Short answer
Sourcing agents are usually paid a fixed fee for a defined scope, a retainer, a day rate for in-person work, or a commission on the order value. The model matters less than whether you were told about it: an undisclosed commission, paid to the agent by the supplier, is a recurring complaint in the industry commentary cited below. Ask every agent how they are paid, in writing.
On this page
What are the common fee models, and what does each reward?
Each model shapes incentives, even when everyone is acting in good faith.
| Model | What it rewards | What to ask |
|---|---|---|
| Fixed fee for a defined scope, such as a shortlist of a stated size | Doing the agreed work efficiently; you know the cost in advance, whatever the research finds | What exactly is in scope, and what happens if it changes? |
| Retainer for ongoing support over a set period, such as a month | Being available over time, which suits work that's hard to scope in advance, like production follow-up | How much time or coordination does each period cover? |
| Day or half-day rate for in-person work | Time spent, which suits factory accompaniment | What does a day include, and are travel costs extra? |
| Commission on order value | A larger order, and on a percentage, a higher supplier price | Is it calculated on product value only, excluding freight, duty and taxes? |
| Commission paid by the supplier | Steering you to whichever supplier pays the agent | Do you receive anything from the supplier, directly or indirectly? |
None of these models is dishonest in itself. What matters is whether it's disclosed before you commit, and disclosed where you'd notice it: stated plainly in a proposal, not buried in a long contract.
How does Source Pilot China charge?
We work on a fixed fee agreed before work starts, not a commission. For a quote for your project, send an enquiry.
Why does an undisclosed commission matter?
It changes whose interest the agent is serving. If the supplier an agent recommends is paying the agent a percentage, and you don't know, you can't tell good advice from advice that happens to pay the agent more. Commentary from QualityInspection.org and Harris Sliwoski describes undisclosed commissions, and inflated quotes passed on to the buyer, as a recurring pattern rather than a rare one.
How do you tell a fair pass-through quote from an inflated one?
Ask to see the supplier's original quote alongside what you're being asked to pay, and check whether any difference is shown as a stated fee. An agent adding a disclosed, agreed margin to the supplier's price is a legitimate way to charge. A marked-up figure presented as the supplier's own price, with no sight of what the supplier actually quoted, is what to push back on.
How should payments to an agent be structured?
Tie fees to defined stages of work with a deliverable, such as a research and shortlist phase, rather than one large upfront payment for an open-ended commitment. Be cautious of any large fee due before you've seen a proposal saying what it covers.
In many arrangements you pay the supplier directly for the goods and the agent separately for their service, which keeps the two relationships apart. If an agent asks to collect the full order value and pass the supplier's share on, that isn't necessarily improper, but it adds a party to the payment chain. Understand what happens to your money if something goes wrong partway through before you agree.
What should you ask any agent before you commit?
A legitimate agent should be comfortable answering all of these in writing:
- "How exactly are you paid on this engagement?" Fixed fee, retainer, commission or a mix, in plain terms.
- "Do you receive any payment from the supplier, directly or indirectly, on my order?" If yes, ask how much, in writing.
- "If your fee is a percentage, is it on product value only, excluding freight, duties and taxes?" A percentage that includes freight and duties is a bigger number.
- "What happens to your fee if I don't order after the research phase?" A research fee should be payable for the research, whether or not you buy.
- "Can I see the supplier's own quote?" An agent who won't show it is asking you to trust a figure you can't check.
- "What's outside your scope?" Samples, testing, inspection, freight, customs and duties are often paid by the buyer directly to the relevant party; confirm rather than assume.
Can a fee change once work has started?
Not for the scope you agreed. A fee tied to a defined scope should change only if the scope does, and any change should be agreed in writing before it takes effect, not discovered on an invoice. If your specification changes significantly, or you ask for much more work, a revised fee for the revised scope is reasonable; a fee that grows without a stated reason is not.
What does a good answer look like?
Specific and written down. A good answer says how the fee is calculated, whether any other party pays the agent anything in connection with your order, and whether you'll see the supplier's own quote. "Don't worry, we'll get you a fair price" answers none of those. Ask for a written proposal before any fee is paid, stating the service fee, what it covers and what, if anything, any other party pays in connection with your order.
What this can't tell you
This guide doesn't quote fee levels: a fair fee depends on scope, category and market. Nor can it vouch for any agent's honesty. The questions above surface information; they don't guarantee the answers are true. Asking several agents the same questions and comparing how directly they answer tells you more than any single answer.
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