THE PRACTICAL ANSWER

Transparency is an agreed set of records and rights, not simply a statement that the fee is low.

Define the source of every cost

Ask for the original factory quotation, separate service fees and third-party expense evidence. Record currency, quote validity, specification version and exclusions. A bundled resale price can be a legitimate model, but it should not be mistaken for a disclosed factory cost.

Agree disclosure timing

A paid sourcing engagement can reasonably protect its research before an agreement and startup payment. The agreement should state when factory identities and verification evidence become available, and what happens if the milestone is not completed.

Clarify supplier relationships and data

Specify ownership and permitted use of specifications, quotations, tooling records and supplier contacts. Confirm whether you may contract with and pay factories directly after the agreed milestone. Address confidentiality and third-party restrictions explicitly.

Make incentives and exit terms visible

Record supplier commissions, rebates and conflicts of interest, or the commitment not to receive undisclosed payments. Scope ongoing management separately from supplier introduction. Agree the handover records so continued engagement depends on useful work.