The seller agreed to terms, the investor walked, and the lead fee came down to whether it was a lead anymore
A bird dog I was reading about this week had a clean setup on paper: find distressed owner, confirm motivation, hand off contact info and a summary note, collect $350 at first contact. The investor met the seller, liked the property, made an offer. Seller accepted verbally. Investor then ran comps for three days, decided the ARV was softer than he thought, and killed the deal before a contract was signed. Six weeks later a different investor the bird dog had never worked with picked up the same address through a wholesaler, got it under contract in two days, and closed. The original bird dog saw the closing on the county recorder and got nothing from either side. The $350 fee was never paid because the original investor's position was that a deal that did not close is a lead that did not convert, and the written agreement said payment followed a signed purchase contract. Nothing in the agreement addressed what happens when the investor's own cold feet open the door for someone else.
The mechanics that matter here are sequencing and definition. A fee tied to first contact protects the bird dog from exactly this situation, because the deliverable is the introduction and the motivated seller, not the outcome the investor produces from it. A fee tied to closing is really a split of the investor's success, which sounds fair until the investor controls whether success happens. The six-week gap between the dead offer and the wholesaler's contract is also worth noting because it means the seller stayed motivated and the property was real. The lead was good. The investor's process ate the fee. The written agreement was the problem, not the lead quality, and the agreement said nothing about a re-engagement window or a tail period covering re-contact by any buyer within 90 days.
If you run bird dogging as a service and your fee is contract-contingent, what triggers it when the investor walks and someone else closes?