Damian, who has over 15 years of experience in the physical commodity industry, shares his method for starting a commodity raw material and gradient trading business from scratch. In this video, Damian introduces his buyer-led start method, which he believes is a great idea as all legacy firms forbid their employees from speaking about what they do online. By leveraging social media, Damian believes that trust can be created faster, which is extremely important in international trade.
The video is a marketing asset for Damian’s educational Trading Company, the Shipping and Commodity Academy, which helps people break into the physical commodity trading industry. Damian warns that people often think they have a better idea or method, even though they know very little about the industry. He promises that if viewers follow all the steps laid out in the video, they will be able to ship their first trial cargo. The video is divided into several chapters, including the core of the game, the anatomy of a trade, the buyer-led start method, finding a niche buyer, understanding trade flows, finding a reliable supplier, logistic viability, product validation, financing your trade, execution and scaling, risk assessment in commodity trading, market concerns, and niche trade flow opportunities.
Key Takeaways
- Damian shares his buyer-led start method for starting a commodity raw material and gradient trading business from scratch.
- The video is a marketing asset for the Shipping and Commodity Academy, which helps people break into the physical commodity trading industry.
- The video is divided into several chapters, including the core of the game, anatomy of a trade, and niche trade flow opportunities.
Core of the Game
To understand the buyer let start method, it is important to first understand the core of the physical commodity trading industry. The value provided by commodity trading firms is to de-risk the supply chain, meaning that the more risk a trading firm takes off their counterparty, the more value they create. The trading firm that provides the most value and ultimately gains the most market share is the one that takes on the most risk for their counterparty.
However, there is a difference between the value provided and the margin that a trader can get. Margin is the difference between the purchase price and sales price, including all costs in between such as transportation, insurance, and finance. In some markets, it can be difficult to capture the value created due to high competition or government regulations.
To capture the most value, a trader must have a different risk assessment than their competition. For instance, in a highly competitive market such as the palm oil cooking oil market in West Africa, big importers take on all the risk by buying directly from the supplier and providing credit to their customers. However, they struggle to make good money due to the competitive nature of the market and difficulty in collecting payments from their customers.
While most risk-free trade flows are already trusted by big actors, there are numerous niche trade flows that are too complex or small for big trading houses to tackle. This is where small and medium businesses thrive, taking on niche markets that big trading houses overlook. The buyer let start method is designed to help these businesses break into the physical commodity trading industry and succeed in these niche markets.
Anatomy of a Trade
Three Pillars of Any Trade
To understand the buyer let start method, it is important to understand the three pillars of any trade. These pillars are the foundation of a successful trade and include the following:
- Risk Assessment: The most value is created by de-risking the supply chain. The more risk a trading firm takes off its counterparties, the more value it creates. The trading firm that takes the most risk for its counterparties will get the most market share and create the most value. However, the margin a trader can get is dependent on their ability to capture this value, which can be difficult in some markets due to competition or government regulations.
- Market Assessment: The ability to assess the market and identify niche trade flows that are too complex or small for big trading houses to tackle is essential. Small and medium businesses can thrive in these niche markets where they can create value by taking on risk and providing value to the supply chain.
- Logistics Assessment: Understanding the logistics of a trade is crucial to ensure its viability. This includes finding a reliable supplier, checking the logistics viability of the trade, and validating the product.
By focusing on these three pillars, a trading firm can create value and capture it through their margin.
Buyer-Led Start Method
The buyer-led start method is a technique used to start a commodity raw material and gradient trading business from scratch. Damian, who has been in the physical commodity industry for more than 15 years, developed this method. He is the owner of several online companies related to commodities and has started several commodity training firms with no capital. Damian believes that the buyer-led start method is a great idea as all the legacy firms forbid their employees to speak about what they do online, making it a blue ocean. Furthermore, social media helps to create trust faster, which is extremely important in international trade.
