I've been with Keller Williams Realty for about 2 years now, and one of their lesser known benefits is the profit sharing model throughout the brokerage. In a nutshell, it is possible to build a passive income stream for the rest of your life. I recently met others who used their profit sharing to pay their house note (live for free? Sure!), others to fund a retirement account, and ever others as their sole income! This is my understanding of how it works:
Keller Williams Realty rewards their agents for bringing in other productive agents. If an agent lists you as their sponsor, or the person most influential in the decision to work with Keller Williams, then that person is officially in your downline.
As your particular real estate office does business, each month the company financials are shared with the all agents. That's one of the neat things I love about Keller Williams; we believe in an open book policy which includes training and financials. When those reports of monthly profit comes to our attention, we usually are given a particular number in profit. For this example, let's say it's $50,000.
Usually, this profit would all go straight to the owners of the company. However, as mentioned earlier, the owners believe in a profit sharing model and rewards those agents who sponsored productive agents that helped create this $50,000 profit for the month.
That profit is then split in half. Half goes to the owners; half goes to the agents. The agent half ($25,000) is split according to how much profit a particular agent contributed. I'm still learning on how these splits occur, but I do know they are equivocally distributed among the productive agent's sponsors (upline) as profit sharing.
This is how it is possible to build that passive income stream I mentioned earlier. In the past two years, I have brought a few friends into the business because I thoroughly enjoy the models, systems, and support that Keller Williams Realty has provided to me in the past. My friends have helped make our office profitable, and as a reward, I get an unexpected check each month as long as they are productive each month.
Want to hear the best part? After being with Keller Williams for at least 3 years, you are considered "vested" and can continue to receive your profit sharing even if you no longer work in real estate! Isn't that grand! It's definitely possible to build a retirement income from the Keller Williams profit sharing model. This is exactly what I plan to do!
Note: I am going to learn a bit more on how the percentage splits work and repost again very soon. I was just so excited to share this information to everyone!