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Referral Fees on Tech & Internet Companies – up to 1.5%

Posted by Tom Howard in Articles

This post speaks to the referral process at a leader in the sale of Internet Companies, Amazon Stores, Technology & Software Companies and other Businesses in the Digital Space. We are a unique business brokerage that not only facilitates the acquisition process in the sale of a business, but because our Founders are Internet Entrepreneurs as well, our website brokers are in the best position to provide guidance, valuation and market knowledge when it comes to developing exit strategies and buying techniques when buying or selling a technology company.

Referrals are one of the cornerstones of our success and is a process that we take very serious. With our firm, referrals are easy – all you have to do is simply call or email with us if you know of someone that is looking to sell their business. We will ask the referrer a few basic questions on the business, which generally takes less than 2 minutes, and following this Q&A session, we will take it from there. In exchange for the referral, you will receive a referral fee of 1% of the final selling price.

As you can see from the many Internet & Technology company listings we have on our website, we have many deals valued at over $1 Million, so the opportunity to make a nice return on this referral is very high.  As an example, if you referred a business to us that sold for, say, $2 Million, regardless of what our commission would be on that deal, you would receive a fee of $20,000 at closing. And what tasks will we ask of you as the referral source? Absolutely nothing – once you’ve referred the business to us, we handle all matters going forward. And when the business sells, and we are paid, you are paid your referral fee within 1 business day.

In addition to the 1% fee previously discussed, we also pay a bonus fee on any companies referred to us that sell for over $5 Million. In addition to the 1% fee you would earn on the initial $5 Million, you would earn a bonus of 1.5% on the overage. As an example, let’s say for purposes of ease that we sell a business referred to us for $10 Million. The person referring the business to us would earn $50,000 on the initial $5 Million and $75,000 on the $5 Million overage, for a total referral fee of $125,000 at closing.

We pay higher referral fees than most in our business because we believe that the best businesses are those that a person is willing to vouch for. A few of the sources where we receive referrals are: from other business brokers that don’t understand or operate in the Internet sector, other entrepreneurs and business owners that have friends or peers that they know are looking to exit, prior clients and also many referrals come from professionals that support the industry, like attorneys, accountants, due diligence experts, tax consultants, banks, and many more.

Receiving a referral on a business is a great sense of accomplishment because it proves that our firm and its many professionals are considered successful leaders in this space, and further, it speaks volumes to the results we achieve for our clients. When we sell a business for a huge multiple, business owners tend to talk, word gets around, and other people want to work with us as well. In other words, a referral in our mind is the same as an award; we are being rewarded for doing a great job on prior deals.

That sense of brand, professionalism and achievement are the foundation that sets the tone for business at We see the old school mentality that so many brokerages continue to live by – but we are different. Our intermediaries are highly skilled in the technology and internet sector, and since our founders own and operate tech companies themselves, they are in a unique position to understand a business from the inside out. There is no better resource for representing a tech or internet business for sale – so please call or email us today. We can be reached at (800) 251-1559 or by email at [email protected].