Do you have a natural talent for business brokerage? Have you ever thought about how to generate money as a business broker? That is a question that many individuals have. It’s a good one to have if you want to learn how to make money as a business broker. And you’re about to learn why in this piece.

A business broker is an independent specialist who assists clients in the purchase and sale of various types of enterprises. They act as neutral mediators, facilitating transactions based on their extensive industry knowledge.

As a business broker, on average you may earn $10,744 in a month and $128,928 per year. But if you’re a well-experienced business broker with up to 10 years of experience, you can expect to be making $16,666 per month and $200,000 per year.

Making money as a business broker is considerably simpler than you may believe. If you’re still unsure where to begin, here are some high-paying ways that you can help individuals acquire businesses.

1. Your Own Businesses

The number one way to make money as a business broker is through selling your own businesses. You’ve tried everything. The cost of employees, keeping up with technology, insurance, taxes, and other expenses are just too much. As a business broker, you have access to hundreds of businesses for sale at any one time. If you have a profitable business that you no longer want to run, then selling the business may suit your needs.

What’s more, you might simply want to sell your business so it can continue to operate under new ownership—something that is common when an entrepreneur wants to move on while ensuring that an employee or other associate will take over the day-to-day operations.

With your skills and experience, you can increase your asking price by 25%–50%. Meaning if you sell the business for $500,000 without any charges of a commission since you’re closing the by yourself, you’ll walk away with a cool extra $50,000 in your pocket.

2. Others Sell and Buy Businesses

As a business broker, there are three ways to earn money by helping people sell and buy businesses. The three ways are:

• Working with buyers on the sale of businesses
• Working with sellers on the purchase of businesses.
• You can also work on both sides of the transaction at the same time

As a business broker, you can make money by selling other people’s businesses. You may work with potential buyers looking to buy small businesses, franchises, or other types of businesses that are not traded publicly on the stock market.

The most profitable way is working on both sides of the transaction at the same time. This is because you will make money from both the buyer and the seller for your service. However, in this situation, ensure you’re as transparent as possible and don’t be sentimental.

As a business broker, It’s your sole responsibility to ensure the two parties are happy with the deal. That’s the joy of being a successful business broker and the best way to get more clients.

3. Work For a Big Brokerage or a Boutique Firm

You can find businesses for sale either by working for a large brokerage or by working for a small boutique firm. Large brokerages typically hire people based on their sales skills and press them to reach quotas, while small boutique firms rely on finding great deals and convincing clients to make an offer.

If you’re just starting, think about working for a brokerage that specializes in the type of business that interests you or a boutique firm. But note, that working for a big brokerage may pay more, but you will likely find yourself continuously repeating the same tasks with no room to grow.

Therefore, instead, you might want to head to one of the many boutique firms that are looking for eager, hard workers with sales experience. And some of these boutiques pay brokers well, making it easier to earn a commission.

The key idea here is to know your options and what suits your career goals as a business broker. Whether you chose to work for a brokerage or boutique firm, you can make a lot of money. The more deals you’re able to close, the more money you will make.

4. Write About Business Brokerage on Your Blog or Website

As a business broker, I want to believe you already own a professional appealing website and if you not, I will strongly advise you to create one today. It doesn’t matter if you’re a beginner or a seasoned professional, writing about the business of business brokering can help position you as an expert in your field.

Blogging is the best way to share information about your industry and how it works. You can educate others on the road to being a successful business broker. And you can write blog posts about the process of buying and selling businesses.

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To optimize your blog for search, make sure you include keywords that potential clients might be using when searching for a business broker. Also, outline what sets you apart from other business brokers. In addition to getting more business through your blog, you can monetize your blog through affiliate marketing or Google Adsense.

5. Work With Corporate Buyers

If you choose to work with corporate buyers, this means you will represent the corporation when buying a business. Many corporations such as Coca-Cola, Berkshire Hathaway, and Levi Strauss employ business brokers. It’s often easier for them to find one source who specializes in their industry versus having employees try to find businesses.

Corporations have enough money to throw around that they’re paying more to buy businesses than the brokers are charging because they’re making their offer to buy the business first. Therefore, it’s a smart thing to work for such corporations.

If you are interested in working with corporate buyers, contact the corporate legal counsel for their company or facilities department. You can also connect with corporate buyers by attending industry trade shows and conferences.

6. Serve As a Consultant For Small Entrepreneurs

There are a lot of small business owners searching for a “business broker near” every day. If you enjoy working with entrepreneurs and business owners and want to make money as a business broker, you can serve as a consultant for these business owners.

Most small business owners don’t have the time or expertise to negotiate deals, so they hire professionals like you to look out for their best interests. You can help entrepreneurs evaluate businesses on everything from financial performance and potential expansion opportunities to the quality of the employees and the owner’s willingness to train new ones.

Apart from negotiating deals with potential buyers, you could also help them grow their businesses by asking important questions about how the company is run and helping identify areas that need improvement.

It’s not a difficult job, and it offers an excellent opportunity to build strong relationships with like-minded business owners. You might find yourself becoming a trusted advisor over time.

7. Work With Investment Bankers

Working with investment bankers is one of the most efficient ways to generate higher fees as a business broker. And this translates directly into higher commissions for you. An investment banker’s job is simple- find sellers willing to sell their businesses, and find buyers willing to buy them.

