The Truth About Keller Williams Profit Share System.
There are essentially two fees paid to the company when you have a closing. (1) The 6% royalty fee that is paid to corporate headquarters in Austin Tx. This is capped at $3000 in a 12 month period. (2) Company dollar, which for new agents starts at 30%, and in Colorado Springs, caps at $18,000 in a 12 month period. The only way these fees are paid is when an agent has a closing. If you don’t close enough transactions to cover these fees in a 12 month period, the difference is forgiven and you start over on your anniversary with the company.
At Keller Williams Clients’ Choice in Colorado Springs, there are other monthly office fees. Technology ($38), advertising ($25), and consortium ($10) and if you want to rent an office space (variable).
Of the $18,000, ideally $9000 is profit for the owner of the franchise. The other $9000 pays for expenses with the remainder being “shared out” with the agents in your tree that sponsored you into the company. Remember, this is spread out over a 12 month period. The more agents we have closing transactions and paying their fees, the more expenses are paid, and the more profits shared. Thus the reason for the strong support network in the company, everyone wants to help you be successful.
Profits are paid out each month around the 21st of the month and are automatically deposited into your account.
Keller Williams Value
Our office at Keller Williams Clients’ Choice in northern Colorado Springs has profit shared over $2 million with their agents and staff since 2003. Keller Williams Realty has profit shared over $1 Billion since 1997.
There are many retired agents in the company that receive a monthly Keller Williams profit share check (passive income) in the $1,000’s. That’s the beauty of Keller Williams Profit Share, you continue to receive it even after you have retired. It can also be willed to your family. For some, Keller Williams Profit Share is their retirement income.
Some would argue that $18,000 is a lot to pay from an agent’s commissions each year. I feel it is a fair trade for the privilege of using the Keller Williams name and for all the training and support available. In fact, I cap every year, and it is because of the training, support, and technology that I receive through our office. Those that participate in the weekly sales meeting, training, online training, and coaching, are the most successful agents. Real estate companies that do not provide training and coaching for their new agents, are not doing them any favors. As one wise new agent said, “90% of nothing is still nothing.” Our mission is to help new agent succeed by providing them with the tools and training at the onset of their career, so they can make it a career.
The Keller Williams Difference
I suspect that the largest difference with the Keller Williams profit share system compared to the traditional agent fee system is if there is a loss due to high expenses and low production, the owner of the franchise covers the loss with no additional cost to the agents. In my opinion, other traditional real estate company owners see this system as a threat to their profit margin, and as a result, talk badly about Keller Williams. This is frequently reported by agents transferring from other companies, but it is a proven system that is really growing rapidly. That is why Keller Williams is the largest real estate company in the nation, and we did it with NO national advertising of our label!
Keller Williams is also an open book company. Any prospective agent can ask any Keller Williams Team Leader to show them their accounting books. I would suggest that you ask to see the books for any real estate company you are considering. If they are not willing to share their books, there is sure to be a reason. Both of the other companies I interviewed are no longer in business and they were franchises of national companies. The more agents they have in their office, the more income they can generate, and the more losses they can share with their agents. In other words, you really don’t know what your monthly office bill is from month to month if the company expects the agents to pay toward their losses. Keller Williams Realty will never do this to their agents. Our system forces the owners and team leaders to be good business managers and keep expenses low.