What is a typical compensation program for a Sunbelt business broker?
Broker compensation programs are designed and established by the local Sunbelt office owner. That said, the typical broker is retained by the local office owner as an independent contractor and strictly works on a commission basis. There are typically no advances or draws against future commissions. Depending on the nature of a given transaction, commissions can range from 7% to 13%. The standard business broker commission is 10% of the transaction value, with half going to the broker(s) and half going to the office owner. By way of example, if a business is sold for $400,000, typical commission would be $40,000 with half going to the broker(s) and half going to the office owner. High producing brokers may be offered a higher commission split. Obviously, if a broker does not produce, his compensation will be $0; however, a successful broker may make between $100,000 and $1,000,000 per year.
