There isn’t really an industry standard and is generally a hybrid approach between different types of compensations. If a broker is assisting in the sale of the business, they may charge a modest retainer to cover some of their time and expenses in listing the business and reaching out to purchasers. Typically, the majority of business broker compensation comes from a success fee attached to the gross proceeds of the sale. Even in that case, there is a large range. Typically the fee starts at 10% and goes up from there, depending on the market you’re selling in. Based on the valuation of the business, it may go up to a ratcheted percentage based on that. For example, it may look like something like 10% on the first million, 12% on the second, etc. In general, we suggest shopping around to get a sense of what the industry in your area averages and their effective compensation, as some charge more on up front end or vice versa. If you have a good sense of what your business can transact for, you can come to a hard number and then decide with which broker your confidence lies. It some cases it might make sense to work with the most expensive broker for better representation, whereas in other cases the lowest bid may be advantageous. Keep the cost in mind but take a look at the brokerage itself and make sure that it will add value to the process.