This fee varies from $50 – $80/month and is set by the individual office. They simply start over the next year.Īdditional fees? We charge each agent a monthly fee that covers Errors and Omission insurance and technology tools to run your business - CRM, eMarketing, Google Apps, paperless document handling, websites (2), iOS/Android apps, efax, phone, etc. If an agent does not sell enough to hit the CAP, they do not owe any additional money to the office. And with a franchise fee that is capped at $3000, the maximum taken from an agent’s Gross Commissions is $23,000 - $20,000 to the local office and $3000 to Keller Williams Realty International. This means that no agent pays more than $20,000 to their office in a given year. Louis Metropolitan area, the CAP has been set to $20,000. Because the market center was largely a fixed-cost operation, a high number of cappers led to a high level of profitability. Agents who produced above the cap did not generate additional revenue to the market center and therefore made no additional contribution to profitability. From the perspective of the market center, it was profitable to increase the number of cappers because these individuals were making the maximum contribution to cover the market center’s fixed costs that is, they were the most efficient revenue producers. The agent was charged for all variable expenses out of their retained portion of GCI.Īgents who generated sufficient GCI to pay the maximum company dollar to the market center were referred to as cappers. The agent kept all GCI generated above these payments. The cap was determined by the OP at the time of launch and generally varied from $20,000 per year to upwards of $50,000 per year. The company dollar was also capped, at a level that varied by region, with areas with high average home prices having a higher cap to account for the general higher cost of doing business in such areas. The agent was also responsible for paying a fee to the market center, referred to as company dollar. The agent was responsible for paying a franchise fee to the international office each year, which was capped at $3,000. Received a 70/30 commission split from the first dollar of gross commission income (GCI) Traditional franchises and 100-percent commission organizations. The commission split that Keller Williams offered agents was a hybrid of that offered by From the Stanford University Graduate School of Business Case Study (2007): In fact, net commissions to agents are not a mystery at all at KW. At Keller Williams, we don’t nickel-and-dime our agents.
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |