I’ve got this guy who is a licensed hemp seed dealer in the state and we’ve been talking for a while about extraction. He’s working with 4 farmers who have a total of 80 acres. The farmers and I have agreed to do split tolling 50/50. I’m offering him 6% of my half as a finders fee, Do you guys think that is too low/high of a number just for bringing me clientele?
If the tolling is profitable then it would seem fair. I might counter with having the farmer split the finders fee also. On a side note, I encourage you to pencil your costs before agreeing to a deal. Let’s assume the following:
avg. cost of biomass .50 pp, 10% CBD material. ~$5.00 per pound.
The real question you should ask yourself; can I toll process biomass at a cost of $5.00 per pound, then pay a 6% commission on 50% of the output and do I have a sales channel for my portion of the finished product? I encourage you to first, get out that pencil.
I’ve had my pencil out, but my eraser is worn down because every week the price goes down! Nonetheless, thanks for the advice. I hadn’t thought about having the farmer split the finders fee. That’s an idea. I was kind of just gauging whether or not people here had any experience with finders fees related to tolling.