View Full Version : Finder's Fee Percentage
07-17-2009, 10:07 AM
If a friend who has connections in the car sales bidness hooks you up with a buyer for a vehicle you are selling in the $15K to $25K sale price bracket, what do you think would be a fair finder's fee percentage? Wouldn't a sixpack, oh hell, a case of beer, be enough? :hill: For real though, I'm thinking 15% is in the ballpark, anyway. Any ideas? I posted this to mud and have gotten some response but nothing clear cut.
07-17-2009, 10:27 AM
One idea would be to start with what alot of brokers or fleet reps will ask for. $500 over invoice. Seems low compared to 15% of a 15k vehicle...but maybe a place to start?
07-17-2009, 10:30 AM
depends on the flavor of beer!!
Seriously though - I think it probably depends upon the circumstances of the sale -
If it's a vehicle that would easily have sold otherwise, maybe 15% is too high.
If it's a sale that needed the special knowledge this person could give you in order to sell, then 15% is probably fair.
07-17-2009, 10:39 AM
IMO - 15% is too high, and personally I hate bringing money into friendships - this ain't the east coast (unnecessary east coast slam ;) ) - friends help friends out because they're friends, so in the situation you've outlined a 6 pack of 90 Shilling and a lunch at a burger place should be more than sufficient.
Now when I was selling large overland vehicles, I charged 9% for "brokering" the deal - that included marketing, negotiating, back and forth with buyers and potential buyers, basically everything up to and including the transfer of funds and title. Most of these went for north of $200k, and we earned that money, some of the deals took months to put together, trips to the airport, hours of instruction for the new owner, document fed-xing, DMV trips, notary services, etc....
So I think 15% is way too high for helping a friend out. my opinion.
07-17-2009, 01:36 PM
I would have thought somewhere around 5% would be plenty. :twocents:
07-17-2009, 02:31 PM
most car dealerships pay their sales people 10% of the gross profit on a vehicle before any additional bonus structures. So 15% of the sale price is very generous. But if thats what you pay when can I start :)
$100.00 is plenty IMO unless there was a lot of work involved
07-17-2009, 03:58 PM
I'm with Matt, especially if the friend is a close friend...If they are, they probably aren't expecting anything and if that is the case then some of their favorite drink, or a gift certificate to a decent restaurant for dinner, or similiar would most likely be well received...If it isn't maybe they aren't that close of a friend.
15% sounds high, especially if that is on the $15K-$25K price vs. gross profit.
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