You can see the foundations of the Keller Williams Commission Split Model with it’s agents spelled out in the core belief system of KW called the WI4C2TS. WIN-WIN or NO Deal. That is the foundation and the heart of the Commission Structure.
Compare this to the typical real estate structure where the more that the agent makes / the more they sell = the more they pay. Sure, they might get a smaller percentage on the higher level production – but they still pay, and pay, and pay.
Not at Keller Williams. The Secret is in the CAP. (And it should not be a secret any longer.)
Here is how the Commission Split works.
EVERY AGENT – NO MATTER THE LEVEL OF EXPERIENCE IS ON A 70/30 SPLIT – 70%* to the Agent and 30% to the local office. There is also a 6% split to the company/Keller Williams International. (If you are thinking about getting your real estate license and becoming an agent, you need to know that alot of companies charge new agent 50 to 60% because they figure that you need more help and it will take up more of their resources to assist you.) This is also sometime referred to as a 64/30/6% Split – just to demonstrate that the 30% & 6% have two separate caps and serve two purposes…
Let’s Break This Down
64% goes to the AGENT
30% goes to the LOCAL MARKET CENTER
6% goes to KWRI
The 30% is CAPPED at the LOCAL MARKET CENTER per anniversary year of the agent. The cap amount varies from Market Center to Market Center. (Our Local Guides/Team Leaders can give you the specifics on the cap amount in your area.
The 6% is CAPPED at $3,000 per anniversary year of the agent.
Once an agent pays the entire cap amount, then the ENTIRE 100% of the commissions earned goes entirely to the Agent.
Question: What if I do not sell enough homes or earn enough commissions during the year to pay for the CAP.
Answer: You DO NOT HAVE TO MAKE UP THE DIFFERENCE.
Because of this, the Local Market Center and the Associates in that Market Center are focused on helping you succeed so that they can also maximize the income for the Market Center each year. WIN-WIN in action.
Let’s Take a Look at an Example:
In Charlottesville, VA – The Market Center Cap is $18,000. So if an agent sells enough homes to earn $100k in commission then they will net $79k.
$100,000 in Commissions in the 12 month anniversary period. If you Join on May 15th, your year runs from June 1 – May 30th and starts over again June 1 of the following year.
– minus the $18,000 to the office
– minus the $3,000 to KWRI
= NET of $79,000 to the Agent.
The beauty of the system is that if the agent earns an additional $50k during the anniversary year, they would keep the entire $50k.
Even if the agent was with another company that only charged 5% on the additional $50k – that would still be an added $2,500 that the agent would be paying to the company. And that would lead to the question of (or atleast it should) – “what am I getting from the company or franchise for my money?”.
This is not even taking into consideration the amount an agent may or may not make with the Keller Williams Profit Share System.
* – Each Local Market Center has their own specific Market Center Cap and these can vary from state to state and office to office in the same town.
To Get Started – Select Your State:
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