The KW Myth 2007 Management Retreat The

The KW Myth 2007 Management Retreat

The KW Myth The information provided is from the experiences of our panelists and may or may not be accurate as of this time. Also, fees, costs, policies, etc. may vary from office to office. You should become familiar with the practices of their offices in your market. 2007 Management Retreat

Participants § Leanna Watson, Broker-Owner § WEICHERT, REALTORS® - Watson & Associates § Coppell, TX v 29 years in Real Estate. Broker in DFW since 1978. v. Formerly with Century 21 (10+ years) and Re/Max (10+ years) v. With WREA 18 months. Start up now with 32 agents and over $1 million GCI in first 14 months. v. Was majority owner in Keller Williams Realty, Coppell Texas. Opened with 5 agents and had 75 agents within 14 months. By the 5 th year with were up to 140 agents. v. Over 2400+ KW agents in the Dallas/Fort Worth area. First office Dallas now has 400+ agents.

Participants § Dustin Collett, Broker-Owner § WEICHERT, REALTORS® - Collett & Company § Ft. Worth, TX § Colleyville, TX v 5 yrs in Real Estate v 2 as a broker v 18 months with Century 21 v 18 month with Keller Williams v As a KW agent I was top closed agent 8 months, member of the Agent Leadership council and had 22 people in my “down line” for profit share.

Objectives § Provide insight into the KW model § Leanna’s and Dustin’s experience § As a member of KW § As a member of WREA § Answer your questions

KW Close-up § What do they promise? § Commission Split § 70/30 with the 6% franchise fee being paid out of the agent’s split, capped at $21, 000 yr. § Profit Sharing § Complicated § Residuals § If you are with KW 24 months you get your profit share for as long as you hold an active license. § Training § Most training is delivered by in-office agents. As franchisees, costs, services, etc. will vary from office to office.

KW Model There is a cap on splits and royalties. The total royalty comes out of the agent’s split. Profit sharing is difficult to explain, because it depends on the office you recruited your agent to and, if they are profitable? If the office is not profitable you will not profit share even if the agent sells a home.

KW Model Profit sharing is a percentage of net income to the office. The percent the agent contributes to the net profit is the percentage their sponsor agent will receive. 60% goes to owner and 40% to profit sharing. Leanna recruited over 300 agents to KW. Her profit share checks this year have ranged from 0 to $300 a month. Her last check was for $8. 10!

KW Model Daily training is provided. Usually 1 hour class. No support. Agents enter their own listings, prepare their own listing presentations. Agents are the ones who usually do the training. Agents buy their own signs, lock boxes, etc.

KW Model Leanna’s former KW office charged a total of $85. 00 monthly: Voice mail 5. 00 CSS 15. 00 Advertising 30. 00 E&O 25. 00 Tech fee 10. 00

KW Model Dustin’s former KW office charged a total of $125. 00 monthly, minimum. Here was one agent’s costs: Website Fee Voicemail E&O KW Magazine Group Member Fee Desk Fee Copies Total 10. 00 30. 00 35. 00 25. 00 200. 00 17. 50 327. 50

Recruiting Strategies A minimum number of agents committed to join is required before an office is permitted to open. Seems to vary between 20 and 40 depending on area. There have been reports of an agent being recruited but asked to remain in their current office for a period of time to recruit from within.

We Need To… § Continue to recruit to our strengths § Consistently contact THEIR agents in order to “be there” when dissatisfaction occurs over lack of profits, lack of supports, costs, etc. § Fully understand exactly what you have to offer. § Use the Recruiting Portfolio and “Getting to Know You”.