Finder's Fee

Categories: Investing

Let’s say we know a great mortgage lender. And let’s say we have a friend who’s looking for a great mortgage. We introduce our friend to this great mortgage lender, and they strike a business deal. If either our friend or the mortgage lender gives us a nice cash thank-you for the introduction, that’s called a finder’s fee.

But finder’s fees, also known as referral fees, aren’t just for mortgages. Whenever a reward is given to someone for bringing together folks with coinciding business interests, that reward is called a finder’s fee. Sometimes these fees are hammered out in contracts so everyone knows what they’re getting, but sometimes they’re not. Sometimes they’re just a happy surprise.

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Finance: What is commission?112 Views

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finance a la shmoop. what is commission? well it's the greatest motivator for

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salespeople in the world. it's the money some people make above and beyond their [ commission explained on a large screen]

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salary. a little monetary carrot dangling out in front of a salesperson to you

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know encourage them to sell sell sell. alright you're an agent who just sold a

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house good for you. you get a 3% Commission. the house went for a million

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bucks well you get 30 grand for the privilege or at least your brokerage

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does, and then you get some piece of that. ok now you're the stock broker who sold

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3 million shares of stock. well good for you

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you get four cents a share in Commission 120 grand in the pocket of your

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brokerage and you get some piece of that Commission. you're the Hollywood agent[equation]

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who just inked Brad pitiful into a movie deal worth 20 million bucks, well good

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for you your agency gets a 10% commission or two

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million dollars. yeah that's for a Dewey Cheatham and Howe agency best one in

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Hollywood. yeah they rep Harvey Weinstein. now for someone who's attempting to sell

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a polished version of that Harvey Weinstein story well that's a commission

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impossible. [man frowns]

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