What Is the Average Commission for a Business Broker (And What Should You Be Paying)?
Dylan Gans
April 14, 2025 ⋅ 6 min read
What is the average commission for a business broker? Most brokers charge between 8% and 12% of the final sale price—fees that can cost sellers tens of thousands of dollars.
For many first-time sellers, this steep commission comes as a surprise, eating into hard-earned profits from years of work.
In this guide, we’ll outline typical broker fees, explain how they’re structured, and why they’re so high. You’ll also learn how Baton Market offers a smarter, more affordable way to sell your business and protect your bottom line.
The Average Commission for a Business Broker
Selling your business shouldn’t mean parting with a sizable chunk of the earnings, yet many business brokers charge 8% to 12% of the sale price—what’s considered the standard business broker fee.
This average business broker commission can balloon as high as 20% depending on the firm, especially when selling your business in a lower price range.
Look at it this way: When selling a business for $900,000, a 10% commission equals $90,000. This significant amount eats into the business’ equity and the value the business owner has built up over the years. It can also be an excessive and unfair price for a small business owner relying on the sale proceeds for retirement or "the next chapter.”
At Baton, we do things differently. Baton Market combines modern technology with expert support to charge much lower fees and offer better services to sellers than traditional brokers.
We provide M&A advisory services, which differ from broker services in that they help businesses navigate complex transactions through thorough valuations. This allows businesses to sell for exactly what they’re worth.
In addition, we charge less than traditional brokers, saving sellers money. For example, our advisor helped ASAP Pharmacy part with less than a third of the fees a traditional broker would have charged.
How Are Business Broker Fees Structured (Why Are They So High)?
Broker fees vary depending on the fee structure. While many charge a success fee, others pile on upfront fees like retainers and marketing costs.
These practices are common in the business brokerage industry but can quickly drive up the total cost—especially if your broker isn't transparent about what's included, like:
Retainers: A non-refundable fee that sellers pay upfront
Minimum commissions: A percentage that sellers pay regardless of what the business sells for
Marketing costs: Brokers charge back the costs of promoting the business to the seller
Flat-rate or tiered commissions: Charged on businesses over $1M
Quick example: For a $750,000 business sale, a 10% broker commission would be $75,000. If you add a $10,000 marketing package and pay a $5,000 retainer, your total fees will be $90,000.
Why are the costs so high? Traditional brokerage relies on manual processes and outdated sales models to sell businesses. These processes and models rely more on staff for data collection, outreach, and buyer vetting, making them time-consuming and expensive.
Not to mention, manual processes are prone to errors, such as missing documents, which might be costly to replace. This naturally creates higher overheads, and all these fees come from the seller’s pocket.
Why Do High Broker Fees Hurt Small Business Owners the Most?
This issue is especially painful in the lower middle market, where business values range from a few hundred thousand to a few million.
Many traditional business brokerage firms apply the same commission percentages across the board, even if the deal size doesn't justify the fee.
For example, a $100,000 commission on a $1,000,000 sale is far more consequential than a $1,000,000 commission on a $10,000,000 sale. It could mean a seller has less capital to invest in their next business or retirement money.
Beyond the main commission, small business owners may also encounter additional costs for marketing materials, listing fees on various platforms, and due diligence support. These hidden costs can further cut down their profits and create frustration.
Let’s look at a common scenario for small business owners. Consider Jen, a cafe owner in Austin. She decided to sell her cafe for $600,000 and hired a broker who indicated it would be easy to sell her asset.
But at closing, she paid a 10% commission, and the broker asked for an additional $8,000 in marketing fees. In the end, broker fees took $68,000 from her earnings. Between the commission and the marketing fees, Jen lost slightly over 11% in the deal.
Is There a Better Alternative to Traditional Business Brokers?
Baton Market is a better alternative to traditional brokers. It’s tailored for today's business owners who want more fair pricing, better outcomes, and total transparency. Our platform uses technology to give free valuations within 10% of the sales price.
These accurate valuations show your business’s fair market value, helping you set realistic prices.
Baton Market’s transparent and flexible payment options include Free, Lite, Pro, and Premium. These options allow you to choose a plan that matches your needs and eliminates any uncertainty around hidden fees.
Baton flips the traditional broker commission model by charging success fees that are about a third of the industry standard. This means you keep more of your hard-earned equity when selling your business. Lower fees don’t mean cutting corners—just a more efficient sales process powered by technology.
How Much Money Can You Save By Selling Your Business Through Baton?
Consider this side-by-side comparison of Baton Market with a traditional broker:
Traditional broker fee: 10% of $1M = $100,000
Baton Market success fee (Lite plan): 3% of $1M = $30,000
The total savings is $70,000, which doesn’t include marketing or retainers you would likely pay if you sold through a traditional broker.
It’s also not only about money. Baton sellers close their deals 50% faster than the industry average.
Baton Market sellers have access to pre-qualified buyers, strategic outreach, and matching tools to help facilitate a successful business sale. Plus, sellers access weekly updates, so they are always in the loop.
The money, selling speed, and transparency make Baton Market the best choice for someone serious about selling their business.
Avoid High Fees and Sell Your Business the Smart Way
Traditional brokers charge between 8% to 12% in fees, costing sellers tens or hundreds of thousands of dollars. If you're selling your business, don't let outdated models and inflated commissions hold you back. Baton Market gives you everything you need to sell smarter—from expert support to serious savings.
Baton Market is faster, more affordable, and built with today’s business owners in mind. Ready to see what your business is worth?