There is no standard finder's fee percentage. A finder's fee is set by agreement and is usually a flat amount, a percentage of the deal value, or a share of the fee the party you introduced is paid. At Origin it is 50% of what Origin earns on the deal, up to $100,000 per company.
- Ask what the percentage is calculated on: deal value, the payment to the company, or the intermediary's fee.
- A higher percentage of a smaller base can pay less than a lower percentage of a larger one.
- Most programmes pay only after the deal closes and the payer has itself been paid.
- Securities deals, real estate and licensed professions have their own limits on who may take a fee.
The three ways a finder's fee is calculated
Flat fee: a fixed amount per closed deal, such as $10,000. Simple, and the same whatever the deal size.
Percentage of the deal: for example 6% or 10% of the deal value or of what the introduced company is paid. It grows with the deal, so programmes often cap it.
Share of the intermediary's fee: when the party paying you is itself paid a fee, it can pay you part of that fee. The percentage looks larger, but the base is smaller.
| Structure | Example | You receive |
|---|---|---|
| Flat fee | $10,000 per closed deal | $10,000 whatever the deal size |
| 10% of what the company is paid | The company is paid $400,000 | $40,000 |
| 25% of what the company is paid, capped at $100,000 | The company is paid $300,000 | $75,000 |
| 50% of the intermediary's fee, capped at $100,000 | The intermediary is paid $100,000 | $50,000 |
Examples are arithmetic, not offers.
How to calculate a finder's fee
Multiply the base by the percentage, then apply the cap. Example: a programme pays 25% of what the company is paid, up to $100,000. The company is paid $600,000: 25% is $150,000, so the cap applies and you receive $100,000.
Then check timing. A fee that is due only once the payer has itself received money can arrive months after the deal is signed, and a fee paid in instalments follows each payment. Ask what event makes the fee due, and how many days after it the fee is paid.
Finder's fee or referral fee?
In ordinary use the two mean the same thing: a payment for introducing two parties who then do a deal. "Finder's fee" is more common in business sales and investment deals, "referral fee" in professional services. Some rules use the words differently: the AICPA Code, for example, treats a "commission" on a product differently from a "referral fee" for recommending a CPA's services.
Is a finder's fee legal?
Usually, for an introduction in an ordinary commercial deal, with an agreement and disclosure. The limits come from the kind of deal and from your profession:
- Securities: FINRA Rule 2040 bars member firms from paying anyone who is not registered as a broker-dealer but is required to be, so finders in securities deals face registration questions (FINRA Rule 2040).
- CPAs and attorneys: professional rules limit or condition fees. See can CPAs and attorneys accept referral fees.
- Bankruptcy: offering or receiving a reward "for acting or forbearing to act in any case under title 11" is a federal crime (18 U.S.C. 152(6)). Estate professionals take no finder's fee.
- Real estate, insurance and lending referrals are often limited to licensed people by state law. Check your state.
This is general information, not legal or tax advice. Rules vary by state and profession; check yours before you accept or pay a fee.
Introducing a company whose records AI companies license
If you advise companies with years of operating records, Origin's partner programme pays you 50% of what Origin earns on the deal, up to $100,000 per company, after the deal completes. Origin works with the AI companies and data buyers that license these records. Put any arrangement in writing first: see the finder's fee agreement clauses.
Origin is independent. A buyer may pay Origin when a deal closes; your client pays Origin nothing.
Common questions
What is a typical finder's fee percentage?
There is no standard finder's fee percentage. A finder's fee is set by agreement and is usually a flat amount, a percentage of the deal value, or a share of the fee the party you introduced is paid. At Origin it is 50% of what Origin earns on the deal, up to $100,000 per company.
How much is a finder's fee on a $1 million deal?
It depends on the agreement. At 10% of the deal it is $100,000; at 6% it is $60,000. If the fee is a share of an intermediary's fee, calculate it on that fee, not on the deal.
Is a finder's fee taxable?
In the US a finder's fee is generally income to the person who receives it, and the payer may ask for a W-9. Ask a tax adviser about your situation.
Do I need a written finder's fee agreement?
You should have one: it fixes the base, the percentage, the cap, when the fee is earned and paid, and how long your introduction is protected. See the finder's fee agreement clauses.