Please Enjoy these 17 Pages of Davids Personal Notes for the Interview As a companion to the Audio!

oh, and Most of All USE THE KNOWLEDGE TO MAKE MONEY!

International Export Agents - The Next Great Frontier

David Weinberg is our guest; he has a vast knowledge on the subject of exporting. Some of David's Products where one of kind inventions. Many of his new ideas have sold all over the world. What we are going to concentrate on today is Exporting. David, please tell us about your experience in business and how Exporting has been an important part of your success. Exporting has absolutely been the most exciting aspect of my business experience. My business started in a garage making wallpaper border. Our service was very simple. We cut rolls of Wallpaper into a smaller Border Spool. We would do this with a few homemade cutters and a rewinder. I started this process in 1987. This was when Wallpaper was in big demand. In the beginning I did very small orders for a handful of retail store. We would turn double rolls into border to improve the retailer's inventory. When I studied how to expand my small operation I noticed that most of the Wallpaper Manufactures were in Canada. So In order to get my first large account I would have to go to Canada. This is where I would learn my first lesson in trading goods and services with another country. I was 21 years old at the time. All four of the largest Wallpaper Manufactures were right there in Toronto. So I called each of them with a message. My little company could convert their jumbo reels of Wallpaper into finished spools of Border. Not only could we convert the product but we could also ship it directly to their United States Distribution Centers. I got this idea from an article in the Wall Street Journal. It was called, "How small business can grow through Exporting."

One of the four Manufactures agreed to meet with me. The drive to Toronto was 11 hours. I can remember making 4 different trips before I made any real progress. These French speaking Canadian business people were really interesting to observe. After several discussions it became clear to them that if they could put on each label, "Packaged in the USA", that it would sell better in Kmart. There it was the breakthrough that I was looking for. That was how my little shop added value to their supply chain. Our first test run was an opportunity to convert what they called a small order of 5,000 spools. A few weeks later they placed an order for 900,000 spools. I can remember the Manufacture asking me if we could handle such a large order. I said, "We can do that." Then, I hung up the phone and said, "how are we going do that?" We went from a 3 employee company to a 45 employee company in 30 days. I remember having someone stand out by the road with a sign that said, "Help wanted now". Soon we were producing all of the Wallpaper Borders for the Kmart account across the United States. We would add Wal-Mart, Target, Lowes, and Home Depot over the next 3 years. So why was that exciting? Well, when you can take a group of people that have been out of work and tell them that we are going to be handling a worldwide account. There is something really special that you can see in their eyes. Giving people a chance to prove themselves and watching them succeed is a very special process. A large percentage of what we were producing was being shipped to Europe on a weekly basis. I can remember the first time I talked with a Plant manager from England. Wow! He sounded cool, but I could hardly make since of what he was saying. The Labels that we were putting on the product had 7 different languages. As our company developed we began to produce our own product lines rather than just converting product for other manufactures. As we introduced brand new innovative products to the Nation Chain Stores they would in turn ship our products to their out lets stores worldwide. We also sold our new Patented Laser Cut Wallpaper Border to a major worldwide distributor called the Warner

Company. We went from a garage with a few homemade machines to selling our own one of kind products to 52 different countries within 5 years. During much of that time my responsibilities involved traveling to outlets in several different countries. It was my job to make sure these new ideas were being introduced successfully. The first time I arrived in Europe they told me that my entire product line was out in the Shed. I was horrified. How could they put my brand new product out in a shed? Come to find out the next day later that what we call a home center they call a Shed. I would visit one Shed Store after the other, making sure the product was understood by different district managers. Many times I would help put a display together wearing a suit and tie. In many cases the United States was much more advanced then nearly every country that I visited. Just getting a new product across Europe at that time could take months because of all the different customs and regulations. Yet these people were trying with all their might. There are so many lessons that I learned along the way. People all over the world are putting their best foot forward more than we realize. Interacting with these different people, different cultures, and different backgrounds was just absolutely life changing. It's hard to put into words exactly why? I guess it has to do with the realization that a master plan really is in place. Somehow the maker of all these people is able to holds all this together. On the surface it is called Exporting, but to me it is the chance to really experience the entire human family. When I would introduce myself as a business man from the United States, these people would express so much admiration and curiosity. They wanted to know everything. How we created so much success. Answering the questions of people with excitement to learn is really something. That is the primary reason that Exporting and Trade has been so exciting to me. I can remember talking to a young business man in South Africa. He asked me with complete focus, "is it true that in America you can have 3 jobs?" It is hard to describe in that moment how proud it made me feel to be born in the USA. It's one thing to be told that we should appreciate what we have more. It is another to see firsthand how we are

