A broker, according to our country's "Cihai", is an intermediary businessman who introduces transactions between buyers and sellers in order to obtain commissions. On October 26, 1995, the State Administration for Industry and Commerce promulgated the "Measures for the Administration of Brokers" and pointed out: "The term "broker" as mentioned in these Measures refers to those who, in accordance with the provisions of these Measures, engage in economic activities for the purpose of collecting commissions for the purpose of facilitating the brokerage of others. Citizens, legal persons and other economic organizations who engage in intermediary, brokerage or agency business for transactions. Generally speaking: a broker refers to a person who acts as an intermediary when a contract is entered into between the principal and the other party in order to facilitate other people's commodity transactions. Legally established brokerage organizations and individuals that provide the client with information, opportunities, and conditions for entering into a contract, or act as brokers to sign contracts with contract parties on behalf of the client in anonymous transactions.

How do brokers work?

The most basic job of a broker is to facilitate transactions through intermediary business.

First of all: the client’s business. Make an effective and correct assessment. Usually when the client sells a business, the pricing of the business will be emotionally charged and cannot truly reflect the actual value and price of the business. Brokers are all certain. Experts in an industry who can rationally evaluate a business

Second: Sign a brokerage contract with the client to establish the rights and obligations of both parties.

Third: Find buyers for the client according to the client's specific requirements and contract provisions.

Fourth: Promote the success of the transaction between the two parties.

Fifth: Obtain commission. >

In the international brokerage industry, the success of a business generally requires ten steps, which require the cooperation of the client and the broker. The ten steps of successful business:

1. Have a good business. Reasons to sell your business. For example: a bad day or a lackluster employee are not good reasons. Also, don't just put a price on your business. Focus on your true purpose of preventing buyers in the first place. Know why you are selling your business, find more legitimate and legitimate reasons, and take your buyer seriously is the best policy

2. Don’t wait until you have to. Do not wait until you are very busy to sell your business. The best time to sell is when you are relatively busy, so that buyers can see your vitality.

3. Be right. By keeping your sales process confidential from outsiders, an agent will cut through the emotional stuff and make solid business decisions. Doing so will get you a higher price for your business, and your agent will be staunchly conservative. Confidentiality to protect you and your business. Your broker will be most helpful in the following areas:

** Establishing an unbiased market survey;

** Contact and convince buyers;

** General market strategy;

** Display your business and characteristics differently in front of different buyers;

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** Show your negotiation skills;

4. After you decide to tell your agent your decision, you should also share some market information and your business as much as possible. Tell your agent as much as possible, and treat your agent right by knowing what you have and what you will reveal.

5. Keep your market goals in mind, assist your broker to achieve them day by day according to the original steps, and answer your broker's questions in a timely manner;

6 , cooperate sincerely during work, and keep business secrets in front of buyers;

7. Always appear at your place as a bystander, which will help achieve your sales goals. ;

8. Package the business you want to sell as well as possible;

9. Price is the most sensitive, and an astute buyer will usually price it with a more Lower the price and the seller who bids lower to get a lower price for himself. At this time, you must not stimulate the seller who bids low. You should learn how to approach him.

10. Remember that the most successful transaction is one that creates a win-win situation. A successful transaction is when either party to the transaction is satisfied.

How does a broker obtain broker qualification?

(1) Must pass broker qualification certification: that is, confirm whether you are qualified to become a broker. According to Article 6 of the Broker Management Measures, persons applying to engage in brokerage activities must meet the following conditions:

First, have full capacity for civil conduct;

Second, have the necessary qualifications to engage in brokerage activities Knowledge and skills;

3. Have a fixed residence;

4. Master the relevant national laws, regulations and policies;

5. Before applying for brokerage qualifications There must be no criminal or economic violations for three consecutive years. Personnel who meet the above conditions must pass the assessment after obtaining the brokerage qualification certificate.

(2) According to the "Broker Management Measures" issued by the State Administration for Industry and Commerce and the specific regulations of relevant provinces and cities, broker training, assessment and certification are organized and implemented by the industrial and commercial administrative agencies at or above the county level, or can be entrusted to relevant units.

The content of the training and assessment includes the knowledge and skills required to engage in brokerage activities as well as relevant laws, regulations, professional ethics, etc. After passing the training and assessment, a certificate will be issued. With the certificate of assessment, apply to the industrial and commercial administrative agency that issued the license. After approval, a "Broker Qualification Certificate" will be issued. Those who apply for professional broker qualification certificates in science and technology, real estate, and other special industries stipulated in laws and administrative regulations shall be trained, reviewed, assessed and issued by the provincial or municipal (prefecture) industrial and commercial administration departments in conjunction with relevant administrative departments.

