Commission Split - KW Legacy Partners

Keller Williams Commission Split

One of the most common questions people interested in a real estate career with our company ask is, “What is the Keller Williams 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 what you’re doing or how to run a business the right way, people are going to choose not to work with you.

The Keller Williams commission split is very competitive compared to other real estate firms.

The standard commission split at KW Legacy Partners 80/20 up to $24,000 a year and 100% after that. Since KW is a franchise, there is a franchise fee 6% on each transaction up to $3,000. This means you are getting 74% of your total commission until your 6%/$3000 royalty is paid for the year, then you get 80% of your commission. Once you’ve paid KW Legacy Partners $24,000 from your 80/20 split for the year you keep 100% of all of your commissions for the rest of the year and pay the broker NOTHING! How amazing is that?

Independent Real Estate Business Models

Interdependent Real Estate Business Model

Cap on our commissions, giving you the best opportunity to accumulate wealth
We provide the leadership, coaching, training, tools, technology, proven success models and entrepreneurial environment that empowers our Agent Partners to build the most successful real estate business in the industry. This is evident in the fact that KW Agent Partners dominate every top producer list locally and nationally.

Dependent Real Estate Business Models

Independent Real Estate Business Model

“Good luck, I hope you make it” is a good way to sum up this model. You’ll see the independent type of commission structure with discount brokerages or 100% commission companies.

This is a low cost, low value, low support, model with little to no leadership, coaching, training, technology or support to help you grow yourself or your business.

Example

Gross commission is $10,000. Sally keeps all $10K. She will have to pay her broker either a monthly desk fee or a transaction fee. These fees vary, but can range from a couple hundred dollars per deal or up to a couple thousand per month.

Dependent Real Estate Business Model

Dependent real estate companies are the most common type of brokerage in the industry. Their commission split usually starts at the traditional 50-50 split. 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.

Example

A common referral fee for referring business to an agent is 25% of the gross commission. Let’s say the dependent broker generates a buyer lead and refers it to Sally. The gross commission ends up being $10,000. Sally is on a 50-50 split and owes the broker a 25% referral fee. The broker nets $7,500 and Sally gets $2,500.

With no cap on your commission splits, the more successful you are the more expensive it becomes to stay with that brokerage with no end in sight…because that end doesn’t exist! Some of the most successful agents in dependent brokerage models are paying their broker $100,000 plus EVERY YEAR! When comparing this model to the capped structure at Keller Williams Legacy Partners every dollar over $27,000 paid to the brokerage each year is money that could be reinvested into your business, or other wealth building assets like real estate investments.

Interdependent Real Estate Business Model

At Keller Williams Legacy Partners, we teach you how to generate your own leads and take ownership in your real estate business. It’s like the old saying, “Give a man a fish, feed him for a day. Teach a man to fish, feed him for a lifetime.” The KW business model is interdependent, meaning you are independent in running it, but are not just thrown out there to fend for yourself. We provide the tools, resources, strategies and empowerment for you to run and manage your own real estate business.

That’s probably one of the reasons you are getting into this business, right? To take control of your life, your schedule and build a legacy for your family. KW promises to teach you to be independent in your business and also give you the leverage to balance your business and personal life.

Example

Gross commission is $10,000. Keller Williams provides the tools, resources, strategies and empowerment for you to run and manage your own real estate business. Commission is split 80-20 with 80% of commission going to Sally. Sally gets $8,000 until she CAPS, then will make all $10,000.

It’s not just about business at Keller Williams. It’s about the quality of life of our agents. 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. This type of real estate business model is paramount for entrepreneurs and is one of the main reasons Keller Williams is the best real estate company to work for.

Is The Keller Williams Commission Split Right For You?

In the end, you need to find the best fit for you. If you can handle an ever-changing market without any support or guidance, go with the independent company. Just looking for a job, a dependent broker will be the best fit. If you’re looking to run your own real estate business and learn how to balance your business/life, there’s no better place than Keller Williams. 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.