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Finder's Fee Agreement Basics

Sometimes valuable business information, potential clients, and contacts come from an outside source. A Finder's Fee Agreement outlines the relationship and the compensation involved. Getting your arrangement down on paper helps ensure that the interests of both parties are acknowledged and agreed upon. A Finder's Fee Agreement can also help in the event of future disputes.

Use the Finder's Fee Agreement document if:

  • You are a business owner and want to compensate someone to help you find prospective investors.
  • You want to hire someone that will help build your client list.
  • You can offer your expertise finding potential investors, clients or other business prospects.

In commercial transactions, a Finder's Fee is the amount of money paid to the "finder" for their services. For example, new businesses may want to work with a finder to help build a list of potential clients. In this case, the finder typically supplies the business with a list of names or contacts. Depending on the specifics of your arrangement, the fee may be a percentage or a set amount. Some companies will pay Finder's Fees to the finder based on how many contacts are actually converted to clients. Whatever the compensation, having it in writing clarifies the terms from the beginning.

Other names for this document: Finder's Fee Contract, Finder's Compensation

Sample Finder's Fee Agreement

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