Former Fellow RDs, why I quit this job: Late last year I started with FortisTCS and turned in 1st feasibility study mid Dec. Client co. Had export sales just under $14 mil, but the savings for the company with IC DISC were going to be much less than I thought, based upon the median recover weve been told. I could not figure out how we could help companies with export sales of only $3 million.
I found the following to help understand calculations: http://www.exportassist.com/calculator/index.html. Try it.
Here are some results: Exporter sales amount: $3,000, 000 with profit at a very generous 20%: $600,000. IC DISC savings: $73,185. FortisTCS set up fee $6,000 and FortisTCS commission (at maximum 30%*) $21,955= Regional Director Commission: $2,195 = 4 quarterly payments of $504.25.
According to this IC-DISC benefits calculator, for an RD to receive the $8,000 annual "median" commission on a client company, the export sales of the client company (with typical profit structure of 10%, and a negotiated maximum 30% commission for FortisTCS*) should be over $22,000, 000 (twenty two million dollars!) Plug the numbers into the calculator and see for yourself.
*FortisTCS commission fees noted optimistically at 30%. You have all been told by now that the commission range is flexible - between 15% and 30%.
WHY DIDNT MY DEAL CLOSE?: Perhaps because there are competitors that provide exporting companies the same IC DISC service for less than my commission from this deal would have been! Following link is to a company that charges $4000 ($2500 for the formation fee and only $1500 for an annual maintenance fee.) This is less than 1/10 of what FortisTCS would have charged for my deal - less than my commission would have been: http://exportsubsidy.com/application/Application.php Home Page: http://www.exportsubsidy.com It was stated repeatedly that the reason FortisTCS has changed to focusing almost exclusively IC-DISC is because the process is much quicker and simpler than R and D. If I were a financial officer in a company with significant export sales, I would likely shop around prior to authorizing $6,000 on any up - front fee, and certainly prior to agreeing to pay $80,000 per year for any service, no matter how much it saved the company. It took me less than an hour to find the web site above, and I am not well trained as most company CFO's.
May this email bring about fruitful discussions amongst you to the benefit of all. Please share this link with your fellow RD's. And by all means please share your success stories not just stories of tax doc's turned in stories of the money you have received! I've heard much testimony of fellow RD's turning in 4 or 5 "deals" a week, but NEVER testimony of projects going forward, or any details of payment received. Congratulations on all those tax docs reportedly going in it was tough trying to get my second "deal" even with 20 years of sales behind me. Perhaps because (contrary to what you're being told) "Today, the IC-DISC is part of the arsenal of many successful U.S. Exporters. A recent survey by RSM McGladrey, Inc. (for the accounting profession) found that 40% of all U.S. Manufacturers were using IC-DISC's." The above quote is taken from the following link: http://www.nsba.Biz/content/1474. Shtml
To your continued success
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