What is the cost for joining Keller Williams as a new agent? Everything you need to know!

Introduction

The cost for joining Keller Williams as a new agent may vary depending on the office location and the commission model. For individuals aspiring to become new real estate agents at Keller Williams Realty Partners, Inc., the average start-up costs include a pre-license class fee of $250. Depending on packages and course approvals, real estate school classes can cost anywhere from $600 to as much as $6,000. Keller Williams Real estate’s fees at Desk are not obligatory, and only a small percentage of agents opt to rent a desk within the office market center. On average, KW agents pay monthly fees ranging from $85 in the US to $139 in specific locations.

Keller Williams New Agent Costs

Keller Williams New Agent Costs

Cost Description Amount
Start-up costs $1,500
Monthly agent fees $85
Franchise fee Capped at $3,000
E&O fee Around $60-80 per month
Training opportunities New agents receive unique training

Please note that these costs are subject to change and can vary by office location and commission model.

Keller Williams startup fees in 2023 for new agents typically range from $400 to $1,200+ (average $1,000 to $1,500). Keller Williams Center City charges $245 plus Realtor Association & Trend MLS fees, and a 6% franchise fee up to $3,000 per deal. Monthly agent fees range from $50 to $85. Additional expenses include licensing courses, Realtors association dues, continuing education, and business expenses like phone, computer, office supplies, and marketing.

Average Income Comparison for Keller Williams

Average Income Comparison from Different Websites for Keller Williams

Source Average Income
Glassdoor $171,553 per year (median)
Payscale $29,165 to $82,012 per year (average)
Indeed $127,923 per year (average)
Indeed (California) $46.28 per hour (average)
YourCBL 70% of the commission from business deals

Keller Williams commission split 2023

The Keller Williams commission split

KW agents receive a commission split of 70% to the agent and 30% to the broker. Additionally, there is a 6% franchise fee on each deal, up to $3,000. This question has been asked a lot on websites such as Quora, Reddit. However, once an agent has paid $3,000 in fees to the corporate office, the 6% franchise charge is waived. However, some sources state that the split is 64/30/6%, with 64% going to the agent, 30% going to the Market Center, and 6% going to KWRI.

Joining KW Realty Partners, Inc. as a real estate agent in Kansas includes start-up charges, which comprise a $250 pre-license class fee. Start-up costs for new agents vary depending on the office within Keller Williams Real Estate. It’s worth noting that only a small percentage of agents choose to rent a desk within the office market center since desk costs are voluntary and not mandatory.

According to the KW commission system, each office’s commissions are capped and are determined by the local market‘s operating costs and economic conditions. The typical median property price in the neighborhood has an impact on the cap amount as well. Agents surpassing the output level (cap) keep 100% commission until the next anniversary year, avoiding shared splits. After achieving the maximum, which is often reached by selling 8–10 properties annually, the agent is then permitted to keep the whole commission earned. Once agents reach the annual cap, they are no longer required to split the commission with the broker or franchise. This commission structure motivates agents to reach the ceiling and retain a larger portion of their earnings.

Example 1: The cap system at Keller Williams and how it affects an agent’s take-home income.

John recently joined Keller Williams as a new agent. The cap in his office is $25,000 per year, with $20,000 going to the market center and $5,000 allocated as the franchise fee to KW International. In his first year, John achieves remarkable success and closes a total of $6 million in sales, resulting in a Gross Commission Income (GCI) of $180,000. According to his commission split agreement, $25,000 is deducted as his commission split, leaving him with $155,000 as his take-home income.

Now, let’s consider an increase in John’s GCI to $300,000. Despite the higher earnings, he still only pays the same $25,000 cap to KW, allowing him to take home $275,000. John appreciates the transparency and consistency in knowing his obligations to his broker for a given year. If he falls short of reaching the cap, he is not required to pay the difference. KW only receives payment when John receives his commission. In this way, John recognizes that he is not working for Keller Williams, but rather Keller Williams is working for him.

Commission Structure – John’s Income

Commission Structure – John’s Income

Example 2: The commission split structure at Keller Williams

Sarah is a new real estate agent who has joined Keller Williams. She has a simple and straightforward commission structure with her broker. For every sale she closes, she will receive a 70% commission split, while the remaining 30% goes to the broker. Let’s say Sarah closes her first sale and earns a commission of $10,000. Based on the agreed-upon split, Sarah will receive $7,000 as her take-home income, while the broker receives $3,000.

In another scenario, Sarah closes a sale worth $20,000. With the same commission split, she will receive $14,000 as her commission, and the broker will receive $6,000. Sarah appreciates the clarity and fairness of the commission structure, as it allows her to easily understand how her earnings are distributed.

Sarah’s Commission Structure

Keller Williams Commission Calculator

Keller Williams Commission Calculator

Here’s a small example of how to use the Keller Williams commission calculator:

  • Let’s say you’re a Keller Williams real estate agent and you’ve just closed a sale on a property for $500,000.
  • Your commission rate for this sale is 6%.
  • To calculate your commission using the calculator provided:
    1. Enter “6” in the “Commission Rate (%)” field.
    2. Enter “500000” in the “Sale Price” field.
    3. Click the “Calculate Commission” button.
  • The calculated commission will be displayed on the page, which in this case would be “$30,000”.

