will know more
on that subject than 20% of the population. If you read five books on a particular subject, you will know more
on the subject than 50% of the population. Get the point? I cannot emphasize enough the importance of
knowing your area of interest. You gain respect by knowledge, in this business.

REMEMBER - You are dealing with professional people out there, and by corresponding to them in an
intelligent, knowledgeable manner, you will spark their interest and continuing in this way will undoubtedly
consummate a transaction, which in return, will put fees in your pocket.

The successful Finder does not go into this business half cocked. The professional finder is seeking to find.
And if you are knowledgeable in your area of interest, you will succeed. Once you feel pretty comfortable in
your chosen area of interest, start working it. If you like the area you are working in, stay with it and fine-
tune your skills. On the other hand, you may want to venture into other areas and add these new fields.
But proceed slowly, cautiously, and learn each new field with intensity and desire. This business is not
difficult. It does involve a little preparation and some knowledge in your given field of choice.
Going Solo

If you want to go solo in your business, that's fine, but your best bets are in commodities, minerals, gems,
surplus stocks, new products, inventions, collectors' items and antiques. There are no licensing requirements
necessary to work in these areas.

Developing a relationship with professionals might be required in the import and export fields simply because
of sticky duty regulations and shipping red tape when working outside this country. Working with these folks
will help expedite the process much more quickly. But this is usually not the case when you're dealing with
importers and exporters in this country.

It is also possible to go solo in real estate, financing, mergers and acquisitions, but these areas can be slow
initially to develop because of the intensive study and licensing requirements that usually precede full-scale
actions. But don't let this be a discouragement. There have been BIG bucks come out of these areas in
Finder's Fees.

Develop a Relationship with Professionals

Attorneys are a "natural" tie-in for all sorts of business relationships. Many will work on a contingent fee
basis, just as you will be doing as a finder. And, a key letter written on an attorney's letterhead has a greater
ring of authority than that written on just about any other kind of stationery. Consider it.

Another possibility: If you have a personal friend who is an attorney, he will probably work on a retainer basis
of only a few dollars a month or, at least permit you to use his name so that you can refer to "your attorney"
by name in your correspondence. The little cc: John Jones, attorney, at the bottom of your letters can create
a solid conviction among recipients that "this guy knows what he's doing." The ring of professionalism cannot
be denied.

A close association with an accounting firm can be good in the buying and selling of businesses. Here, the
authority is implied because of the complex nature of P & L's, financial statements, assets, book value
and net worth.

A good bank relationship is important in the selling of personal property of all kinds, from exports, imports,
commodities, minerals, etc., because of the ease and convenience of concluding transactions through bank-
to-bank deals and through correspondent banking facilities (More on this subject later in this chapter).

Like the "friendly" neighborhood insurance agent, it seems just about everyone knows a "friendly"
neighborhood real estate broker. This is one of the best professionals you can associate with. As we said
earlier, once you obtain a Brokers or Salesman's license, you have a relatively free hand to operate in just
about any field.

The one last good professional to associate with is a Management Consultant. Licensing requirements in
this field are none. And, while most work is done on a retainer basis, rather than a contingent fee basis,
we see no reason why a relationship cannot be built up between you and one. Network! Network! Network!

Whichever way you decide to go, either alone, or developing a relationship with a professional, we're
assuming you've now "felt-out" various markets and fields and are now ready to get off the ground. Well
then, lets continue by getting off the ground
Getting Off the Ground

In chapter 1, we briefly covered the ways to enter the Finder's Fee field. There are basically two ways
available: Advertised and Non-Advertised. Let's examine each of these in more detail.

Advertised Finder's Fee Opportunities

Locating the Advertised Finder's Fee opportunities is simply a matter of reading the ads in business
publications and looking for the ones that state: Finder's Fees Offered, Finder's Fees available, Finder's Fees
considered. And what are these business publications. For starters, Worldwide Business Connection &
International Wealth Success is a great business opportunity newsletter to find finder fees opportunities as well
as advertise to this market. Also refer to the bonus eBook included with your order entitled, “Entrepreneur’s
Library”. You will find a wealth of information to kickstart your new business.

Read over the ads and listings offering finder's fees and determine which ones you can match up with sources
you know about. When you have found a finder's fees opportunity that you feel you can fulfill, start working.
Start locating the other end that meets the requirements of the advertiser. Once you have found the other
end, you will have solid grounds for negotiation.

Under no circumstances, do NOT write to an advertiser indicating that you have found what he is looking for
and ask for a fee when you haven't even begun looking. You won't last long in this business. It’s time to seek
another line of work. This is a delicate operation and must be done with precision. Find what is wanted or
available and then negotiate.

Believe me, many advertisers are flooded with garbage offers and about 90% of these will hit the circular file
or trashcan. And above all, make sure that you understand the advertisers offer. If there is something that you
do not understand such as terminology used, etc., stay away from the ad until you have gain more knowledge
in that field.

As mentioned earlier READ - READ – READ! If you read enough information on the area of interest, you will
not have any difficulties. Remember, there is not an advertiser out there who is going to sign any contract
without first knowing the other party to that contract. FIND BEFORE YOU WRITE.

Ok - I found an advertiser request that interest me and located the other end to match their requirements.
Now I am ready to write the advertiser. The following are excellent examples involving hypothetical situations.
You can use these examples to break the ice and establish a rapport with your prospective client. Remember -
each situation will be different and will require a specific individual letter written:
EXAMPLE 1

Dear Mr. Jones:

A local wholesaler is looking for large supplies of plastic can covers. I saw your ad in the International Surplus
Review, and was wondering if you can supply these. Please let me know and I will be glad to give you complete
information. You can call me at 222-222-2222 or email me at [email protected]. Thank you.

Respectively,

John Doe

EXAMPLE 2

Dear Mr. Smith:

A Brazilian contact of mine has a source of gold, selling some 3% under LME (London Mercantile Exchange). If
you are interested, please let me know and I will send you complete details. You can call me at 222-222-2222
or email me at [email protected]. Thank you.

Sincerely,

John Doe

IMPORTANT NOTE: From the contents of the above two sample letters, the recipient has no idea what
your role in this deal is. He really doesn't know if you are the agent, broker, finder, business associate or
whatever, of the principal. That's OK. Keep him under suspense. It is to your advantage in the beginning
stages of your communications. All you are trying to do right now is establish some communications. And
believe me, you will get a response, from a curiosity standpoint for the sake of his wanting to know what
your part in the deal is.

No mention of a finder's fee was noted anywhere in the two sample letters. What you were trying to establish
was communications. Build rapport with your prospective client first. If the party is interested, you will be
contacted by telephone, letter, fax or email. Above all, do not mention your fee ever on the telephone in the
beginning.

When finder's fees are mentioned in your initial contact, many times you will get a negative response. Never
say "Finder's Fees" unless your client (the advertiser) says it first. There are conditions and situations where
it can be done, but make it your policy to never say "finder's fees" until your client does. As mentioned earlier,
your main objective in your initial contact with the prospective client is to establish communication and develop
rapport.
You do NOT want to start dictating finder's fee agreements in your first letter unless you have sufficient
and detailed information to give. Your objective is to find the other end to meet the requirements of the
advertiser ad.

Many unsuccessful finders send out form letters (standardized letters with blank spaces to be filled in for
different situations) and all these letters again will be sent to the circular file. Each letter should reflect the
situation at hand. Make your letters individual and specific. Each finder's fee opportunity is unique and should
be treated as such. Write your own letter.

If, in your initial contact with the advertiser, you have sufficient detailed information to give, you may want
to slant your communications as given in the following example:

Dear Mr. Wood:

Your search for railroad ties has interest me to actively search my contacts for you. I believe I have found a
contact that can satisfy your requirements. My contact can supply you with 50,000 #2 (Landscape) railroad
ties within the next 30 days and up to 10,000 #2 (landscape) railroad ties per month for up to 1 year. Railroad
ties will be FOB from Northwest U.S.

It you will state the terms of your Finder's Fee offer, in a letter to me, based upon the successful consummation
of the transaction between yourself and this party, I will be glad to furnish the appropriate name, address,
and telephone number of my source. Thank you for your consideration.

