The corporate celebrated throughout a reside “growth call” with leaders from greater than 1,000 franchisees within the U.S. and Canada. Almost 150 KW brokers have earned greater than $1 million in lifetime revenue share.
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Keller Williams logged a milestone Monday: The main actual property franchisor has shared greater than $2 billion in income with its brokers for the reason that program’s launch in 1987.
The corporate, which has 174,000 brokers, celebrated at 11 a.m. Central on a reside “Growth Call” with prime leaders from its greater than 1,000 franchisees, also referred to as market facilities, within the U.S. and Canada.
“This achievement is a quantifiable testament to our strong, growth-minded culture,” mentioned Mark Willis, KW CEO and president, in a press release.
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Keller Williams additionally shared on Monday that between Jan. 1, 2023 and June 30, 2024, its franchisees gave greater than $148 million in income to their affiliated brokers. In a press release, Gary Keller, KW’s co-founder and government chairman, mentioned the revenue share program permits franchisees to deal with their brokers as companions and permits brokers “to build their businesses inside our franchise model, which is as powerful as if they owned a brokerage themselves.”
“This profit share milestone results from how we think of our relationship with our business partners,” Keller added. “Profit share is an equal opportunity, unequal reward. Those that put in effort will get the lion’s share of the results.”
Keller Williams is a non-public firm, which implies it’s not obligated to share any monetary info publicly. The franchisor is a defendant in a number of antitrust fee lawsuits and settled the instances earlier this yr for $70 million.
Though that settlement has acquired remaining approval from a district courtroom, a number of homesellers are interesting that call, alleging the payout is much too low and objecting to the deal’s launch of franchisees from legal responsibility with out requiring them to pay something to the individuals they allegedly harmed or change something about their practices.
Keller Williams’ revenue share program particularly can be the topic of a number of lawsuits as a consequence of a now-scrapped plan to slash revenue sharing for defecting brokers. The brokers behind the fits alleged the plan would have amounted to breach of contract and unjust enrichment on the a part of the corporate. These fits are ongoing.
In keeping with the corporate, by means of June 30, 2024, 137 KW brokers have earned greater than $1 million in lifetime revenue share whereas 386 brokers have earned greater than $500,000. Tens of 1000’s of brokers have earned no less than 5 figures in revenue share in that time-frame:
- 3,077 KW brokers have gotten greater than $100,000 in lifetime revenue share
- 6,648 KW brokers have gotten greater than $50,000 in lifetime revenue share
- 28,827 KW brokers have gotten greater than $10,000 in lifetime revenue share
“Profit share is the engine of our culture,” mentioned Shawn Rawls, an Atlanta-based KW agent, in a press release. “It gives everybody a seat at the table.”
Via Keller Williams’ present revenue sharing mannequin, associates who’re with the corporate for greater than seven years obtain a portion of their former market heart’s revenue for all times. Market facilities take barely greater than 50 p.c of their revenue, then sponsored associates break up up the remainder.
The mannequin works like a pyramid, with every affiliate taking 50 p.c of that revenue, then the remainder being break up amongst their sponsoring affiliate, and that affiliate’s sponsoring affiliate and so forth, as much as seven ranges.
“Each of these programs are set in motion when an associate joins a Keller Williams office and names one person as the individual primarily responsible for bringing them to the company,” a white paper from Keller Williams describing the mannequin states. “It could not have been the primary particular person or the final particular person they talked to about Keller Williams.
“It may be someone from their Market Center, or it could be someone from another region, province, or country,” the paper continues. “It is the person who was most impactful on their decision to join the company.”
In keeping with KW, brokers can designate a beneficiary to obtain their revenue share distributions once they die.
“Profit share is a legacy that you can leave,” mentioned Jessica Starr, a Simsbury, Connecticut-based KW agent, in a press release. “You can leave it to your loved ones, or you can leave it to a trust.”