the envy of the world. Many people who do well with exporting will get the chance to see this first hand. I have sold 10's of millions of dollars in exporting to over 52 different countries. So I'm excited to share some of my knowledge and experience with your business associates. My biggest joy in business is helping others learn how to create opportunities.

Thank you David for taking this time, we have a handful of important question, but before we drill down on the specifics, I would like you to give us a brief overview of exporting as you see it now. Well let's start at the beginning or as far back as possible. Throughout the history of Trade the world market has plugged along with a very gradual increase over 1000's of years. As far back as history records there is evidence of people trading. Ships have sailed into harbor for as long as any history book can record. So trade has always been an iatrical part of our human nature. The first and most important historical fact of trade is that the counties that were the best at it became the most powerful countries in the world. Great Britain had a hand in trade in nearly every county on earth for hundreds of years. Not only would Great Britain be the most powerful but also the most advance nation on earth for centuries as well. When the industrial revolution came about innovation would begin to have a significant impact on trade. This would be the beginning of the power shift from the Kings to the Companies. As the great Philosopher Plato said in his the classic philosophical book called the Republic, "As mankind evolves we are faced with the challenge of making each insignificant life something important. As each new idea is introduced to the world we must take one more step toward a great republic that is able to share these ideas with the most common of people. It is in doing so that we fulfill our destiny." As innovations have rapidly increased in the last 300 years it has slowly made it possible for nearly everyone to participate in shaping a new world. From the

Printing Press to the Cotton Gen these ideas would begin to shape not only commerce but the world view of the average individual. What innovation was to the Industrial Revolution, technology will be to the next 100 years. The computer and cell phone are making us so interconnected that we are at the dawn of a new age. Before, we had the power shifted from the Kings to the Companies. Now the power is shifting from the companies to the individual. We are moving away from bricks and mortar as the foundation for business. We are now transitioning to information and communication skills as our most fundamental assets. At the present time there are 195 different counties in the world. Historically the world would see only a few countries become wealthy over a period of many years. Today 28 different nations with social and business activity are in the process of rapid growth. They are called the Emerging Markets. China and India lead the way. However, there are 26 other nations on the verge of an explosion in demand. We are on the verge of the greatest advancement of wealth in human history. Nearly all leaders, economist, and social engineers agree that this phenomenon is due to the rapid increase in technology. So what are these Emerging Markets? According to the World Trade Organization - Emerging markets are countries that are restructuring their economies along market-oriented lines. These countries offer a wealth of opportunities in trade, technology transfers, and foreign direct investment. According to the World Bank, the five biggest emerging markets are China, India, Indonesia, Brazil and Russia. Other countries that are also considered as emerging markets include Mexico, Argentina, South Africa, Poland, Turkey, and South Korea. These countries made a critical transition from a developing country to an emerging market. Each of them is important as an individual market and the combined effect of the group as a whole will change the face of global economics and politics. So Paul, I think your right to ask for and overview first because International Trade requires a real long term commitment. That is why it is important to know that we are standing on the door step of major opportunity as we set sail to becoming an International Export Agent.

