A Finder’s Fee Agreement will discuss a relationship and the compensation involved with arranging this information. By putting this in writing, it makes sure that all interests are agreed upon. This will help in any future issues related to the arrangement.
When to Use
Use a Finder’s Fee Agreement if you want to hire someone that will help build clientele, you’re a business owner and want to compensate an individuals to help you find investors and/or you want to offer your expertise to various clients and earn a living from it.
How it Works
In terms of commercial business, a Finder’s Fee is the money that is paid to the finder for various services. The finder will supply a business with a name, contacts, a connection or even a project. Depending on the specifics of the arrangement per say, the fee may be a fixed price or a percentage of a sale. Some companies even pay Finder’s Fees to the finder based on how many contacts become clients. Whatever the amount of money, having it in writing protects both parties and clarifies the terms from the beginning of the working relationship. A Finder’s Fee can also be a gift from one party who feels obligated that the profits of a sale should be shared with the finder for making the sale possible.
Other names for this written legal document are a Finder’s Compensation or a Finder’s Fee Contract.