Keller Williams Market Center has shared more than $2 billion in profits with affiliated agents through the company’s profit-sharing program, according to Monday’s announcement.
“We are pleased to celebrate a milestone of more than $2 billion in lifetime profit shares distributed to our franchisee-affiliated agents,” KW CEO and President Mark Willis said in a statement. , underscoring the far-reaching impact of our vision. “This achievement is a quantitative testament to our strong growth culture. “
Keller Williams said its market centers awarded employees more than $148 million in profits from January 1, 2023, to June 30, 2024 alone.
Keller Williams officially launched its profit-sharing program in 1987.
“Through profit sharing, we create a program for franchisees that allows them to treat their real estate sales associates as partners,” KW co-founder Gary Keller said in a statement. “Profit sharing allows employees to work in our franchises Build their own business in a business model that’s as powerful as owning their own brokerage.”
The milestone comes after months of conflict over the company’s profit-sharing plans. In August 2023, KW announced that it would cut profit sharing for “former” KW agents (those who joined the company before April 1, 2020, and then moved to another brokerage) from 100% to 5%. Prior to this change, “former” agents with a vested interest were entitled to 100% profit sharing distributions even after separation.
But earlier this year, impending changes to Keller Williams’ profit-sharing plan, which were scheduled to take effect this month, made the company the target of more than a dozen class-action lawsuits filed by former KW attorneys.
In May, the brokerage announced that its International Association Leadership Council (IALC) had decided to reverse the changes. However, the lawsuit remains pending.
Agents join the profit sharing program through a designated sponsor when they join the Market Center. The sponsor then becomes part of the agency’s “profit sharing tree.”
Once agents start contributing to the Market Center’s business by closing deals, they “receive a share of the Market Center’s profits, which will accrue to the partners in their tree.” Keller Williams also allows related parties to designate a beneficiary to receive distributions of their share of profits upon their death.
