Before I get into the first myth, let me introduce myself and my qualifications to speak about this subject.
My name is Harold Frasier, most folks call me Hal. I have 33 years in the real estate business and 13 years with Keller Williams Realty Treasure Coast. I have been teaching about the GIFT of KW PROFIT SHARE since way before our Market Center became profitable. PROFIT SHARE was one of the reasons my wife and I decided to join a start-up company in Stuart Fl, way back in 2006. If you remember, 2006 was the beginning of the housing bubble burst and agents were dropping out of real estate like flies. It was not a great time to start a new office (we call them Market Centers).
Anyway, statistics don’t lie and at that time Keller Williams Realty International had returned about $4.7 MILLION back to agents who had helped the company grow. I believed in the KW business model for agents and that PROFIT SHARE actually works. Naturally, the other brokers talked it down and even spread disinformation or MYTHS. Before I begin with the first myth let me explain how it actually works.
Here we go. Every month a Market Center is profitable the owners of the Center (we call them Operating Partners – OPs) split the profit approximately 52%-48%. That is to say, about 52% of the profit goes to the OP and 48% goes in a pool to be distributed back to the agents who have helped the company grow. More than fair in my opinion! Our Market Center has been profitable every month since December of 2010 and 98% of all the KW Market Centers in the US and Canada are currently profitable.
The method of distribution to individual agents is part of what I teach. All our training is open to the public so I invite anyone to attend and ask questions.
Let’s get to the fun part—the MYTHS:
MYTH NUMBER ONE — It’s all smoke and mirrors. It just doesn’t work.
Well, that myth doesn’t work because as of year-end 2018, $1,202,903,706 has been returned FROM OP PROFITS in US and Canada to AGENTS WHO HAD HELPED THE COMPANY GROW. That’s a lot of money from owners profit and that’s why we call it the GIFT of KW PROFIT SHARE. And just FYI, KW began sharing profit in 1997 with a gift of $1,056,373. Quite a growth curve I’d say.
Why is the gift of Profit Share still under the gun of scrutiny if it’s been around for so long? Profit Share or something similar is not something that all brokerages have. Trying to bring the reputation of another organization down is a habit of unsuccessful people. That is not something we practice at Keller Williams.
If you loved learning about Profit Share and our first myth, stay tuned for more coming soon!
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