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what is a market maker?
Market Maker defined:
- My definition of a market maker is someone who makes a market were there is none, or one who creates interest in a product were there was no previous interest with regards to sales of a specific product.
For example: You have an online training business for executives, which is a relatively new training opportunity to most companies. You train their executives and they spend millions of dollars doing it, sending their employees to training sessions with consultants that command high fees. During the past few years computer technology has grown so much that data input has increased. Large numbers of business professionals can be taught the same thing no matter where they are and at a minimal cost to the company. Let’s say $25 for a training fee per executive instead of air fair of $500.00, a hotel room for 2 nights would be about $300, cost of dining $200, consultant $30,000. So if you have 100 employees this will cost you at least $130,000.00,when the same training could have been accomplished with a sign on fee of $10,000 and a user fee of $12,500.00-total cost of $22,500.00 and with data that can be gathered in a way that can test and identify problem areas within the company . This is a new market that didn’t exist before, it seems like a no brainer but it really isn’t. The reason a new product/service is hard to introduce is because it’s a change from the norm and people in power positions don’t like change, therefore the need for this market have to be made.
- A market maker is different from a salesman because a true market maker is like a jack of all trades. He looks for needs of an area and matches it up with a product that can fit that particular area. Or perhaps you have a product that you want to sell, in that case I’ll find out where this product is most likely to sell and advise you on how to get this product to the area that needs it. Doing so in some cases means creating the need for the product and how to make it sell.
- One major strength of a market maker is the ability to place the product with the right salesperson, then to be able to place the salesperson with the client. This simple step is the difference between growth or stagnate sales on the way to closing of the company’s doors.
- Market makers develop a good overall feel for the market because they are involved with so many different types of businesses, which overlaps each other at times they can tell you what is going to be the effect of a business that seems totally unrelated to the sector in trouble.
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