Who Pays the Business Broker Fee? A Transparent Look at How It Works

You’ve built your business from the ground up and are now ready to sell. But as you begin the process, one confusing (and expensive) topic keeps popping up: Who pays the business broker fee?

For many business owners, the cost of working with a broker is a mystery. Some charge hefty commissions, others require upfront retainers, and the fine print can leave you reeling.

Let’s examine broker fees, who pays them, and why they vary. We’ll also show you how Baton Market is redefining the model by offering a clear, cost-effective alternative that saves sellers thousands without sacrificing expertise.

What Are Business Broker Fees?

A business broker charge typically includes a mix of success and retainer fees. The standard business broker fees vary, but a typical business broker fee ranges from 10% to 15% of the sale price—what’s known as the average business broker commission.

Many business brokerage firms also impose a minimum commission fee, which can disproportionately impact smaller deals. That’s why understanding your fee structure upfront is so important.

The success fee is a percentage of the final sale price that the broker earns when the business sells. The key feature of this structure is that brokers only get paid the success fee if the business sells, making it a results-driven model. 

A retainer fee is a fixed upfront fee the seller pays the broker for their services. This fee is non-refundable and is charged regardless of whether the business sells.

As you can imagine, these fees can be frustrating. A sore lack of transparency often leaves business owners uncertain about what they’re paying for. The cost can also be disproportionate, particularly for smaller businesses, where a high commission significantly cuts into the seller’s proceeds. Understanding these challenges is the first step in finding a fair, cost-effective alternative.

Who Pays Business Broker Fees? 

The seller is responsible for paying the broker fee. This cost is deducted from the final business sale, so you take home less than the final purchase price.

In rare cases, buyers may be charged a fee, especially when working with certain Merger and Acquisitions (M&A) firms or business-for-sale advisory platforms. But, in most small business sales, the seller covers the cost.

Because broker fees directly impact how much a seller walks away with, it’s crucial to understand what you’re getting for the price and whether a lower-cost option might make more sense.

How Fees Vary by Broker Type and Deal Size 

Most business brokers charge higher fees for smaller deals and may be less flexible on pricing unless you’re in the middle market or lower middle market range.

Brokers with experience selling businesses valued at $5M+ may reduce commissions for high-value deals—but that doesn’t help the average seller. Baton keeps pricing simple with flat fees, no matter your deal size, and includes expert business valuation to help you price it right from day one.

Online marketplaces, by contrast, provide a lower-cost alternative. Instead of charging high commissions, they may charge listing or lower percentage-based fees (also known as a take rate), typically 3–6%. However, they provide less hands-on support, so sellers must take on more of the selling process.

Boutique M&A firms, which often work with businesses valued at $5 million or more, tend to have more negotiable fee structures—often in the 5–10% range. While they provide hands-on service, their high costs make them less accessible for small business sales.

In general, the larger the deal, the more negotiable the fees. Many brokers reduce commissions for businesses over $1M, while smaller deals often face higher percentage-based fees because brokers have to put in more effort regardless of price.

For example, consider a $500K business sale. A traditional broker charging a 10% commission would have a $50,000 fee, while a lower-cost model charging 3–5% would have a $15,000–$25,000 fee. 

These savings can significantly affect take-home proceeds for small business sellers.

Why Baton’s Model Is Different

Small businesses have had to accept high, unpredictable broker fees for too long. Some brokers don’t show interest unless your business is worth millions, making it difficult for the smaller players. We’re different.

Baton operates on a flat, predictable fee structure—just a third of what typical brokers charge. Say goodbye to bloated retainers, surprise costs, and commission-driven incentives.

Baton is redefining business brokerage by offering a clear, affordable path to selling a business—no bloated commissions or hidden costs.

The savings speak for themselves: A business selling for $750K would likely pay a $75K–$112K commission with a traditional broker. We slash that cost by over $50K.

Baton ensures that you get the expert support you need at a fair price without diminishing the years of hard work you've put into building your business.

What You’re Really Paying for—and What You Should Expect

Great brokers don’t just list your business—they help you find qualified prospective buyers, navigate the sale process, and close the deal. And depending on your specific tax situation, some broker fees may be tax deductible—check with your accountant to be sure.

That means you get: 

• Accurate valuations: A proper valuation ensures that you’re positioned competitively.

• Marketing and buyer outreach: Brokers should proactively identify, engage, and qualify serious buyers—not just wait for inquiries.

• Buyer qualification and deal support: A strong broker screens buyers, coordinates negotiations, and facilitates due diligence to prevent wasting your valuable time.

Contrary to their high fees, many traditional brokers fail to deliver on these essentials. 

Baton does things differently. Every seller receives a professional valuation, targeted buyer outreach, and expert deal support. There are no wasted fees or inflated commissions—just results.

Making the Smarter Choice 

Selling your business is one of the most important financial transactions you will ever make. But we firmly believe that high, unpredictable broker fees shouldn’t eat into your hard-earned profits.

You need to understand what you're paying for and whether it delivers real value. Traditional brokers charge steep commissions and often require costly retainers without guarantees. This outdated model is frustratingly vague and expensive.

Baton offers a smarter, more transparent alternative. With a flat, affordable pricing structure, Baton provides the expert support you need without significantly detracting from your sales profit. 

With technology-driven buyer matching, clear valuations, and hands-on guidance, Baton is here to help you maximize your sale proceeds. 

Say goodbye to excessive broker fees. Explore Baton’s streamlined process and cost-effective pricing today to keep more of what you’ve built. 

Get in touch today and grab your expert business valuation now!