Finder's Fee

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.