Profit Share Myths

In most real estate companies, associates pay a portion of their commission  into their office and their region in exchange for services. The office and region use that income to pay their bills and what’s left over is profit. Every real estate business is in business for profit, and usually the owners keep all of that profit.
This practice makes sense: Owners invest in businesses with the hope of seeing a return.

In the Keller Williams Profit Share model, each month every Market Centers splits its owner profit between the owners who risk their investments and the associates who help grow the company.

Though owners receive a slightly larger percentage of the split, associates have enjoyed the significant benefit of more than $575 million since the inception of Keller Williams Profit Share.
The broader perspective is —and remains—the productivity and profitability of real estate agents. Though owner profit was and is critically important, this systems was crafted by real estate agents for real estate agents.
Therefore, the first step was to create a stable environment in which agents could readily build thriving businesses. The belief was that when agents were flourishing, they would tell others about the opportunity and the company would grow, thereby increasing owner profit. With this critical insight, Keller Williams Realty acknowledged the essential responsibility the leadership has to agents in creating tools, materials, and programs to help them grow their businesses, and they decided to reward associates for the one activity that has the greatest impact on growing the office: referring associates.

In the profit share system, an agent’s sponsor will receive a portion of f the Market Center’s profit attributable to that agent.

In other words,if an agent is productive, hasn’t yet met the cap of what they’ll pay their Market Center, and the Market Center is profitable, a piece of that profit goes to the sponsors.

In the Profit  Share system, when an agent is productive, part of their commission is paid to the franchisee as a royalty. That associate’s sponsor can receive a portion of that royalty payment as Growth Share from the company as their way of giving thanks.

• The Level 1 sponsor is the individual an associate chooses as their sponsor.
• The Level 2 sponsor is the Level 1 sponsor’s sponsor.
• The Level 3 sponsor is the Level 2 associate’s sponsor, etc.

In other words, associates benefit not only when they refer someone who names them as their sponsor, but also when people who they’ve sponsored refers someone—on down through seven levels. Because of its ability to grow great branches like a family tree, this system is oftentimes referred to as a Profit Share Tree.

Once an associate has been with Keller Williams Realty for three years and a day, that associate is vested in the system—meaning that he or she will continue to receive Profit Share or Growth Share payments even if they leave the company.

In fact, Profit Share and Growth Share can be bequeathed to beneficiaries—it is a gift that can live on to create opportunities in the lives of loved ones or others in the community. Once an associate is vested in the system, the Profit Share payments can continue so long as they have an active,producing agent in their tree.

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