Respectively,

John Doe

In the above letter to your prospective client, state your proposition explicitly. Give as much detail as you
can without revealing your source. You want a response from your client. This simple exchange of letters, with
all Finder's Fee terms clearly spelled out, is a very effective way of obtaining a commitment for your fee. Once
the advertiser is satisfied that you might have the party he is seeking, your chances of getting a favorable
response are excellent. This in essence, is your Finder's Fee Agreement.

At this point, it’s time to begin keeping records of your correspondence. Whether maintaining a hardcopy or
on your computer, set up a correspondence file now. Keep all written letters from the advertiser. Keep carbon
copies of all correspondence to the advertiser. And keep all written letters from your contacts. On all
correspondence going out and coming in, make certain that you date them.
The end result being, you want a chronological file of all correspondence pertaining to a given deal. You may
need this information if for some unforeseen reason, to introduce as evidence that an agreement had been
reached between yourself and the advertiser.

Should it become necessary to file legal action in order to collect a big fee, you will have a complete
chronological file of all written activities involved.

Non-Advertised Finder's Fee Opportunities

Again, these are ads that do not mention Finder's Fees. So, you may ask, "Is it professional to ask for a
Finder's Fee if he doesn't advertise it in his ad?" YES & NO. If you write the advertiser and ask if they are
willing to pay a Finder's Fee, about 100% of the time, you will get a big fat NO. The unsuccessful finders will
approach it this way. This is why they are failures. But the successful finder will almost always get a big fat
YES every time, if they approach it in the following manner as described in this hypothetical scenario: You
read an ad in a business periodical or newsletter stating,

AVAILABLE

100,000 Toshiba Satellite Pro T130-EZ1301 Intel Core 2 Duo SU7300, 3GB DDR3, 320GB, WIFI,
WEBCAM, BLUETOOTH, HDMI, INTEL 4500, 13", WIN 7 PROFESSIONAL or XP Pro – Brand New
Units. Great Prices!! Contact: Jim Smith @ 333-333-3333 Email: [email protected]

You do the following:

1. You type a nice business-like letter on your letterhead requesting prices and shipping information. You
only request pertinent information. You do NOT mention anything about your role, why you want this
information, or what you are going to do with this information or product. You simply want prices and
2. shipping information ONLY. You do not want to reveal to the advertiser that you a finder. As far as the
advertiser is concerned, you are a possible buyer.

NOTE: You can also send an email to the prospective advertiser if an email address is supplied in their ad.

3. The advertiser then responds with the information you requested.

4. You start looking through your files to find parties who may be interested in buying notebook computers.

5. Once you have found these contacts, type them a letter or email and make them the offer just as the offer
made by the advertiser.

6. When one or more of your contacts shows interest, you have him send you a letter stating that he is
interested in buying "x" number of notebook computers. Upon receiving this letter from the interested
contact, you make a photocopy of the letter (blanking out the buyer's name & address) and send it along
with your letter to the advertiser.

7. In your letter to the advertiser, you will state that you have a possible buyer for "x" number notebook
computers (refer the advertiser to the attached copy of your contact's letter). Tell the advertiser that, if he
will authorize a "COMMISSION" upon closing a sale with your contact, you will be happy to put him in
touch with the possible buyer.

IMPORTANT NOTE: Notice that I said "COMMISSION" and NOT "FINDER'S FEES." The unsuccessful
finders have used and bruised this term that it's not practical, or a good idea to use it in referring to your
fees in this manner.
Now – Once you receive a letter from the advertiser accepting and authorizing your commission:

8. You send a copy of the buyer's letter to the advertiser. Include your letter formally accepting his
commission offer.

9. Send this letter by Certified Mail with a return receipt requested for your records. You send a copy
of the advertiser's original offering letter that gives prices & shipping information to the buyer. Include
your letter advising that the seller will contact him directly. Send this letter by Certified Mail with a
return receipt requested for your records.

10. When the deal is consummated, the advertiser sends you a check or wire transfers your bank account
for the authorized commission, per his letter to you.

- This is how successful finders approach a Non-Advertised Finder's Fee opportunity. -

Find Before You Write

It doesn't matter whether a Finder's Fee is offered or not. Before you WRITE your first letter to the advertiser,
you must FIND it first. No advertiser is going to take you seriously or be blinded by an inept finder. Like I said
earlier, most advertisers receive tons of letters from unsuccessful finders claiming to meet their requirements,
only to find out later in the game that these unsuccessful ones have found nothing. Like the old saying, "What
comes around, goes around." Don't get a reputation in the finding arena that you can't deliver.
REMEMBER!! - FIND then WRITE.

Also remember - To earn your fee, you must find what is requested or required. Then, when this has been
accomplished, you must give this information to your client. The bottom line - you are selling the name &
address of the other end or party that you have researched and qualified. You are NOT selling products or
services from either of the parties. This is their job.

There are five steps to follow to succeed in finding anything. Follow these steps and you will be successful in
finding.

1. DETERMINE what exactly your client is looking for. Don't guess on this matter. Write it down!

2. THINK who might supply what your client is seeking; area of the country, type of producer, type of
consumer, type of industry, special applications, alternate methods, etc.

3. RESEARCH where to find these companies, or individuals, who may be capable of filling your client's
requirements - directories, magazines, newsletters, yellow pages, other finders, etc.

4. CONTACT those who, through your research, have determined to be possible sources.

5. QUALIFY those who respond to your queries to be sure that they are capable of fulfilling your client's
requirements.

And speaking about QUALIFYING, let's proceed to the next section, "Qualify your Contacts.”.

Qualify Your Contacts

QUALIFY! QUALIFY! QUALIFY! Enough cannot be said of this word. Before you write that letter to the
advertiser indicating that you have a source for his requirement, make sure that you qualified your contact
sources.

You have checked out all your contacts and believe to have a few who may be able to supply your advertiser's
needs. The first thing you do is write to these sources and make sure that they have and can supply. A simple
little letter or email like the below example will usually do the trick:

Dear Mr. Jordan:

We are interested in purchasing 10,000 widgets from your firm. Our research indicates that your firm may be
in a position to make this product available. If so, please advise with pertinent details. Thank you.

Respectively,

Mr. Smith
A letter such as the example above, typed on your business letterhead, or a well-written email will produce
QUALIFIED contacts. When you get a response from your contact, make a copy of the letter (blanking out name,
address, etc), and attach it to your letter and mail to the advertiser.

The Ten Rules of Finding

Earlier in your reading, I mention the difference between the successful finder and the unsuccessful. The
successful finder learns and follows the ten rules of finding. So here they are:

1. Find it first.
2. Find it yourself. Do not depend on other finders to find it for you.
3. Qualify all leads and contacts BEFORE you send them to your client.
4. Do not START or PERPETUATE a "Daisy Chain."
5. Do not accept or offer a Finder’s Fee over the telephone.
6. Get it in writing and put it in writing.
7. Do not give or receive a contacts name and address over the telephone.
8. You will earn your Finder's Fee by doing all of the necessary and required research for which your fee
will be paid.
9. Treat your clients, contacts, sources and other finders, as you would want them to treat you.
V. Protecting Yourself

Agreements & Contracts

Now that you've broken the ice, have established some rapport with the parties you are trying to get together,
and presumably have discussed terms in previous correspondence and phone calls, your next step is to get
something in writing. This must be from one or the other, committing one or the other to paying you your fee.
From the legal standpoint, a clearly worded, concise and specific exchange of letters should be sufficient.

With a covering note, saying something like, "I know this letter may sounds kind of stiff, but it's a standard
formality - something I must have for my files before we can finalize," you might write this kind of letter:

Dear Mr. Hale:

I think we have now agreed on the terms of my compensation in return for acting on your behalf in finding
(whatever). It is to be (so many dollars, a one payment %, payments based upon units of sale - other). Upon
your acceptance of these terms, I will reveal the full identities - name(s), address(s), and phone number of the
principals to you, together with the last of the information in my possession which I have, until now, withheld in
order to assure my compensation for services rendered.

