Above-the-Line expenses are expenses that may be subtracted from Profit when calculating Profit Share. Below-the-Line expenses are expenses that are allowable for tax purposes but not for Profit Share purposes.
An individual who produces sufficient GCI and contributes enough Company Dollar to the Market Center to satisfy their annual commission Cap requirement. After capping, the individual keeps all commission income.
Keller Personality Assessment. The Keller Personality Assessment (KPA) is a comprehensive personality tool that brings a complete understanding of an individual-encompassing not only how a person behaves but how they THINK.
Keller Williams Realty believes that success in real estate occurs out in the marketplace, not in an office. It is the Keller Williams philosophy that everything we do, even down to the name we give our sales offices, should reflect our philosophy. Hence, Keller Williams has “Market Centers” … not offices.
The Beliefs (Rules) of Keller Williams Realty:
W – Win-Win – Or no deal
I – Integrity – Do the right thing
C – Customers – Always come first
C – Commitment – In all things
C – Communication – Seek first to understand
C – Creativity – Ideas before results
T – Teamwork – Together everyone achieves more
T – Trust – Begins with honesty
S – Success – Results through people
The KW Economic Fundamentals
1. Lead with revenue, not expenses.
2. Keep debt low and get it to zero.
3. Keep overhead and fixed expenses low.
4. Follow the KW Chart of Accounts and code expenses consistently.
5. Use the high-volume/low-margin business strategies.
6. Offer competitive commission splits that cap Company Dollar on an annual basis.
7. Run a fixed expense budget with very few variances.
8. Get all variances approved in advance of the decision to spend the money.
9. Carefully review your Balance Sheet monthly and Income Statement weekly.
10. Charge rent for offices and desks.
11. Don’t carry Agent Receivables. Be a cash-and-carry operation for as many consumables as possible; e.g., office supplies, signs, etc.
12. Bill back for only those consumables that can’t be cash and carry; e.g., office rent, copies, technology fees, etc.
13. Be a class operation, but no frills or extravagances.
14. Multiuse as much space as possible; e.g., resource rooms, meeting rooms, day desks, etc.
15. Set up both a Deposit Account and an Operating Account. Put all income into the Deposit Account. Transfer only budgeted amounts into the Operating Account.
16. Capping associates should produce enough income to pay Grand Total Operating Expense. Everyone else is profit!
17. Open the books and provide the ALC with monthly financial reports.
18. Share the decisions.
19. Share the profit.
20. OP can’t be TL.
21. Follow the Interdependent Model. Treat your agents and staff as if they were partners.
22. What you focus on expands, so know your key numbers (the Growth Initiative tools).
23. Feedback is the breakfast of champions; be accountable to the numbers.
24. Profit is not the purpose, but it is the goal and the fundamental measure of a healthy Business.
25. What correlates with profit matters (Agent Count, Company Dollar, and Costs as a Percentage of Company Dollar).
KW Economic Terms
The amount of GCI that is left after Cost of Sales (commissions to agents and referral fees) have been deducted. The money is used by the Market Center to pay expenses and make a profit.
Each month profits are divided between ownership and the Profit Share Pool in three stages starting with the first $2,990 (25 percent to PS pool) of profit, then the next $8,250 (35 percent) of profit, and then all profit after $11,240 (50 percent).
Profit Share is calculated for the three stages of profit so as to return a higher proportion of the initial profits to the owners who took the risk.