The Keller Williams compensation plan is another area where KW stands out from the rest of the crowd. We believe the agent is the reason we are in business and without that agent’s contribution, the broker would be out of a job.
Most traditional real estate brokers are at a 50/50 split, meaning when a sale is made, 50% goes to the broker and 50% goes to the agent. This is a very common practice, but really leaves a lot to be desired if you are on the agent side. Why are you going to give up half of your money to a broker that really didn’t provide you anything other than a place to hang your real estate license? Keep in mind most traditional brokerage’s idea of real estate training and support are reading through a pamphlet copyrighted 1990 or asking Bob, the number one agent in the office for help.
Keller Williams Commission Structure
The Keller Williams compensation plan gives the agent the best opportunity to grow their own business, not just the brokers. All Keller Williams agents are on a 70/30 split, with 70% going to the agent and only 30% going to the broker. The best part about the commission split at KW is that once you reach a targeted level of production (cap), you will receive 100% of your commission till the end of your fiscal year.
Let’s use the very first office in Austin, TX as an example to explain the Keller Williams compensation plan. The cap in the Austin Southwest Market Center is $21,000, including a $3,000 franchise fee to KW International. When an agent makes a sale and receives a commission, 30% of that commission goes to the office; on a $10,000 commission, that’s $3,000. Once the portion shared with the office reaches the cap of $21,000, the agent receives 100% commission on all sales until the end of their fiscal year.
This gives KW associates the best opportunity to make more money than they would with other real estate companies. Keep in mind that Keller Williams is the only real estate franchise that caps the franchise fee. Other franchises continue to receive a royalty on every sale made no matter the level of production by the agent; this paints a clear picture as to who is most important in their eyes. The Keller Williams compensation plan puts you in the drivers seat and is geared to help build your real estate business.