BackdoorMan
Posts: 1
Joined: 12/24/2019
Status: offline
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I am not a typical business broker. I'm just a 23 year old who has some connections and can help initiate a sell/buy between two parties.
This is my situation:
I'm in good, to a certain extent friendly relations with a wholesaler who sells cryotherapy equipment across Europe and I have connections with a person who is interested in buying his products on a market outside of Europe. At the moment of writing this post I have already made contact with the potential buyer and the feedback was positive, he's interested to look at the prices.
Now, this is my first experience with being a middleman. I have surfed the internet and I have educated myself on what it means to be a "wholesaler", "retailer" and "business broker". My role in this thing is most similar to the business broker's position and I'm looking for some advice.
I need to know how big of a fee I can ask for in return for my services. I have provided the connection, but I will also be directly communicating with the potential buyer which should increase my value. I have already read an article on this topic and found out that the typical fees range from 8 to 15%.
Now, since I'm not a trained professional and I won't have to be doing much market research or doing too much leg work, I think that asking for 15% is not fair, but I think that 5% would be much too small of a fee because after all I am the one who has made it all happen. So I think that I should start out by asking for 12% and not be willing to go down below 9%. I think that 8% is a snap call for him (I'm a poker pro btw haha) and I think that it should be fair for him to agree on 10% given how I still have other connections in other places that might be just as interested as our current buyer.
Me and the seller are friends, but his is quite an idealistic person and I think there's about a 20% chance that he will get stubborn about giving me a fee between 5-7%.
In this type of a situation, how aggressively should I be looking to play my leverage? In this situation, the only leverage I have is that the buyer is a good friend with one of my family members and he's probably not going to be interested in doing the deal with him if I communicate that I have been damaged or left out.
Also, are there any contracts that are a standard procedure for these types of business deals, or should I be looking to get everything closed on a friendly basis (given my relationship with both parties).
Thank you all in advance for every piece of knowledge that you might share with me.
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My first middleman experience: looking for advice - 
