How Does Our Commission Structure Work?
The new commission is blended, meaning the commission rates are stacked on one another based on the value of the business.
Here’s how it breaks down:
Under $700,000
Commission will be a flat 15% on the sale price.
The value of the business between $700,000 and $5M
Commission will be reduced to 8% on the amount above $700,000 and below $5,000,000.
The value of a business above $5 million
Commission will further be reduced to 2.5% on the amount above $5,000,000.
For example, if a business is listed for $1 million:
$700,000 of the value will have a commission of 15% = $105,000
Plus 8% commission on the remaining $300,000 value = $24,000
Total = $105,000 + $24,000 = $129,000 commission
If a business is listed at $5 million:
$700,000 of the value will have a commission of 15% = $105,000
Plus 8% commission on the remaining $4,300,000 value = $344,000
Total = $105,000 + $344,000 = $449,000 commission
Remember, the same rule applies as you move above $5M, the remaining value would have a low commission rate of 2.5%.