How is CMS compensated?
CMS does not charge a fee to invest but an issuer may decide to add a transaction processing fee to help defray the payment processing costs associated with Investment Crowdfunding. CMS is compensated by issuers in one of three ways:
- It receives 6.0% of the total raised on each successful campaign and is reimbursed by the issuer at the close or cancelation of a campaign for all fees incurred by CMS and associated with third-party escrow and investment processing (regulations require the use of third-party escrow providers);
- CMS and the issuer agree that CMS will receive a financial interest in an issuer as compensation for the services provided to, or for the benefit of the issuer, on the same terms, conditions and rights as the securities being offered to investors;
- A combination of 1&2.
Every campaign has a minimum amount that must be raised in order for you to receive the funds. This minimum, along with the minimum investment amount you set, will be posted on the campaign page you create.
Crowdfund Mainstreet does not dictate what you can offer to investors. In customizing your offering, you may use your own attorneys and CPAs or other advisors to assist you, or we can refer you to an experienced provider who will negotiate a fee for that service on a case-by-case basis.