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The Keller Williams Profit

Share Model

What Is It? How Does It Work?


What Is It?

 A Bonus paid to agents who help


introduce talent to Keller Williams
 A portion of OWNER profits from the
Market Center
 Passive income
 Paid to participants monthly
What It Is Not

 A Multilevel Sales Program


 An override from an agent’s
commissions
 Money given from one agent to
another (revenue share)
Why Do We Do It?
 We believe in empowering our
associates to take an active role in the
Market Center
 We believe associates should benefit
from the financial success of the
Market Center
 Agents become “partners”
Calculating the Office’s Profit

Gross sales of office $20,000,000


Commissions @ 3% 600,000
Commissions Paid to Agents 70/30 (-) 420,000
Gross Profit 180,000
Monthly Expenses (-) 100,000

Net Profit of Office $80,000


How Much Profit Is Shared?

Profit Share Calculation


25% X $2,990=$747.50
35% X $8,250=$2,887.50
50% X $68,760=$34,380.00

Total Profit Share for the Month:


$38,015.00
How Do I Receive Profit Share?

Three Things Need to Happen:


3. You invite Joe Agent to the office
and Joe names you as sponsor
4. Market Center is profitable

5. Joe Agent is productive


Profit Share Formula

Office monthly closed volume: $20,000,000


$180,000 was company dollar

Joe’s closed volume was: $600,000


($600,000/$20,000,000=3%)

Joe’s production was responsible for 3%


of the company dollar that month
Profit Share Calculation

Company Dollar: $180,000 X 3%=$5400

Profit Share Pool: $38,015 X 3%=$1140.45

$1140.45 to be shared by 7 Associates in


Joe’s Sponsorship Tree
How is Profit Share Paid?

You, Joe’s Direct Sponsor @ 50% $570.23


Your Sponsor @ 10% 114.05
Their Sponsor @ 5% 57.02
Their Sponsor @ 5% 57.02
Their Sponsor @ 7.5% 85.53
Their Sponsor @ 10% 114.05
Their Sponsor @ 12.5% 142.56
Total $1140.45
Benefits of Profit Share
 Passive Income vs. Active Income
 100% Vested after 3 years with KW
 Willable and/or Transferable
 Creates an environment of success
 Puts the owners and the agents on
the same side of the table as partners
Questions

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