Further, it is understood that you were not aware of (whatever opportunity) prior to (date of first contact), and
that you will protect me for my fee, whether or not you were acquainted with the opposite party in any other
way.

Accepted by (signature): ________________

Representing (company): _______________

Date: _______________________________
To go even one step better, an actual contract would do if you can get it. Many would refer to such a contract
as a "Finder's Protection Agreement." We prefer, "Business Service Agreement". Such a contract should
read something like the following:

I, (name), representing (Company, self, partners, a syndicate, other - should be spelled out), do hereby agree
to the following terms of compensation to be paid to (your name) in return for services rendered. These
services include:
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________ (spell out precisely)

I, (name), agree to hold in strict confidence all information provided, and will interpret these data broadly,
to give full effect as to its intent, and not narrowly, in order to avoid its intent.

I have signed no such similar agreement with any other person(s) having anything to do with our specific
(transaction - again, spell out precisely)

Signature: _______________________
Title: ___________________________
Company: _______________________
Street Address: ___________________
City, State, Zip: ___________________

Dated this day (date) of (month), the year, 201_

A minimum of two copies must be made - one for you, and one for your principal. Not being an attorney,
obviously we cannot do as good a job in designing a form that will protect you down to the last period and
comma. So if you really want to do up the contract form "right", consult an attorney.

Some greedy, unwilling-to-work finders will sometimes try to get into the act." They will claim that by merely
providing a name, they are entitled to a fee. This is why the last paragraph in the contract form is so important.

Generally speaking, if another finder has provided only a name, and performed no other services, he does
not, legally, have as much as a balloon of air to stand on. The courts still (generally) consider the rule of "value
given for value received."

Also, most frequently, prior dates on correspondence will protect you and your principal from the professional
suit-threatener, do-nothing, Johnny-come-lately finder.

Bank Confirmations

Good banking connections are vital to many areas of professional finding. One of your first orders of business
is to establish them. Talk to your banker. Make up some mythical transactions as examples.

Get his opinion on the best ways to deal - with this kind of assurance, bank confirmations, behind you. If you're
not satisfied with what you're told, see another banker; maybe still another, maybe a dozen or even more.
Compare notes. Then do business with the bank that seems to know most, what they are talking about.
VI. The Best Fields to Enter

What Are the Most Lucrative Fields?

The following fields represent perhaps the easiest and most lucrative to enter. As you read this section, be
particularly aware that whether you enter just one field or have an interest in many, the key word to remember
is "KNOWLEDGE". As mentioned earlier, bone up on your reading of your interest. There is plenty of money
to be made in this business and the highly aggressive and astute entrepreneur will reap the harvest. On that
note, let's proceed.

Commodities & Minerals

What are commodities? Look around you. Corn, wheat, rice, scrap steel, orange juice, canned goods,
distressed computer merchandise, cell phones, etc. etc. etc. Canned foods of all kinds, because of their
natural preservation qualities, make up a consistently good market. Scrap steel is growing and will continue
to grow due to the recycling efforts of conscientious Americans. Way back in the early 1970's, Platinum was
enjoying a big demand, due to being one of the best catalysts for anti-pollution devices. Even today, Platinum
is a valuable commodity. Mercury remains strong in demand and metals such as lead, zinc, and copper are
strong contenders. Nickel, overall, enjoys strong demand.

OK! How do you start in commodities and minerals? The same way you start in anything else; through
KNOWLEDGE. The New York Mercantile Exchange contains tons of information. Also, the American
Association of Commodity Traders is an excellent source. If your interest is in pure commodities, such as
pork bellies, corn, wheat, etc., look through the library for the trade organizations and also the Chicago
Exchange addresses in this field. Energy fuels such as crude oil, butane, and propane are markets for huge
profits for the astute finder.

Precious & Semi-Precious Stones

Despite the ups and downs in the world's supply of Diamonds, this is a very good field to deal in as a finder.
For example, in 2002, a New York couple collected a Finder's Fee of $80,000 on a single sale of precious
stones from Brazil to a buyer in Reno, Nevada. The transactions continued and earned this couple an average
yearly income of $35,000 for the next 3 years. Opals, which have been appreciating steadily in value at a rate
of 10% - 15% per year, in recent years, are another of the precious; semi-precious stones markets
worth looking into. Emeralds and rubies also score high in this market.

When you enter the semi-precious stones market, you are getting into the biggest volume, fastest turnover
market in this category. The main reason for this is mass market. The bottom line is, how many people around
the world can afford diamonds, emeralds, and rubies? Think about it.

Big markets are developing in Jade, Tiger Eyes (from Taiwan or Hong Kong), Garnet, Topaz, and Tourmaline.
The astute finder can take in millions of dollars in this field alone. This is an excellent field to enter.
Each year, American industry manages to produce inept merchandise or overproduction. The result being, a
huge amount of goods, products and merchandise of every detail and description that can't be sold through
normal wholesale/retail channels at standard retail prices.

Big bargains in surplus and closeout merchandise surface. To the sharp finder, he can purchase items at
pennies on the dollars and parlay his investment to big bucks. Periodicals dealing in surplus merchandise and
thumbing closely through the Wall Street Journal classifieds can give the finder an upper hand in this field.

New Products

There is a tremendous future for the finder that pursues this field. There are thousands of new products
available overseas which are not being marketed here in the United States. These overseas manufacturers
are actively seeking representatives and importers here in the U.S.A. in the expanding consumer and industrial
markets of Europe, Canada, and the Pacific Rim countries like China, Japan, Korea, and Taiwan.

And the U.S. manufacturers of all kinds are constantly trying to break into overseas markets. Close to 20% of
American manufacturers are exporting today. You, as the finder, can put these firms together and collect large
fees for your effort. The Thomas Register is a basic reference book that shows and describes the production
and product types of just about all of American industry.

Your public library has all sorts of reference works in addition to trade magazine in various fields, and some of
the bigger libraries also stock overseas magazines and directories.

Inventions

Entering this field, the astute finder can earn sizable fees if pursued correctly. Inventions can be sold. The
best way is pure outright! The knowledgeable finder, in aiding the Inventor can frequently earn good Finder's
Fees by helping the inventor sell outright his invention. In most cases, the inventor is often strong in
engineering talent, but weak in marketing talent. This is where you come in.

How and where do you get information on patents? Through friends and business associates! Importantly,
you can get tons of information that you want on new inventions from the U.S. Patents Office, Washington,
DC. If more information is needed, it's back to the library, the best and most complete informational source
you can use for researching any subject. Additionally - when you are the Internet, search for U.S. Patents
Office. There is a lot of free information available through the U.S. Government.

Collector's Items & Antiques

There are many collector's items of undeterminable value sitting up there in attics and basements throughout
the USA, postage stamps of high denomination, any kind of product made out of a special kind of material that
is now extinct. Despite the high rate of transience of the American public, treasures in truck and trash are
everywhere.

Antique is a great area to pursue. The value of an 1875 roll-top desk, imported hand-carved furniture from
the Victorian era, firearms of the old west will amaze you. If you walk down any street in any old section of
town (pre -1910 built homes) and enter the premises, you'd find a small fortune in valuables of which the
owner did not even know the worth in at least 20% of the homes.
Try this for starters: Place classified ads in such magazines and newspapers such as GRIT MAGAZINE,
CAPPERS WEEKLY, and the many other farm periodicals. The reason being, you will want to reach the old
homestead market. An ad such as the following could be used:

A FORTUNE IN YOUR ATTIC?

Do you have something in your home that's been around for generations over 100
years? Send it to us for our appraisal. Send the item insured with return
postage & extra $$ to assure safe return in case of rejection. If accepted, we will work
on a 20% sales commission in getting the very top market price for you. Call for
free details at xxx-xxx-xxxx or email us at [email protected]. You may be wealthy
and not even know it!!

If you can get the words "Fully-Bonded" into your ad, the better. It will inspire much more confidence.
Don't be surprised by the many responses you will receive from this ad.

