Finder’s fees are commissions or other forms of compensation given to an acquirer for bringing new money to a business.
The finder’s fee paid to a salesperson by the product or service provider is normally a one-time commission for new customers or new money successfully acquired.
Depending on the agreement, subsequent outflows of customers or new income may be deducted from the finder’s fee. In this way, only the onboarding of actual net new money is rewarded.
Recurring commissions (annual payments, for example), are not usually referred to as finder’s fees, but as retrocession fees or recurring commissions.