If you think being with KW will net you more per year, then it's a good arrangement. If you think you will net less per year with them compared to hanging your license elsewhere, then you should go elsewhere. Seems rather straight forward.

By the way, KW caps vary by location. CA yearly caps can be as high as 38K (per one of my friends who left KW after 3 years when he wasn't allowed to start his own KW branch -- and now he makes tons more money as an independent broker). Whether your KW office caps at 18K or 38K or some number in between, you could do a lot of prospecting or even hire an assistant to prospect for you, for those sums of money. Or just save and invest it.

It's not that great if the "100%" office is charging you $1,000 a month or more in fees and you're brand new and have nothing to pay that with. Some of these so-called "100%" offices charge you a pretty penny to hang your license there.

Everyone always leaves off the desk fees, admin fees, technology fees, etc. when talking about 100% offices...

At my brokerage you need $35k to cap. It IS more expensive to list- all that marketing is on YOU. For buyers, you definitely make more. I found that in 50:50 + franchise brokers that most really didn't do all tht much to promote the listing and you ended up opening your wallet so as not to lose the listing.

I stay AWAY from the big classes where they charge a fee. I stay AWAY from office machinery and I take what I need and leave the rest.

The other perk - you get to brand YOURSELF - not your broker. Many big brokers are saying "no" to blogs, "no" to IDX, "no" to anything that doesn't properly represent the Brokerage Brand...That's a big problem for an agent trying to distinguish themselves from the pack of hundreds of brand clones that think they are getting a good deal. So I take that extra $$ I get from buyers and use it to promote ME and MY brand.

Can't beat that.

Once again, I come from an area where they are clinging like glue to very high fees..So some other alternatives may not be available to me.

I can only speak for the company I work for but there is a monthly fee of $300. Sell something or not. That is it. 100% commission, no admin fees, no tech fees, no desk fees, no push our title company paperwork, nothing. The broker, however, will not take in inexperienced agents. I talk to my broker maybe a few times a year. If we (agents) have problems, we work every avenue possible before we call in. If you want a desk at the office you can rent out space but you are not required to. If you want to use office materials you can but you are not required to.

I rarely go into the home office. My office is my home and my truck. Obviously this model isn't everywhere but I think it's a spectacular business model to attract agents.

I used to work in an office and had a 70% split plus a few other fees added to each transaction which did bring it down to about 65%. I had a place to bring clients and access to the phones, computers, copier and fax, but we were tracked to make sure we didn't abuse those. I had to provide all my own marketing materials, generate my own leads, etc. I ended up creating all my own marketing and since it was very good, I created the marketing for just about every agent, and no I didn't charge anyone, I just wanted to help them. I also had a home office and did a lot of my work there.

When that office closed my branch, I left and went to a 100% broker. Now I work strictly from home. I have a fully supplied office and still create my own marketing and generate my own leads/clients. The only thing I sort of miss is a set place to meet my clients. But that is not a biggie since I usually write up offers for buyers at the house I'm showing or a restaurant nearby (if it isn't vacant) and meet listing clients at their homes. Sometimes I meet clients at rented office space I share with another agent that I partner up with quite often. He processes my clients' loans and some of my short sales, while I handle the real estate.

My 100% is minus a $400 transaction fee and E&O is included! I'm loving it! Would never, ever go back to any other split. Would break down and become a broker and open my own shop before I went back to a split.

As an ex-KW agent in Southern California, I can say that these splits are correct. You get 70-30 up until you have paid a total of $21,000 into the company. That's $18,000 to your office and $3,000 franchise fee. Then you get 100%.

But you still have to pay transaction fees ($150-$175) per deal, you pay your own e&o (every 3 or 6 months, I forget which), and you have a monthly fee just for working there. Mine was $50 per month.

If you are a new agent, you will have to go through their training and then pay your teacher 20% of your commission on the first two or three deals that you do.

All of this might sound high, but in my area you only need to sell four or five houses and then you have capped and are getting the 100%. Still beats desk fees at ReMax.

The downside of KW is that they do no advertising at all, so you won't get any walk-in or call-in business. Also, while other agents have all heard of KW, most consumers have not, due to the lack of advertising. They charge you for all of their training, and they continually try to sell you on their coaching programs. They also require you to attend one of their national events once a year at your expense.

I haven't worked for any of the other majors, so I don't know how they compare. But I suspect when all is said and done, they are very similar.

OK BK,

So you cleared it up for me. That is not the way our office works in Georgia, so the operating principals run their offices differently. We are only required to attend the post licensing class and one other. And $18K is all I pay to my office (nothing to paid to any teacher) and I cap all the time now. Also, you can't drive through two communities here and not see a KW sign. Finally, I don't have any listings at this time and my phone rings frequently.

Folks, I think it is important that we don't write on here as if we are the final authorities. Whats going on in your back yard may be clearly different from what's happening thousands of miles away. These brands support our livelihoods and deserve accurate descriptions.

The split at KW is 70/30, with a 6% royalty fee. The royalty is capped at $3000, so once you reach that, you are at 100%. Most other companies, you will always pay the royalty, no matter how much you put in.

Regarding the $18K cap, it varies. It depends on your market; some are higher than others depending on the operating expenses of the office.

Overall, KW is designed to help build YOUR business! What you pay for is the up-to-date training, education and support; it's definitely not for everyone, but more agents are switching to KW than any other broker because the business model works in all economies, not just a good one.