A finder is someone who finds something for a person or business. The amount paid for this service is called a finder`s fee.
What is the difference between a finder and a broker or commissioned salesperson?
A broker or commissioned salesperson gets paid a percentage of the sale made. Usually, such person acts as an agent for the owner of the goods or services sold. He becomes actively engaged with the sales process, supplying information to facilitate the sale, negotiates the contract, arranges financing, and completes paper work.
On the other hand, a finder simply introduces a buyer to a seller for a fee. He does not become involved in the sales process and is not an agent acting on behalf of the seller.
The best areas to earn finder`s fees are those in which you already have expertise and interest. For example, if you are an expert on airplanes and have connections in the aviation industry, you could earn finder`s fees finding suitable planes for those needing them.
You can earn finder`s fees in many areas including equipment (used or new), equipment leasing, finding locations for franchises or vending, scarce materials, commodities, financing, et cetera.
Connections are the inventory of a finder. You are being paid to find something of value by someone who doesn`t know where (or doesn`t have the time) to find it. Your knowledge of where and who to get something from is invaluable information that people are willing to pay for.
Protect yourself with written contracts. Also, document all efforts you have made to earn your finder`s fee.
Before you introduce a buyer to a seller, have the seller acknowledge in writing that they have agreed to pay you a finder`s fee of so much upon successful completion of a sale. After obtaining a properly executed written contract (which may be a simple one page letter agreement), inform the person by written correspondence (sent by registered mail) about the buyer. Keep all copies of correspondence and other written documentation in case it becomes necessary to enforce your rights later. Proper documentation should help you to avoid any misunderstandings.
Just as the business that sells something pays its sales staff, likewise the seller generally pays the finder`s fee. The seller is the one that makes a profit from the sale and so usually is the one that pays commissions or finder`s fees.
However, if a buyer is particularly anxious to buy something, he might offer a finder`s fee. Therefore, it is possible to collect such fees from either the seller or the buyer.
It is possible to find finder`s fees opportunities offered in magazines, newspapers, and newsletters. You can find additional opportunities by doing your own research. Use your contacts, reference and phone books at the library, the Internet, persons you know (or don`t know) who might have the information you need, as well as other sources to find what is needed.
For example, if someone tells you they can`t find a pilot with an airplane outfitted with geophysical survey equipment, have you considered talking to airport employees, pilots, business acquaintances, exploration companies and manufacturers?
Make sure that all your communications and dealings (telephone, correspondence, letterheads, contracts, et cetera) reflect the professional nature of your business.
You must be willing to do the necessary legwork and research required to earn your finder`s fee. As well, you must project a business-like, professional image and protect yourself with written contracts and other documentation. Above all, you must follow through and diligently apply what you have learned. In that way, you, too, will become a highly paid professional finder.
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