So when you say the term International Export Agent, what do you mean? And how does that work? The term International Export Agent is someone who knows how to make significant money with exporting without having to own a large company. Just like a real estate agent doesn't buy and sell each house that they represent, so the International Export Agent doesn't buy and sell everything that the supply chain requires. The IEA is there to helping facilitate exporting for buyers and sellers. There are 6 key steps in becoming an (IEA) So what would you say is the first step? I started to allude to this subject in our overview, but it cannot be stressed enough. Individuals participating in Exporting are going to witness the most prosperous expansion in demand that the world has ever seen. However, this expansion is going to come from relatively poor countries learning how to stand strong for the first time. Much of this trade will involve Individuals working with small companies to change the landscape one deal at a time. It might be easy to think that a corporation has a distinct advantage over an individual when it comes to making money through exporting. In many cases this is true. Yet more and more individuals are learning how to participate with worldwide trade and are able to do it with very little over head. The first fact about helping US manufactures with exporting is that a large percentage of the manufactures know very little about exporting. This is true because the US Manufacture has fundamentally been able to relay on demand right here in our own country. Does that mean the United States does not really do that much exporting? No, The United States exports over one Trillion Dollars in goods and services every year. Last year's number was $1,056,931,975,877.00 to be exact. The US is the Largest Exporter in the world. The United States economy is larger than the next 4 economies combined. However, even though statistics say that over 60 percent of United States Manufacturers currently do exporting; many of them are simply not that good at exporting. Remember that our country has had the largest trade deficit in the

world for over 35 years. So even though our export volume is the largest on the Planet, there is still more room for exporting from this country than anywhere else in the world. I say all that to make one very simple point. Exporting is really about to explode for this country. The current administration has made it clear that our nation's goal is to double export over the next 10 year. That will mean an additional 1,000,000,000,000 in trade. Do you want to be in the right place at the right time? If you are all about seeing our country make a comeback then get on board to helping make the next 28 freedom seeking people prosperous. Become and International Export Agent. It's great to know that we are in such a good place to make this work but how does a person get started? Is there a key to making contacts? Is there a way to get in the game right off the bat? Yes, and this is what I would say is the second key step in becoming an (IEA). It's knowing how to contact Buyers and Sellers. A good example of finding Buyers is to join Alibaba.com. This is a massive list of worldwide buyers that is well organized and easy to access. Alibaba.com is more than just a directory of buyers. Over $100,000,000 of international trade goes through this sight every single day. The buyers are well organized by category and the site is simply a treasure trove of activity. A good way to find Sellers is the Thomas Register.Net. This is a site that gives great detail on all the United States Manufactures. The reason that this is important is that it helps you know who you're dealing with before you call them. The detailed description includes the size of the company's sales, the number of employees, and exact directions to their facility. If I call a company with 10 employees I might ask the receptionist a lot of questions in order to know how to proceed. If a company has 1000 employees then I will ask who is in charge of exporting opportunities, or who is in charge of selling their surplus. The Thomas Register.Net and Alibaba.com are enough to keep a person busy for quite some time. Beyond that there are countless resources for you to consider. When it comes to buying and selling these are just few that I have found to be

very effective. We will discuss a little later the best ways to approach a buyer and a seller to get maximum results. So let's say for a minute that we are out there contacting several buyers and sellers, arent there a lot of unknowns that we have to deal with in order to know how to put a deal together? How do we learn the necessary information required? Training is a very important part of becoming an International Export Agent. Your average individual is able to learn about Exporting through your local SBA office. Training is the third key step in becoming and (IEA). In nearly every area of our country you can find a Small Business Administration's office. Our nation has set aside tremendous resources for new entrepreneurs. Not only does your SBA office have a great online resource for exporting, but they have people that will talk with you one on one for free! They will do everything from help you with training to assigning a retired business person to give you coaching on a consistent basis. This is called their SCORE Program. While not everyone at the SBA office is an expert, they are experts at helping you find the help that you need. There is one down side to the Export business. You have to be really careful to make sure that you're dealing with a legitimate customers. That is why your local SBA office can seem like an oasis in the desert sometimes. Going to a place where the advice is free is important. When you first start making calls, write down a list of questions and then call your SBA office for some input. You will be pleasantly surprised. The following links can guide you every step of the way. http://www.sba.gov/content/lenders-participating-sba-export-loan-programs www.export.gov/begin

Let's cut to the chase - Is there something about this business that separates the winners from the beginners, the good from the great? Is there an intangible aspect or a secret to really making this work?

