KW surpasses $2B in profit shares

Keller Williams Realty has reached a new milestone in a program that rewards agents who contribute to the company’s growth. 

Billions in profits: The Austin-based brokerage announced that it has surpassed $2 billion in profit-share distributions to its associates. In just the past 18 months, the company has distributed more than $148 million, according to a news release.

Sponsor-based sharing: The profit-share program was launched in 1987 and has some similarities to the revenue-share programs promoted at brokerages like eXp — which paid out nearly $200 million in revenue share last year — and Real, which recently adjusted its program with the goal of attracting and retaining agents.

At Keller Williams, when an agent joins the firm, they designate an existing agent as their sponsor. That sponsor “becomes part of the agent’s profit share tree,” according to the company, giving them access to a piece of the market center’s profits. Market center owners distribute about 50% of their profits monthly to the pool of sponsors. 

“This profit share milestone results from how we think of our relationship with our business partners,” said Gary Keller, KW’s executive chairman and co-founder. “Profit share is an equal opportunity, unequal reward. Those that put in effort will get the lion’s share of the results.”

The “lion’s share” has gone to 137 KW-affiliated associates who have earned over $1 million in lifetime profit share, while nearly 39,000 agents have earned between $10,000 and $500,000.

Change thwarted: There was some controversy surrounding the program last year when the company’s International Associate Leadership Council decided to reduce the profit share distribution from 100% to 5% for former agents who left the company for a competing firm. 

Backlash quickly followed, and multiple lawsuits were filed by former agents. On May 16, the council voted to reverse course and maintain the status quo, allowing vested former agents to benefit from 100% profit share distribution.