Are the promises of Corporate Trade too good to be true?

We’re proud as can be to have recently brought on a new senior team member to Evergreen Trading. Lisa Gussack is a very bright and experienced pro from a long successful career at HBO. We’ll be writing more about Lisa and adding her to our team page very shortly, but she suggested something at a team meeting on Monday that I thought was well worth conveying.

As I frequently do, I asked our senior team for blog post suggestions. Having been a client of corporate trade and someone whose corporate insight I highly regard, Lisa suggested the topic of corporate trade’s benefit being too good to be true. Brilliant!

In fact, many people who are introduced to corporate trade and its financial benefits find it hard to believe that their excess inventory could be sold for two to three times its market value.  Or, they wonder how their surplus real estate could fetch its orginal asking price. After all, every potential buyer has offered 30 to 40 percent less than the asking price. So, what’s the catch? Fearing the unknown, many decide against looking into Corporate Trade all together.

Yes, the benefit of Corporate Trade can initially sound too good to be true, which is why Evergreen Trading continues to create so much material illustrating the inner workings of Corporate Trade. We believe that the clearer your understanding is of trade, the less likely you will walk away from an opportunity to benefit from the transaction for fear that it is too good to be true. We wrote a book explaining everything from the origins of funding that pay for the higher price, to how clients’ media is bought, to common objections to trade. And you are reading a blog that is dedicated to exploring every concevable topic on trade including a current series on common problem areas and their mitigation.

Rather than rewrite the tens of thousands of words already created by us illustrating the legitimacy and mechanics of Corporate Trade, let me give you two thoughts:

  1. If upon hearing the financial benefits of trade, you are left thinking it is too good to be true, don’t simply abandon your investigation of the transaction. Instead, ask the hard questions: “If you are willing to pay me three times the fair market value, how will you make a profit?” “How will I be assured that the advertising you place for us will NOT compromise our plan and associated extras we come to expect from our media vendors?” “How can you assure me that my inventory will NOT cause problems with my current customers?” or “How does this transaction conform to GAAP?” Ask the questions that are preventing you from moving forward comfortably. If the answers are not to your satisfaction, pull out of the deal knowing that the trading company wasn’t capable of providing legitamacy to their proposal.
  2. One of our favorite subjects on this blog is the reluctance these days of businesspeople to look at new ideas.To repeat our theme on this subject, please do not abandon looking seriously at corporate trade just because it is different. Pretty much anything of great value is new. Yes, you’re very busy trying to keep up with what is being asked of you every day. But winning requires doing things that your competitors are not willing to do. It requires finding the time to look into a different way of doing things. We hope that our giudance will prevent you from wasting your time by helping you determine pretty quickly if you are heading down the right road.

Is the benefit of Corporate Trade too good to be true? It is only if you are unsure how a trading company pays you, purchases media, and services you as a client. If you have undervalued assets or some other problem that can be solved through an infusion of zero-interest cash, take some time to learn about Corporate Trade and ask the hard questions you need to ask in order to clearly see the legitamacy and power in this business of Corporate Trade.

 

About Mike Lake

Mike is the Senior Vice President of Marketing for Evergreen Trading. When not playing jazz trombone he is probably obsessing about writing content that will capture the attention and interest of business people and fellow learning junkies everywhere.

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