Data broker commission calculator

Example: a $150,000 licence renewed for three years, at a flat ten percent, is $15,000 a payment and $45,000 in total. With a quarter going to a co-broker, you receive $33,750 and they receive $11,250.

On the Lehman scale instead, a $5 million one-off licence gives $150,000: five percent of the first million, four of the second, three of the third, two of the fourth and one percent of the last million.

There is no standard commission rate for data deals and we don't publish typical figures. What you are paid is whatever you and the seller agree in writing. The tool's presets show the structure, not a recommendation.

• Flat rates are easy to explain and suit smaller deals.
• Declining tiers keep the fee reasonable on very large deals. The Lehman scale is a long-standing example from investment banking; some advisers use a doubled version.
• Recurring licences raise the question of renewals: agree in writing how many years of renewals pay commission, and whether the rate steps down.
• If a co-broker is involved, agree the split before introductions, not after the deal closes.

• Timing: most agreements pay commission only after the seller has been paid, so a deal signed today may pay out months later.
• Refunds and credits: if the buyer gets money back, a clawback clause may take part of the commission back too.
• Retainers: if you charge one, check whether it is credited against the success fee, which lowers the final payment.
• Tax: the figures are before any tax, and before your own costs of finding and closing the deal.