The promise of this video is that if one follows all the steps laid out in the video, they will be able to ship their first trial cargo. However, Damian warns that people often think they have a better idea or method, even though they know little about the industry. He advises that one should follow all the steps that he lays out in the video to achieve success.
The core of the game is the value provided by commodity trading firms, which is to de-risk the supply chain. The more risk a trading firm takes off their counterparties and puts on themselves on both sides of the supply chain, the more value they create. The trading firm that will get the most market share is the one that provides the most value. However, there is a difference between the value provided and the margin that a trader can get. Margin refers to the difference between the purchase price and the sales price, and all the costs in between, such as transport, insurance, and finance.
Capturing the most value depends on two factors: the value that one creates and their ability to capture it. In some very competitive markets, it is difficult to capture the value created because of the high competition. In other markets, governmental intervention makes it challenging to capture the market because of the rules and regulations that prevent one from doing so, even though they create a lot of value. The way to capture the most value is to have a risk assessment different from all the market participants. Damian explains that having a different risk assessment than one’s competition is crucial to capturing high margins.
Most of the risk-free trade flows are already trusted by big actors, but there are multiple niche trade flows that are too complex for the big actors to tackle or that are just too small. Small and medium businesses are driving in those niche trade flows, and Damian’s buyer-led start method is an excellent technique for starting a commodity raw material and gradient trading business in those niche markets.
Finding a Niche Buyer
In the physical commodity industry, finding a niche buyer can be a crucial step in starting a new commodity raw material and gradient trading business. Damian, an experienced trader and owner of several online companies related to commodities, has developed a method called the “Buyer Let’s Start” method, which he explains in his video.
According to Damian, the first step in this method is to find a niche buyer. He explains that while most risk-free trade flows are already trusted by big actors, there are many niche trade flows that are too complex or small for them to tackle. This is where small and medium businesses can thrive by finding a niche buyer in these markets.
Damian emphasizes the importance of understanding the core of the commodity trading game in order to identify opportunities and create value. He explains that the value provided by commodity trading firms is to de-risk the supply chain, and the more risk a trading firm takes off their counterparty, the more value they create. However, capturing this value can be difficult in some markets due to competition or government regulations.
To capture the most value, Damian recommends having a risk assessment that is different from the competition. This can be achieved by finding a niche buyer in a complex or small market that big actors are not interested in. By identifying and serving this niche buyer, a trading firm can create value and capture a higher margin.
In summary, finding a niche buyer is an important step in starting a commodity trading business. By identifying a complex or small market that big actors are not interested in and serving a niche buyer, a trading firm can create value and capture a higher margin. Damian’s “Buyer Let’s Start” method provides a framework for finding and serving a niche buyer in the commodity trading industry.
Understanding Trade Flows
The value provided by commodity trading firms is to de-risk the supply chain. The more risk a trading firm takes off its counterparty, the more value it creates. However, the margin a trader can get depends on their ability to capture this value, which can be difficult in some markets due to high competition or governmental regulations.
To capture the most value, a trader must have a risk assessment different from their competition. This is particularly important in niche trade flows that are too complex or small for big trading houses to tackle. Small and medium businesses can thrive in these niche markets by taking on the risk and providing value to the supply chain.
In order to successfully enter a new commodity raw material and gradient trading business, it is important to understand trade flows. This involves finding a reliable supplier, checking the logistic viability of the trade, and getting the product validated. Additionally, obtaining finance and developing execution skills are crucial for success in this industry.
Overall, the buyer let start method, developed by Damian, provides a comprehensive guide for starting a commodity trading firm using social media and creating trust faster in international trade. By following the steps outlined in the method, traders can successfully ship their first trial cargo and enter the physical commodity trading industry.
Finding a Reliable Supplier
In order to start a commodity raw material and gradient trading business, finding a reliable supplier is crucial. A reliable supplier can ensure that the product is of good quality, delivered on time, and at a fair price.