A business broker can offer just as much value in this relationship as an investment banker. You just have to perform more background checks on the company being sold. This is part of the reason business brokers are so heavily relied upon when selling an entire company; they allow investors to rest assured that they are buying something worth it.

The key to success as a business broker is to form relationships with investment bankers who can use your expertise to place their borrowers’ businesses on buyers’ radar screens. The more investment bankers you have selling for you, the more money you can make.

8. Get Paid to Speak At Events

Do you have a lot of knowledge of the brokerage industry? This will be an easy and fun way to make some money. Get paid to speak at events and conferences and share your knowledge and expertise with others in the industry.

If you enjoy speaking to groups and spreading the word about the joys and benefits of business ownership and franchising, then you can get paid to speak at events. You can contact trade shows and other event organizers. And arrange to speak while they cover your travel expenses and fees.

There are dozens of worthy causes and groups that would love to have you speak to their organizations or at their events. You can use this to further establish yourself as an expert in the field. Be sure to fully utilize your speaking platform by strengthening your online presence, promoting your talk through social media, and giving away useful content through your blog.

9. Host seminars For Business Owners

Are you an experienced business broker who enjoys the company of other business owners? Hosting seminars is a great way to make money.

Business brokers also have an understanding of their local business climate which can help attendees make more profitable decisions. You can host educational seminars that educate people about the business options they have or how to sell their business, to gain customers through referrals. Hosting these events is part of what can lead to new customers.

To find participants for your seminar, find owners of similar businesses and invite them to your seminar. Explain how you would like to facilitate finding buyers or renters for their business.

10. Offer Expert Advice to Investors

You can make money as a business broker by offering expert advice to investors. In this challenging market, retail investors can often feel lost and overwhelmed. That’s why many turn to a business broker for expert advice on finding the best possible investments and negotiating the sale.

In some cases, as a business broker, you will help people find the right space for a new business as well as provide guidance as to whether the venture will be profitable. You may also provide an overall package of services consisting of legal, accounting, and investment advisory guidance.

When your clients are working with you, they can rest easy knowing that their interests and concerns will be protected. Whether they want to make a quick flip or find a stable investment, it is your responsibility to advise and guide them with your expertise and experience.

How to Become a Business Broker

Follow these basic steps to become an effective business broker.

1. Understand the role and responsibilities of a business broker

Brokers are the intermediaries between sellers and buyers of businesses. They represent the seller and buyer at the same time. The aim of involving brokers in the deal is to make the buying and selling of business more straightforward.

Here are the primary services of a business broker:

• Analysing the actual market value of the business
• Identification and investigation of potential buyers
• Creation of selling and advertising listing related to the sale
• Negotiating the purchase deal
• Ensuring that the buyer has acquired proper funding
• Other duties are required to close a sale

2. Acquire the skills needed to become a real estate agent

Business brokers must have the collective skills of salesmen, intermediaries, and financial analysts in addition to having a specific business brokerage. He or she should be capable of quickly identifying from all the cold calls business people who want to sell the business.

If you are new in the brokerage business, you will need to build relationships and handle the pressure of rejections even before cracking your first deal. This business asks for long hours of work and does the same task repeatedly for the growth of the business. As a good business broker, having an excellent entrepreneurial spirit will ensure a rewarding career.

3. Gather knowledge about compensation and the job market

The compensation in the brokerage business varies between brokers and based on the deal they are cracking. The percentage of sales commission usually falls between the range of 8-12%. The market of business brokerage depends on the state of the economy and the GDP. If the total number of brokers in the market ranges from 2500 to 5000, it leaves ample opportunity for new brokers to enter the market; the commission applicable in that case is less.

The best example of understanding how the state of the economy affects the market is the COVID-19 pandemic. It has shifted the focus of people towards online business. It is prudent to keep yourself updated with the latest trends by conducting thorough research on the innovations and technologies currently in the market.

4. Join an existing brokerage firm

To gain experience in the job and responsibilities of a business broker, it is advisable to join a brokerage firm. It helps you receive suitable training and mentorship from an experienced business broker. Initially, don’t focus too much on commissions; the training and experience gained are highly valuable in themselves. It will also help you get good leads and know the strategies of making a business scale. Learning from experience is the best way to understand how to become a commercial real estate agent.

5. Budget your finances well in advance

There is significant potential for earning a good income in this sector, but the risk is equally high. Never exhaust your emergency savings, as mere bad luck and market factors can drain your hard-earned income. Always save some money as an emergency fund before starting your profession as a business broker. Secondly, when you start making profits in the business, be judicious in your expenditures; don’t exhaust it on luxurious items and instead, start saving money in different schemes.

6. Apply for a license to become a business broker

To officially become a business broker, especially as a real estate broker, you will need a license. You receive your license by clearing the license examination. Writing the exam is another excellent way to get more experience. The coursework varies from state to state. While preparing for this examination, it is good to check with your state department to understand their specific procedures on how to become a commercial real estate mortgage broker or commercial broker, or business broker.

Final Words

The profession of a business broker is a very lucrative career. Since no one can make huge profits and reap the rewards overnight in this profession, you will be successful if you persevere, work hard, and keep your knowledge of the market up-to-date.

Working as a business broker can be a brand new chapter of your life if you follow all these steps. It is a business where you work for yourself; all profits earned are only yours to enjoy. If you are looking for a change from your typical 9 to 5 job, then start planning your future as a business broker and prepare to meet new people and unlock new opportunities.