A Dealmakers life

Living as a dealmaker is an interesting life. You make money by giving other people a chance of reaching out on the market place. You put person A together with person B and make a pre-set commision on the deal. That commision can be a lot of cash if you do a big deal.

For the ones who doesn't have any experience from dealmaking I might explain this thing about fees. The short description is, there is in general only two fees available:

Commision fee
Flat Fee

Commision Fee
Commision fees is paid out based on the askig price (also called contractual price). Usually 1-5% of the contractual price.

Flat Fee
Flat fees is as it says, a flat fee. A fixed fee not based on the contractual price at all.

What many starting dealmakers mistakenly do when dealing for people is that they:

1) Never secure the deal legally. No binding contract is drafted and signed by the one they are dealing for. Resulting in getting cheated out of their cashflow easilly.
2) Never commanding the dealmaking fee paid into escrow account before starting negotiating the actual deal. This is the most frustrating part, because you need to secure your cashflow before you do anything. Never trust someone saying, they will pay everything when everything is done. Well if this guy says no to the deal he will certainly not pay you anything. And that means you have wasted a lot of time (usually months and years if you do greater deals) with no pay whatsoever.

This is my first text on this dealmaking blog. Please, comment on your thoughts and let us debate.