best-efforts selling: meaning, definition, pronunciation and examples
C2Formal, Technical (Business/Finance)
Quick answer
What does “best-efforts selling” mean?
A selling arrangement where the seller promises to use their best efforts to sell an item (e.
Audio
Pronunciation
Definition
Meaning and Definition
A selling arrangement where the seller promises to use their best efforts to sell an item (e.g., securities, property) but does not guarantee the sale or purchase of the entire amount; the seller assumes no underwriting risk.
A performance-based sales or marketing approach in which an agent or intermediary commits to making a sincere, diligent attempt to achieve a goal (such as selling a quota of products or raising capital) but without a firm contractual guarantee of success. Often contrasts with firm commitment or guaranteed selling.
Dialectal Variation
British vs American Usage
Differences
No significant difference in core meaning. Spelling conventions follow national norms (e.g., 'endeavour' vs. 'endeavor' in surrounding text, but the compound itself remains 'best-efforts').
Connotations
Neutral technical term in both varieties. Slightly more common in American financial journalism due to larger capital markets.
Frequency
Low frequency in general corpora; occurs almost exclusively in business, finance, and legal contexts. Comparable frequency in UK and US within those domains.
Grammar
How to Use “best-efforts selling” in a Sentence
[The IPO was launched on] a best-efforts selling [basis].[The agreement stipulates] best-efforts selling [of the remaining inventory].[We can only promise] best-efforts selling [, not a guarantee.]Vocabulary
Collocations
Examples
Examples of “best-efforts selling” in a Sentence
verb
British English
- The broker will endeavour to best-efforts sell the bond issue.
- They are contracted to best-efforts sell the property portfolio.
American English
- The investment bank will seek to best-efforts sell the remaining shares.
- We agreed to best-efforts sell the inventory over the next quarter.
Usage
Meaning in Context
Business
The bank agreed to the share placement on a best-efforts selling arrangement, meaning they would try their hardest but wouldn't buy unsold shares themselves.
Academic
The study compared the pricing efficiency of firm-commitment versus best-efforts selling mechanisms in emerging markets.
Everyday
Rarely used in everyday conversation. A simplified paraphrase: 'I'll do my best to sell your car, but I can't promise it will sell.'
Technical
The clause 4.2 stipulates that the distributor's obligations are limited to best-efforts selling as defined in Schedule B, with no minimum volume guarantees.
Vocabulary
Synonyms of “best-efforts selling”
Strong
Neutral
Weak
Vocabulary
Antonyms of “best-efforts selling”
Watch out
Common Mistakes When Using “best-efforts selling”
- Using 'best-effort selling' (singular 'effort') – the standard financial/legal term is plural: 'best-efforts'.
- Using it in non-commercial contexts (e.g., 'best-efforts parenting').
- Confusing it with 'best practice selling' (which is about optimal methods).
FAQ
Frequently Asked Questions
Yes, it is a binding contractual term that obligates the seller to make diligent, good-faith efforts to sell. However, it does not bind them to a specific result or quantity.
It is most prevalent in finance and securities (e.g., IPOs, bond offerings), but also used in publishing, real estate, and general sales distribution agreements.
'Best efforts' implies a higher, more strenuous standard of diligence and action than 'reasonable efforts', which is often interpreted as what a prudent party might do under similar circumstances. The distinction can be subject to legal interpretation.
It can, as it may align the seller's incentive with a successful outcome (they only earn on sales). However, it also transfers the risk of a failed sale entirely to the buyer/client, who receives no guarantee.
A selling arrangement where the seller promises to use their best efforts to sell an item (e.
Best-efforts selling is usually formal, technical (business/finance) in register.
Best-efforts selling: in British English it is pronounced /ˌbest ˈef.əts ˈsel.ɪŋ/, and in American English it is pronounced /ˌbest ˈef.ɚts ˈsel.ɪŋ/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “On a best-efforts basis (the primary idiomatic frame)”
Learning
Memory Aids
Mnemonic
Think of a friend helping you sell cookies: they'll do their BEST and put in great EFFORT, but they won't promise to SELL them all if no one buys. Best + Efforts + Selling.
Conceptual Metaphor
SELLING IS A JOURNEY WITH NO GUARANTEED DESTINATION. The seller is a diligent traveller, not a delivery service.
Practice
Quiz
What is the key characteristic of 'best-efforts selling'?