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I am interested in hearing what other typical company deals are.  I am a Keller Williams agent here.  I picked KW because I liked what I heard from other people who went to KW from other companies.  One of the biggest group of people I heard from were a group who left RE/MAX to start a KW office in the state I moved away from.  They had nothing but great things to say.  I then talked with a few people who joined later on and heard nothing but positive as well. 

Next thing I know I am here in NJ I have left my RE/MAX office in another state, and I am looking at RE/MAX offices here.  They are all quoting me $2000 a month in desk fees, and I am thinking to myself, OK, but the market is slow and I am starting over again in NJ, so Keller Williams gets a try.  I have to say I like it very much.  The helpfulness of people has been greatly appreciated and of extreme benefit.

Here is the deal though:

Keller Williams

You Keep

Transaction $ amount

Split

Before your expenses

$1,000,000.00 * 2.5%

64/36

$16,000

$2,000,000.00 * 2.5%

64/36

$32,000

$3,000,000.00 * 2.5%

70/30

$49,500

$4,000,000.00 * 2.5%

70/30

$67,000

$5,000,000.00 * 2.5%

100/0

$90,000

$6,000,000.00 * 2.5%

100/0

$115,000

$7,000,000.00 * 2.5%

100/0

$140,000

$8,000,000.00 * 2.5%

100/0

$165,000

$9,000,000.00 * 2.5%

100/0

$190,000

$10,000,000.00 * 2.5%

100/0

$215,000

$11,000,000.00 * 2.5%

100/0

$240,000

$12,000,000.00 * 2.5%

100/0

$265,000

 

Once you reach about $4,220,000 you cap out in Keller Williams terms meaning you keep all of the rest of your commission income less anything you personally spend as expenses.  I am told we have many agents who cap out in their first month each year so they are on a 100% split for the rest of the year.

What is the deal you have at your company??

Is it better than this deal??  If Not Do You Care??  Lets have a open discussion.

 

5 Comments on Are you Getting A Good Deal???

I am my own broker, a sole broker, a one person operation.  No desk fees, no splits.  Get your broker's license.  Go open your own office and make your own chart.

07/20/2007 10:53 AM by Eyemark Realty, Inc.


Need 2.5 more years licensed here for that.  Not sure I want the paperwork headack or to lease of office as it the requirement here.

07/20/2007 10:57 AM by New Jersey Real Estate James Boyer Morris, Essex & Union County NJ Realtor (RE/MAX Properties Unlimited, Real Estate)


Wow.  In Florida you can take the broker class and test after 1 year as a licensed salesperson and anyone including brokers can work out of a home office.  I work out of my home and set up an S-Corp.  The paperwork is minimal.  I have been doing it this way for over 5 years.

07/20/2007 09:26 PM by Eyemark Realty, Inc.


Why be a Broker, when I can shift the risk to company.  Tell us, single brokers what is your E/O cost?  One other small point the new KW agent did not mention is the profit share, passive income that will offset his expense, as a single broker who offsets yours?  What will you do when you retire and how much did it cost you to fund your retirement?

Just some of the many thoughts I have as a KW agent and business owner.

07/21/2007 08:54 AM by Matt Ratcliffe


Most agents love the setup they have or change companies.  I am not pushing my setup on anyone.  Different things work for different people.  If KW works for you that's great. 
My alternative allows me to keep half of the entire commission amount with a co-broke and all of the commission amount when I have both sides.  That offsets your extra money from your franchise.  I don't have to sell so much to make the same income.  I keep more of my earnings.  Your KW profit sharing is only returning your own money back to you.  If you kept it in the first place for expenses it adds up to the same thing.

07/21/2007 11:17 AM by Eyemark Realty, Inc.


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Real Estate Agent: New Jersey Real Estate James Boyer  Morris, Essex & Union County NJ Realtor (RE/MAX Properties Unlimited, Real Estate)
New Jersey Real Estate James Boyer Morris, Essex & Union County NJ Realtor
Morristown, NJ
More about me…
RE/MAX Properties Unlimited, Real Estate

Office Phone: (973) 539-6300
Cell Phone: (973) 647-0253
Email Me
Morristown, Madison, Chatham, Parsippany, Summit NJ and Surrounding Communities Real Estate


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