In the past, industry norm for dental brokers was to charge (sellers) 10% commission and (buyers) 5% commission for their brokerage services. Would you believe that is still going on today? So, let’s do the math. On a $500,000 practice sale, the typical broker receives $50,000 from the seller and another $25,000 from the buyer. A total commission check of $75,000 is paid to the broker at the time of closing. Doesn’t that sound a little ridiculous to you?
Here at 3PercentDental, we don’t charge buyers a single penny for our brokerage services. And our 1.99% to 3.99% commission for sellers is the lowest in the industry. So, upon the successful sale of a $500,000 practice, our total commission check is (up to) $19,950 while theirs is $75,000.
Why do other brokers charge so much money? Is it greed? Perhaps. But it is more likely the salaries, bonuses, and overhead necessary to run their large corporations. Here at 3PercentDental, we don’t receive salaries. Only commission. So, we can pass the savings on to you.
We have a database of over 117,000 dentists nationwide. So, we don’t waste resources trying to locate buyers. We already have them in our system. As a result, when we send out our GoDaddy Email Marketing Campaign®, we are marketing to licensed dentists only. Which means our advertising dollars are laser-focused on finding dentists as opposed to marketing blindly and hoping we have the right venue.
Now you know the reason why large corporations charge such outrageous fees. It is because of their enormous overhead. Additionally, their offices are located in large, brick-and-mortar buildings. Again, it is the reason they must charge the commissions they do.