There are several agents at Keller Williams that have explained the KW stuff to the Active Rain group more than once.  Some at great length, some even pointing what doesn't work at KW.  We each and every one of us make our personal decisions about which office we go to - you seem to llike KW so good for you.  One of the problems with the model is the recruiting.  You make money by recruiting anyone anywhere - the recruiting makes it very difficult to believe all the stuff about KW because there is a financial motive behind it.  Good luck.

Miriam,

I don't really feel it's "recruiting".  I feel it's educating my colleagues on a business model that has not been available in the Cleveland area until now.  I truly believe the ecomonic model works here at KW and guess what, it's exciting!

I been selling for almost 32 years and have been exposed to just about every compensation package out there, and this model elimates most of the risk that could be incurred with a "100%" company.  Let's face it, if an agent wants to join a company, most will make an informed decision that is going to benefit "their" business.  We all have different needs and opinions about what is important.

The reward of profit-sharing through recruiting is just the icing on the cake!

Call me anytime...I'll be happy to give you honest answers about why we are different.

Rspectfully,

CJ

440-336-0612

You mentioned in your post "Since all associates pay the same annual expense cap and royalty cap to the Market Center, the commission split really doesn't matter.".  In our area I know that some of the KW offices have a different "cap" than others.  It does depend on the market center you belong to.  I did an extensive review of a number of different models before I made the switch to RE/MAX and decided they offered me the most for my money.  Every agent has to make the right choice for their business.

Cindy,

You are correct.  Keller Williams is an open books, pass-thru company.  If rent for a market center in Washington DC is higher, the cap for agents in that office will reflect that and may not be the same in Cleveland.

We incubated a new office in Medina County and they were very careful about initial start-up cost and their beginning office rent is approximately $2000 per month.  As they grow, they have additional space to expand to and consequently their rent will increase.  Our Southwest office started with rent at $10,000 per month for a facility that is three times the size, but already can accomodate three times the agents.

The cap for the agents here is $18,000 to the market center and $3,000 to International per year.  I can't believe with current economic conditions as they are, that agents are paying desk fees of $3000.00 per month (whether they sell a home or not), plus an un-capped franchise fee of 5% at other companies.