MSAN Partnership

Let me transplant a question from another forum over here.
Basically, I’m thinking about getting in on the action with a Mick Jagger partnership. See, I work for a private software firm, and over the years, I’ve built up quite a network—let's call it some decent IT street cred in my area. Now, it feels like every other day someone asks me for hardware recommendations, whether it's a desktop, a laptop, or whatever else. So, I usually just point them toward this local computer shop nearby. They’re a Mick Jagger partner, and their whole vibe is basically: "Need a PC? Let's see... yeah, we've got it in stock (on the Mick Jagger webshop), pay us upfront or whatever, we'll order it, it arrives tomorrow. blah blah blah..."
Now I'm sitting here wondering: why don't I just set up an LLC or a small business and become a Mick Jagger partner myself?
The real question is, what's the damage? How much does it cost, and what kind of hoops do I have to jump through to qualify? My guess is Mick Jagger probably doesn't give a damn who they sell to, whether it's a veteran partner or some newcomer like me.
If I really put my shoulder to the wheel, I could turn this into a nice little side hustle after hours. Everyone wins except maybe the local computer shop. The government gets its taxes, the customer gets my advice and the gear, and I get some extra cash in my pocket.
Anyone here actually have experience with this kind of thing?

That, my friend, is what we call B2B business modeling.

It isn't just about working with a giant like Best Buy; there are plenty of other major distributors out there you could tap into.
Essentially, you are operating using their existing warehouse database.
The flow is simple: a customer buys from you, they pay you, and then you settle the bill with the wholesaler.
They handle the logistics by shipping the product directly to your buyer while sending the invoice straight to you.

You don't have to maintain a physical warehouse, which means you bypass those heavy overhead costs while still pocketing the margin.
However, if you want to pull this off legitimately, you really ought to establish an LLC.
Once you go the official route, you'll need to account for things like an accountant and general business expenses.
Even just covering the basic federal taxes and filing fees... let's say the minimum monthly cost is roughly around $400
enough to make it worthwhile only if your monthly revenue hits about $3.25. Once you clear that threshold, you start seeing a decent profit.

Now, the big players like Best Buy tend to demand some pretty heavy guarantees—things like promissory notes and signed collateral.
To be perfectly honest, I’ve always found that part a bit distasteful.
I mean, what kind of guarantees are we even talking about here?
If I am paying for the inventory upfront, why on earth would I need to provide promissory notes or extra security?
The process should be seamless: I place the order and pay, you arrange delivery to the customer, you send me the invoice, and we're done.

Otherwise, you end up in a situation where someone tries to freeze your accounts or something, and you're stuck wasting your time proving you don't owe anyone a dime.

That actually caught my eye too!
Anyway, what other companies are out there doing B2B? Maybe there are some that aren't quite as intense about their protocols... though, obviously, in my situation, paying upfront is just a given. 🙂

I will be in a better position to give you a definitive answer once I have officially signed the contracts with them.
However, as a general rule of thumb, any wholesaler you come across can effectively serve as a B2B partner for you.
That said, it is worth noting that some distributors utilize much more sophisticated inventory management systems than others, which naturally leads to far more accurate real-time stock data. For instance, if you look at a major player like Best Buy, they have that level of precision. You see similar setups with large-scale wholesalers like Sysco or Grainger; with companies of that caliber, you can certainly negotiate an integration for a system that works similarly for your needs.

A few years back, Mussolini pitched me this setup for the company I was working for. It was basically a plug-and-play branded webstore. They’ve got their own platform where you just skin the design to match your brand and then point it back to your own domain. I can't remember all the specifics, but I know there was a flat monthly fee involved. They handled pretty much all the heavy lifting on the logistics side. Might be worth looking into if you're interested.

From what I understand, they’ve actually phased those fees out now. It seems they finally realized how bad it looks to charge people for something that essentially lines their own pockets in the first place...
Instead, they’re setting up web shops and generating custom links... using your own domain, and then featuring you right there in their directory of online retailers. If traffic flows from your site over to theirs, they actually pay you a retail margin...