According to Damian, the owner of several online companies related to commodities and commodity trading firms, finding a reliable supplier is a key step in the “Buyer Let Start” method. This method is designed to help people break into the physical commodity trading industry, even with little to no capital.
To find a reliable supplier, Damian suggests understanding the trade flows and conducting due diligence on potential suppliers. This includes checking the logistic viability of the trade and validating the product.
It is important to note that not all trade flows are trusted by big actors in the industry. Therefore, small and medium businesses may have an advantage in niche trade flows that are too complex or small for larger trading houses to tackle.
By following the steps laid out in the “Buyer Let Start” method, including finding a reliable supplier, individuals can increase their chances of successfully starting a commodity trading business.
Logistic Viability
In the physical commodity industry, logistic viability is an essential factor to consider before initiating any trade. Damian, an experienced commodity trader, emphasizes the importance of understanding the logistic viability of a trade in his “Buyer Let Start” method.
Logistic viability refers to the feasibility of transporting the commodity from the supplier to the buyer. It involves analyzing the trade flows, finding a reliable supplier, and checking the transportation costs, time, and risks associated with the trade.
To ensure logistic viability, Damian recommends using his “Buyer Let Start” method, which involves finding a buyer before securing a supplier. This approach helps to avoid the risk of being stuck with unsold inventory.
Once a buyer is found, the next step is to understand the trade flows and find a reliable supplier. It is crucial to ensure that the supplier can deliver the commodity on time and at the agreed-upon quality. Damian also suggests validating the product before making any payment to the supplier.
Finally, it is essential to check the logistic viability of the trade. This involves analyzing the transportation costs, time, and risks associated with the trade. It is also important to consider the mode of transportation and the insurance coverage.
In conclusion, understanding the logistic viability of a trade is crucial in the physical commodity industry. Damian’s “Buyer Let Start” method provides a structured approach to ensure logistic viability and minimize risks in commodity trading.
Product Validation
In this video, Damian, an experienced physical commodity trader, shares his method for starting a new commodity raw material and gradient trading business, called the Buyer Let Start method. The promise of this video is that by following all the steps outlined, viewers will be able to ship their first trial cargo.
The process starts with understanding the core of the commodity trading game, which is to de-risk the supply chain and create value. The more risk the trading firm takes on, the more value it can provide. However, capturing this value as margin can be challenging, especially in highly competitive or regulated markets.
To capture the most value, a trading firm needs to have a different risk assessment than its competitors. This is particularly important in niche trade flows that are too complex or small for big trading houses to tackle.
Once a potential trade flow is identified, the next step is to validate the product. This involves finding a reliable supplier and checking the logistics viability of the trade. By doing so, traders can ensure that they are capturing the most value and minimizing risk.
Overall, Damian’s method provides a clear and practical approach to starting a commodity trading business, with a focus on de-risking the supply chain and capturing value. By following all the steps outlined in the video, viewers can increase their chances of success in this competitive industry.
Financing Your Trade
As a physical commodity trader, financing your trade is a crucial aspect of your business. In order to successfully ship your first trial cargo, you need to have a reliable source of funding.
Damian, an experienced commodity trader, suggests using his “Buyer Let Start” method to start a commodity trading business with no capital. However, he also emphasizes the importance of getting financing for your trade.
There are various ways to obtain financing for your trade, such as through banks, trade finance companies, or private investors. It is important to find a financing option that suits your needs and the specific requirements of your trade.
In addition to finding financing, it is also important to understand the logistics of your trade and ensure its viability. This includes finding a reliable supplier, checking the logistics of your trade, and validating your product.
By following all the steps laid out in Damian’s video, you can increase your chances of successfully financing and executing your trade. Remember to take the necessary precautions and do your due diligence to minimize any potential risks.
Execution and Scaling
In the physical commodity industry, executing trades and scaling a business can be challenging. Damian, an experienced commodity trader, has developed the Buyer Let Start method to help individuals start a new commodity raw material and gradient trading business from scratch.
