Business Broker Commission Rates

For years, you’ve put in the hours and resources to reach your entrepreneurial dream. But now, you’re in the market, looking to sell your business—only to find confusing and sometimes predatory business broker commission rates. 

While brokers play a key role in connecting buyers and sellers, commission structures can be complex, with hidden fees or high percentages cutting into your final payout. 

Let’s look at how business broker commission rates work, what to watch for in the fine print, and why Baton Market offers a smarter, more cost-effective alternative.

Understanding Business Broker Commission Rates

The business brokerage industry was valued at 1.8 billion dollars in 2024, with most profits coming from business broker commission rates. These rates refer to the percentage of the final sale price that a broker earns as payment for their services. 

Commissions compensate brokers for finding buyers, managing negotiations, facilitating due diligence, and ensuring a successful transaction.

Business broker fees refer to the percentage brokers earn when a business sells. While business brokers charge anywhere from 8% to 12% on average, there’s no true industry baseline—meaning the standard business broker fees vary widely depending on the deal.

The average business broker commission may seem manageable until you factor in upfront fees, retainers, or fine-print costs hidden in the fee structure.

Many also charge flat minimum fees on top of the commission—meaning that you could be on the hook for thousands of dollars even if your business doesn’t sell. These fees are often buried in the fine print, leaving you with devastating, unexpected costs. 

Because there is no standardization, you need to examine the proposed payment structure carefully to avoid fees that chip into your final profits. 

Fortunately, you do have options. Baton Market operates with complete transparency and lower fees—charging just 6% while delivering superior results. Baton can maximize exposure and simplify the selling process at a fraction of the cost.

Why Do Commission Rates Vary So Much Between Brokers?

If you’ve started exploring your options for selling your small business, you’ve probably noticed one thing quickly: Commission rates are all over the place. That’s because rates change depending on the size of your business and the type of broker you choose.

For example, smaller businesses face higher commission percentages than larger ones. While a broker might charge 8% for a $5 million business, that rate can jump to 10% or more for businesses under $1 million. 

Since brokers perform similar tasks regardless of deal size (marketing the business, vetting buyers, and handling negotiations), they charge a higher percentage for smaller transactions to ensure the payout remains worthwhile. 

It bears repeating: Understanding how commission rates are structured is essential for any business owner selling a business, especially in the lower middle market, where every percentage point counts.

Many business brokerage firms maintain high commission rates across all deals, regardless of size. That and additional marketing costs can eat away at your profits before you even close.

The type of broker also impacts the cost of selling your business. Different brokerage models come with varying commission structures, fees, and levels of service:

• Independent brokers often charge higher commissions (8–12%) due to their personalized, hands-on approach. Some also require retainers upfront.

• Large brokerage firms typically serve mid-market businesses and charge similarly high commissions, sometimes layering in extra fees for marketing and deal advisory.

• Online platforms (like Baton Market) leverage technology to offer lower costs and better efficiency. Baton Market, for example, charges just 6% while delivering structured, transparent deal execution.

What to Look for in a Broker Agreement

Before you sign any deal, browse the fine print for hidden costs and restrictive terms that could impact your sale. 

For example, look for: 

• Minimum fees: Ask if broker fees are tax deductible and whether there’s flexibility in negotiating broker fees, especially if your deal requires a longer sale process or has unique complexities.

• Exclusivity periods: Many brokers require exclusive representation for 6–12 months, preventing you from selling independently or switching to another broker.

• Cancellation penalties: Some brokers impose hefty fees if you want to exit the agreement early.

• Success fees: Even if your business sells after the agreement ends, you may still owe the broker a commission.

• Retainers and marketing fees: Some brokers charge upfront retainers or marketing fees, adding thousands in costs before a deal even happens.

Why Baton Is a Smarter, More Transparent Option

Selling your business is a huge decision, and the broker you choose directly affects your bottom line. While traditional brokers charge high commissions and layer on extra fees, Baton offers a more efficient and cost-effective alternative.  

Traditional brokers operate with high overhead. They rely on manual processes, hefty commissions, and upfront retainers or marketing fees. 

Baton doesn’t just help people sell businesses—we help them do it smarter, with less friction and more profit.

Our platform actively connects listings with high-quality, vetted prospective buyers using automated outreach and a deep buyer database.

This automated yet expert-driven process eliminates unnecessary costs, allowing us to charge far lower than the industry’s standard. 

How Can You Choose the Right Broker Without Overpaying?

Not all brokers offer the same value, so carefully comparing your business broker options is important. Choosing the right broker can mean the difference between a smooth, profitable sale and a drawn-out, frustrating process.

Before settling on any option: 

• Compare pricing and services: Don’t just look at commission percentages; understand what’s included. Some brokers charge extra for business valuation reports, marketing, or buyer outreach.

• Ask about hidden fees: To avoid surprises, directly inquire about minimum commissions, exclusivity clauses, and cancellation penalties.

• Look for transparency and efficiency: Tech-enabled platforms like Baton Market provide real-time updates, clear communication, and pre-vetted buyers, making the process more predictable and seller-friendly.

Choosing the right broker means balancing cost, transparency, and results. Baton Market delivers all three. That’s why it’s crucial to look beyond what most business brokers offer—and assess whether the model truly works in your favor.

Get More Value With Baton’s Smarter Commission Model

Most brokers charge 8–12%, often with hidden fees, slow processes, and unclear communication. Don’t settle for outdated processes and inflated business broker fees if you're selling a business. 

Baton gives you a better way forward—with less stress, more value, and a team that puts your goals first. With just a 6% commission and no unnecessary costs, you get more money in your pocket, faster deal execution, and a stress-free selling experience.

Want to see how much your business is worth and sell it for the best possible price? 

Get a valuation with Baton today and compare the difference for yourself!