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How to Earn a Finders Fee

Finders perform a necessary function for a business by acting as an informal marketing arm of the company. Some finders introduce new customers to a company. Other finders introduce potential strategic partners or investors.

Finders usually charge a finder's fee which is a type of commission for facilitating the deal. Some types of investment facilitation require a license, so the finder must charge a consulting fee based on advisory services and creation of promotional materials rather than receive a finder's fee commission.

Prepare your marketing materials. Sometimes your client will have brochures or business plans for you to use in marketing, but often you will need to create your own, which you tailor specifically to the requirements of your business or investor contacts.

Gather your facts. What exactly does your client need in terms of customers, business projects or investment? If you expect to be paid for your efforts, you must provide a professional service. That includes pre-qualifying any potential customers, business deals or investors before you introduce them to your client.

Show the deal to your contacts. Find out exactly what they like about the deal and what they would prefer to see. Every bit of information you can gather about the preferences of both sides of the deal will increase your chances of a successful close.

Establish an understanding with your client about how you will be paid. It is vital that you have a signed contract detailing these arrangements because you get paid after the deal closes, so clients often dispute the value of your services when they no longer need them. Sometimes industry law requires a license to charge a finder's fee, such as when you introduce an investor. In those cases you will need to be paid as a consultant rather than a finder.

Close the deal. Often closing the deal takes the most time since each side will jockey for the best terms. You will earn your fee if you can maintain control and bring the deal to a quick and mutually pleasing close.

Difficulty: Moderately Challenging

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