Keller Williams Real Estate
This post will cover why I chose Keller Williams Real Estate as the company I wanted to align myself with. In retrospect, there were many reasons. Some were crystal clear, and some were intuitive.
I will outline the major reasons here and touch on who this company is a good fit for, and who might not benefit as much from it. No company is the be-all end-all that is a great fit for everyone, and Keller Williams is no different. The best way for me to approach this is by doing a pros and cons list.
PROS:
Entrepreneur Based: I owned (or was a partner in) my own businesses for 18 years prior to being in real estate. Everything from pizzerias and a bar/restaurant, to a small record production company and a title company. When I decided to go into real estate, I needed to be somewhere that didn’t feel like I was in a corporate setting. The “cubicle life” is not for me.
I interviewed at another very prominent company (which will remain nameless) prior to Keller Williams. I sat with the manager and one of his pitches were that the company would provide me with my first set of business cards, and a few signs, while at KW, I was on the hook for most of my expenses. WHOOPIE! $25 worth of paper in return for a bigger piece of every commission check I ever brought in. This was AFTER I mentioned I ran my own businesses for 18 years, but more on this later. This company was pushing how they were the biggest corporate company and as such, I would benefit from their buying power, etc. This was AFTER I said I didn’t want to feel like I was in a corporate run company.
Training: Hands down, Keller Williams Real Estate offers the best training for both beginner and experienced real estate agents alike. In fact, Gary Keller has said we are a training company thinly disguised as a real estate sales company. KW teaches you not just how to sell listings and help buyers, it teaches you how to run a business. It teaches you to put the client ahead of your own commission. Keller Williams teaches you the importance of making sure all parties come out ahead in a transaction. We learn how to utilize the best techniques with today’s technology. We learn how to prospect, so that we can always generate business, no matter how the economy is doing.
Most importantly, Keller Williams teaches us about leverage and systems. The single greatest principle I have learned from Keller Williams is that the purpose of business is to fund the perfect life. For me, this means a location independent lifestyle. This wouldn’t be possible if I only focused on my individual sales income. KW has taught me how to leverage myself and others, to build a true business.
Better Commission Split: Everyone at Keller Williams is on the same commission split. Regardless if you sell 1 house or 100 houses a year, we all start at the same level, and all have the ability to get to 100% commission, every year. The way it works is Keller Williams works off a cap. When ever your anniversary date rolls around (the date you started at the company), your commission split resets at 70% to you and 30% to the company. As soon as you earn $70,000 GCI (gross commission income), you go to 100% commission for yourself. This continues until your next anniversary date, at which time it resets. So for example, my anniversary date is October 3rd. If I earn $70,000 GCI by the end of January, then any property I sell from February 1st until next October, I get 100% of the commission. Note: the $70,000 GCI is based on my particular office’s cap of $21,000 a year. Some offices are higher, and some are lower. A lot of that depends on the location of the market center.
Masterminding: I am so fortunate to have many of the top producing individual agents and teams in my market center. We regularly get together to mastermind different aspects and new challenges that we as Realtors face each day. However, through our MAPS coaching program, Mega Camp, and Family Reunion conferences, I am able to mastermind with the top agents and teams from throughout the country. Together we share new systems. We share new sources of business, and how to dominate our niches. We also learn about passive income and how to create “mailbox money,” money that comes in while you sleep.
Profit Sharing: Keller Williams Real Estate is the only company that offers this type of agent compensation model. Nearly half of the owners’ profits brought into a market center are shared amongst the agents that have helped that market center grow. Every agent in Keller Williams names a sponsor when they first join the company. Every time that agent makes a sale, prior to capping each year, the sponsor may be eligible for a percentage of the profits.
I’m not a big math guy, so I never spent too much time figuring out the precise formula. Since KW is an open books company, meaning any agent can ask to see the books for a market center at any time, the formula is available to you. Me? I just rather get my profit share check direct deposited each month in my account and not worry about how the amount was derived.
These are some of the main reasons I chose Keller Williams. I also mentioned some of my reasons were more intuitive. After I left my first interview with the other company, I was disappointed. I felt as though the office manager was just trying to sell me. He wasn’t listening to what was important to me. I don’t like being “sold.” I understand the value in being a professional salesperson…however I never try to “sell” someone. It’s slimy in my book. I prefer to take a consultative approach. I LISTEN and ask questions. When I met with my current team leader at Keller Williams Blue Bell, I was instantly at ease. She took the time to listen to what was important to me. She asked me questions about how I ran my businesses to see if KW would be a good fit for me. Most importantly, she didn’t try to “sell” me on the company.
As I mentioned however, Keller Williams Real Estate is not for everyone. Let’s go over some of the cons when it comes to KW.
CONS:
NOT CORPORATE BASED: I mentioned that KW was very entrepreneur based. Sure, for someone like myself, that is a huge plus, not a negative. However, I see agents every day that treat real estate like a job. They have the mindset of being a salaried employee. And they are destined to fail.
If you can’t wrap your mind around the concept that you are starting a business and you will have business expenses, KW is not for you. If you are open-minded and think you can develop the mind-set of a business owner, than we should talk!
EXPENSES: This goes in tandem with not having the entrepreneurial mind-set. When you get into real estate sales, you are starting a business. Every business has expenses. New businesses have more expenses than profit in the beginning. Some companies have less monthly expenses than Keller Williams. However, you will most likely pay for it with a higher overall commission split, so read the fine print. I
f you do not have a cushion of a few months expenses, you may want to consider waiting to get into real estate. Notice, I didn’t say you should join a different company. No matter what company you join, it will take you at least 30-60 days to generate your first check. IF you don’t have some money saved, you will get stressed and quit before you even get started. You will need things like a computer, business cards, signs, etc. You will need to be able to pay your office fees and your association dues.
Treat this as a business and you will prosper. Treat this as a job, and you will be out of business before the ink is dried on your business cards.
Your Listing, Your Lead: While I consider this a huge plus, some agents don’t want to work for their business. They expect to be handed leads. They expect to be fed, rather than learn how to fish, so they can feed themselves. There are plenty of companies out there which will hand you leads that you didn’t earn. This is how they keep you held down believing you can’t make it on your own. Some agents are afraid of lead generation however, and will gladly stay with a company on a terrible split, just to be handed a few leads from time to time. If this is you, you will not like Keller Williams.
Agent Led Company: Each market center has an Agent Leadership Council. The council is made up from the top agents in the office, and every agent in the office is assigned to a council member. You can go to your agent representative for help, for guidance, or to air a grievance. The flip side is as an agent you will be asked to contribute. You will be asked to teach classes if you excel at a particular skill. You will be asked to have other agents that are new shadow you on appointments. If you come from a contribution and abundance mindset, you will thrive in this type of setting. If you have a scarcity mindset, you will think everyone is out to take advantage of you and you will not be comfortable here.
Regardless of what company you are with, including if you are currently with Keller Williams, I encourage you to constantly meet with brokers and agents from other firms. You will learn what others are doing, you can share some of your own insights, and ultimately, you will come out knowing more than you did when you went in. You can always learn from others if you are open to it.