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What is Keller Williams Realty Commission Split for Agents?


In real estate business, agents greatly depend on the commissions they get from a business deal. Traditional real estate companies are not very generous about splitting commissions with their agents. However, Keller Williams is not one of those companies. Their commission split structure is one of the best in the real estate world. 

So, if you are a new agent, you must be thinking, “What is Keller Williams Realty Commission Split for Agents?” In this article, I will explain Keller Williams Commission Split and how it works great for the agents of the company. 

Unlike the traditional commission split, Keller Williams Commission Split structure always gives 70% of the Gross Commission Income to the agents and 30% to the market center. The agent has to pay 6% of the commission as a royalty fee to the main company.  

Interestingly, the commission split does not stop just here. The Keller Williams Company offers other benefits to its agents that no other company offers. You might need to know a little bit about the company if you want to understand its commission split structure. 

So, here is a brief description of the Keller Commission Split structure and how the company works. 

What is Keller Williams Realty Commission Split?

Keller Williams commission split is a unique system compared to other companies. It is also known as growth share outside The US and Canada. As you know, the company has a 70/30 split structure. This means, an agent gets 70% of the commission he or she makes from business deals like selling houses. Then the company takes 30 % (Variable cap) of the commission. 

However, KW is an international franchise. So, an agent has to pay 6% of his commission as franchise fee (capped at $3000). This is great for an agent. Because, once an agent reaches the cap fixed by the market center, his or her commission will not be split with the broker company until the following year.

Also, the company treats every agent equally. It does not matter if you are a new agent or an agent working for 10 years in the company. You will get the exact benefits as any other agent. 

What is The Cap?

A cap is the max pay-out to the company by an agent. The cap money is used to support and develop the company further. Once the agent fulfils the amount of cap of a year, he will get 100% commission until his next anniversary year. The cap on commission amount is decided based on the financial condition and expenses of the market centres of the company. 

So, the amount of cap of your market place depends on the price of the houses in your area. It varies from marketplace to marketplace. However, in many parts of the US, the cap is $18,000 to $25,000 annually. 

If the cost of running a Keller Williams market center is high, you will also have to pay a high commission cap in that office. But, the 6% royalty fee (capped at $3,000/year) as the international fee of the company remains the same.  

How the commission split works?

At Keller Williams, agents can make more money than the other companies. According to the agents of KW, they can make money in two ways. Number one, they can do that through the cap system and secondly, through profit share. So, let me explain the cap system first. 

As we know, Keller Williams Company has one standard split system. It does not have a split system where new agents get lower splits or expert agents get higher splits of the commission. The company has no hidden agenda. It is very transparent to its agents. 64% goes to the agent, 30% goes to the office and 6% of the commission is going to the international as a royalty fee. 

Now, if we compare the structure with other split systems of different companies, we will see a huge difference. Suppose, in a different company an agent is on a 70/30 commission split. If his commission is $300,000 per year, he will get $210,000 and the company will make $90,000. 

Again, if an agent is working on a 50/50 commission split in a company and he makes $300,000 per year. He has to share 50% which is $150,000 to his company. The traditional systems are like, the more you work hard, the more the company will get.  

But, at Keller Williams, it is different. It has a fixed cap amount that an agent has to pay the company every year. 

Suppose, the cap amount in a market center of the company is $25,000, so for an agent who earns $300,000 in commission per year will get $275,000 instead of $210,000 as commission split. This is because the agent only has to pay the cap amount.

As the agent will reach his cap, the commission money of that year will be his. Again, by now we know Keller Williams Realty activates in the agent’s anniversary year but not in a calendar year. 

So, whenever an agent will start, he or she will have an entire year to make money. This way an agent of Keller Williams makes more money compared to the other agents working on different companies.

Keller Williams Profit Sharing System

One of the best parts of Keller Williams Company is their profit-sharing program. Through this program, agents can make additional income. This is how a profit-sharing program works. 

When new agents join Keller Williams, they have to fill out some documents. They get a form called a sponsorship form. There is a sentence like, “Who do you think was most influential on your deciding to join our company?” 

So, an agent has to name a sponsor which means the name of his or her recruiter. The recruiter might have influenced the new agent to join the company. 

So, when you as an agent, give your 30% to the office, the office will share a portion of that percentage with your sponsor. It is a thank you gift from the company to the agent who helped to develop the company.  

When the sponsoring agent leaves the company or retires, he or she will still get the profit share from the company as a sponsor every single month. 

Again, when a sponsorship form is filled out by an agent, he is also asked to write down the name of a beneficiary. So, if anything happens to the agent, the beneficiary will get the profit share. 

Training Provided to the Agents

All these attractive offers of the Keller Williams Company will not matter if an agent does not know how to do his business properly. The company is also aware of this fact. 

Therefore, they have training programs for their new agents. This training program helps the agents to understand the real estate business so that they can handle their business efficiently. Moreover, the company will provide all the technology, support and education the agents need. 

For all these reasons, Keller Williams Company has become the world’s best real estate company. It has been attracting a lot of agents for its exceptional offers. 

Conclusion       

Hopefully, this article has covered the answer for your question, “What is Keller Williams Realty Commission Split for Agents?” Compared to all other real estate companies, Keller Williams Company provides the best commission offer to its agents. It values the agents’ hard work and makes sure to reward the hard work by the unique commission splitting structure.   

Robert Earl

Robert Earl started in Real Estate in 2001. During his career he has helped hundreds start a career in real estate, helping them understand the licensing process and assisting them in getting their business up and running. Robert is a Coach, Mentor and also an Air Force Veteran.

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