What Is a Finders Fee and When Does It Get Paid?


Finders fees can be used for a variety of reasons, from getting friends motivated to find you a tenant to paying a company to recruit candidates for your new positions within your company. Finders fees are typically discussed as a mutually profitable deal before the venture starts, and then paid after the “finder” is successful in locating the people or offers that you need.

You’ve probably heard about people who pay friends and acquaintances who work in certain companies to pass along their resumes and put in a good word. While that’s not an illegitimate strategy depending on the skill of the candidate, it can be somewhat informal, and if the roles are reverse and you’re the owner of a company looking for new talent, then you might want to consider a more formal deal.

Hiring headhunter recruitment services to help you out is usually the best option. Depending on the contract you sign, you might be required to provide a finders fee, or the whole issue might be somewhat more flexible, leaving it up to you to give a bonus incentive for finding a better suited candidate. You’ll find that, in most cases, a higher finders fee will get you a lot of great candidates who are more than happy about the idea of working for your business.

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