Yes, but I wouldn't call it a secret. It is simply the ability to pound a phone, to really have the determination to speak with a vast number of people on a consistent basis. This is what I would say is the Forth key Step in becoming an International Export Agent. It is having a savage heart. Reaching out to the world means just that. If you are a person that does not like talking to people on the phone then exporting is not for you. You have to be willing to prospect for opportunity. In the beginning I would suggest at least 100 calls per week. Get your excel spread sheet out and start making calls like a savage. Stop asking a million questions until you have made 100 calls. Yes, it is good to know as much as you can, but you first have to know what it means to get down on a phone. 9 out of 10 people who dabble in exporting will never make 100 calls in a week. Youve got to get hungry for more than results. There is a part in each of us that is afraid to really get out there and talk with a lot of people. There is also a part in each of us that is able to do more than we ever thought possible. That part is what I call the Savage. Just as Tony Robbins says on his tapes, it is more important in life to set goals based upon what it makes of us as a person rather than just the result that it gives us. If you want to be an International Export Agent then live up to what that means. Learn the love of the game. Be the one in ten. Make your 100 calls. So what's left? Are there more key steps or can we move on to more specific questions? There is one other very important element in becoming an International Export Agent? The fifth key step is understanding how to make a great deal. The follow is a recent post that I shared with the Master Mind Export Forum. One of the members writes, is there a difference between the Manufactures, "cost to produce" and the Manufactures "final cost"? This post helps will shed some light on find great deals. The Manufactures "cost to produce" is the direct materiel, Labor, Production Supplies, and shipping material cost. It is the heart of the Manufactures direct immediate cost to make a product. The "Manufactures Final Cost" is all of the expenses required to create a product from Idea inception to the final interest

payment. The reason for the two separate terms is that a manufacture has to know what it takes to kick out a product so that it can quote its customers. This is why they have the term "Cost to Produce". It is a necessary function in costing. The "Manufactures Final Cost" is more of a comprehensive analysis of a product's complete life cycle. For example, if a product sells like crazy for 6 months and then a competitor comes out with a much better product then sales will most likely fall off dramatically. In the beginning the "Cost to Produce" a million pieces of the product can be measured easily, but when the manufacture is suddenly stuck with 500,000 units then a whole other set of numbers come into play. When a successful product line suddenly stops selling it becomes a close-out. When close-out merchandise sits around for 6 months it normally is given the title of Obsolete. If that Obsolete merchandise then sits around for an extended period of time then that product is called a problem. Or sometimes it's called Liquidation Merchandise. When the manufacture reaches the point that they have more cost in the product than they can get for it. Then it becomes liquidation. When you find product like this you can often buy it for less than $.10 on the dollar. The key to finding and acquiring incredible deals is to understand where a product is in its life cycle. As we discussed earlier, I used to own the world's largest factory of Wallpaper Border. We produced 110,000 Border every day. Most of our product lines went well, but every now and then we would get a lemon; something that would not sell for one reason or the other. I was in the situation room many times when we had to decide on whether to lay people off or continue to put more expense into trying to sell a product that just would not move. There was a few times that I said, "burn it if you have to, we just cannot afford to keep moving this around and having our sales people spend so much time with it." Every manufacture deals with a situation like that periodically.

So the best way to find these deals is to ask this simple question. How long have you had this merchandise? Just like when you buy a house. It is always a good

idea to ask, how long has this house been up for sell? If the answer is 3 to 6 months then you know everything is OK. But if they say this house has been on the market for 2 years then you know there must be a reason. When you find a manufacture that has had something for a while then you may have found a great deal. Unlike with housing a buyer will come along at market value soon. With distress merchandise, you are competing with the land field. Allow me to explain. One time I bought 35 truckloads of wallpaper in a factory shut down for $.08 per roll. The new manufacture that bought out the bankrupt factory was in Canada and it did not make since for them to ship some of the goods from Tennessee to Toronto. When I asked them what they wanted for the product they said $.50 per roll. I told them that I would be available if they could not find a buyer. 30 days later my phone rang and they said come and get it. They wanted to make something on the product rather than paying to have it thrown out. Was the product worthless? Quite the contrary, it was very high quality merchandise. Just because a manufacture is enormous in size does not mean that you cannot bring the giant to its knees. Most manufactures can afford to let some deals go for very little. One of the keys to successful exporting is asking for these deals. When you understand the supplier's challenges then you are poised to make some incredible deals. Remember the best way to find a dirt cheap deal is to ask it. If they are too proud to answer then make another call. You can do 20 deals and be exhausted at the end of a year. Or you can make twice the calls and only buy incredible deals with customers waiting for the product. Those deals are there. They are all over the place. After the recession of 2008 more manufactures are stuck with products than ever before. Yes it's true that the stock market measures the fact that inventories are down and the US manufactures are now building inventories. But this is current goods not distress goods. If you take a look at the liquidation number it would blow your mind. Discretionary inventory is at an all-time high in the United States. So you might ask the question, well if the US Manufacture is so stuck with this product then why anyone else would even want it. The answer in most cases is that less than

