Ask Entrepreneur

Is there a general rule of compensation for an outsider bringing companies together that results in a partnership?

No, there is no general rule, you're in wonderland. You can't solve this riddle with an established formula. You have to use common sense and gut instinct and if you have the benefit of somebody else with experience in this area, ask them. Do you have an attorney with small business experience? An accountant? These are shark-infested waters, so don't go in there alone.

While not general rules, here are some tips that might help: Call this a finder's fee and do a web search on finder's fees, and discussions of finders fees. It better not be very much. Most people who bring others together, resulting in a partnership, do it out of good will, networking, and assuming that a favor will be returned later. There isn't much economic value there. If you pay too much, the partnership fails because of it.

Tim

Share Your Thoughts

Today's Editor's Picks

About ASK ENTREPRENEUR

Ask Entrepreneur is a question-and-answer forum for and by the Entrepreneur.com community. Send in your burning business question, or comment on someone else's now. Have a Question? Ask Now

Topics (over 1000+ answers)

Ask Entrepreneur Q&A Hangouts

Google + Hangout With Shark Tank
Google + Hangout With Jason Falls
Google + Hangout With Angela Jia Kim
Google + Hangout With Grant Cardone

ASK Quick Tips