Went to my office meeting and was told we have been 'merged' with Keller Williams. I liked my company as they didn't interfere with my business and there were no corporate fees.

I do not know much about KW. Can anyone please share their insight and experience with KW? I know there has been info about this company posted here in the past. I tried to do a search but couldn't find anything.

I heard something about $18K/year?

Thanks!

Happens all the time. I get letters trying to buy me out or merge with them a few times a month. I just throw in the trash.

Can you start your own company?

Super - I don't think the original poster (or anyone else) cares if you have been contacted by KW or not. They want to know about KW.

KW has a strong business model and is known for it's training and focus on agent development. They usually pay 70/30 and cap out the company dollar at 18k or so.. and then go to a 100% agent payout (restrictions apply). They have a franchise fee and bunch of office fees, and operate with so-called "market centers" that tend to be sizeable. Agents supposedly support each other but also compete with each other and corporates philosophy is to come in and attract agents thereby capturing marketshare. They have a recruiting bonus plan based on the monthly profitablity of each office. Some people think there is a religious undertone to KW and it is certainly not for everyone.

KW has recently gone big into commercial in my area and if I was a commercial agent I'd probably be attracted to them with their 18k cap and then 100% commission payout (i think it's 18k still).

They will grow and gobble up firms while the market is soft. Same with Warren Buffet and his Home Services of America division.

KW also just won the JD Power Award for Buyer Satisfaction for the second consecutive year. I've been happy with them so far.

i know that kw gives a 70% commission then i hear that the agent has to pay a 6% franchise fee

so total commission to agent is 64%


10k gross commission then the agent makes 6400k

pretty expensive imho

outside of teh split i think it is a great company for some, i could not work there

Cygnus you were with a small company because you didn't want to pay the fees.Your answered your own question as it sounds like you are being put into with the merger exactly what you are trying to get away from.

I don't care for these big companies.They offer training to agents in the beginning.After that you really don't need them period.

I generate all my own business.If they were handing you FULLY QUALIFIED leads on a silver platter that is one thing.Every one of these big companies I know fee you to death but never provide the leads.

Leads is what puts money in your pocket with closings.If you stay at a big company you are giving them money for nothing and enhancing their market share.

No benefit where I come from.Everyone will have a different take on this.If you are a newer agent you might need the hand holding but if you have been doing this awhile you should go on your own.

Both wrong. Incorrect splits are being reported in this thread. Further, three FREE training CE classes have been offered within the last six months at my market center alone that were appropriate for seasoned agents and I have received leads from my market center. Granted, they were not converted, but they were leads. The company is not perfect, but those who are interested in knowing more about it would do well to speak with someone on the inside before arriving at conclusions.

I agree with the red.

in fact, i am going to a kw thing tonight(a friend is renting a club to host the party). my friend has tried on numberous occasions to recruit me and the 70% and 6% is what he told me were the fees to join up. If those fees are not correct, let me know what the fees are.

FULLY QUALIFIED leads - not junk leads the big companies hand out.

I am talking they have talked with them on the phone,qualified them with income statements and credit pulled,etc. and then handed them off to you.

Not RE/Max street leader or whatever it's called and all that other kind of junk the big companies provide.Some have internet response teams too.

If you like Keller Williams fantastic. I don't like the big companies but run my own show.

Let's say 6 classes a year at 50 bucks each is 300 total I have to pay to take myself.The classes aren't free but factored into the overall pricing model and commission and fee structure.The cost is simply allocated into other areas you pay for commission splits,franchise fees,etc.

I have friends that love big companies and have been there for 15 years etc. It works for some and not for others.

I second the 70%. Know about it and am good friends with several KW agents, one of which attempted to recruit me as well. I didn't know about the 6% thing but it would not have mattered anyway. Once you're at 100% you don't want to take anything less....

I have been with KW since I got my license in May. I love it there! Great training!! I don't know how long you have been in the business but I think training is always important. There are office fees but they cover websites, office equipment, voicemail, etc. There is a commission split until you hit a cap and then it goes to 100%. They do have a profit sharing program if you do bring other agents in but you do not have to. It's just a bonus.

Around here that is a better split than what is offered anywhere except Remax - and they have fairly heavy desk fees. It depends on where you are. In our area brokerages have held on tight to their 50:50 splits PLUS franchise fees. Unless you are producing in the top 5% or so - that's what you get. End of story. So Keller is a breath of fresh air.

I work from home so that I don't end up accumulating fees for things like copies. I have a fully functioning home office as a result.

I think about paying a 50/50 split and I pretty much puke a bit in my mouth (yeah... that's how disgusting it is...)

Top 5% or no... I'd open my own shop before I'd give someone else 50% of my income for a few training classes...

I'm at a 100% shop and I can't for the life of me understand why anyone would work any other way... even if your brokerage HANDS you leads on a silver platter... wouldn't it be worth a 100% increase in pay to "learn how to do it yourself"?

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.