Real Estate & Financing

The Real Estate and Financing fields have got to be the biggest and best paying areas of the entire finder's
fee arena. This is where the big bucks can be attained if pursued properly. Many successful finders have
earned fees of $100,000 to $1,000,000 and more on just one transaction such as the purchase, sale or
financing of large shopping centers, industrial complexes, high-rise apartments and office buildings, 100,000
acre plus ranches.

A WORD OF CAUTION: There are varying laws (many states differ) concerning Finder's Fees activities in these
areas. For example, the states of California and Texas have laws stating that anyone in another state who is
not a licensed real estate broker cannot be paid a Finder's Fee if he is not a licensed real estate broker in his
home state. The state of Florida has a separate examination for a mortgage broker's license.

In many states, a real estate broker's license automatically enables him to deal in mortgages and business
brokerage also. In other states, real estate brokerage and business brokerages are considered separate. The
end result being is that as a finder, you must tread lightly. You cannot insert yourself directly into the middle
of negotiations between two parties and act as an intermediary as you can do in.

You must have enough horse sense to get the two parties together and then back off and let them work out
all the details of the agreement together with their own attorneys, accountants and/or licensed brokers.

Under no circumstances, in these fields, can a finder act as a direct intermediary, if he is not licensed. But
don't fret. There is a way to overcome this little dilemma. Get the appropriate license. Get yourself a Real
Estate Broker's License if you wish to cash in on many of these areas.

Another alternative is to collaborate with a broker by taking the real estate salesman examination. It's much
easier. In just about every state, this can be done more simply than going through the rigors of getting a
Broker’s license. Contact your own local real estate exchange. This organization can provide the right direction
for you; point out the proper study and informational materials to acquire.

Within the last few years, we have seen fees of $150,000, $200,000, $325,000 and on up. We learned of a
fee as high as $1,800,000 on the sale of an industrial complex. Fees of $60,000 to $100,000 are common
on all kinds of real estate and financing deals.
For example, a California woman collected a Finder's Fee of $225,000 for the sale of a beautiful mountain
retreat in Santa Cruz, California. This transaction involved dealing with the sale of this prime real estate
between the seller in California and the buyer from Egypt.

Mergers & Acquisitions

In this field, as in real estate & financing, you pretty much have the same problems with licensing. If you are
not a securities broker/dealer, get the parties together, and then get out of their way. You cannot, without a
license, act as an actual intermediary. Again, we must emphasize the importance of not getting into any
document signing you having to do with the transfer of assets, real property and financing. It is best not to
put your name to any of the physical transferal papers, even as a witness.

Unlike commodities, minerals, precious stones, surplus and closeout merchandise, new products, collectors
items and antiques, there is always a public record of major real estate, financing, merger and acquisition
deals. Here, you can always protect yourself. Learn the specifics, exact data, and the time the transaction
was concluded, so that nobody can cheat you out of your fee by the art of simple silence.

Manufacturer's Reps

Independent manufacturer's representatives throughout the country are constantly looking for new products
to complement their lines. Once you have built adequate cross-reference files from several of the other major
categories, you will have the match-ups with which to approach them.

The Manufacturer's Agent's Guide lists more than 12,000 manufacturer’s representatives in the U.S. and
Canada. Check your local library for this guide. The same holds true for wholesalers. While most will only
accept big volume, name brand merchandise, some will be interested in big "good deal" close outs.

Custom Manufacturing

Custom manufacturing is another good area to exploit. We have run ads in "Worldwide Business Connection"
from a variety of manufacturers offering Finder's Fees for those finding users for their facilities. These range
from cosmetics compounding and packaging, to laminating, to structural steel fabrication, and just about
every other type of manufacturing, engineering and warehousing help in between. The classified section of
the Sunday New York Times, under "Manufacturing Facilities Offered" is an especially good source of leads.

Specialty Mail Order Companies

The catalog houses are always looking for new products to market. This is a very good field to enter. It is
enormous. From the hundreds of national firms that put out those small 10-100 page catalogs to the big
guys like, Sears, and Macy’s.

In conclusion, through reading, studying, and researching the various trade, business, and specialty magazines,
the astute finder can amass a conscientious printout of hundreds of "match-up" possibilities that can earn
him very lucrative fees. Remember, "If you read, you succeed; if you snooze, you lose." Act by acting. Do
by doing. And don't stop short of success. As I said earlier, "Among peers, this is the easiest money-making
field in the world!"
VII. The Obvious Pitfalls (Listen up here!)

This chapter covers the obvious pitfalls you'll run into in the Finders business. However, if you follow the
general guidelines as laid down here, you should be able to keep these to a minimum.

Daisy Chains

What is a "daisy chain? It’s simply getting involved with another finder who is not the direct representative
of the Principal, but probably claims he is working with another finder who claims he is. The third finder,
wishing to impress other finders with his closeness to top principals, may be, in turn, only dealing through
a fourth, fifth, sixth, even up to ten, twelve or more other finders.

Once you get sucked into such a web, you are starting out on a trip to Nowhereville! The whole thing is a
vicious circle: much like the small mail order dealers who "co-publish" all kinds of ad sheets and cheap
mimeographed magazines and do nothing but try to sell to each other.

In short, you'll end up in a market that is no market; you'll waste your time and money and brain energy
senselessly and, 999 times out of every 1,000, fruitlessly. A barrel of crude oil, for instance, can stand an
absolute maximum of about 3 cents per barrels in total fees added. (This field, crude oil, is one of the very
best big moneymaking areas of the finding business).

If you're dealing with just one other finder on such a deal, fine - you'll both pocket a small fortune on, say,
a sale of 500,000 barrels at 1-1/2 cents to you, and 1-1/2 cents to the other finder. For example, a total
of eight are in the act, and all demand 3/4 cents each. The deal is killed, and nobody gets paid.

The "daisy chain" can ruin your various deals in other ways. Many of these finders will sometimes send
you a name and say, "try this" (for whatever deal they happened to get wind of that you're working on).
Later, if the deal goes through, one will claim that he was vitally instrumental in it, wave his correspondence,
send photocopies to you, and perhaps threaten suit if you don't split with him.

Most often, these leeches are about as bothersome as flies lighting on you while you're trying to sleep, you
can't always afford to completely ignore the "try this" letter. If and when they come in, the first thing to do
is match dates. If the dates on your correspondence precede his, forget it. If there is any question at all,
reply that you already have been working on it (whatever deal). Quote the date that you started, and cite
any full authorization exchanges of letters or formal contract that you might have in your possession. This
will usually make him back off, and you'll never hear from him again.

On the other hand, sometimes working in the "daisy chain" is the honest, hard working finder. One rule of
thumb, in order to determine how close to the principal he is, is to elicit from him full details of the
requirements.

If he can supply these to you, chances are he's close, perhaps only one other finder or broker away from the
principal. A three-way split of a Finder’s fee is about the maximum you'll want to go. Obviously, two ways is
better, and a single fee - yours is ideal.
When dealing with other Finders, it's usually quite easy to separate the men from the boys. The professional
Finder will be euphonious. He/She will give elaborate particulars on good stationery in a crisp, business like way.
The amateur, or no-work/big-profit leech-type will send you the "try this" letter, too often on shoddy paper with
no details (simply because he/she doesn't have any), or just the few general details he picked up
from an ad or a directory.

To sum it up: Avoid the "daisy chain" as much as possible. When you must deal with other finders, and
sometimes this is essential, try to limit the number to three, and no more, on any one transaction.

Taking Legal Action

Let's pre-suppose that you worked your fanny off on a juicy Finder's Fee deal. You have all your protection
agreements, clearly indicating that you are to receive a fee, contingent upon the "closing" of the transaction.
You think the deal went through, but you don't know for certain.

On Real Estate, Financing, Merger & Acquisition deals, you must stay far enough away, if you are not
licensed in any way, so that the mystery is greater. In these areas, though, we've mentioned earlier, your
counter-balancing advantage is that public records are kept. A trip to your Register of Deeds or County Clerk's
office will quickly tell you if the deal went through.

