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 Post subject: Selling an agency
PostPosted: Tue Feb 12, 2019 1:15 pm 
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If you have a product that is gaining traction and you are approached to sell the agency for it how does this happen. Lets say for example that a meeting has been set for a weeks time and I have no idea how to go about this...
This product would be manufactured by myself.


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 Post subject: Re: Selling an agency
PostPosted: Tue Feb 12, 2019 1:17 pm 
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As an avid watcher of Dragons Den, you take your earnings to date and multiply them by the biggest number you can think of.


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 Post subject: Re: Selling an agency
PostPosted: Tue Feb 12, 2019 1:19 pm 
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Just a question of drawing up an agency agreement and agreeing a commission rate, no? Unless I'm misunderstanding the proposal - 'selling' an agency is an odd way of putting it so maybe you're talking about something else. If it's making an agreement with a 3rd party that they sell your product, it's not difficult to arrange.


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 Post subject: Re: Selling an agency
PostPosted: Tue Feb 12, 2019 1:27 pm 
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Womack wrote:
Just a question of drawing up an agency agreement and agreeing a commission rate, no? Unless I'm misunderstanding the proposal - 'selling' an agency is an odd way of putting it so maybe you're talking about something else. If it's making an agreement with a 3rd party that they sell your product, it's not difficult to arrange.


That sounds dangerous to me...putting the future of your product in anothers hands.
I have absolutely no experience in this. I was approached over drinks regarding this matter by a third party on two occassions and now they have set a meeting to discuss a. The agency , 2. The rights.......

I suppose I would really have to wait to hear the proposal....just dont like going into a meeting blind.

Of course I am googling madly atm


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 Post subject: Re: Selling an agency
PostPosted: Tue Feb 12, 2019 1:31 pm 
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It doesn't have to be exclusive agency for one thing. You'd have to hear their proposal and then weigh up if it makes sense in terms of the commission you would pay versus your costs and the likelihood of sales growth if you remained the sole seller of the product. There are obviously lots of things to be decided in terms of responsibilities and logistics, ie do they handle transport, warehousing, export (if a factor) etc etc. Basically you need to find out what they are proposing and weigh it up. But this kind of arrangement is quite common so it does work for lots of companies.


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 Post subject: Re: Selling an agency
PostPosted: Tue Feb 12, 2019 1:33 pm 
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Womack wrote:
It doesn't have to be exclusive agency for one thing. You'd have to hear their proposal and then weigh up if it makes sense in terms of the commission you would pay versus your costs and the likelihood of sales growth if you remained the sole seller of the product. There are obviously lots of things to be decided in terms of responsibilities and logistics, ie do they handle transport, warehousing, export (if a factor) etc etc. Basically you need to find out what they are proposing and weigh it up. But this kind of arrangement is quite common so it does work for lots of companies.

:thumbup:

Before I panic I will wait and see the proposal


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 Post subject: Re: Selling an agency
PostPosted: Tue Feb 12, 2019 1:36 pm 
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Is this like a franchise where they will have the retail sales rights for the products?

IMO, you've got to sensibly delineate what those rights are - be it limited geographically or within a time period (and so on).

When a deal works well, repeat that process.


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 Post subject: Re: Selling an agency
PostPosted: Tue Feb 12, 2019 1:47 pm 
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Get a lawyer


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 Post subject: Re: Selling an agency
PostPosted: Tue Feb 12, 2019 3:45 pm 
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happyhooker wrote:
Get a lawyer


This.

Don't commit to anything in the meeting and just take lots of notes. Make it clear that nothing is binding.
Maybe even ask to record it on your phone so you have a record of what was said; sometimes these guys are slick and have done all kinds of calculations and will just start throwing numbers at you.
It can be a little overwhelming following their sums.

Crunch the numbers later in your own time.

If they make sense, take it to YOUR lawyer to draft an agreement. Don't skimp on this.


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 Post subject: Re: Selling an agency
PostPosted: Tue Feb 12, 2019 5:07 pm 
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it seems that someone sees a way to make himself some money out of your product

will you benefit at the same time?

how does his involvement effect your risk?

these are just basic questions - there are many others

happyhooker wrote:
Get a good lawyer


fixed


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 Post subject: Re: Selling an agency
PostPosted: Tue Feb 12, 2019 5:30 pm 
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Get the professionals in.

I am a Master Franchisee and know that working out the management of "rights" is an onerous and complex business.
Track what other guys like you have done and always, always reject the first suitor.
He'll be hungry for you when he gets you. :smug:


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 Post subject: Re: Selling an agency
PostPosted: Tue Feb 12, 2019 6:56 pm 
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Thanks guys...I have spent a lot of energy in the product to the point its become a passion. We have had competitors from Europe talking to us and a lot of referred business so its growing. I've tried to grow it slowly so it develops a pedigree so I wont rush into anything. It's my baby.


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 Post subject: Re: Selling an agency
PostPosted: Tue Feb 12, 2019 7:15 pm 
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Walk down your life path three years.
Turn round when you get there and look back to now.
Visualise the steps that you took in those three years.
Pick the steps to where you are that have no regret.


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 Post subject: Re: Selling an agency
PostPosted: Tue Feb 12, 2019 7:24 pm 
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Trostan wrote:
Walk down your life path three years.
Turn round when you get there and look back to now.
Visualise the steps that you took in those three years.
Pick the steps to where you are that have no regret.

Fûcking hippy


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 Post subject: Re: Selling an agency
PostPosted: Tue Feb 12, 2019 7:25 pm 
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Sards wrote:
Thanks guys...I have spent a lot of energy in the product to the point its become a passion. We have had competitors from Europe talking to us and a lot of referred business so its growing. I've tried to grow it slowly so it develops a pedigree so I wont rush into anything. It's my baby.


Hope your business isn’t those shitty tattoos you have

Also, I don’t really understand what selling and agency means in the OP - but if it’s something you already make and sell, make sure you have all your figures to hand like turnover , margin, fixed and variable costs, finance costs etc

When Carnegie sold his wee scrap metal and digging company, it was for the then outstanding 22 times net profit iirc, so if you made a million rand last year net profit, sell for 22m rand


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 Post subject: Re: Selling an agency
PostPosted: Wed Feb 13, 2019 9:03 am 
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Sards, are you selling this product on your current website?

Or is it something completely separate?


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