Commission Policy

Introduction Trust Through Transparency

In the intricate world of international agricultural trade, the role of the broker is pivotal. You are the architect of connections, the smoother of friction, and the closer of deals. Yet, historically, the brokerage profession has been plagued by a significant pain point: the uncertainty of getting paid. Stories of circumvented agents, ignored invoices, and “forgotten” fees are all too common in the commodities market. This ambiguity erodes trust and stifles potential growth.

At Marhaba Agro Commercial Brokers, we believe that a thriving trade ecosystem must be built on a foundation of absolute financial clarity and fairness. We recognize that our brokers are our partners, and for a partnership to succeed, the path to remuneration must be clear, secure, and predictable. That is why we have established a comprehensive Commission Policy that removes the guesswork from your earnings.

Our policy is not just a set of rules; it is a commitment to professional integrity. It is designed to protect the interests of all parties—brokers, buyers, and suppliers—by establishing a standardized framework for how value is recognized and rewarded. We move away from handshake agreements and vague promises to a structured, documented, and milestone-based system. When you trade on the Marhaba platform, you trade with the confidence that your hard work will be recognized and your compensation is secure.

The Philosophy Behind Our Policy

We operate on a “Success-Based” philosophy. We believe that commissions are earned through the successful execution of a transaction, not just the introduction. This alignment ensures that everyone’s incentives are pointed in the same direction: closing the deal and ensuring the goods are delivered.

Clarity

There should be no ambiguity about how much commission is due or who is paying it.

Security

Commissions are tracked systematically to prevent them from being overlooked or disputed later.

Fairness

The structure respects market norms and the value added by the broker, ensuring equitable compensation for the effort involved.

Commission Structure How It Works

Understanding how you get paid is the first step to a successful partnership. We offer a flexible commission structure designed to accommodate the varied nature of agricultural commodities, from high-value spices to bulk grains.

Calculation Methods

Commissions on the Marhaba Agro platform are agreed upon transaction by transaction or category by category, but they typically fall into one of two standard calculation models. This flexibility allows brokers and traders to choose the method that best fits the specific deal dynamics.

1. Percentage of Invoice Value

This is the most common model for high-value or mixed-commodity shipments.

  • Definition: The commission is calculated as a fixed percentage of the final Commercial Invoice value (typically the FOB or CIF value, excluding duties and taxes).
  • Example: If you broker a deal for Cardamom worth $50,000 with a 1% commission agreement, your earning is $500.
  • Benefit: This model aligns your earnings with the value of the deal. As market prices rise or volumes increase, your commission scales largely.

2. Fixed Fee per Unit (MT/Container)

This model is preferred for bulk commodities where margins are tight and volume is high, such as rice, sugar, or wheat.

  • Definition: A specific dollar amount is agreed upon for every Metric Ton (MT) or container shipped.
  • Example: A deal for 500 MT of Rice might carry a commission of $5 per MT. Regardless of the daily price fluctuation of rice, your income is fixed at $2,500 for that volume.
  • Benefit: This offers predictability. You know exactly what you will earn based on the volume moved, shielding your income from market price dips.

The Payer

ransparency also means knowing who is footing the bill. In most agro-trade scenarios on our platform, the commission is paid by the Supplier (Seller) as a cost of sales. However, we also support “Buyer’s Mandate” structures where the Buyer pays the commission for sourcing specific goods. The payer is explicitly defined in the Deal Confirmation or Brokerage Agreement before the transaction proceeds.=

The Commission Lifecycle From Deal to Deposit

To ensure tracking and security, every commission travels through five distinct stages in our system. This lifecycle provides visibility to the broker, ensuring you always know the status of your payment.

Stage 1 Pending

This is the negotiation phase. When a deal is being discussed and a draft confirmation is created, the potential commission is calculated and marked as “Pending.”

Meaning

The deal is active, but not yet signed. The commission amount is an estimate based on current negotiations.

Stage 2 Approved

The deal is signed. Both the Buyer and Supplier have executed the Purchase Order (PO) or Proforma Invoice (PI), and the commission terms (rate and payer) are formally accepted in writing.