half of the US manufactures do any kind of significant exporting. 96 percent of the world's population is outside the United States. So what is old and left over here is exciting and new to somebody somewhere. Remember, one companies left overs is another company's treasure. Find the great deals and as you work.

So it looks like we have all the necessary input. But I still have a few questions about the money. Who Pays me and when? Typically the Manufacture will pay you a commission for setting up the deal. However, sometimes you can make more by handling all the money. This other recent post on the Mastermind Export Forum will help us answer this particular question. One of the Members asked, "Should I be the one that handles the money or should I just wait for a commission check from the Manufacture?" He goes on to say, "I really don't want the risk involved with handling the money."

The risk is primarily in the cash management area. For example, it is standard for your buyer to pay up front; at least in the beginning. A letter of Credit is the next thing to having the cash in your account. The reason for a letter of credit is that a limbo period of trust is automatically created for either the buyer or the seller in the beginning of any transaction. Let me explain. If your Manufacture ships the goods without being paid first, there is risk. If your Buyer pays in full before receiving the product there is risk. That is where the Letter of Credit comes in. A Letter of Credit is a legally binding document that is generated between 2 companies. Typically it is generated by the buyers banking institution. It is very much like an insurance policy for making sure you get the money. However, not all Letters of Credits are the same. If someone gets scammed in this business it most often comes by African Countries issuing counterfeit Letters of Credit. So how do you deal with only good Letters of Credit? You go to your bank and you talk to your bank manager. You ask them for a secure letter of credit process that they offer and endorse. Be sure to ask them for a process that they will guarantee.

Banks are like suppliers, one knows exports well and the next one won't touch it. If your bank handles exporting transactions then they will be able to help you. Make sure the bank manager does not give you just cursory information. Ask your Bank Manager if they know exactly how to handle a large overseas transaction. Most banks that handle exports and the wire transferring of funds have someone that knows every aspect of overseas commerce. The key is to get a bank that will take on the Letter of Credit issue. If that bank will insure the letter of Credit then you my friend have just shifted the liability to your banking institution. If your bank won't do overseas banking then you have to bust out your telemarketing skills and call your local banks. One of your local banks will deal in exporting. When you find a bank that does, then you should take your business to them or at least open an account. The SBA office will have a list of local Banks that deal with exporting. In either case you open an entirely separate account for your wire transfer and Letter of Credit work. This is important because sometimes a company will ask for your banking information and take an unauthorized withdrawal from your account. If all you have is the startup amount of $20.00 in your export account then $20.00 is all you can lose. Even though scammers are rare it is important to handle each transaction with complete security. Many of the Manufactures that you deal with have been burned by some overseas deal. So their reluctance is understandable. When a Manufacture tells you that they want to sell you the product and you can then take on the hassle of dealing with the overseas buyer that is good. When you have good training and you know how to handle and overseas transaction then you can step into that position and be the middle man rather than just receiving a commission at the end of the deal. This is how to sometimes make a large amount of money on a deal rather than just a commission. The risk is very much worth taking when you know how to manage the process of a Letter of Credit. It is worth it when you know exactly what you are doing. Another question about Money, How do we make sure we get paid?