On the other hand, let's say you believe a big new products deal you'd been working on went through, but you
don't know. Say you live in California, and the deal, if consummated, was in New York. Here is one advantage
of being tied in with a finder’s network. You go to your file and pull out the name of a New York finder. You
then write, fax or email this finder to check it out on the spot. If he wishes to do this detective work, you will
pay him 15% of your fee, if collected without litigation or of your net fee (after attorney's costs) if collected
with litigation.

ANOTHER OPTION: Have your attorney write them a letter, assuming the deal went through, and that his
client (you) will expect his payment shortly. After all, if a long period of silence has ensued since the "closing"
of the deal, you can be assured that your principal is trying to cheat you out of your fee. Therefore, a series of
"Aw c'mon, I've worked hard on this, I've got bills to pay" letters will probably be ignored. So, why not get right
to the point. Better not to mention a lawsuit in the attorney's letter (the implication is always there in a letter
from an attorney, anyway), because, if you're wrong and stumble into ruining some complicated deal, you
could be the victim of a lawsuit. In some cases, you'll want to maintain relations in a Finder network -
mainly for this purpose alone.

Finders in business today - good and bad - are more all encompassing than fleas on a dog. If they're good for
nothing else, at least many are good at routine checking - minor detective work - if they smell the possibility
of a, say, $5,000 fee for their limited efforts.

Here We Go - White Hats Vs the Black Hats

Most often you'll find principals who are glad to pay your fees - if, of course, you get the job done for them.
It's the same principle that is followed by companies of all sorts – in addition to sales commission rates, the
awarding of bonuses, extra incentive gifts and a free top-salesman award of an all expenses paid trip to the
Bahamas for you and your
wife.

Everybody loves a producer, and will generally pay him promptly and well. The only difference between you
and the company setup is that, as a finder, you are working as an independent contractor, so you must exercise
closer scrutiny upon the closing details of every transaction. More work? Yes. But the rewards are most often
far greater. (How many salesmen do you know who can pull down $150,000 on a single sale, as a finder
can?) Therefore, the guys in the white hats outnumber the guys in the black hats by a considerable margin.
But, what do you do when the guy with the black hat confronts you? In business, there's always the occasional
guy in the black hat. The bully, who will threaten you with a nuisance suit, threaten to do damage to your
reputation, threaten to blacklist you with your clientele. A gang of other business associates that don’t like you
or an attorney also backs him up.

When some unjust thing like this happens, you might do what we did when a principal we were working for as
a finder several years ago tried to cover over the completion of a transaction and cheat us out of our fee. We
started out with the usual one-to-one ratio formula: threatening civil suit. Then geared up for the "hit-him-with-
everything-but-the-kitchen-sink " pluses. Because the transaction was of a type that involved the
"propriety" of the man's fee structure, a type that was at that time under investigation by the S.E.C.

We sent a letter to this Government Agency, giving them a "case in point" to investigate. It so happened that
the F.T.C. was involved in this kind of practice, too, so we also sent them a letter. Because promises involving
flagrant falsehoods were involved in letters to us, we also sent photocopies to the Inspection Division of the
United States Post Office, due to possible mail fraud.

We also alerted by letter, the Better Business Bureau of his community, the State Attorney General's Office,
and the Intelligence Division of the I.R.S. (because of suspected tax fraud). We know that the man's operation
was a borderline case, that he could probably defend himself. (He was no dummy.)

The point is - we poured it on heavily that the man never knew, from week-to-week, which flank he would have
to defend next.

Can you imagine getting a letter threatening civil suit, with copies of all documents and the bottom reading:

cc: Securities & Exchange Commission

cc: Federal Trade Commission
cc: Inspection Division, U. S. Post Office Dept.
cc: Better Business Bureau
cc: State Attorney Generals Office
cc: Internal Revenue Service, Intelligence Division

What would you think? In addition to being mad, confused, and with a slight jump in your blood pressure, you
might think it best to settle before the avalanche smothers you. This is what we call the ten-to-one ratio. And,
when we reminded this gentleman that these various governmental investigative actions initiated by us were
only for "Starters" and that in the coming months at least ten more would be launched. Guess what? We
suddenly got paid. Don't be intimidated by the guys in the black hats!
VIII. In Conclusion

Using the Telephone (landline or cell phone)

The telephone can be a very important tool in your business, giving you literally thousands, upon thousands, of
leads, contacts, and sources. One telephone call can give you enough information to nearly close a finder's fee.

Additionally, the telephone can be a very costly and non-productive tool, and, in some cases, a weapon to be
used against you by shady operators. Use the telephone only for information only. Make no commitments.
Provide no transmission of vital information, incoming or outgoing.

Email can also be a very powerful tool for your business. But as stated earlier, use it only for information only.

IMPORTANT NOTE: There is no such thing as a deal until you have it in writing.

No-Fees Syndrome

Many beginning and amateur finders get involved in the kind of deals that can never produce a fee. Those deals
are the most plentiful and can easily be detected by the astute professional.

If you are contacted by another finder looking for a specific source (or whatever), and the only leads or sources
you can uncover in your research are other finders offering the same thing, there is no way you can work the
deal. Not unless you want to research, and find, both sides of the deal, but don't count on that happening.

Add-On Fees Syndrome

Remember earlier, I defined what a finder was not? When we talk about add-on fees, we talk about pre-sellers.
Again, pre-sellers accept a selling price from a product source and add-on what they feel to be a fair margin of
profit, and sell the item. If anyone tells you to add-on your fee, forget it!

A finder acts under the direction of his client (usually the buyer and not another finder) by adding his fee to the
quoted price. In this case, the finder informs his client how much he is adding and the client agrees, in writing,
to pay that fee in addition to the actual cost.

Earning Your Fees

You will almost always earn a finder's fee when the person that will actually be paying the fee is your client;
and you have a written commitment from that person stating the terms and conditions of your Finder's Fees.
As a result of this, all you need to do is research and qualify the other-end fit to fulfill the requirements.

Your advertising techniques can be any that you choose, and need not be limited in any fashion to the
conventional advertising techniques of newspapers, magazines, and the like.

IMPORTANT NOTE: You may only give the names and addresses of the inquirers and buyers to the Real Estate
Agent/Broker. It will be their responsibility to follow up and close the sale. If you go beyond the act of
transmitting names of possible buyers, you may enter the field of agent/broker.
IMPORTANT NOTE: All Real Estate transactions are a matter of record. When a Real Estate project that you
have been advertising is sold, check the records in the County Court Clerk's Office to see if the buyer was one
of yours.

If you have intentions to work in the Real Estate arena, get your Real Estate Agents license. If you have a good
confidential list of possible Real Estate buyers and want to work with Real Estate Agents/ Brokers, protect your
fees by having your attorney prepare you with a "CONTINGENCY ADVERTISING CONTRACT".

A Final Word on Real Estate

It has been my experience and many other professional finders that Real Estate Agents/Brokers will
readily agree to pay a finder's fee. But upon closing the deal, they will refuse to honor their
commitment on the grounds that state laws forbid them from splitting their fees with anyone other
than another "licensed" Real Estate Agent/Broker.

They will claim, that when they offered the finder's fee, they thought you were another "licensed"
Real Estate Agent/Broker. Legally, they are within their rights to refuse to pay your fees, since you
aren't a "licensed" Real Estate Agent/Broker. So - how does a Finder circumvent this practice and
protect his/her fees? A "CONTINGENCY ADVERTISING CONTRACT" will do the trick.

Have your attorney prepare a legally binding "CONTINGENCY ADVERTISING CONTRACT" to be

used for Real Estate deals. Additionally, you can have a similar contract prepared in other "licensable"
areas, such as Insurance.

Basically, what does a "CONTINGENCY ADVERTISING CONTRACT" do?

1. You agree to advertise a specific property to your "confidential list of buyers", and relay any
inquiries generated by your advertising efforts, for a fixed dollar advertising charge, contingent
upon sale of the property to a buyer coming from your advertising efforts.

2. The Real Estate Agent/Broker agrees to follow up and offer said property to any buyer inquiries
generated by your advertising efforts.

3. To advertise for you if and when the property is sold or withdrawn from the market, and pay you
a fixed dollar advertising charge should he/she sell property, or any similar property, to any
4. buyer generated by your advertising efforts.

