How can an independent sourcing agent charge his clients?

I know that a sourcing agent can charge his clients by hourly rate, but I don't think it is a wise strategy. If a sourcing agent charges a percentage of each order, then he has to be in the middle, but what if the client cuts out the agent and does business with a manufacturer directly? Do you have any good ideas?

In this situation it is best to approach the project on a consulting basis for a monthly retaining or one time fee. The fees should reflect the value of the consultants contribution and not be hourly based. If you can save a customer $1M in 1 hour would you send a bill for only $300? That would have no reflection on the project value. In my strategic sourcing consulting practice all transacations are direct between my clients and the sources. This raises trust and eliminates conflicts of interests. If you wish to be in the middleman role than your value added must be high enough to justify the percentage earned. Functions such as warehousing, Quality control, shipment consolidation etc. can justify a middleman percentage.

It depends if you have any applicable contracts in place and the resources to fight in the courts. You really need to speak to a lawyer about this and be prepared to pay for advice, contracts, etc.

On the other hand, you can just accept that this is what might happen and move on. If you have lots of clients, then losing a few won't matter.