This is a good question. Just as in any relationship it is good to start with clear boundaries. If you handle to money then you are in the driver seat. But if you have some commission deals then it is important to understand how to introduce and manage a commission agreement. Many times an Export Agent is afraid to ask for how they get paid because they are afraid to lose the supplier. It is better to lose them on the first date then to get engaged and then find out they don't know how to behave. To be more specific, you give them a one page limited commission agreement. This agreement should say that if I bring you this account______ that I get paid this commission____ for this long______. 3 years is important. The best time to send them this commission agreement is once you have a strong level of interest from a buyer and you have more than one option for manufactures. They do need to get a little closer to the altar before you ask for a commitment. One more point, make sure you include in your one page commission agreement your sensitivity to the need to modify the agreement if market conditions change. What this means is that you will be flexible. What you really want is for 2 big companies to start doing a lot of business because you brought them together. When they know you are flexible they won't spend a lot of time trying to work you out of their cost formula. For example, you may start at a 10 percent commission for a few containers and then submit to a 2 percent commission for 5 years. If you see 2 large companies ready to lock arms, then you had better be ready to cut your commission fast. You are much better off getting 2 percent of $10,000,000 then 10 percent of nothing. Start out your agreement at 2 to 3 years with a lot of flexibility. Then go for 5 years at a low number so that you finish the marriage and step out of the way. You will not have a problem getting paid when you have an agreement in hand and you know how to adjust that agreement according to how the supply chain shapes up. What about terminology? Can you help us with a few basic hard to understand terms? By all means! What is a manifest?

A manifest is another phrase for a complete inventory of the Product being offered.

What is the difference between inbound and outbound freight? With Exporting there are 3 different steps involved in the shipping process. 1. Outbound - This is from Manufacture to the Port 2. On the water - The actual over the seas cost 3. Inbound - This from the Port to customer overseas be very careful with what you agree to with freight. If there is any freight to be paid it should only be outbound and you have to include it in your final cost. What does FOB mean? FOB means - Free On Board (FOB) is an Incoterm. It means that the seller pays for transportation of the goods to the port of shipment, plus loading costs. The buyer pays freight, insurance, unloading costs and transportation from the port of destination to his factory. The passing of risks occurs when the goods pass the ship's rail at the port of shipment. Internationally the term specifies the port of origin, e.g. "FOB New York" or "FOB Vancouver". Are there any last thoughts that you would like to share with us in this report something very important to remember. Out of all the many facets of Exporting the most important element to success is what I call Mind to Market. This is the 6th and final key step in becoming a successful International Export Agent. Mind to Market means knowing what is in the mind of the high demand buyer before you go and scour the Market. It is much better to start looking for products that are in very high demand. When you find a short list of these products then call the Buyers and drill down on exactly what they want. For example, you find several buyers looking for fabric. You then call several of these buyers and you ask for specifics. Call and ask what kind of fabric? How much fabric? And at what cost would they get excited? If you state

that you work with several suppliers (That means you have to actually talk to several suppliers so that you are being truthful) and that you can source what the Buyer is really wanting, then you really have something. Find out what is in high demand. Then find out what excites your Buyer; IE Mind to Market 101. Once you get what your buyers really want then you have true demand in your hands. If you say to a manufacture that I currently have 3 different overseas customers. Each of them has a different set of request. Can I email to you exactly what they are looking for and the price that they are willing to pay? This helps the manufacture see substance. This is a question that is hard to say no to. In most cases there is not an exact fit. However, many times a manufacture will say I don't have this, at that price, but I do have some of that, at this price. Then you forward that information to your buyer and the game begins. So let's review the 6 key steps to exporting success: 1. Start by realizing that exporting is going to be a booming market. 2. Be consistent and proficient at contacting Buyers and Sellers. 3. Make your SBA training an important part of your overall strategy. 4. Make your 100 calls per week. Reach out to the world of Trade. 5. Know how to find great deals. 6. Remember to find high demand products and what your Buyers really want.

Exporting is definitely a challenging business to master. But it is well worth your while. Not only can you make a lot of money in this business, but this business can make a lot out of you.

Picture: Orville Wright Inventors: Orville and Wilbur Wright Location: Kitty Hawk, North Carolina Date: December 17, 1903

I leave you with a quote from Orville Wright, one of the two Wright Brothers. This was written just weeks before their first historic flight on the hills of Kitty Hawk. "Every generation has a handful of explores. The reasons why are sometime hard to explain. We keep believing that we will fly soon even though no man has ever done it before. We press on against all doubt as we stand on the dawn of a new day. Yes mankind will learn to sore high above the clouds and know the sheer exhilaration of the impossible. Yet within that moment even a greater feeling will be present. It will be the legacy of our enduring faith against all odds. The realization of what was once only a dream! Author: David Weinberg, best friend of John the Phone Pro