Keller Williams Profit Sharing

At the heart of the Keller Williams® economic model is a unique profit sharing program. The company returns back to its associates millions of dollars in profit sharing. Keller Williams has invested over a decade and several million dollars inventing and fine-tuning the most creative and effective profit sharing program in real estate history. The profit sharing plan is designed to these things:

allows agents to build their own "company inside the company" (much more effective and efficient than the agent having to start his own company);
puts no restriction on the agent's income growth potential;
serves as a legitimate business or retirement plan; the agent is vested after 3 years and income from profit sharing continues even if the agent leaves the company, or, if he/she dies, the income passes to heirs;
makes office owners and their agents partners in profits;
gives the broker a truly unique operating system that the competition does not have and will not have.
removes any adversarial feelings between agent and management and creates partnering, saving on expenses and optimizing profits

   This program allows any Keller Williams® associate, associate broker, employee (including agents' assistants) or approved affiliate company the opportunity to participate in the profits they help generate without assuming any financial risks - anywhere in the world a KW Market Center exists. It's wonderful for staff, who can create their own 'bonuses'.

The profit sharing program has two segments:

1. Determination of Market Center profit available to the profit sharing pool.

   The program formula calls for 25 percent of the first $2,990 of net profit to go in to the profit share pool; 35 percent of the next $8,250 of net profit, and 50 percent of all profits in excess of $11,240 must also go into the pool each month.

2. Distribution of the profit sharing pool each month.

   The profit sharing pool is distributed through an associate's referring other associates who contribute to the profitability of a Keller Williams® Market Center. Associates who are responsible for other associates joining a Market Center participate in the profits of that Market Center each month in direct proportion to the actual closed monthly production of the sponsored associate as it relates to the closed production of the Market Center. Ten percent of the profit pool derived from an associate's production is distributed back to that associate. Fifty percent of the remaining balance goes to the associate's direct sponsor and the remainder is distributed in various increments to the next six levels of sponsorship (i.e., the person responsible for recruiting the direct sponsor, that person's sponsor, and so forth). This is literally our 'profit share distribution plan'. It was devised so that all agents could benefit-but benefit in direct relationship to their contributions to the growth of the company.

   The process sounds complicated - and it is. But, it is no more complicated than profit-sharing, stock options, and retirement options of successful international businesses. Our bookkeeping and the issuance of profit share checks are all handled quite efficiently by KW's central accounting system. And KW associates sing its praises: "At Keller Williams®, I share the profits that result from my efforts - to the tune of a substantial check last year." "Our 100 percent commission, qualified profit sharing and no-desk fee structure provides the reward."