How To Join The League Of Smart Entrepreneurs Who Source And Market Their Good Finds Exclusively
By Lordson Okpetu
Sourcing for products to market is lucrative if you know how to go about it. But more lucrative is when you’re able to source and obtain the right to market a certain products exclusively.
If you’re hearing about the ‘exclusive marketing rights’ concept for the first time, or you’ve already heard about it before but don’t know how to pull it off, do not worry as you’re in luck today. By the time you’re done reading this article, you would know what exclusive marketing right (EMR) is, how to go about securing one, and how to use it to earn big cash.
An ‘exclusive marketing right’, in a nutshell, is an agreement that makes you the only go-through point for wholesalers and retailers to obtain a particular product in a well-defined territory. Think of the type of relationship that exists between BMW automobile and Coscharis group in Nigeria. A similar type of relationship exists between Coscharis and Abro auto care products.
What this type of relationship means for Coscharis is that whenever anybody, anywhere in Nigeria buys any of these products (e.g. a brand new BMW car of any model, or any abro autocare products), part of the profits comes back to them. Interesting!
But more interesting is the fact that building this type of relationship with manufacturers is not rocket science, and is not for only big players like Coscharis group.
In this business model, enormous opportunities exist for small companies and individuals too because most small manufacturing companies tend to be experts in design and production, but poor at marketing. Even some big companies are not left out.
As a result, you'll often find some incredibly good products just sitting on manufacturers shelf. This is where you come in...you step in and help the manufacturers sell their products in exchange for the exclusive marketing rights of the product.
Who Can Request For Exclusive Marketing Rights From Manufacturers?
Anybody with a zest for marketing can make a fortune from this business model. In fact, smart marketers like Joseph Cossman confessed to only marketing products they control through exclusive marketing right.
How Anyone Can Make Money With Exclusive Marketing Rights
To make money from exclusive marketing rights, simply follow the four steps below...
The Four-step Guide To Earn Big Cash From Exclusive Marketing Rights
Step 1: Source for a good product
Step 2: Evaluate the product
Step 3: Obtain for FREE, the exclusive rights to the product
Step 4: Market and sell the product for big profits
Sourcing For A Product:
What you want to achieve at this stage is to locate a product that is already selling, but is not available in your niche (desired territory) market yet. Sometimes you get a winner with ‘abandoned’ products that are just sitting on a manufacturer’s shelf.
Where and how to locate products with potentials:
How and where to locate potential products you can obtain their Exclusive Marketing Right is an essential knowledge you need to succeed in this business model, otherwise you’ll just go round and round in circles and not get anything out of your efforts.
Take it from me, the best place and probably the only place, you should look for products you can obtain their exclusive rights is the source of the product.
Only the ‘source’ of product can confer on you the exclusive marketing rights to that product. No other person/group can.
So, in your hunt for potential products you can acquire its EMR, the first and only place you should concentrate your efforts on is the source of products.
What are these sources I’m referring to? I’m talking about manufacturers/producers, inventors, importers of products. Looking elsewhere is a total waste of time. Rather concentrate your effort on looking for the sources.
Henceforth, when you pick up a newspaper, don’t just read the news articles and dump it like you used to do, start cross-checking the newspaper adverts for potential ‘sources’, manufacturers, importers, inventors. These are the people you can, and should, approach for EMR agreement.
Note: It’s not only in current and future newspaper editions that you can spot potential ‘sources’. Old newspaper articles are as good, if not better, places to look for potential ‘sources’.
Apply the same method to your internet browsing. When browsing the internet, be on the lookout for potential sources.
As you go about locating products that are already selling, but not available in your niche market yet, bear this in mind...go after small scale manufacturers. Do not even think about going to large-scale manufacturers like Friesland (manufacturers of Peak Milk), Coca cola, Dangote etc. These big time manufacturers have already-established distributing channels, and won’t even grant you audience.
When you come across products you’ll like to market exclusively, quickly proceed to step 2, which is to evaluate the products to eliminate the ones that won’t do well in your market.
You have to do this diligently so as not to dissipate energy marketing a product people don’t really want. Unfortunately, space will not permit us to discuss the evaluation process here. So, let’s quickly move on to how to obtain the exclusive rights to market a product.
How To Obtain For FREE, The Exclusive Rights To Market A Product:
So you’ve identified a product you’re sure you would like to market exclusively, congratulations! You won’t know how eager most small scale manufacturers/product owners/importers are to sell more quantities of their products until you approach them with a proposal to help them sell more.
But, to make this proposal, you have to employ the right approach. Approach a manufacturer/product owner unprofessionally, and you can be sure you’ll never land the deal.
However, even if you don’t have a ‘bleak clue’ about how to professionally ask for EMR from a manufacturer/product owner, following this amazingly simple approach for obtaining exclusive rights to a product -- for FREE --will make the process a piece of cake. Just follow the 9 instructions below:
1. Never pay for exclusive marketing rights! It is FREE!! You are opening up new markets and sales for the manufacturer at your expense. You’ll be footing the bill of marketing the product in your area of exclusivity. And remember, time is money and that's what you will be providing. Your only total upfront cost should be for postage, and maybe a sample if you can't talk him into a free review product.
2. Most manufacturers have an email address, which is the best way to contact them. Send them a simple email introducing yourself, what you do, what you want from him/her (manufacturer), and proof that you can do what you’re asking for.
