What is the single best way to serve a client?
Answer : Working together with others . . . brokers, realtors, accountants, financial planners and other advisors, to help a client buy or sell a business.
The Short Version.
- If you introduce a buyer or a seller then you’ll get a referral fee of 25% of the sales commission upon the successful conclusion of a transaction.
- If you have a history of advising clients during business transactions and have an agency agreement with your client authorizing you to work your side then you’ll have earned 50% of the deal instead of a 25% referral. This mostly means other business brokers who display a similar referral practice that is outlined like this on their websites and their promotional literature.
Working with Business Brokers
It is fun working with business brokers since we can understand each other’s war stories. We also understand the need for client confidentiality.
Working with Realtors, Business Consultants, Accountants, and others
My Seller and Your Buyer Other than with business brokers, if you are on the Buy Side and I am on the sell side, mostly we’ll work with a 25% referral fee (paying you 50% of the buy side) with me doing all the work. I am open to other ideas, but they must fall within my client’s confidentiality parameters and your area of competence. There is the a key difference between the instructions I receive from my clients and the instructions of a typical seller of real estate.
Most often, it is in the real estate seller’s best interest for the whole world to know that their property is for sale. But business brokerage clients don’t want folks to know they are for sale until the potential buyer has been fully qualified for time, talent and treasure.
The reason is that the public knowledge that a firm is ‘in play’ can introduce uncertainty into the seller’s relationships with customers, suppliers and staff. My success is based on my discretion. Client confidentiality absolutely has to be protected.
If it is Your Seller
On the Sell Side, consider putting putting your listing on my web site. I would claim a referral fee of 50% of the sell side if anybody I send to you completes the purchase or my marketing is otherwise the cause of sale.
The number one reason for doing this is exposure for your seller. Nobody has the solid exposure to buyers throughout Alberta as we do. This is easily confirmed through the web services that show the ranking of individual web sites. See Amazon’s www.alexa.com service.
If both both of us work the deal then it is 50/50 but you must know your way around a balance sheet since businesses mostly sell on a belief that current cash flow with continue. Nothing is more embarrassing than sending a client to someone who cannot talk profit & loss statements.
Businesses with Property
Realtors feel the same embarrassment working with business brokers or other advisers who do not understand real property. I am not a Realtor and do not know real property. I can only participate on a referral basis.
But I have observed that it is often is in the best interest of the seller who owns his premises to plan for two separate transactions. There are many more folks looking for commercial property with a good tenant than there are folks looking for a business owning a good building.
Marketing your listing on this web site
If you are qualified to work a deal and want to expose your listing – or search for sellers – we can work together. You do a headline saying what you have and we’ll put it on the web site along with a web profile. You will also give me instructions on the qualification criteria your seller wants in a prospective buyer. These will usually be in the format of time, talent and treasure.
I will qualify any prospect who calls me after seeing your listing on my web site. If they pass, I will pass them on to you. And, if they do a deal on that listing, you will send me the standard referral fee 25% of the total commission.
Can you play nice in the sandbox?
Call me to explore – 403 668 9433.
And, if you are a Seller reading this, hesitate to deal with anybody whose website does not show how he works with other brokers.
This is seldom in your best interest since it will limit your exposure in the market.