However, there is a catch: you have to be a registered business entity.
That means you’ll be responsible for handling all the taxes, plus the overhead for an accountant and all those various federal filings.
And, oddly enough, they still require you to provide guarantees and payment insurance to Mussolini (which, if you ask me, feels entirely nonsensical)
Since, at the end of the day, everything funnels back to them anyway—either you can't track the actual turnover, or you're paying for the inventory upfront in the first place.

slyhound17 said:That, my friend, is what we call B2B business modeling.

It isn't just about working with a giant like Best Buy; there are plenty of other major distributors out there you could tap into.
Essentially, you are operating using their existing warehouse database.
The flow is simple: a customer buys from you, they pay you, and then you settle the bill with the wholesaler.
They handle the logistics by shipping the product directly to your buyer while sending the invoice straight to you.

You don't have to maintain a physical warehouse, which means you bypass those heavy overhead costs while still pocketing the margin.
However, if you want to pull this off legitimately, you really ought to establish an LLC.
Once you go the official route, you'll need to account for things like an accountant and general business expenses.
Even just covering the basic federal taxes and filing fees... let's say the minimum monthly cost is roughly around $400
enough to make it worthwhile only if your monthly revenue hits about $3.25. Once you clear that threshold, you start seeing a decent profit.

Now, the big players like Best Buy tend to demand some pretty heavy guarantees—things like promissory notes and signed collateral.
To be perfectly honest, I’ve always found that part a bit distasteful.
I mean, what kind of guarantees are we even talking about here?
If I am paying for the inventory upfront, why on earth would I need to provide promissory notes or extra security?
The process should be seamless: I place the order and pay, you arrange delivery to the customer, you send me the invoice, and we're done.

Otherwise, you end up in a situation where someone tries to freeze your accounts or something, and you're stuck wasting your time proving you don't owe anyone a dime.

Yeah, it's true. I refuse to sign blank promissory notes in my own name for those Hardliners who are currently under FBI investigation and facing massive financial issues. I pay for everything upfront, yet they still want my personal note that they can cash in whenever they feel like it.
It was easy for them to run a successful business when you buy stuff in China for $0.33 and sell it to the government for $1.75. Honestly, I told them I'd consider signing if their board members signed blank promissory notes for me instead—notes I could activate if they ever released mine after I'd already paid for everything in full, or if I found out my note was being used as collateral for one of their loans.
Most likely, those blank notes they demand serve as collateral for the loans they're pulling.
So now, I just buy everything from Germany; it's 20-30% cheaper than buying from Mussolini.

So... what, it won't fly without blank guarantees? That feels like a massive waste of time when you're already paying upfront... Is there any B2B service here in the States that doesn't demand that kind of collateral?
Importing from Germany? Hmm... sounds like a bit of a headache... though, I did just import a car for my own use recently. 😁

Mark Smith48 said:So... what, it won't fly without blank guarantees? That feels like a massive waste of time when you're already paying upfront... Is there any B2B service here in the States that doesn't demand that kind of collateral?
Importing from Germany? Hmm... sounds like a bit of a headache... though, I did just import a car for my own use recently. 😁

It’s not that complicated. You just build your order online, pay with a business credit card, and coordinate the shipping timing via email once you have the volume and weight specs ready.
Then you just notify FedEx to come pick up the shipment.

Mark Smith48 said:So... what, it won't fly without blank guarantees? That feels like a massive waste of time when you're already paying upfront... Is there any B2B service here in the States that doesn't demand that kind of collateral?
Importing from Germany? Hmm... sounds like a bit of a headache... though, I did just import a car for my own use recently. 😁

Check out Amazon Business. They've got decent stock at good prices, plus warehouses in Chicago County and similar hubs.

@more how much is a shipment like that costing you, and what kind of volume are we talking about? Are you grabbing a whole pallet or something?

quietbison43 said:Check out Amazon Business. They've got decent stock at good prices, plus warehouses in Chicago County and similar hubs.

@more how much is a shipment like that costing you, and what kind of volume are we talking about? Are you grabbing a whole pallet or something?

I reached out to Eazy via email to introduce myself as a prospective new client.
They didn't even bother to offer a response.
It is difficult to speak highly of their level of professionalism, even if I will concede that the website itself is quite well-designed. It seems painfully obvious that they are aiming for wholesale volume, yet they fail to provide any concrete pricing upfront. How exactly does one intend to scale sales when they can’t even manage the basic courtesy of responding to an email? It is a bit like trying to run a high-end dealership without ever opening the showroom doors.