5. Your advertising techniques can be any that you choose, and need not be limited in any fashion
to the conventional advertising techniques of newspapers, magazines, and the like
Remember! Remember! Remember!

Some important points to remember if you are to succeed in this lucrative business:

 Be a finder, not an agent, representative, salesman, or pre-seller. Do not try to sell anything. Just
offer qualified contacts to advertisers who offer finder's fees. As a finder, let your contact and the
advertiser negotiate their own deal, once you have brought them together.

 Use the finest materials (letterhead & envelopes) available, and maintain the most professional
business approach in all of your dealings.

 Furnish only qualified contacts to your advertisers. Unqualified contacts only come from unqualified
amateur finders (the one's that do not follow the 10 rules of finding).

 Never give the advertiser the name & address of another finder. When you do, you start a daisy
chain, and are not entitled to any form of finder's fee.

 Read! Read! Read! Increase the number and quality of your contacts.

 Keep chronological and complete files of all of your correspondence (even telephone calls, faxes &
emails) with both your contacts and advertisers.

 Always find it first, before contacting the advertiser. This one action alone will save you a lot of money
in paper that doesn't go into the wastebasket.

 If you do not get a response from the advertiser, do not blame the advertiser - blame yourself. You
probably didn't offer the advertiser what he wanted. So try again or forget about that particular
finding opportunity.

 Be patient. The reason most amateur finders never earn their first fee is because they push for a fast
close. They try to negotiate the deal for the principals. Don't do it. Let the principals close their own
deal, in their own time. A "right deal" will close itself. A "wrong deal" will never close.
IX. In Retrospect - Finder's Fees Opportunities

Through the years, many interesting and unusual finder's fees have been earned involving Finders. Hence,
from the files in our archives are listed a few of the many enormous fees earned by astute Finders.

FEES FOR FINDING SCRAP METAL

A Texas man earned $43,000 on a single business transaction. This transaction consisted of making 3 telephone
calls, mailing 4 email letters, and took about 7 hours of his time. The transaction being the closing of a scrap
metal deal involving a seller in Pittsburgh, PA and a buyer in Houston, TX. Not a bad days pay!

FEES FOR FINDING CONCRETE FRANCHISES

A large Swiss concrete manufacturer which produces pre-cast concrete steps, stairs and porches for all kinds of
housing - apartments, multiple-residences and mobile homes offered a Finder's Fee for finding franchised
manufacturers all over the U.S.A. The response was enormous and many Finders earned tremendous fees
following through with this source.

FEES FOR FINDING OFFSHORE FINANCING

One finder earned a 15% commission for his finder's role in generating offshore financing for the construction
of 500,000 homes in South America. We never did figure out what his fee was, but it must have been
staggering. Our conservative guess is perhaps in the millions!!

FEES FOR REAL ESTATE TRANSACTION

A California woman collected a Finder's Fee of $225,000 for the sale of a beautiful mountain retreat in Santa
Cruz, California. This transaction involved the sale of this prime real estate with a seller in California and a
buyer in Egypt.

FEES FOR FINDING UNPATENTABLE IDEAS

If you bone up on your reading of patents, there is a huge market for non-patent ideas. A Florida subscriber
makes it his business of selling these over a period of time through Finder's opportunities.

FEES FOR PRODUCTION FACILITIES OFFERED

An Eastern service company, maintaining computer data on what kind of production facilities were available
throughout the country, closed a lot of deals through Finders. The searcher paid nothing for use of the service.
The companies who paid the fees for having their facilities listed also paid the Finder's Fees.

FEES FOR FINDING DISTRESS MERCHANDISE

A New Jersey man collected Finder’s Fees of $60,000 for matching a buyer of distress computer merchandise
in Louisville, KY, with a seller in Santa Clara, CA. This transaction involved 2 telephone calls and 1 letter of
correspondence.
FEES FOR FINDING PRECIOUS STONES

A New York couple collected a Finder's Fee of $80,000 on a single sale of precious stones from Brazil to a buyer
in Reno, NV. The sale continued and earned this couple an average yearly income of $34,000 for the next 3
years.

FEES FOR FINDING ANYTHING

In the last year, we've run hundreds of Finder's Fees opportunities listing wants and availabilities. Many of
these subscribers have connected with tremendous fees earned. Some of the ads include fees offered for finding
buyers of distress merchandise, for finding buyers of military equipment, for finding inventors, for finding
overstocks of computers, for finding Tasmanian Devils of Australia, for finding sellers of block-mortgage
packages on ghetto and slum properties.

The list goes on and on. We have seen just about everything offered in this field that could fill a telephone
book. The field is wide open. Keep your mind open and the fees will indeed pour in.

There you have it! This business is not Rocket Science!! But like any other type of moneymaking business, you
need to study and understand it. Once you understand the science of this business, it will be easy to do. And
once you do your first couple of transactions, it will be a piece of cake, and the money will be rolling in.

You can take that to the bank!!

X. International Trade Dictionary

The following terms are generally used in the Finder's Fees business. Whichever field(s) you decide to
specialize in, make yourself comfortable with these terms.

Acceptance

1. A time draft (or bill of exchange) that the drawee has accepted and is unconditionally obligated to pay
at maturity. The draft must be presented first for acceptance—the drawee becomes the "acceptor - then
for payment. The word "accepted" and the date and place of payment must be written on the face of the
draft.

2. The drawee's act in receiving a draft and thus entering into the obligation to pay its value at maturity.

3. (Broadly speaking) any agreement to purchase goods under specified terms. An agreement to purchase
goods at a stated price and under stated terms.

Ad valorem

According to value. See Duty.

Advance against documents

A loan made on the security of the documents covering the shipment.

Advising bank

A bank, operating in the exporter's country, that handles letters of credit for a foreign bank by notifying the
exporter that the credit has been opened in his or her favor. The advising bank fully informs the exporter of the
conditions of the letter of credit without necessarily bearing responsibility for payment.

Advisory capacity

A term indicating that a shipper's agent or representative is not empowered to make definitive decisions or
adjustments without approval of the group or individual represented.

Agent

See Foreign Sales Agent.

Air waybill

A bill of lading that covers both domestic and international flights transporting goods to a specified destination.
This is a non-negotiable instrument of air transport that serves as a receipt for the shipper, indicating that the
carrier has accepted the goods listed and obligates itself to carry the consignment to the airport of destination
according to specified conditions. Compare Inland bill of lading, Ocean bill of lading, and through bill of lading.
Alongside

A phrase referring to the side of a ship. Goods to be delivered "alongside" are to be placed on the dock or barge
within reach of the transport ship's tackle so that they can be loaded aboard the ship.

Anti-diversion clause

See Destination control statement.

Arbitrage

The process of buying Foreign exchange, stocks, bonds, and other commodities in one market and immediately
selling them in another market at higher prices.

Asian dollars

U.S. dollars deposited in Asia and the Pacific Basin. Compare Eurodollars.

ATA Carnet

See Carnet.

Balance of trade

The difference between a country's total imports and exports; if exports exceed imports, a favorable balance of
trade exists; if not, a trade deficit is said to exist.

Barter

Trade in which merchandise is exchanged directly for other merchandise without use of money. Barter is an
important means of trade with countries using currency that is not readily convertible.

Beneficiary

The person in whose favor a Letter of credit is issued or a Draft is drawn.

Bill of exchange

See Draft.

Bill of lading

A document that establishes the terms of a contract between a shipper and a transportation company under
which freight is to be moved between specified points for a specified charge. Usually prepared by the shipper
on forms issued by the carrier, it serves as a document of title, a contract of carriage, and a receipt for goods.
Also see Air waybill, Inland bill of lading, Ocean bill of lading, and through bill of lading.

Bonded warehouse

A warehouse authorized by Customs authorities for storage of goods on which payment of Duties is deferred
until the goods are removed.
Booking

An arrangement with a steamship company for the acceptance and carriage of freight.

Buying agent

See Purchasing Agent.

