What deal sourcing costs
By Jason, founder of JW AI Works
If you're buying a business, you can find deals yourself or pay someone to help. Deal sourcing services charge in a few different ways, and the total cost can look very different once you add everything up. This guide explains the common fee models and what to ask before you sign.
This is general information for buyers, not legal, tax or financial advice. Talk to your own advisers about your situation.
The common fee models
- Monthly fee or retainer. You pay a set amount each month while the work runs.
- Setup fee. A one-time charge at the start, for example, for building lists or setting up email.
- Success fee. A payment when you buy a business. Some services charge a monthly fee plus a success fee, up to 5% of the price.
- Flat fee. One set price that stays the same whether you buy or not.
Some services combine these, such as a monthly fee plus a setup fee plus a success fee.
How to compare the total cost
Add up what you'd pay over a full year in two cases: if you don't buy, and if you do. A success fee grows with the purchase price, so work it out in dollars for the size of business you're targeting. Read how the contract defines a "deal" and how long a success fee applies after you stop working with the service.
What to ask before you sign
- What exactly is included each month: list building, writing, sending, follow-ups, sorting replies?
- Who owns the owner list and the replies if you stop?
- Whose name and email domain do the emails go out from?
- Does the service ever talk to owners about price or terms, or does every conversation come to you?
- Is there a minimum term or a notice period to cancel?
- Is your list or buy box ever shared with other clients?
Doing it yourself
You can also run outreach yourself. The costs are mostly your time plus tools: a way to find and check owners' email addresses, separate sending inboxes that are warmed up first, and a way to track replies. Our guide on how to find off-market businesses to buy walks through the steps.
What Klontak costs
Klontak is $750 a month, flat, with $0 setup. There's no commission and no success fee, whether you buy a $500K business or a $5M one. A full year costs $9,000 whether you buy or not. If your emails aren't going out by day 21, month 2 is free. Day 21 counts from your first payment, and days we spend waiting on your buy box or approvals don't count toward it. That guarantee covers when sending starts, not results (full terms). Klontak never negotiates or advises on price or terms.