Finder's Fee Agreement Template
A finder's fee agreement is a legal document that establishes the terms and conditions under which a finder (often called an affiliate or intermediary) will be compensated for successfully referring clients or opportunities to a business. This comprehensive template ensures both parties have a clear understanding of their rights, responsibilities, and compensation structure.
What This Template Is For
This template is designed for businesses and individuals who want to formalize referral relationships and ensure fair compensation for successful introductions. It's particularly useful for real estate transactions, business deals, investment opportunities, and professional service referrals where connecting parties leads to successful transactions.
When To Use This Template
Use this finder's fee agreement when:
- Establishing a new referral partnership
- Formalizing existing referral arrangements
- Setting up commission structures for business introductions
- Protecting your interests in referral relationships
- Defining payment terms for successful introductions
How To Customize It
Follow these steps to customize your finder's fee agreement:
- Define the parties involved (finder and company)
- Specify the scope of referral services
- Set clear compensation terms and percentages
- Establish payment conditions and timelines
- Include any territorial restrictions or exclusivity clauses
- Add specific requirements for qualified referrals
- Define the agreement duration and termination terms
Common Use Cases
This agreement is commonly used in:
- Real estate broker referrals
- Business acquisition introductions
- Investment opportunity referrals
- Client referrals for professional services
- Vendor-partner relationships
Best Practices
- Clearly define what constitutes a successful referral
- Specify exact payment terms and calculations
- Include verification and tracking mechanisms
- Set realistic payment timelines
- Define the duration of referral rights
- Include confidentiality clauses
Template Variations
Consider these variations based on your needs:
- Fixed-fee agreements
- Percentage-based compensation
- Tiered commission structures
- Industry-specific variations
Success Stories
Real estate agents have successfully used this agreement to earn substantial commissions on property referrals. Business consultants have secured finder's fees for connecting companies with acquisition targets. Investment advisors have earned fees for introducing investors to opportunities.
Frequently Asked Questions
What is a typical finder's fee percentage?
Finder's fees typically range from 3-10% of the transaction value, varying by industry and deal size.
How long is a finder's fee agreement valid?
Most agreements remain valid for 12-24 months or until terminated by either party with written notice.
When is the finder's fee paid?
Payment is typically made when the referred deal closes or when the client signs a contract, as specified in the agreement.
Is a finder's fee agreement legally binding?
Yes, when properly executed, it creates a legally binding contract between the parties.
Do I need a lawyer to create a finder's fee agreement?
While not required, it's recommended to have a lawyer review the agreement to ensure it's legally sound and protects your interests.