What is a typical referral fee, that is paid out?

intermediary profile

May 06, 2022

by an intermediary from University of Nevada - Las Vegas in Henderson, NV, USA

What is a typical referral fee, that is paid out to the person that referred the lead to a business that later bought by your fund. Is it a flat rate (what is usually that number) or is a percentage of the deal. What have you all seen in your experiences?

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commentor profile
Reply by a searcher
from Harvard University in Miami, FL, USA
Depends - but I would definitely suggest a flat fee that reflects how much value you think the person brought to the table in bringing you the deal (plus any other relevant support)
commentor profile
Reply by an intermediary
from Wake Forest University in Winston-Salem, NC, USA
10% of commission received, or translated to gross proceeds about 0.5% to 1% of the purchase price (depending on deal size)
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