Here’s how the program works:
Step One – Register as a Referring Agent
Step Two – When you encounter someone that wants to sell an operating business, whether they own the real estate or not, you should register that referral/lead with us. Also, if you encounter someone that is interested in buying an existing business or starting up a business, please refer them to us also. We will then assign a Broker who will make contact with you, and subsequently the prospect, to setup an initial client visit.
Step Three – Once we complete our initial client visit with the prospect we will follow up with you to keep you informed on the outcome of the meeting and the status of the lead. When your lead is signed up and listed, or your buyer engages us to help with his/her business search, we will send you an e-mail confirmation with a referral fee projection should the listing referral or buyer referral result in a sale.
Our standard brokerage fee schedule starts at 10% of the sale price of the business or $12,500 whichever is greater. Business listings are always Exclusive and for an initial term of 1 year.
The referring agent referral fee is 25% of the sell-side of the brokerage fee or 25% of the buy-side of the fee. Unless there are special circumstances the referral fee will always be at least $1,200. Referral fees are paid direct to the referring agent. A referring agent that is paid a referral fee must provide taxpayer identification for 1099 reporting purposes.
Referral Fee Calculation Example:
Business is listed and sold for $300,000
KKBA’s Brokerage fee = $15,000 for listing side and $15,000 for the buy side of the transaction.
Referring agent is paid $15,000 X 25% = $3,750
To register with us to participate in this program please contact KKBA.