1. Bob Kilinski – Understanding Profit Sharing Bob Kilinski met with Mark Willis in Louisiana @ working with KW. Was GM of 22-office independent realty company in New Orleans area. He didn’t have an equity-sharing profit-sharing plan like at his traditional company. Capital Revenue Agents Owners $ Profit $ PARTNERSHIP Why did you join Keller Williams? 1) Education (KW Univ.) & Support 2) Culture 3) Input (Agent Leadership Council) – Agent Driven environment 4) Money / Profit Sharing Office is in the real estate support business. $$$$ growth The profit sharing system is an opportunity in the company, not a right. The people getting checks are earning them by taking advantage of the SYSTEM. Three Questions asked How much profit is there to split? Who is responsible? Who gets it? M/C profits $20,000 3-step algorithm Partnerships of owners/agents are going to s;lit 55% to 45%. $11,000 ROI to owners / $9,000 to agents $9,000 to Market Center So, who is responsible? Evaluate GCI this month. Say agent had $50,000 GCI (Gross Commission Income) Market Center had $500,000 GCI month. You are participating in 10% of the MC. Responsible for $900 in profit-sharing pool. SE Region profit-shared $4M, National company Profit shared $28M dollars 2005 targeted to profit share $69M natinoally
2. Who gets it? $900 Jessica is responsible. 1) 50% 2) 10% 3) 5% 4) 5% 4) 5% 5) 7.5% 6) 10% 7) 12.5% Trammell Crow’s profit sharing structure was copied by Keller Williams. The percentages and levels in this company are all changeable by the agents. We could go to 12 levels if the agents want. Company Dollar GCI – total amount of money coming in from sales -Agent Commission =Company Dollar (how much the office has to run on)(Office income) -Office Expenses =Profit Portions of this profit go to owners, part goes to agents in profit-sharing Vesting – after 3 years of being in the company, you are vested in the profit share system and you will always get your profit sharing Ability to Will to an Heir How much does an agent have to sell to profit share? NOTHING It’s not about the money. It’s about what you do with the money. If it is all about the money, there is something hollow to success. The culture is Win-Win, which is why it is growing so quickly. What’s the split? I paid in $18k, got $78k in profit sharing, AND got to keep all my commissions (What is that split?) Every person who comes to the company, whether they are an employee or an agent, can recruit into the company AND profit share. 0 years 30 years $ Income Normal agent career KW Agent Career
