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The Keller Williams Profit Share Model

The Keller Williams Profit Share Model provides agents with passive income based on a portion of the profits from their local Keller Williams office. Agents receive profit share payments monthly if they sponsor new agents who are productive and the office is profitable. The more sales volume an sponsored agent contributes to the office, the more profit share the sponsoring agents receive through a tiered sponsorship tree structure. The goal is to empower and incentivize agents while also making them partners in the overall success of the Keller Williams Market Center.

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0% found this document useful (0 votes)
3K views13 pages

The Keller Williams Profit Share Model

The Keller Williams Profit Share Model provides agents with passive income based on a portion of the profits from their local Keller Williams office. Agents receive profit share payments monthly if they sponsor new agents who are productive and the office is profitable. The more sales volume an sponsored agent contributes to the office, the more profit share the sponsoring agents receive through a tiered sponsorship tree structure. The goal is to empower and incentivize agents while also making them partners in the overall success of the Keller Williams Market Center.

Uploaded by

kirkrau
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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The Keller Williams Profit

Share Model

What Is It? How Does It Work?


What Is It?

 A Bonus paid to agents who help


introduce talent to Keller Williams
 A portion of OWNER profits from the
Market Center
 Passive income
 Paid to participants monthly
What It Is Not

 A Multilevel Sales Program


 An override from an agent’s
commissions
 Money given from one agent to
another (revenue share)
Why Do We Do It?
 We believe in empowering our
associates to take an active role in the
Market Center
 We believe associates should benefit
from the financial success of the
Market Center
 Agents become “partners”
Calculating the Office’s Profit

Gross sales of office $20,000,000


Commissions @ 3% 600,000
Commissions Paid to Agents 70/30 (-) 420,000
Gross Profit 180,000
Monthly Expenses (-) 100,000

Net Profit of Office $80,000


How Much Profit Is Shared?

Profit Share Calculation


25% X $2,990=$747.50
35% X $8,250=$2,887.50
50% X $68,760=$34,380.00

Total Profit Share for the Month:


$38,015.00
How Do I Receive Profit Share?

Three Things Need to Happen:


3. You invite Joe Agent to the office
and Joe names you as sponsor
4. Market Center is profitable

5. Joe Agent is productive


Profit Share Formula

Office monthly closed volume: $20,000,000


$180,000 was company dollar

Joe’s closed volume was: $600,000


($600,000/$20,000,000=3%)

Joe’s production was responsible for 3%


of the company dollar that month
Profit Share Calculation

Company Dollar: $180,000 X 3%=$5400

Profit Share Pool: $38,015 X 3%=$1140.45

$1140.45 to be shared by 7 Associates in


Joe’s Sponsorship Tree
How is Profit Share Paid?

You, Joe’s Direct Sponsor @ 50% $570.23


Your Sponsor @ 10% 114.05
Their Sponsor @ 5% 57.02
Their Sponsor @ 5% 57.02
Their Sponsor @ 7.5% 85.53
Their Sponsor @ 10% 114.05
Their Sponsor @ 12.5% 142.56
Total $1140.45
Benefits of Profit Share
 Passive Income vs. Active Income
 100% Vested after 3 years with KW
 Willable and/or Transferable
 Creates an environment of success
 Puts the owners and the agents on
the same side of the table as partners
Questions

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