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A good way to exploit overseas markets is of course to have a presence there, that is, to open branch offices or even establish manufacturing facilities in the targeted international market. But it is not feasible for all kinds of companies, especially for many medium-sized and small companies. For these companies, having agents located in the importing country is a much more realistic choice. When they seek to develop their markets in other countries, companies often turn to the help of agents, who will be employed to represent them to sell their products in a given area too distant to be effectively covered by themselves.

There are different type of agents. As far as buying and selling are concerned, two kinds of agents are very common： general agent and sole agent or exclusive agent.

The commission is the reward for the agents’ work. Agents solicit orders from local buyers and collect a commission or a fee from the exporters. The usual percentage is 5-10. The percentage depends on the amount of work involved, the nature of the market and of the product. When negotiating, you should state clearly whether the basis for calculating commission is on FOB or CIF value and when the commission is to be paid. Usually the commission is paid after execution of the contract—after the exporter receives the proceeds. Commission is usually settled on monthly or quarterly basis.

Mr. Li, a marketing manager from a Chinese Bicycle Corp., talks with Mr. Kim, an agent of South Korea, about his request to be the sole agent for bicycles.

Kim： Your bicycles with attractive design and reasonable prices do appeal to our customers. So we are particularly interested in selling the bicycles on your behalf in our territory. Is it alright?

Li： I’m afraid not. We feel it would be better to consider the matter after you have done more business with us.

Kim： Please bear in mind that we have been placing more and more orders during the past two years. After being a distributor for such a long time, we have got a thorough knowledge of the market situation and a deep insight into the customers’ needs.

Li： We appreciate your performance and proposal, but your annual volume does not justify a sole agency agreement. We are of the opinion that it would be better for both of us to try out a bit longer period to see how things go.

Kim： If you appoint us as the sole agent, we can assure you that we’ll increase the turnover.

Li： Well, considering our good relationship, we’d like to offer you, as a sole agent, a trial period of twelve months. If everything goes well, we can renew the agency on its expiration, and as our sole agent you cannot sell similar products from other manufacturers.

Kim： Certainly. You can rest assured of it. When is it convenient for you to sign the agreement?

Baker： Hello. Mr. He. I’m afraid I have bad news for you. Your sole agency has to be terminated at this time.

He： What? Terminate our agency? Why?

Baker： Because your turnover is still unsatisfactory; even 20% less than the minimum amount in the first year.

He： But we’ve put forth our every effort.

Baker： Yes. We believe so. But that is not a sufficient excuse. In the past 6 months, you’ve finished only 60% of the required quantity, thus caused us a great loss.

He： That’s not all our fault.

Baker： As we know, customers are satisfied with the functions of our products. What they complain about most is the after-sale service.

He： Perhaps that’s true. But we don’t have many experts at hand.

Baker： Therefore we have to terminate your sole agency.

He： Could you give me one more chance?

Baker： We won’t appoint any new agents in this district for a few years. Maybe we can have another talk when both your sale ability and after-sale service have lived up to our expectations.

He： It seems we’ve no other choice.

Chen： Yes. We’ve learned from your fax and decided to offer you a 3-5% commission.

Smith： But you see, we’re a commission agent. We do business on commission basis. Commission transactions will surely help us to push the sale of your products.

Chen： Just for the sake of agency, we will make this exception. But I’m afraid you do not have thorough knowledge of the present market.

Smith： Well, we’re fully aware of the preferences of local customers due to our frequent market research. Actually due to the fierce competition, goods of the same line in Hong Kong are quoted at 20% lower than yours.

Chen： But our goods are of great quality. You can’t concentrate on price only. Our higher quality makes the price worthwhile. Is that right?

Smith： Well, we can see that the quality sets your products apart from those of your competitors. But most of the customers in this market are price sensitive, so they are more likely to select modertately-priced ones.

Chen： Well, in view of our long-standing cooperation, we grant you 8% commission, and I’m afraid that this is the best we can do.

Anderson： Commission is usually given as a percentage of the total value of a transaction. Our agents in other areas usaully get a 3-5% commission on the total value of business.

Wang： Mr. Anderson, as you know, we do business on a commmission basis. We must send our salesmen to do a lot of traveling and spend a considerable amount of money for advertising in newspapers and TV programs. A 10% commission won’t leave us much.

Anderson： Maybe it’s true. But you know, our price is worked out according to the current market situation. A 10% commission means a great increase in our price. Since you’re such a trustworthy agent and your credit standing is impressive, we would like to give you a 4% commission. This is the best we can do.

Anderson： Well, let’s put it in this way： I suggest that we should sign a sole agency agreement on this item for a duration of three years. The amonut of transaction is 4 000 000 US dollars in the first year, 6 000 000 US dollars in the second year and 8 000 000 US dollars in the third year. And you represent our company within the territory of China on a 6% commission basis. Is that alright?

Anderson： That’s not exactly what I mean to you. Mr. Wang. We value your friendship more than anything else. As you know, with the sole agency in your hands, there will be no competition, and you are the only one entrusted with our business. So you could easily control the market, which would naturally result in bigger sales. I’m sure you can fulfill the agreement without much difficulty.

Wang： Well, if you say so, I have to comply. Let’s sign the agreement tomorrow morning.

1. Your bicycles with attractive design and reasonable prices do appeal to our customers. 你们的自行车设计美观、价格合理，确实吸引我们的顾客。appeal to sb. 意为“对某人有吸引力，是某人感兴趣”，例如：This movie doesn’t appeal to me at all.

