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 a la shmoop. what is commission? well it's the greatest motivator for
salespeople in the world. it's the money some people make above and beyond their [ commission explained on a large screen]
salary. a little monetary carrot dangling out in front of a salesperson to you
know encourage them to sell sell sell. alright you're an agent who just sold a
house good for you. you get a 3% Commission. the house went for a million
bucks well you get 30 grand for the privilege or at least your brokerage
does, and then you get some piece of that. ok now you're the stock broker who sold
3 million shares of stock. well good for you
you get four cents a share in Commission 120 grand in the pocket of your
brokerage and you get some piece of that Commission. you're the Hollywood agent[equation]
who just inked Brad pitiful into a movie deal worth 20 million bucks, well good
for you your agency gets a 10% commission or two
million dollars. yeah that's for a Dewey Cheatham and Howe agency best one in
Hollywood. yeah they rep Harvey Weinstein. now for someone who's attempting to sell
a polished version of that Harvey Weinstein story well that's a commission
impossible. [man frowns]