Tyler G. Hicks, the president of International Wealth Success Inc., is the author of many wealth building publications, including the Finder's World Business Kit and the Financial Broker/ Finder/ Business Broker/ Business Consultant Kit. Here are some of his insights about finder fees.
1. What does a finder do?
A finder brings together a need and a source for an individual or company. For example, an oil company might require real estate (with a certain motor vehicle traffic volume) for the purpose of operating a service station. The finder locates this real estate for the oil company and earns a finder's fee for this service.
Another example is finding a suitable lender for a loan; this is the most common finder fee situation.
2. How are finder fees calculated?
The starting point is five percent of the amount of the find, whether it is for loans, property, et cetera. Of course, finder's fees are negotiable and can sometimes be only two or three percent of some finds.
3. Is finding better suited as a full-time or part-time business?
Finder fees are more often a secondary, supplementary, on-the-side source of income earned in conjunction with some other main business.
4. What businesses or situations are especially conducive to earning finder's fees?
The raising of money as well as the finding of real estate, rare minerals and unusual materials are good areas to earn finder fees.
5. What are the best areas for earning finder's fees for someone just starting out?
Finder fees for the raising of money is the best area for beginning wealth builders. The need for money is universal.
6. Where do you find finder fee opportunities?
Read and advertise in such publications as International Wealth Success Newsletter, The New York Times, The Wall Street Journal, and other big city newspapers and business publications.
7. What advice would you give someone who wants to start earning finder fees?
Don't take advance fees. Pick an area in which you want to work, by type of product or situation –not by geographic location. Start advertising your services.