Meaning

Your entitlement to the commission is acknowledged formally. The commercial terms are binding.

Stage 3 Locked

The execution has begun. The buyer has typically made a deposit or opened a Letter of Credit (LC). The deal is now “live” and moving forward.

Meaning

The transaction is past the point of easy cancellation. The commission is now tied to the successful completion of the logistics.

Stage 4 Payable

The definition of success has been met. This is the crucial milestone. In most Marhaba agreements, commission becomes “Payable” upon a specific trigger event.

Standard Trigger

Usually, this is when the Supplier receives payment (for TT deals) or when the shipping documents are successfully negotiated (for LC deals).

Meaning

You have done your job, the goods have moved, and the money has moved. The payer is now contractually obligated to release your funds within the agreed timeframe (typically 7-14 days from receipt of payment).

Stage 5 Paid

The final step. The funds have been transferred to your designated bank account, and the transaction is closed in our system.

Meaning

Success!

Dispute Handling Protecting Your Interests

Even with the best systems, disagreements can arise. A shipment might be rejected for quality issues, a buyer might default on payment, or a supplier might try to renegotiate fees post-facto. Marhaba Agro acts as a neutral arbiter and protector of the process.

The Role of Documentation

Documentation is your shield. We require all commission agreements to be documented within the platform’s ecosystem before the trade is finalized. In the event of a dispute, we rely heavily on the written record:

  • The signed Brokerage Agreement or Fee Protection Agreement (FPA).
  • The confirmed Purchase Order referencing the broker.
  • Communication logs regarding deal terms.

If a broker relies on “side deals” or verbal promises made outside the platform, Marhaba cannot enforce them. This is why we insist on total platform adoption for deal management.

The Dispute Resolution Process

  1. Notification: If a commission enters the “Payable” stage but is not received, the broker raises a ticket via the dashboard.
  2. Freeze & Review: Marhaba’s compliance team reviews the transaction file. We may temporarily suspend the offending party’s ability to trade on the platform or access new leads until the issue is addressed.
  3. Mediation: We facilitate a dialogue between the payer and the broker. Often, non-payment is due to a misunderstanding regarding banking delays or final settlement amounts (e.g., deductions for quality claims). We help clarify the facts.
  4. Enforcement: If a party is found to be willfully withholding valid commissions, they face permanent bans from the Marhaba network. For verified members, we may also leverage our legal framework to assist brokers in recovering dues, though final legal recourse remains between the broker and the principal.

Handling Cancelled or Failed Trades

It is important to be realistic: if a trade fails, the commission is usually not payable.

  • Force Majeure: If a shipment is cancelled due to natural disasters or government bans, no commission is due as no transaction occurred.
  • Non-Performance: If a buyer fails to pay or a supplier fails to ship, the deal is void. However, if a supplier cuts the broker out to deal directly with the buyer (circumvention), Marhaba enforces strict penalties and creates a blacklist record visible to our partner network.

Ethical Obligations of the Broker

Our commitment to paying you is matched by your commitment to ethical conduct. To qualify for commission protection, brokers must adhere to high standards:

  • No Double-Dipping: Brokers must not secretly collect commissions from both sides (Buyer and Seller) unless explicitly disclosed and agreed to by all parties.
  • Accuracy: Brokers must not misrepresent product specs or availability to force a deal through.
  • Confidentiality: Brokers must protect the trade secrets and identity of their clients until the appropriate stage of the deal.

A Partnership for Growth

Our Commission Policy is designed to let you sleep well at night. It removes the anxiety of “will I get paid?” so you can focus your energy on “how can I close the next deal?”

We are building a community of professional brokers who are valued for their expertise and rewarded fairly for their results. By standardizing the way we value your work, we are elevating the entire industry standard for agro-brokerage in the GCC.

Questions? Let’s Clarify.

We understand that every deal is unique and you may have specific questions about how this policy applies to a complex transaction or a specific commodity type. Our support team is ready to walk you through the details.