Carnet

A customs document permitting the holder to carry or send merchandise temporarily into certain foreign
countries (for display, demonstration, or similar purposes) without paying duties or posting bonds.

Cash against document (C.A.D.)

Payment for goods in which a commission house or other intermediary transfers title documents to the buyer
upon payment in cash.

Cash in advance (C.I.A.)

Payment for goods in which the price is paid in full before shipment is made. This method is usually used only
for small purchases or when the goods are built to order.

Cash with order (C.W.O.)

Payment for goods in which the buyer pays when ordering and in which the transaction is binding on both
parties.

Certificate of inspection

A document certifying that merchandise (such as perishable goods) was in good condition immediately prior
to its shipment.

Certificate of manufacture

A statement (often notarized) in which a producer of goods certifies that manufacture has been completed and
that the goods are now at the disposal of the buyer.

Certificate of origin

A document required by certain foreign countries for tariff purposes, certifying the country of origin of specified
goods.

C&F

"Cost and freight." A pricing term indicating that the cost of the goods and freight charges are included in the
quoted price; the buyer arranges for and pays insurance.

Charter party

A written contract, usually on a special form, between the owner of a vessel and a "charterer" who rents use
of the vessel or a part of its freight space. The contract generally included the freight rates and the ports
involved in the transportation.
C&I

"Cost and insurance." A pricing term indicating that the cost of the goods, insurance, and freight are included
in the quoted price.

Clean bill of lading

A receipt for goods issued by a carrier that indicates that the goods were received in "apparent good order
and condition," without damages or other irregularities. Compare Foul bill of lading.

Clean draft

A draft to which no documents have been attached.

Collection papers

All documents (Commercial invoices, Bills of lading, etc.) submitted to a buyer for the purpose of receiving
payment for a shipment.

Commercial attaché

The commerce expert on the diplomatic staff of his or her country's embassy or large consulate.

Commercial invoice

An itemized list of goods shipped, usually included among an exporter's Collection papers.

Commission agent

See Purchasing agent

Common carrier

An individual, partnership, or corporation that transports persons or goods for compensation.

Confirmed letter of credit

A letter of credit, issued by a foreign bank, with validity confirmed by a U.S. bank. An exporter who requires a
confirmed letter of credit from the buyer is assured of payment by the U.S. bank even if the foreign buyer or
the foreign bank defaults. See Letter of credit.

Consignment

Delivery of merchandise from an exporter (the consign- or) to an agent (the consignee) under agreement that
the agent sells the merchandise for the account of the exporter. The consignor retains title to the goods until
the consignee has sold them. The consignee sells the goods for commission and remits the net proceeds to the
consignor.

Consular declaration

A formal statement made to the consul of a foreign country, describing goods to be shipped.
Consular invoice

A document, required by some foreign countries, describing a shipment of goods and showing information such
as the consignor, consignee, and value of the shipment. Certified by a consular official of the foreign country,
it is used by the country's customs officials to verify the value, quantity, and nature of the shipment.

Convertible currency

A currency that can be bought and sold for other currencies at will.

Correspondent bank

A bank that, in its own country, handles the business of a foreign bank.

Countertrade

The sale of goods or services that are paid for in whole or in part by the transfer of goods or services from a
foreign country. (See Barter)

Credit risk insurance

Insurance designed to cover risks of nonpayment for delivered goods. Compare Marine insurance.

Customs

The authorities designated to collect duties levied by a country on imports and exports. The term also applies to
the procedures involved in such collection.

Customhouse broker

An individual or firm licensed to enter and clear goods through Customs.

Date draft

A draft that matures in a specified number of days after the date it is issued, without regard to the date of
Acceptance. See Draft, Sight draft and Time draft.

Deferred payment credit

Type of Letter of credit providing for payment some time after presentation of shipping documents by exporter.

Demand draft

See Sight draft

Destination control statement

Any of various statements that the U.S. Government requires to be displayed on export shipments and that
specify the destinations for which export of the shipment has been authorized.
Devaluation

The official lowering of the value of one country's currency in terms of one or more foreign currencies. (E.g., if
the U.S. dollar is devalued in relation to the French franc, one dollar will "buy" fewer francs than before.)

DISC

Domestic international Sales Corporation.

Discrepancy

Letter of credit--When documents presented do not conform to the letter of credit, it is

referred to as a "discrepancy."

Dispatch

An amount paid by a vessel's operator to a charterer if loading or unloading is completed in less time than
stipulated in the charter party.

Distributor

A foreign agent who sells for a supplier directly and maintains an inventory of the supplier's products.

Dock receipt

A receipt issued by an ocean carrier to acknowledge receipt of a shipment at the carrier's dock or warehouse
facilities. Also see Warehouse receipt.

Documentary draft

A Draft to which documents are attached.

Documents against acceptance (D/A)

Instructions given by a shipper to a bank indicating that documents transferring title to goods should be
delivered to the buyer (or drawee) only upon the buyer's acceptance of the attached draft.

Draft (or Bill of exchange)

An unconditional order in writing from one person (the drawer) to another (the drawee), directing the Drawee
to pay a specified amount to a named Drawer at a fixed or determinable future date. See Date draft, Sight
draft, Time draft.

Drawback

Articles manufactured or produced in the United States with the use of imported components or raw materials
and later exported are entitled to a refund of up to 99 percent of the duty charged on the imported components.
The refund of duty is known as a "drawback."

Drawee

The individual or firm on whom a draft is drawn and who owes the stated amount.
Compare Drawer. Also see Draft.
Drawer

The individual or firm that issues or signs a draft and thus stands to receive payment of the stated amount
from the drawee. Compare drawee. Also see Draft.

Dumping

Exporting/importing merchandise into a country below the costs incurred in production and shipment.

Duty

A tax imposed on imports by the customs authority of a country. Duties are generally based on the value of the
goods (ad valorem duties), some other factor such as weight or quantity (specific duties), or a combination of
value and other factors (compound duties).

EMC

See Export Management Company.

ETC

See Export trading company.

Euro dollars

U.S. dollars placed on deposit in banks outside the United States; usually refers to deposits in Europe.

EX

"From." When used in pricing terms such as "EX Factory" or "Ex Dock," it signifies that the price quoted applies
only at the point of origin (in the two examples, at the seller's factory or a dock at the import point). In practice,
this kind of quotation indicates that the seller agrees to place the goods at the disposal of the buyer at the
specified place within a fixed period of time.

Exchange permit

A government permit sometimes required by the importer's government to enable the importer to convert his or
her own country's currency into foreign currency with which to pay a seller in another country.

Exchange rate

The price of one currency in terms of another, i.e., the number of units of one currency that may be exchanged
for one unit of another currency.

Eximband

The Export-Import Bank of the United States.

Export broker

An individual or firm that brings together buyers and sellers for a fee but does not take part in actual sales
transactions.
Export commission house

An organization, which, for a commission, acts as a purchasing agent for a foreign buyer.

Export declaration

See Shipper's export declaration.

Export license

A government document that permits the "Licensee" to engage in the export of designated goods to certain
destinations. See General and Validated licenses.

Export Management Company

A private firm that serves as the export department for several manufacturers, soliciting and transacting export
business on behalf of its clients in return for a commission,salary, or retainer plus commission.

Export trading company

A firm similar or identical to an export management company.

F. A. S.

"Free alongside." A pricing term indicating that the quoted price includes the cost of delivering the goods
alongside a designated vessel.

FCIA

Foreign credit insurance association.

F. I.

"Free in." A pricing term indicating that the charterer of a vessel is responsible for the cost of loading and
unloading goods from the vessel.

Floating policy

See Open policy.

F. O.

"Free out." A pricing term indicating that the charterer of a vessel is responsible for the cost of loading goods
from the vessel.

F. O. B.

"Free on board." A pricing term indicating that the quoted price includes the cost of loading the goods into
transport vessels at the specified place.

Force majeure

The title of a standard clause in marine contracts exempting the parties for non-fulfillment of their obligations
as a result of conditions beyond their control, such as earthquakes, floods, or war.
Foreign Exchange

The currency or credit instruments of a foreign country. Also, transactions involving purchase and/or sale of
currencies.

