Pick the Right Commission Split Model
Comparing Keller Williams commission splits with other Real Estate company models
I recently ran across an Inman article comparing agent commission splits across real estate company models. I don’t think that KW fits any of these, so here is my take on using their format for the fees at Keller Williams Clients’ Choice in Colorado Springs.
If you make $100,000 in commissions:
Company Dollar paid from your closings on a 70/30 split – $18,000
Royalty fee paid at 6% on each closing until capped – $ 3,000
E&O annual in Dec – $ 350
Monthly fee ($50/month) – $ 600
Technology (website, database, mobile app, etc.) Included
Marketing Items (Signs, postcards, business cards, etc) Varies (paid to others)
Desk rental (Optional) Varies
Copier (optional) 6 cents/page
Office Internet Access (Optional may not be needed) $12/mon
The “other fees” that are not included would be an expense to you, which is why we suggest keeping these to a minimum until you are making money.
So based on the fixed fees, your true split would be 78% to 22% of the $100,000. The split gets better as you make more money.
This summary does not include fees to others such as the MLS, Colorado Association of Realtors (CAR) and National Association of Realtors (NAR).
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