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Finder’s Fee Agreement

A finder’s fee agreement creates a contract in which one party must pay compensation to a person who set up some business transaction.


  • Charging a fee for introducing a new business opportunity to a client or business partner
  • Paying fees for recruitment or referral services


Sometimes, business partners and clients are uniquely positions to introduce new opportunities to existing businesses. In these circumstances, the business may wish to negotiate a finder’s fee agreement that sets forth the terms and conditions by which people will be rewarded for creating new business opportunities. A finder’s fee is generally understood as some amount paid to a person or business who makes a business transaction possible. Finder’s fee agreements are common in many industries that thrive on referrals and direct sales, but they can be helpful to formalize any professional networking agreement. Finder’s fees can also be paid as a token of goodwill to valuable clients who regularly refer new business to your company. Paying finder’s fees can be a great way to grow your business or make money on your professional network. If you currently pay finder’s fees as a part of your business operations, or are considering hiring a professional recruiter or marketer, it is important that you know the terms and conditions of the underlying finder’s fee agreement to make sure you are getting a good deal. Similarly, if you regularly provide referrals, consider whether you should be charging for your services.