2. So we are particularly interested in selling the bicycles on your behalf in our territory. Is it alright? 所以，我们特别想做贵公司在我们区域里的代理，你觉得怎么样？On behalf of sb. 意为“代表某人”。

3. Please bear in mind that we have been placing more and more orders during the past two years. 请记住，我们在过去的两年里下了越来越多的订单。bear in mind, 意为“记住，牢记”，例如：I’ll bear in mind what he says. 我会牢记住他所说的话。

4. After being a distributor for such a long time, we have got a thorough knowledge of the market situation and a deep insight into the customers’ needs. 做了这么长时间的经销商，我们已经对市场情况和顾客需求有了全面的了解。have a deep insight into 意为“对……有深入的了解”。例如：We have got a deep insight into the problem through the careful study.通过详细调查，我们对这个问题已经有了深入的了解。

5. We appreciate your performance and proposal, but your annualvolume does not justify a sole agency agreement.我们欣赏你们的业绩和建议，但你们的年销量没有达到一个独家代理的水平。justify意为“证明……有理/正确，为……辩护”，例如：How can you justify spending so much money? 你怎么能对花掉这么多钱做出令人满意的解释呢?

6. We are of the opinion that it would be better for both of us to try out a bit longer period to see how things go.我们认为双方都应在尝试合作一段时间，以便了解合作情况，这样对我们双方都有益。be of the opinion that...意为“认为，主张”，比think 更正式；try out意为“实验，考验”。

7. If everything goes well, we can renew the agency on its expiration...如果一切顺利，我们可以在此代理期满后续签协议。renew 意为“继续，续订，续签”。

8. But we’ve put forth our every effort. 但我们已尽了最大努力。put forth意为“发表，做出”。

9. Maybe we can have another talk when both your sale ability and after-sale service have lived up to our expectations. 也许当你方销售能力和售后服务都符合我方要求时，我们可以再谈。live up to 意为“达到标准，不辜负；实行，履行”，例如：I try to live up to the high standard of the school. 我力求达到这所学校的高标准要求。

10. Just for the sake of agency, we will make this exception. 正胡思考虑到你方的代理身份，我们此次才破例。for the sake of 意为“为了……”；make an exception意为“破例”。

11. But you know, our price is worked out according to the current market situation.但你要知道，我们的价格是根据目前的市场行情计算出来的。work out意为“做出，计算出，设计出”，例如：The charge for labor works out at almost ten dollars an hour. 付给工人的费用算下来每小时差不多十美元。

12. Since you’re such a trustworthy agent and your credit standing is impressive, we would like to give you a 4% commission.既然你方是这么值得信任并且声誉良好的代理，我们愿意支付4%的佣金。

13. The commission you give is far from enough.你方支付的佣金是远远不够的。

14. I suggest that we should sign a sole agency agreement on this item for a duration of three years.我建议我们在该项目上签订为期三年的独家代理协议。duration意为“持续时间，期间”。

15. ...you are sure hard on me.你对我真苛刻。be hard on意为“对……苛刻”。

16. ...and you are the only one entrusted with our business. So you could easily control the market, which would naturally result in bigger sales.你方是我方委托的唯一一家代理，所以你们很容易控制市场，销量自然就会更大。entrust 意为“委托”，entrusted agency意为“委托代理”。

1) We are particularly interested in selling the bicycles on your behalf in our territory. Is that alright?

1) I’m afraid we have to terminate your agency of our product in this district.

5) We grant you a 8% commission, and I’m afraid that this is the best we can do.

3) 非常感谢贵公司想成为我方的独家代理商，但我们认为时机还不成熟。

2) We’ve been in this line for 20 years, and our reputation is second to none.

3) We think your estimated annual quantity is rather conservative for an exclusive agent in your district.

2) Do you know any sole agents in your district? How do they conduct their business?

3) How much do you know about commission for agency? Can you give an example to justify the proper commission?

Find a partner and act the following roles according to the situation described：

agency on artificial flowers.

You are Mr./Ms Joseph McFarland, who is going to represent Mr./Ms Wang’s company.

You are Mr./Ms Wang, who is working in the artificial flower industry.

1) State the requirements for agency.

2) Enquire about his plan on promoting your products.

3) Appreciate his intention to be a sole agent, but do not agree due to his conservative turnover.

4) Explain the percentage of commission.

Has anyone ever apologized to you, but it felt insincere? Here are three forms of apologies that are insincere：

One： Apology plus excuse. If you are late, but have an excuse, you are still late. Don’t apologize by making excuses, as in, “Sorry I’m late. The traffic was horrible.” That is inauthentic.

Two： The grudging apology. This is an apology where the person says he is sorry, but the voice tone seems to be angry, as if he is gritting his teeth.

Three： The apology with a big “but”. Here, the apologizer starts with an apology, adds the word “but” and shifts the blame to you. “I am sorry I yelled but you were driving me crazy.”

A sincere apology is simple and has no conditions. The tone of voice matches the words： “I am so sorry I am late.” “I am sorry I yelled.”That’s it. You can follow with promises to do better next time, but make sure that the other person gets that you are truly sorry, and take full responsibility for your actions. That’s a sincere apology.

(http://etiquettemoms.com/view/719/The_sincere_and_ insincere_way_to_apologize.cfm)