finder's fee

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finder's fee

The consultant received a finder's fee for connecting the investor with the startup.

Definition

Noun: A finder's fee is a sum of money paid as a reward or commission to a person who successfully identifies and connects a resource, opportunity, or person to another party, leading to a business transaction or agreement. This resource is typically financial backing (like an investor) or a key individual (like a job candidate).

Usage

A finder's fee is a payment for a successful introduction or discovery. It is a common practice in business, finance, and recruiting. - It is paid to the person who made the connection (the finder). - It is paid by the party who benefits from the connection (e.g., a company, an investor). - The fee is usually a pre-agreed percentage of the deal value or a fixed amount.

Examples
  • The consultant received a finder's fee for introducing the startup to a venture capital firm.
  • As per their agreement, she was entitled to a 5% finder's fee for any client she referred to the law firm.
  • The finder's fee was paid after the candidate she recommended accepted the job offer.
Advanced Usage
  • "To earn a finder's fee": To qualify for payment by successfully making a connection.
    • He earned a substantial finder's fee for brokering the merger.
  • "To offer a finder's fee": To propose a reward for a successful referral.
    • The company offered a finder's fee for anyone who could identify a suitable warehouse space.
Variants and Related Words
  • Referral fee: A similar payment for recommending a client or customer. While often used interchangeably, a "referral fee" can sometimes imply a simpler recommendation, whereas a "finder's fee" often involves a more significant, deal-making introduction.
  • Commission: A broader term for payment based on a completed sale or transaction, which can include finder's fees.
  • Brokerage fee: A fee paid to a broker for facilitating a transaction; a finder's fee can be a type of brokerage.
Synonyms
  • Introduction fee
  • Referral bonus
  • Success fee (in some contexts)
Related Phrases
  • To act as a finder: To take on the role of someone who seeks out opportunities or connections for a fee.
    • He acted as a finder for real estate investments.
  • Finder's agreement: A formal contract outlining the terms for paying a finder's fee.
    • Before proceeding, they signed a finder's agreement to clarify the payment terms.
finder's fee

The consultant received a finder's fee for connecting the investor with the startup.

Noun
  1. a fee that is paid to someone who finds a source of financial backing or to someone who brings people together for business purposes
    • the agency got a finder's fee when their candidate was hired as the new CEO