Commission Structure

How It Works:

11866099_sIn most traditional real estate companies, the commission structures means that the more you earn, the more you give away. At Keller Williams Realty®, we believe that the harder you work, the more you should be rewarded. Keller Williams Realty has an agent commission cap, which means that after you hit the cap, everything else you earn is yours!

Keller Williams Commission Structure

• Commission is split 70/30, in favor of the agent
• After an agent reaches his/her cap, 100 percent of the commission goes directly to the agent.
• A great majority of agents reach their cap within the first two to three months of the fiscal year.

The Market Center cap is determined by associate vote (the agents are treated as stakeholders), based on operating expenses and economic conditions for that specific KW market center. The higher the operating expenses of a Keller Williams market center are, the higher the agent commission cap will be in that office. The cap($3,000/year) for the international fee does not fluctuate. In both cases, once an agent hits the cap, the money for that year is the agent’s…and Keller Williams Realty works on the agent’s anniversary year, not a calendar year, so no matter when you start, you have a full 12-month year to prosper. If a KW agent does not reach either cap in a year, they DO NOT have to make up the difference…the cap is simply a max payout per anniversary year.

 

Examples:

1. In the Atlanta, GA market, the agent cap to the office is $15,000.  If an agent does $200,000 in Gross Commission, they will net $182,000.

$200,000 Commissions in 12-month anniversary year

– $15,000 to office
– $3,000 to KWRI
NET = $182,000**

2. In the Tulsa, OK market, the agent cap to the office is $15,000. If an agent does $200,000 in Gross Commission, they will net $182,000.

$200,000 Commissions in 12-month anniversary year

– $15,000 to office
– $3,000 to KWRI
NET = $182,000**

3. In the Beverly Hills, CA market, the agent cap to the office is $42,000. If an agent does $400,000 in Gross Commission, they will net $355,000.

$400,000 Commissions in 12-month anniversary year

- $42,000 to office
– $3,000 to KWRI
NET = $355,000**

It’s important to remember, that a real estate company’s agent commission splits is only as good as the company’s agent training, education, technology and support. Who cares if a company offers a 100% commission split, if they don’t offer any training and support…100% of $0 is still $0! Not only does Keller Williams Realty offer the best and most real estate career training and support, there is a true incentive at KW for our associates to share ideas and teach classes. With the addition of KW profit share, many of our associates actually NET more than a 100% of their commissions, as their annual profit share exceeds their commission cap every year!

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