Associate/Partner Compensation
Keller Williams® is committed to the concept of associate/partner compensation being more than just commission programs. Commission compensation at Keller Williams® is Low Risk-High Keep. Keller Williams® is able to accomplish this through a cap system.
Two payments are capped:
1) The amount you pay the International Franchise
2) The amount you pay your local office.
How Much Do You Pay?
The maximum you pay Keller Williams in a calendar year is $21,000. You will be on a 64/36 split until you pay $18,000 to the office and $3000 to International for royalty. You are then on 100% until your anniversary.
Keller Williams has an incredible commission split that actually allows agents to earn more than 100% of their commissions! How is this possible? It is possible through profit share and our capped commission structure. In fact, in 2006 over $50,000,000 of profit share was paid and in 2007 over $45,000,000 of profit share was paid to our KW associate partners. Althea Osborne of Texas earned over $500,000 in profit share!
Althea is proof positive of the power of profit share. She obviously earned far above the commission split that was paid to her broker. There are many thousands of KW associates who profit share each and every month. In fact, hundreds of agents continue to be paid through the profit share system even though they are no longer with KW or even when they are no longer selling real estate.
The commission split at KW is the best in the industry, even if the profit share system were not in the equation. KW believes in having a partnership with the associates and has created the “capped” commission model. In doing so, KW has devised a low risk, high reward split that minimizes risk while allowing the agent to retain the lion’s share of the commission. Every agent at KW has the opportunity to enjoy a 100% split on their transaction commissions after reaching their “cap.”
There is a fixed, maximum, amount that every KW associate pays as a split and every agent in any given market center pays the same amount. This maximum is the “cap.” Once it is reached, all commissions earned by the KW associate during the remainder of their fiscal year with KW will be paid at 100%! The beauty of this system is that the entire amount is only paid once it is earned, thus low risk. Because it is capped, it is high reward. Many agents cap in the first 2-3 months of their fiscal year and earn many months of commissions at 100%. Please note that how quickly an agent caps will be entirely dependent on how well they run their business and not everyone will cap.
