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The whole Keller Williams thing is not for me. The whole setup sounds like a pyramid scheme to me. I mean how can this guy stay in business giving the splits he told me and on top of that anyone I bring into the office I get a percent of their commissions for life as well. It seems to leave nothing for the office. How does he pay rent? He'd have to have 300 quality agents in the office just to make a penny.
KW profit share payout is not a simplistic percentage of commission.
It is a share of office profit, which is a hugely different concept than a percentage of their commissions.
No profit, no profit share. Ergo, associates become stakeholders in the growth and success of the market center.
It is not a pyramid scheme in any way. The numbers on which it is based comprise a proven business model.
Profit share is also not an over-riding compelling reason to join the company.
The whole Keller Williams thing is not for me. The whole setup sounds like a pyramid scheme to me. I mean how can this guy stay in business giving the splits he told me and on top of that anyone I bring into the office I get a percent of their commissions for life as well. It seems to leave nothing for the office. How does he pay rent? He'd have to have 300 quality agents in the office just to make a penny.
Mike, you are very astute. In the White Paper done by Harvard School of Business, the organization recognized that a minimum of 40 agents are required for an office to make money. Exit Realty in their promotional materials acknowledge that for a broker to make money in their system, the broker must work on an 80-20 split. Exit, however, does a 70-30 split giving 10% to a sponsoring agent.
The KW profit sharing system is almost bogus. If you know anything about a mutual insurance company, then you understand that in order to pay a dividend, or a return of overcharged premiums, then KW, in order to pay a profit share, must overcharge to start with.
KW profit share payout is not a simplistic percentage of commission.
It is a share of office profit, which is a hugely different concept than a percentage of their commissions.
No profit, no profit share. Ergo, associates become stakeholders in the growth and success of the market center.
It is not a pyramid scheme in any way. The numbers on which it is based comprise a proven business model.
Profit share is also not an over-riding compelling reason to join the company.
Only to add to your post, any business manager will tell you that low producing sales people are cost centers, yet the KW model totally ignores the top producing agent's value to the profit center.
you're not going to land any existing agent worth having based on an advertisement or a mass solicitation letter. If you're going to be looking for new agents, then I guess I would suggest getting friendly with the top local instructors and asking them who seem to be the best agent-to-bes in their classes and go from there.
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
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Quote:
Originally Posted by tomocox
Mike, you are very astute. In the White Paper done by Harvard School of Business, the organization recognized that a minimum of 40 agents are required for an office to make money.
Oh darn, I'm going to have to go get 39 more agents. I'll have to "hot bunk" them like on submarines though.
Oh darn, I'm going to have to go get 39 more agents. I'll have to "hot bunk" them like on submarines though.
Just to be certain, that's KW's model. My RE/MAX model works with a lot less too.
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