Co-broker fee split vs a SourceX referral partnership: how the fees work

Which one fits your situation?

Choose a co-broker split when two brokers share work on one business sale. Choose a SourceX referral partnership when you are introducing a client's operational records for AI data licensing, a separate transaction that does not need your listing agreement.

The two can sit side by side. A client can be on your sell-side engagement and also be introduced to SourceX. The money flows are different, and keeping them apart protects your credibility.

How do the two arrangements compare?

When does a co-broker split win?

Co-brokering is the natural choice when the work is shared on a single mandate.

• You hold a listing but lack a buyer network in the sector, so a buyer-side broker brings the counterparty.
• A buyer-side broker brings a qualified buyer and expects a defined share for closing.
• The deal is large or specialized enough that two firms add credibility.
• The cooperation terms are written down before the buyer is introduced, including who holds the protection period for named buyers.

The weak point is dependence on closing. If the sale does not complete, neither broker is paid. The guide on a business sale that fell through covers what is left for the owner afterward.

When does a referral partnership win?

A referral partnership suits situations where you have a relationship but no role in the transaction the client is considering.

• The client has 50+ full-time employees at peak and years of records, but no near-term sale.
• A sale was marketed and failed, and the owner still holds the archives.
• The client is a seller whose broker engagement is with someone else, and you were not part of the mandate.
• You want a second, low-conflict reason to talk to a business owner before listing, as outlined in how business brokers find sellers before they list.

You make the introduction through the referral form or your referral link. SourceX then qualifies the company, the company completes a data inventory, price and terms are agreed, buyers review, and the deal closes with delivery and payment. Your reward follows SourceX's receipt of its fee.

Does a referral reward conflict with a sell-side engagement?

It can, if you do not address it. A reward tied to a data license is separate from your commission, but the owner should hear about it from you, in writing, before the introduction.

• Disclose the reward to the client in your engagement letter or an addendum.
• State plainly that the reward comes from SourceX's fee and does not change what the company receives.
• Confirm that any data license fits the sale. Exclusive AI-training licenses for an agreed term should be reviewed by the client's counsel and by any buyer in diligence.
• Check your state broker licensing rules and any brokerage policy on referral compensation before you register.

This is general information, not legal, tax or financial advice. Confirm with your own counsel, tax adviser or professional body before acting.

What to put in the cooperation note or addendum

A short written note avoids later disputes. Cover these points in your own words with counsel:

1. Which engagement the co-broker split belongs to, and which transaction the referral belongs to.
2. That the referral reward is payable by SourceX to the partner only after the buyer pays and SourceX receives its fee.
3. That the partner does not see or handle the company's records.
4. That the owner decides whether to proceed, and that nothing is binding until the company agrees price and terms and signs.
5. That attribution goes to the first valid referrer whose introduction leads to a verified company application within the attribution window.

How do you screen a client for the referral side?

Use the question set on the who qualifies page, or run the company fit checker for a preliminary, non-binding read. Clients who are moving into larger accounts will meet this more often, as described in moving upmarket with 50+ employee clients.

Before you start, read how owners think about proceeds in the piece on how much a business must sell for to fund retirement, because some owners will care most about one-time cash outside the sale.

How do rewards work?

Partners earn 25% of the eligible platform fees SourceX actually collects from the referred company's licensing deals, capped at $100,000 cumulative per referred company. The reward is payable only after the buyer pays and SourceX receives its fee. A lead, meeting or signed agreement alone does not trigger payment, and no reward is guaranteed. Details sit in the program terms.

Next step

If you have a client with records and no role for you in a transaction, register as a partner. Read referral opportunities for business brokers for the full role playbook, and send the owner to sourcex.si/apply with your referral link if they prefer to apply themselves.