PT 4: Lehman Formula SUCCESS Commission Fee
August 29, 2007
Dear Prospective Client,
No known broker-dealer or investor relations media firm pays to represent clients by incurring their offering campaign expenditures.
Examples of diversified fee structures by a few of our competitors are disclosed at the bottom of PT. 1 of this e-brochure and reported at “IR Media Communications Industry Cost Comparison” archived 18 Jun 07 on the finance link for www.emailwire.com.
Prospective clients who wish to OPT-out of IR Media related costs are encouraged to use our SELF-serve trade show floor formatted-push button accessed finance portal.
Prospective clients who have complex funding requests NOT already sourced in our finance portal are encouraged to continue reading…
The previously mentioned multi-media broadcasting tools discussed in : “Platforms for IR Commo”, and their related costs are on a case-by case need basis and are entirely OPTIONAL to the potential client.
The following success commission fee structure is relative to most other services provided by ALLEN & Associates. The rates are in percentage to; (a) raising of capital, (b) valuation of procured financial instruments, (c) valuation of business asset acquisitions, or (d) cost containment analysis.
Agreements are to be composed by client on requesting clients company stationary, and then mailed to me. POB’s are not an acceptable address for businesses. If other than a sole proprietorship, the agreement must be countersigned by 2 client corporate senior executives/principals. Brokers of principals do not count; unless principal client authorizes in writing for 3rd party broker to pay me in full when I’m done.
ALL supporting due diligence documents used to attract investors, to include copies of collateral MUST accompany commission fee agreement PRIOR to ANY introductions. NO exceptions. (This redundant issue is repeated in My Standard Operating Procedure)
Client understands that that commissioning me to BEGIN is an irrevocable right to FINISH when capital is secured and terms are mutually agreed with provider.
If the funding is entertainment industry related, then credit and copy is also required when applicable.
Fees are required at close of escrow, per round secured, and can be agreed to paid (a) directly from investor/lender, (b) by bank wire transfer, or (c) by bank check within 5 calender days via postal mail. Agreement must specify which of the aforementioned terms are agreed to.
Lehman Formula structure as follows;
UP to $100,000 is 6%
UP to $250,000 is 5%
UP to $500,000 is 4%
UP to $750,000 is 3%
UP to $1,000,000 is 2.5%
UP to $2,500,000 is 2%
OVER $2,500,000 is 1.5%
OVER $20,000,000 is 1%
For clients sending contract packets or making fee payments today, may request postal address to send to.
PREVIOUS: Part 3…Equity Report
NEXT: Part 5…Myth of Advance Fees
Best regards,
Jeffrey D. Allen
C.E.O.
(702) 369-2621 9am-5pm PST
October 4th, 2007 at 4:07 pm
Dear Jeff,
It’s really very interesting to read your blog as I’ve always been preaching this same message from the time that we formed, RCM1. This is our message. When you suggest to Operating and Development Partners that they need to have all of their ducks in a row, What equity or cash do they have the investment so far? and What’s their exit strategy?
October 18th, 2007 at 4:08 pm
I have read and can agree to the terms of the Lehman Formula.