A Fortune In The Finder’s Fee Business
There is a lot
of money to be made in the finder’s business if you do it right. The
problem is that most people do it wrong and end up quitting before
they even really get started. You have to know the rules of the game
to succeed. You should start out wanting to become a good finder and
then develop into a highly paid professional finder.
is a Finder?
In its simplest
form it is about bringing two interested parties together for a
transaction. This is perhaps the most well known when it comes to
investment in business. A business needs to raise capital for
expansion (or whatever reason), and a good finder will make this known
among the investing community and find an investor or multiple
investors. They will then earn a finder’s fee.
equally be prevalent with buying and selling. As a finder you can both
look for buyers or sellers first, and then match up their requirements
with another party to the transaction. The two parties do not have to
be in the same location. In fact many finders these days are matching
up buyers and sellers across the world.
It is important
to understand that a finder is not a dealer. A finder will not start
taking stock of products to sell on. They are not pre-sellers either.
What a pre-seller does is agree a product price with a vendor and then
add their commission on top. When the pre-seller makes a sale they
will then purchase from the vendor at the agreed price, and add their
margin when selling to the buyer.
When you are a
finder you are not an agent or a representative for either the seller
or the buyer. With an agent or representative they have authorization
from the customer to negotiate deals and can obligate their customers
into transactions. A
finder will not have the power to do this.
do Companies use Finders?
It might seem
strange to you that in this information age that we live in there are
still businesses that use finders for their important transactions.
Think about the numbers here. There are millions of small to medium
businesses around and they couldn’t possibly know about every
supplier of a product or service that exists.
Most of these
companies are far too busy concentrating on their core business to
spend hours on the Internet searching for perfect matches to their
needs. They will happily hire a competent finder to locate what they
want and pay them a fee.
Fee Business Introduction
To start a
finder’s business you will need to have a number of things in place.
A successful finder thrives on the connections that they establish.
These connections will be out of reach to ordinary businesses and this
is where the opportunity arises.
an Industry to focus on – aim to be the person with all of the
connections in a particular industry. This needs to be an industry
where there are a lot of transaction opportunities.
up a number of telephone lines with voice mail, toll free numbers and
3 ways calling – the telephone is your number one asset as a
finder. Your phones should be busy most of the time.
the websites that are important to your industry and subscribe to them
– these days there are specialist websites for all industries so you
must identify the appropriate ones and subscribe to them so that you
don’t miss a thing.
professional networking websites and subscribe to those too – as
a finder you will need to always be on the lookout for new clients and
these websites can help you to find potential leads.
and order contact lists for your industry – these can be mailing
lists where you would create letters and send them out or email based
lists. There is likely to be a cost associated with these lists so
make sure that you start small and test first.
industry related networking events and be there – there are
always industry conventions going on someplace. Some of these events
will not allow finders to attend so get creative here and work the
lobby for free so that you don’t miss out.
to LexisNexis and Hoovers for company data – you want to be able
to conduct detailed research into companies and these sites are the
best for this.
a good contract template developed – this will clearly outline
payment terms and the service that you will offer. Get help from an
attorney with this if you need it.
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