A jewellery agent is paid in one of two ways: a fee from you, or a cut taken from the factory. An agent paid by the buyer answers to the buyer, while an agent paid by the factory has a built-in reason to favour the factory. That single difference decides whose interests the agent protects.
Many buyers searching for a jewellery agent do not know which model they are dealing with. Ask the question directly before you sign anything.
How the main fee models work
Each model is common in India, and each has a different incentive attached.
- An agent paid by the factory receives a percentage of the order value from the workshop. The buyer sees no fee, but the cost is usually built into the quoted piece price.
- An agent paid by the buyer charges the buyer a written fee, which may be fixed per order, a percentage of order value, or a retainer. The factory pays nothing to the agent.
- A hybrid agent charges both sides. This is the hardest model to audit, because the buyer cannot see what the factory is paying.
Why a factory-paid agent creates conflicts
The agent earns more when the order is larger or the price is higher, and nothing when the order falls through. That pushes towards pressing you to accept a sample, skipping a rejection, or recommending the workshop that pays the best rate.
None of this means every factory-paid agent is dishonest. It means you cannot see their incentive from outside. Why use an agent paid by you instead of by the factory goes through the cases in more detail.
How to check what your agent really takes
Ask for the fee agreement in writing and ask the agent to state in the contract that they receive nothing from any supplier. Ask also to see the supplier's invoice and bank details for payment direct to the factory.
How do I know my agent is not taking hidden payments from the factory lists the checks, and how sourcing agents in India usually get paid compares the fee structures side by side.
What a clean fee arrangement looks like
Be cautious with agents who ask you to pay the factory through them without showing the factory's own invoice, or who refuse to name the workshop. Both make it impossible to check what the factory is charging and what the agent keeps. You should be able to see who made your goods, what they charged and what you paid the agent for.
A clean arrangement has one written fee, agreed before work starts, with a clear list of what it covers. It says what happens if the goods fail inspection, who pays for re-testing, and what the agent will not do.
The fee does not change if you switch to a cheaper workshop, and the agent has no reason to mind. That is the practical test of independence.
Next step
We work only for the buyer, with one written fee agreed in advance and nothing taken from any factory. To see exactly what that fee covers for your jewellery range, book a free sourcing review.