On a hypothetical $1M sale, a 10–15% commission is $100,000 to $150,000. On $2M it is $200,000 to $300,000; on $5M, $500,000 to $750,000. A flat fee stays $10,000 at every price. The gap is real, but so is the difference in who does the work, and that is the part to weigh.
You've had a broker quote, or you've heard the range, and you did the multiplication in your head. This post does it properly, shows its assumptions, and then covers what the numbers alone don't tell you.
Everything below is hypothetical fee-structure arithmetic. It isn't a prediction of what your business might sell for, and it isn't any particular broker's rate.
The assumptions
To keep the comparison honest, the table uses four simplifying assumptions. Change any of them and the numbers change.
- The same sale price either way. We assume the business sells for the same price whether a broker runs the process or you do. That is an assumption, not a claim. A skilled broker may push the price up; an inexperienced seller may leave money on the table. Nobody can promise either.
- A commission of 10–15%. That is the range traditional brokers commonly charge on small business sales. Actual rates vary. On larger deals, many brokers use tiered schedules that step down as the price rises, so the top of this range can overstate what you'd be quoted at $5M.
- No retainers or minimums. Some brokers also charge an upfront retainer, a marketing fee or a minimum commission. We leave those out, which flatters the commission side.
- Fees only. Taxes, legal fees, accounting and other closing costs are left out on both sides. You pay those however you sell.
The table
| Hypothetical sale price | 10–15% commission | Flat fee | Difference in fees |
|---|---|---|---|
| $1,000,000 | $100,000 – $150,000 | $10,000 | $90,000 – $140,000 |
| $2,000,000 | $200,000 – $300,000 | $10,000 | $190,000 – $290,000 |
| $5,000,000 | $500,000 – $750,000 | $10,000 | $490,000 – $740,000 |
Hypothetical fee-structure arithmetic only. Same sale price assumed in both columns. Not a quote, not a promise of a sale or a price.
Two things stand out. First, the commission grows with the price and the flat fee doesn't, so the gap widens as the business gets bigger. Second, at the upper end the commission figures are the least reliable part of the table, because that is exactly where rates tend to step down. If you're near $5M, get an actual written quote before you draw conclusions.
For a live version of the same comparison at four price points, see the calculator on our pricing page.
What the arithmetic leaves out
A fee comparison that stops at the table is a sales pitch. Here's the rest.
Timing of payment
A commission is usually paid at closing, out of the proceeds. If nothing sells, you typically owe the percentage nothing (retainers aside). A flat fee is paid for the work of preparing and listing the business, whatever happens next. That's the trade: a smaller, certain cost versus a larger, contingent one.
If you are very unsure whether you'd sell at all, weigh that honestly. A contingent fee costs you nothing if you walk away. A flat fee costs you $10,000 either way, in exchange for professional materials, distribution and a clear read on the market's response.
Who runs the conversations
This is the real difference, and it's bigger than the money. A broker's commission pays for a person who screens buyers, fields their questions, manages the back-and-forth on price and terms, and keeps a deal moving when it stalls.
With a flat-fee listing, those tasks are yours. SimpleExit prepares the investment memo and marketing materials, lists the business on major business-for-sale platforms and buyer networks, collects NDAs and forwards NDA-signed inquiries to you. You qualify the buyers, decide what to share and negotiate directly. Optional support reviewing letters of intent and purchase agreements is available separately. We don't negotiate on your behalf.
So the honest question is not "which number is smaller?" It is "am I willing to do the part the commission pays for?" If you'd rather not, see do you need a business broker to sell your business? for a checklist that helps you decide.
Commitment
Broker engagements usually come with an exclusive engagement. That's reasonable from the broker's side (they're investing time on a contingent fee) but it means you are committed to one route for its term. A flat-fee market test carries no obligation to sell to anyone. If buyers come forward and the offers aren't what you hoped, you can pass.
Your time
Doing the conversations yourself costs hours. How many depends on how many buyers come forward and how far each gets. Put a value on your time. For some owners, those hours are easily worth the difference in fees. For others, especially those running a business that can't spare them, they aren't.
Reading your own numbers
Use the table as a frame, then replace the hypothetical figures with your own:
- Get a real quote. Ask a broker for the percentage, any minimum commission, any retainer, and the length and terms of any exclusivity. Our breakdown of how much a business broker charges lists what to ask for.
- Estimate a realistic price range. Not a hope. A free opinion of value is a reasonable starting point; it's an informed estimate, not a formal valuation or a promise.
- Run both fee structures on the low end of that range. If the difference still matters to you there, it matters.
- Be honest about the work. Could you run first conversations with a buyer, ask hard questions, and say no to a weak offer? If yes, the flat-fee column is open to you. If not, the commission column is buying you something real.
A worked hypothetical
A hypothetical owner has a specialty distribution business. A realistic range, for the sake of the example, is $1.8M to $2.2M. Using the 10–15% range at the low end, a commission would be $180,000 to $270,000; at the high end, $220,000 to $330,000. A flat fee would be $10,000 at either end.
The owner has run the business for years, knows the customers and has negotiated supplier contracts. She's comfortable taking buyer calls. For her, the flat-fee route is plausible. A different owner with the same numbers who dreads conflict and has no time might reasonably decide the commission is worth paying.
Same arithmetic. Different answers. That's the point.
Where owners get the comparison wrong
The most common mistake is comparing a best-case commission quote against a worst-case view of doing it yourself, or the reverse. Compare like with like. If you assume a broker would find a better buyer, say by how much, and check whether that improvement would actually cover the difference in fees at your price. If you assume you could run the conversations yourself, be specific about the hours and the skills involved.
The second mistake is ignoring the middle. Selling entirely alone and hiring a full-service broker are not the only choices. A flat-fee listing sits between them: the preparation and distribution are handled, the conversations are yours. Our overview of business broker alternatives sets out the other options too.
The short version
A flat fee is a fixed cost for preparation, distribution and NDAs. A commission is a contingent, percentage cost that usually also buys you someone to run the sale. The arithmetic says the gap widens with price. Your temperament and your time decide whether the gap is worth closing yourself.
If you'd like to run the numbers on your own business, with a free opinion of value as the starting point, book a free consultation. Thirty minutes, and no obligation either way.