Foreign freight forwarder

See Freight forwarder

Foreign sales agent

An individual or firm that serves as the foreign representative of a domestic supplier and seeks sales abroad for
the supplier.

Foreign trade zone

See free trade zone

Foul bill of lading

A receipt for goods issued by a carrier with an indication that the goods were damaged when received.
Compare clean bill of lading.

Free port

An area such as a port city into which merchandise may legally be moved without payment of duties.

Free trade zone

A port designated by the government of a country for duty-free entry of any non-prohibited goods. Merchandise
may be stored, displayed, used for manufacturing, etc., within the zone and re-exported without duties being
paid. Duties are imposed on the merchandise (or items manufactured from the merchandise) only when the
goods pass from the zone into an area of the country subject to the Customs Authority.

Freight forwarder

An independent business which handles export shipments for compensation. (A freight forwarder is among the
best sources of information and assistance on U.S. export regulations and documentation, shipping methods, and
foreign import regulations).

GATT

"General Agreement on Tariffs and Trade." A multilateral treaty intended to help reduce trade barriers between
the signatory countries and to promote trade through tariff concessions.

General export license

Any of various export licenses covering export commodities for which Validated export licenses are not required.
No formal application or written authorization is needed to ship exports under a General export license.
Gross weight

The full weight of a shipment, including goods and packaging. Compare Tare weight.

Import license

A document required and issued by some national governments authorizing the importation of goods into their
individual countries.

Inland bill of lading

A bill of lading used in transporting goods overland to the exporter's international carrier. Although a through
bill of lading can sometimes be used, it is usually necessary to prepare both an inland bill of lading and an
Ocean bill of lading for export shipments. Compare Air waybill, Ocean bill of lading, and through bill of lading.

International freight forwarder

See Freight forwarder

IOGA

Industry-Organized, Government- Sponsored) Trade Mission

Irrevocable letter of credit

A letter of credit in which the bank guarantees the specified payment if all terms and conditions are met by the
drawee. Compare revocable letter of credit.

Letter of Credit (L/C)

A document, issued by a bank per instruct ions by a buyer of goods, authorizing the seller to draw a specified
sum of money under specified terms, usually the receipt by the bank of certain documents within a given time.

Licensing

A business arrangement in which the manufacturer of a product (or a firm with proprietary rights over certain
technology, trademarks, etc.) grants permission to some other group or individual to manufacture that product
(or make use of that proprietary material) in return for specified royalties or other payment.

Manifest

See Ship's manifest

Marine insurance

Insurance that compensates the owners of goods transported overseas in the event of loss that cannot be legally
recovered from the carrier. Also covers air shipments. Compare Credit risk insurance.

Marking (or marks)

Letters, numbers, and other symbols placed on cargo packages to facilitate identification.
Ocean bill of lading

A Bill of lading (B/L) indicating that the exporter consigns a shipment to an internationalcarrier for transportation
to a specified foreign market. Unlike an Inland B/L, the Ocean B/L also serves as a collection document. If it is a
"straight" B/L, the foreign buyer can obtain the shipment from the carrier by simply showing proof of identity.
If a "negotiable" B/L is used, the buyer must first pay for the goods, post a bond, or meet other conditions
agreeable to the seller. Compare Air waybill, Inland bill of lading, and Through bill of lading.

On board bill of lading (B/L)

A Bill of lading in which a carrier certifies that goods have been placed on board a certain vessel.

Open account

A trade arrangement in which goods are shipped to a foreign buyer without guarantee of payment. The obvious
risk this method poses to the supplier makes it essential that the buyer's integrity be unquestionable.

Open insurance policy

A marine insurance policy that applies to all shipments made by an exporter over a period of time rather than
to one shipment only.

"Order" bill of lading (B/L)

A negotiable Bill of lading made out to the order of the shipper.

Packing list

A list showing the number and kinds of items being shipped, as well as other information needed for
transportation purposes.

Parcel post receipt

The postal authorities' signed acknowledgment of delivery to receiver of a shipment made by parcel post.

PEFCO (Private Export Funding Corporation)

Lends to foreign buyers to finance exports from U.S.

Perils of the sea

A marine insurance term used to designate heavy weather, stranding, lightning, collision, and seawater damage.

Phytosanitary Inspection Certificate

A certificate issued by the U.S. Department of Agriculture to satisfy import regulations for foreign countries,
indicating that a U.S. shipment has been inspected and is free from harmful pests and plant.

Political risk

In export financing the risk of loss due to such causes as currency inconvertibility, government action
preventing entry of goods, expropriation or confiscation, war, etc.
Pro forma invoice

An invoice provided by a supplier prior to the shipment of merchandise, informing the buyer of the kinds, and
quantities of goods to be sent, their value, and important specifications (weight, size, etc.).

Purchasing agent

An agent who purchases goods in his or her own country on behalf of foreign importers such as government
agencies and large private concerns.

Quota

The quantity of goods of a specific kind that a country permits to be imported without restriction or imposition
of additional Duties.

Quotation

An offer to sell goods at a stated price and under specified conditions.

Remitting bank

Bank that sends the Draft to overseas bank for collection.

Representative

See Foreign sales agent

Revocable letter of credit

A letter of credit that can be cancelled or altered by the Drawee (buyer) after it has been issued by the
drawee's bank. Compare irrevocable letter of credit.

Schedule B

Refers to "Schedule B, Statistical Classification of Domestic and Foreign Commodities Exported from the United
States." All commodities exported from the United States must be assigned a seven-digit Schedule B number.

Shipper's export declaration

A form required by the U.S. Treasury Department for all shipments and prepared by a shipper, indicating the
value, weight, destination, and other basic information about an export shipment.

Ship's manifest

An instrument in writing, signed by the captain of a ship that lists the individual
shipments constituting the ship's cargo.

Sight draft (S/D)

A draft that is payable upon presentation to the drawee. Compare Date draft, Time draft.
Spot exchange

The purchase of sale of foreign exchange for immediate delivery.

Standard Industrial Classification (SIC)

A standard numerical code system used by the U.S. Government to classify products and services.

Standard International Trade Classification (SITC)

A standard numerical code system developed by the United Nations to classify commodities used in
international trade.

Steamship conference

A group of steamship operators that operate under mutually agreed upon freight rates.

Straight bill of lading

A non-negotiable Bill of lading in which the goods are consigned directly to a named consignee.

Tare weight

The weight of a container and packing materials without the weight of the goods it contains. Compare Gross
weight.

Tenor (or a Draft)

Designation of a payment as being due at sight, a given number of days after sight, or a
given number of days after date.

Through bill of lading

A single Bill of lading converting both the domestic and international carriage of an export shipment. An Air
waybill, for instance, is essentially a through bill of lading used for air shipments. Ocean shipments, on the
other hand, usually require two separate documents--an Inland bill of lading for domestic carriage and an
Ocean bill of lading for international carriage. Through bills of lading are insufficient for ocean shipments.
Compare Air waybill, Inland bill of lading, and ocean bill of lading.

Time draft

A draft that matures either a certain number of days after acceptance or a certain number of days after the
date of the draft. Compare Date draft, Sight draft.

Tramp steamer

A ship not operating on regular routes or schedules.

Transaction statement

A document that delineates the terms and conditions agreed upon between the importer and exporter.
Trust receipt

Release of merchandise by a bank to a buyer in which the bank retains title to the merchandise. The
buyer, who obtains the goods for manufacturing or sales purposes, is obligated to maintain the goods
(or the proceeds from their sale) distinct from the remainder of his or her assets and to hold them or
repossession by the bank.

Validated export license

A required document issued by the U.S. Government authorizing the export of specific commodities.
This license is for a specific transaction or time period in which the exporting is to take place.
Compare General export license.

Warehouse receipt

A receipt issued by a warehouse listing goods received for storage.

Wharfage

A charge assessed by a pier or dock owner for handling incoming or outgoing cargo.

Without reserve

A term indicating that a shipper's agent or representative is empowered to make definitive decisions
and adjustments abroad without approval of the group or individual represented. Compare Advisory
capacity.