I wanted to share what Global Resource Broker considers a resource Brokerage. I took the time to explain what we do which is simply provide resources such as raising capital, connecting buyers and seller s of physical commodities and products place and promotions. A resource broker is simply a person that connect a business with resources to assist in the growth of their business.
“Why would any company pay a Finder’s Fee?”
There are over 240,000,000 people in this country — and millions of businesses (small, medium & large). Can any business know of ALL of the sources of supply, potential buyers, or providers of necessary services? — Not on your life!
Why should a company spend thousands of dollars, and tie up essential employees to do nothing but research the existence of these suppliers, buyers, and providers — when they can easily let a Finder go to the trouble of locating the contacts they need. And, those fees are considerably less than what they would have spent if they had done the research themselves.
Finders EARN their fees by weeding-through the unqualified leads and flakes; by following all of the dead-end paths; and eventually putting their hands on a real, honest-to-goodness source, buyer, or whatever. — THAT is what a Finder gets paid for doing.
A company, or individual, who pays a Finder’s Fee, pays it so they won’t have to chase down all of those unqualified leads, blind alleys, and dead-ends.
It is really far easier than you might imagine…but…if you don’t know how to do it (and do it right), you may chase down all the blind alleys without ever finding a profitable match. – That’s what happens to most amateur finders – a lot of blind alleys but NO Fees!!
I’ve spent over 30 years of my life as a finder – gathering facts and doing the things that you need to do to be a professional finder. Starting with a $42 unemployment check, I became a multi-millionaire.
During those 30-plus years, I made every mistake ever made by amateur finders – until I learned how to do it right. — I have earned Finder’s Fees for locating everything from a World War II bayonet (for a collector) to buyers for Oil Field Equipment.
Over the past 10 years, I have watched as literally thousands of men, and women, have tried to become Finders. – Most of them don’t even know, for sure, what a Finder’s Fee is, or how a Finder earns those fees.
The real tragedy of this situation is that there are literally millions, upon millions, of dollars out there just waiting to be claimed by someone who can “find” the buyer, or seller, needed to complete the transaction.
What Is A FINDER?
Unfortunately, most people…even many of those who call themselves “finders”…..don’t really know “what” a finder is, or how to start earning Finder’s Fees.
In order to define what a Finder “is,” let’s first point out what a Finder “is not.”
A FINDER is NOT a PRE-SELLER — Pre-sellers accept a selling price from a product source, add-on what they feel to be a fair margin of profit, and sell the item. After they make a sale, they then buy the product and ship it to the buyer.
A FINDER is NOT a DEALER — Dealers take-on a product, or service, for continuing promotion and sales. They are responsible for the distribution of a product, or service, from the prime source to the end user.
A FINDER is NOT a REPRESENTATIVE or AGENT for either the buyer or seller. — Representatives & Agents are empowered by their clients to negotiate the purchase, or sale, of specific products or services. They can legally sign documents obligating their clients.
Too many “supposed” Finders are not really Finders at all — they are Salesmen, Agents, Representatives, and/or Pre-sellers.
A Finder is nothing more than a “match-maker” for a fee. The professional Finder simply matches QUALIFIED buyers with QUALIFIED sellers, or vice versa – “FOR A FEE!”
Finders DO NOT sell anything; except their knowledge.
Finders DO NOT negotiate anything; except their own fees.
Finders DO NOT add-on their profits.
Recently I was asked what is a typical finders fee for raising capital?
Good question, exclusive or not, it can depend on the quality of the deal.
We have agreements for a little as 3% and some as high as 10%. There are so many aspects of a deal that can make this affect the percentage, primarily based on the viability of the deal and how "early" stage they are.
Assuming all the necessary documents are in order...
If it is debt financing? " You normaly will be paid lower fee for Debt"
If it is Equity " Higher fees can be expected for equity projects"
Is it a private company?
Common or Preferred stock?
Product or service?
Size of industry?
First round, second?
So much to consider.
We usually will negotiate a Fee on average of 5% depending on the ammount of finanacing required. When your dealing with Project under 1 million the fees are normally over 5% deals over 1 million 5% and under depending on the answer to the questions above.
Hope this gives you a better understanding on how Finders Fees are determined.