The essence of this letter is to build relationship with the manufacturer. Two types of manufacturers will not reply your email. One is a manufacturer that is not interested in selling more copies of his product. Another is the manufacturer that doesn’t understand what EMR is about. I call them the ‘no-reply’.
Do not concern yourself with the ‘no-reply’. What you want is the ‘hot leads’-- manufacturers that will reply your email. Hot leads are made up of both the ones that are eager to get started right away (super hot lead) and the ones who reply to turn your offer down for whatever reason (warm lead). The next thing you’re going to do is to quickly get back to the ‘super hot leads’ with your reply expressing your desire to get exclusive marketing rights in a certain territory. Attach a copy of the exclusive marketing right agreement for the manufacturer’s consideration. You can edit and use this sample below:
EXCLUSIVE MARKETING AGREEMENT (Sample)
This AGREEMENT is made on the dates signed below, by and between (Your name or company name) of (your address), and (Manufacturer’s name) of (their address).
WHEREAS (Manufacturer’s name) is the manufacturer of (name of product) and is desirous of having said product distributed in (Name of your intended EMR territory), and, WHEREAS (Your name or company name) is a distributor of such products in the above-stated ‘territory’;
IT IS AGREED by the above-named parties, in consideration of the promises and covenants hereinafter contained, as follows:
1. (Manufacturer’s name) grants to (Your name or company name) the exclusive sales and distribution rights to (name the product) throughout the above-named ‘territory’.
2. (Your name or company name) agrees to diligently sell and distribute (name the product) in accord with the terms and conditions of this agreement.
3. (Manufacturer’s name) agrees to turn over to (Your name or company name) any and all orders and inquiries regarding stated product it shall receive from the above-named ‘territory’.
4. (Manufacturer’s name) will provide (Your name or company name) with all technical data regarding the products; sales literature, brochures, catalogs, etc. currently in use for the product; and any and all future improvements (Manufacturer’s name) may develop relative to the product.
5. (Your name or company name) agrees to buy the stated products exclusively from (Manufacturer’s name) and refrain from marketing similar products in competition with (Manufacturer’s name).
6. (Manufacturer’s name) agrees to maintain production capacity capable of supplying the orders produced by (Your name or company name).
7. (Your name or company name) agrees to sell a minimum of XXX units (the quantity of products you plan to sell) of (Manufacturer’s name) product during the first year of this agreement. Should (Your name or company name) not sell XXX units within the first year, it shall be to the determination of (Manufacturer’s name) whether or not this agreement shall be continued for additional years. This agreement shall renew automatically for additional years so long as a minimum of XXX units of the product are sold each year. (Define what one unit of the product is to be.)
8. (Your name or company name) shall have the sole discretion to determine the methods of merchandising the products under this contract.
9. (Your name or company name) has the unfettered right to, and may, assign its rights and obligations under this agreement to a third party.
We, the undersigned, agree to the terms and conditions of this agreement on the below written dates.
3. When negotiating for new product exclusivity, expect to get your share of refusals and turndowns— most of these refusals can and should be turned into acceptance if you know how. It’s simple to make this happen, just that space will not permit me to share with you my plan for approaching manufacturers who turn me down and still get the deal done.
Keep plugging along and you'll likely get that winner in time. Most manufacturers want to work with you, and especially want you to succeed, as your success translates into more money for them. But, they want to be represented by a true professional that can perform, making sales according to their goals. It's your job to convince them that you are that person. Give them reasons why you can perform by showing some past successes (if you have), or your ability to penetrate the market you are requesting exclusivity for.
4. Don't be too specific or you'll give away your trade secrets and a manufacturer may feel he may not need you, because he now believes he can now do it himself, since you've given him the idea.
5. Don't be afraid to ask for what you want.
6. If you calculate you realistically need to make a certain amount of money per unit, and you expect to conservatively sell a specific minimum of units per month, don't be pressured into higher prices or greater sales targets. Only settle for what you believe to be fair and realistic. If they want more than you believe fair or realistic, pass up the product and find another one from someone else.
7. Since most manufacturers/product owners only sell their products through two or three methods, you may get exclusive rights for other markets like the Internet or mail order.
8. Don't buy large upfront stock. If possible, just get a few samples, and work with these and possibly some pictures or catalog sheets (glossy pictures with product description and specifications). If you need stock, be conservative, and start with as little as possible. Use all the existing selling aids you can get from the manufacturer, to start with.
9. Once the manufacturer/product owner sees you can perform in the market he's assigned to you, he will likely give you additional exclusive rights to other markets/products.
The last step to take in making money with EMR is to market and sell the products you control exclusively in your niche/territory and strictly keep to your agreements with the product manufacturer.
This is where a good knowledge of marketing comes in. Regrettably, space will not permit us to discuss in details how to market your products effectively.
Generally you have to think big, the manufacturer who gave you exclusivity to his products expects a lot from you in the area you control. Aim to sell in bulk and not in retail quantities. You may need to recruit marketers and distributors nationwide. You can ask the manufacturer for handbills, banners, brochure and other marketing materials. These materials will help make your marketing easier if available.
Check my eBookstore for my ebook on Exclusive Marketing Rights in Nigeria.Video: Watch Joseph Cossman explain Exlusive Marketing Rights
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