Keller Williams Commission Calculator

Is the Keller Williams commission split appropriate for you?

Whether the Keller Williams commission split is right for you depends on your individual goals, preferences, and business needs. If you value flexibility and a supportive community, KW offers a great fit to negotiate your split based on performance. However, it’s important to thoroughly research and compare different commission structures and brokerages to determine the best fit for your specific circumstances.

Here are some key points to help you decide if the Keller Williams commission split is appropriate for you:

  • The commission split offered by Keller Williams is 70/30, with the agent receiving 70% of each transaction and the brokerage receiving 30% and the competitive commission split tries to increase agent earnings while lowering broker commissions.
  • They operate on a franchise model, and agents have to give another 6% as part of the franchise fee. Desk fees vary based on location and technology, adding an additional cost for agents.
  • Keller Williams offers agents a chance to maximize take-home pay and minimize broker commissions.
  • The KW commission structure ensures that agents keep all additional earnings once they reach the commission cap.
  • KW operates on an anniversary year, not a calendar year, ensuring agent retention.
  • The KW training program is another factor for which Keller Williams has garnered such a huge name for itself in recent years.
  • The KW commission structure is beneficial for new agents as they receive the same commission as all the other agents and are provided with training facilities.
  • Keller Williams is a worldwide name and attracts top-producing agents.

Ultimately, it’s critical to balance the commission structure’s benefits and drawbacks to see if it suits your demands and those of your firm. When selecting a brokerage, take into account elements like training, assistance, costs, and commission splits.

Does Keller Williams pay for real estate classes?

  • Keller Williams offers financial assistance for real estate classes to new agents through the Keller Successful Career Opportunities in Real Estate (KSCORE) initiative.
  • KSCORE provides access to Kaplan Real Estate Education’s pre-licensing and continuing education courses at no cost to students.
  • Additionally, KW Prep is a specially curated curriculum designed to set individuals up for success in their real estate career, available at no cost to students.
  • Keller Williams also provides live and on-demand classes, coaching programs, and a platform for community building to help new agents improve their skills, develop their business, and achieve their goals.

What does Keller Williams offer new agents?

  1. Ignite: a comprehensive new agent training program designed to help new agents hit the ground running.
  2. KW MAPS Coaching: tailored coaching programs for agents and teams to master their market, develop skills, and achieve their goals.
  3. Live and on-demand classes: an unprecedented number of award-winning live, local, and on-demand education opportunities to improve skills, uncover new streams of income, and unlock personal and professional potential.
  4. KW Communities: a platform for like-minded individuals to connect, gain inspiration, learn new ideas, and receive support for their business growth.
  5. KellerINK: Keller Williams Realty’s publishing arm that delivers world-class books written to provide readers with practical tools and instruction that turn inspiration into action.

Does Keller Williams pay salary?

Keller Williams does not pay a salary to its agents. Instead, agents earn commissions on the real estate transactions they complete. 

The estimated total pay for a real estate agent at Keller Williams is $171,553 per year, which represents the median, or midpoint, of the total pay range. However, this pay is not a salary but rather the commission earned by the agent.

See More: Top 15 Tips How To Buy A Home

Does Keller Williams provide leads?

Although Keller Williams does help its agents with lead creation, the level of assistance varies depending on the specific Market Centre and team. The business provides a variety of tools, materials, and training courses to assist agents in generating leads, including the Keller Williams Command platform, a thorough real estate CRM and marketing tool. It’s crucial to remember that agents are typically expected to generate their own leads through networking, marketing, and other business development initiatives. To ensure long-term success in the real estate profession, Keller Williams stresses the value of developing a strong personal brand and referral network.

Conclusion

In conclusion, if you are Considering joining Keller Williams, New agent costs vary by location. Keller Williams offers a supportive community, resources, and a commission system designed for financial success. The company values agents, fostering a supportive environment. The commission split’s suitability depends on goals and preferences. Research different brokerages for the best fit. Keller Williams’ split is attractive to those valuing flexibility, transparency, and higher earnings. With training and networking, agents can thrive under the Keller Williams model.

FAQs

Does Keller Williams pay for real estate classes?

KW does not provide financial assistance for real estate classes, but they offer the best training, education, support, and culture in the real estate industry.

Keller Williams paid training program cost?

Keller Williams training programs have varying costs, depending on location and type. Free options include IGNITE classes, technology classes, and consulting. Optional regional events may cost $150/day, while advanced training can range into thousands. Contact Keller Williams for precise pricing details.

Does Keller Williams pay hourly?

Keller Williams offers hourly pay to certain employees such as real estate agents and sales managers. Hourly rates vary based on position and location. On average, real estate agents receive $38 per hour, while sales managers earn $26.53. Contact Keller Williams for detailed compensation information.

How many agents does Keller Williams have?

With 174,019 agents in the US and Canada and 17,858 agents working outside of these countries, Keller Williams has a total of 191,877 agents globally.

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