(3) Persons who have obtained the "Broker Qualification Certificate" can apply for the establishment of a brokerage enterprise, a partnership brokerage organization, and registration as an independent broker in accordance with the law.

Classification of brokers

Brokers can be divided into general brokers and special industry brokers. Special industry brokers refer to professional brokers engaged in finance, insurance, securities, futures, technology, real estate and other industries. They must pass professional training and pass the assessment to obtain a professional broker qualification certificate before they can work.

General brokers: The so-called general brokers refer to middlemen who engage in commodity transactions that are allowed to be publicly traded by the state and do not belong to special industries. The main economic activity of a general broker is to find sellers for buyers of goods, find buyers for sellers, and connect buyers and sellers to facilitate transactions between buyers and sellers. General brokers are also called commercial brokers in areas with developed foreign brokerage industries. In their meaning, they provide intermediary services for commodity transactions for users, including real estate sales, production materials, daily necessities and other transactions, transfers, and idle equipment rentals. Or intermediary services in sales, transportation, etc. An excellent commercial broker (general broker) or an excellent commercial brokerage company not only has very good social relations, but also has a very good reputation and social image. They act strictly in accordance with principles and serve The principal (user) actively searches for buyers. At the same time, they are also industry experts with rich professional knowledge and understanding of the industry. Therefore, for a user, discovering and finding a good brokerage company or broker is undoubtedly discovering and finding a "golden mountain".

Futures brokers: Due to the characteristics of futures trading, futures brokers are generally divided into two categories: brokerage companies and brokers.

Technology brokers: Technology brokers refer to citizens, legal persons and other economic organizations that engage in intermediary, brokerage or agency business for the purpose of collecting commissions and facilitating other people's technology transactions.

Labor brokers: Institutions, companies, individuals, etc. that engage in labor intermediaries for the purpose of obtaining commissions.

Real estate agent: A real estate agent is an intermediary who conducts real estate investments or transactions on behalf of clients in order to obtain commission income. Real estate agents are generally divided into two categories: corporate real estate agents and individual real estate agents. Specialist real estate agents and general real estate agents.

Cultural and sports agents: Cultural and sports agents refer to cultural and art agents and sports agents. The service targets of cultural and art agents are people in the cultural and art circles. Sports agents serve people in the sports world.

The role of brokers

Brokers are the product of market economy. It plays an obvious positive role in developing the economy, promoting circulation, and prospering the market. The way of survival of brokers is different from other merchants, and the diversity of information sources gives brokers a unique function in solving the contradiction between supply and demand of goods. Specifically:

(1) There are many social connections, good market information, and high work efficiency, helping companies solve the contradiction between supply and demand and open up market sales.

(2) The market system includes the market for production materials, the market for daily necessities, technology, talent, labor, capital, real estate and other markets, all of which require a large number of brokers to act as intermediaries, provide information, introduce customers, and match up. make a deal.

(3) Help enterprises introduce advanced foreign technology, capital and management experience to expand export trade.

(4) Promote the prosperity of cultural and sports undertakings, cultivate the cultural market, and enrich people’s lives.

The historical development and current situation of brokers in my country

China is an ancient country with a long history, and brokerage activities began more than two thousand years ago. In the Western Han Dynasty, agents were called "Juqi"; in the Tang Dynasty, agents were called Yaren or Yalang; in the Song and Yuan dynasties, foreign trade agents appeared, and were called "Yaqi" in the Song Dynasty and "Boya" in the Yuan Dynasty. "During the Ming and Qing Dynasties, brokers were called "Ya Ren". In the Ming Dynasty, Yin Ren was also divided into official teeth and private teeth. At the same time, teeth shops also appeared, which specifically referred to shops that brokered transactions for merchants. In the Qing Dynasty, in foreign trade, brokers were called "foreign firms". In the late Qing Dynasty, special foreign trade brokers "compradors" also appeared. During the Republic of China, with the emergence of stock and bond trading, bond brokers appeared for the first time in Chinese history. At the beginning of liberation, my country adopted restrictive and outlaw policies on brokers. At the same time, it was stipulated that brokers should set up trusts and brokerage agencies owned by the whole people and collectives in designated places, and also conduct intermediary business between buyers and sellers. In 1958, brokers were banned. However, in rural market trade, individual citizens are allowed to engage in intermediary activities to facilitate transactions in agricultural and sideline products. After 1980, brokerage activities began to recover, but brokerage activities were only undisclosed "underground" intermediary activities.

After 1985, brokers moved from "underground" to above ground and engaged in brokerage activities in an open and legal capacity. Since 1992, brokers have been in a stage of gradual development. The state has adopted the policy of "support, management, and guidance" for brokers, which has gradually brought brokerage activities into a formal state.