China sourcing agent fees and the kickback problem
A sourcing agent is usually paid in one of four ways: a percentage of the order value, a monthly retainer, a fee per order, or a fixed fee per project. The model matters less than one question. Is the agent paid by you, or also by the factory? When a factory pays your agent a rebate, the agent's advice and your interest can point in different directions. The fix is a written no-commission clause and a fee you can see.
The common fee models
| Model | How it works | Where it can go wrong |
|---|---|---|
| Commission on order value | A percentage of each order the agent places | The agent earns more when you pay more, so a cheaper factory can cost the agent money |
| Monthly retainer | A fixed fee each month | You pay whether or not the work moves |
| Fee per order | A set amount for each purchase handled | Small orders carry a high effective rate |
| Fixed fee per project | One price for a defined piece of work | The scope has to be defined, or extra work appears |
None of these is dishonest on its own. A commission model can align an agent with your volume. A fixed fee can align an agent with finishing the work. What matters is that you know which one you are paying for and what the agent earns from the other side.
How kickbacks work
A kickback is a payment from the factory to the agent, usually a share of the order value, kept out of the quotation you see. In practice it shows up in a few ways:
- The agent steers you to the factory that pays the highest rebate, not the one that fits your product.
- The factory adds the rebate to the price, so you fund it without knowing.
- The agent recommends a trading company with a close relationship instead of the factory behind it.
- Gifts, trips or shared expenses replace an open fee.
The result is the same. You believe the agent is testing the market for you, when part of the market is paying the agent to be chosen.
The contract terms that protect you
- No commission clause. The agent states that it accepts no payment, rebate or gift from any factory, and that you can end the agreement if it does.
- Full fee disclosure. The agent names its fee, and confirms it is paid only by you.
- Direct payment. You pay the factory directly, against the factory's own invoice, so no money passes through the agent.
- Original quotations. You receive each factory's quotation as issued, with the factory's name on it.
- Right to audit. You can ask for the correspondence and the records behind a recommendation.
- Exit terms. You can leave without penalty if the no-commission clause is broken.
If an agent resists a no-commission clause, that is the signal. An agent paid only by you has no reason to refuse.
Why we chose a fixed fee
We do not take commission from factories. Our Factory Check is a fixed US$699 for five factories, and it is paid by you. We show each factory's original quotation, we never hold money for your goods, and we state in our terms that if we ever accept a rebate we refund every fee you have paid us. Other work, such as sample coordination or order follow-up, is quoted separately and openly.
That structure keeps the advice simple. We can tell you a factory is not worth your money, because we do not lose anything by saying so. Read how the report works on the main page, or start with the category we run today, eyewear sourcing in Danyang.
An agent paid by you, not by the factory
We charge you a fixed fee and take nothing from factories. If we ever accept a rebate, we refund every fee you have paid us. US$699 for a five-factory report.
Ask about your productWritten by Platinum Sky Sourcing, a service of Platinum Sky Group Limited (Hong Kong). We verify factories in China for overseas brands. Last updated 23 September 2026.