One of the most common questions people curious about a real estate career with Keller Williams will ask is, “What’s your company’s commission split?” It’s funny to say, but it doesn’t really matter! When it comes down to it, the most important thing a broker can provide you is the best real estate training, not a generous split. 100% of zero is still zero.
If you don’t know how to run a business the right way, people are going to choose not to work with you.
The Best Real Estate Commission Split
With that said, the Keller Williams commission split is very competitive compared to other real estate firms. Every agent at Keller Williams is treated exactly the same. There are no prima donna’s running around yelling at new agents for doing something wrong or parking in their coveted reserved parking space. Every agent is on a 70/30 split. That’s 70% to the agent and 30% to the broker. Since KW is a franchise, there is a franchise fee (6% on each transaction up to $3,000) which is included in this calculation.
The best part of the Keller Williams commission split is the ‘cap’. Each office has a cap on commissions based on their current market. It is determined by the average median home price in your area and usually amounts to selling 8-10 houses per year. Once an agent reaches a set amount of production (cap), they are no longer required to pay the office a split, meaning the agent is at a 100% commission split until their fiscal year starts again. How amazing is that?
What You Find At Other Real Estate Brokerages
When you are comparing real estate companies and commission splits, you are more than likely going to come across the 50-50 split. This is the most common type of commission arrangement that traditional real estate firms use. This split can continue for as long as you are selling or it can operate with a sliding scale. Based on your production, it can move to 60-40, 70-30, 80-20 and so on. The most important thing to notice here is you will always be paying your broker a fee. There is no cap or end in sight.
With the Keller Williams commission split, you know exactly how much you pay your broker before you sell anything and the best part is if you don’t reach your cap, you’re not required to pay the difference. Bottom line, if you don’t succeed, Keller Williams doesn’t succeed. By offering a cap on commissions, KW gives agents the best opportunity to take home more money than any other real estate business model.
Take into consideration other real estate companies have less desirable splits and have not set cap on commissions or franchise fees and you can see it truly pays to build your real estate career with Keller Williams. Take the time to learn more about choosing a real estate broker and know that split isn’t everything. At KW you will receive the best platform to run your real estate business and with the benefits of the Keller Williams commission split, take home more money in the long run.
Contact us today to find out the cap in your market center!