On Thursday, Crowdfund Intermediary Regulatory Advocates (CFIRA) board members Kim Wales and Christine Landon, along with chair Candace Klein, sent a letter to the Securities and Exchange Commission (SEC) regarding crowdfunding portal revenue models.

The CFIRA members suggest that equity-based crowdfunding portals should be able to charge a 12-15 percent fee per offering. They say this does not include other fees on top of that – payment processing, maintenance and listing, for example – that push that number higher.

To come up with the numbers, Wales, Landon and Klein looked at the fees that donation based platforms charge today. They conclude that platforms currently ask for between five and 15 percent per offering.

While it may be true that the results of certain campaigns may trigger fees that reach double digits, the vast majority of platforms charge only four or five percent for each listing that meets its funding goal, not including payment processing and other fees.

The revenue model fees that the CFIRA members propose may reflect anticipation of higher operating costs for equity-based platforms. Depending on how extensive and complicated the final crowdfunding rules and regulations are, platforms may need to retain large legal teams to help them sort through the appropriate laws. More likely, however, Wales, Landon and Klein want to float the high numbers so that they enter negotiations from a position of strength.

The letter also touches upon a revenue model for crowdfunding broker-dealers, as well as the prospect of scaling fees based on the fundraising target. Read the letter below, and let us know what you think of this proposal in the comments.

CFIRA Revenue Model Letter for Crowdfund Investing to SEC, 08.09.12