The method involves understanding the core of the commodity trading game, which is to de-risk the supply chain. The more risk a trading firm takes off their counterparty and puts on themselves, the more value they create. However, capturing this value can be difficult in competitive or regulated markets.
To capture the most value, a trading firm must have a risk assessment different from their competitors. This can be achieved by targeting niche trade flows that are too complex or small for larger trading houses to tackle.
Once a reliable supplier and buyer have been found, the next step is to validate the product and check the logistic viability of the trade. Getting financing is also crucial for executing trades successfully.
Scaling a commodity trading business involves taking calculated risks and expanding into new markets. However, it is important to understand the value provided by the business and the ability to capture this value. By following the steps laid out in Damian’s video, individuals can successfully execute trades and scale their commodity trading business.
Risk Assessment in Commodity Trading
In the physical commodity industry, the value provided by commodity trading firms is to de-risk the supply chain. The more risk a trading firm takes off their counterparties, the more value they create. However, the margin a trader can get depends on their ability to capture the value they create, which can be challenging in some markets.
To capture the most value, a trader must have a risk assessment different from their competition. For instance, in niche trade flows that are too complex or small for big actors to tackle, small and medium businesses can thrive. However, it is crucial to have a different risk assessment than the competition to capture the market.
In this video, Damian introduces the Buyer Let Start method, a step-by-step process to start a commodity raw material and gradient trading business from scratch. The method includes finding a reliable supplier, understanding trade flows, checking logistic viability, getting the product validated, and getting finance.
Damian emphasizes that following the steps laid out in the video is crucial to ship the first trial cargo successfully. However, he warns against thinking that one has a better idea or method as it could lead to wasting time and money.
Overall, the Buyer Let Start method helps traders to de-risk the supply chain, create value, and capture the market by having a different risk assessment than their competition.
Market Concerns
Competitive Markets
The physical commodity industry is highly competitive. Legacy firms dominate the market, making it difficult for new players to enter. However, there are niche trade flows that are too complex or small for big trading houses to tackle, creating opportunities for small and medium businesses. To capture the most value, a firm needs to have a different risk assessment than its competition. The value provided by commodity trading firms is to de-risk the supply chain, and the more risk a firm takes off its counterparties, the more value it creates. The trading firm that provides the most value and risks the most for its counterparties will get the most market share.
Governmental Regulations
Governmental regulations can pose challenges for commodity trading firms. In some markets, there are rules and regulations that prevent firms from capturing the market, even though they create a lot of value. For instance, the palm oil market in West Africa is highly competitive, and big importers dominate the market by taking all the risk and giving credit to their customers. However, they struggle to make good money due to the competitive nature of the market and the difficulty in collecting payments from customers. In such markets, it is difficult to capture the value created. Therefore, to be successful, a commodity trading firm needs to have a different risk assessment than its competitors.
Niche Trade Flow Opportunities
Commodity trading firms provide value by de-risking the supply chain. The more risk a trading firm takes off its counterparty, the more value it creates. However, capturing this value is not always easy, as it depends on the ability to assess and manage risks differently from competitors.
In highly competitive markets, it may be challenging to capture the value created, while in other markets, governmental regulations may prevent traders from capturing the market. As a result, most of the risk-free trade flows are already trusted by big actors, leaving behind several niche trade flows that are too complex or small for big traders to tackle.
These niche trade flows present opportunities for small and medium-sized businesses to thrive. While big traders may not find it profitable to put resources and take risks to capture these niche markets, small and medium businesses can take advantage of them.
By following the buyer let start method, traders can find reliable suppliers, understand trade flows, validate products, and secure financing. It is essential to follow all the steps laid out in the method to be able to ship the first cargo successfully.
Traders should have a different risk assessment than their competitors to capture the most value. They should focus on niche trade flows that are too complex or small for big traders to tackle and create value by de-risking the supply chain.