What is the Keller Williams Commission Split in Jersey City New Jersey?
The Jersey City NJ Keller Williams office follows the overall split structure for real estate agents within all of KW. They offer a 70-30 split. Meaning, 70 percent of the gross commission income (GCI) goes the real estate agent and 30 percent will go to the brokerage until a cap is met. In addition, a real estate agent will pay a six percent franchise fee for each transaction up to $3,000.
Keller Williams Commission Splits | |||
Pre – CAP Commission Structure | |||
Total Commission |
Company Dollar |
Franchise Fee |
Net to Agent |
| Total Commission is Determined by the Value Provided by the Agent to the Customers(1). | -30% Company Dollar – CAPPED Each Anniversary Year(2) – CAP Amount Varies by Market Center(3) – Calculated on Gross | – 6% Franchise Fee – CAPPED Each Anniversary Year(4) – CAP Amount is $3,000 – Calculated on Gross – Usually CAPS before Company Dollar(5) | – Gross Commission minus Company Dollar minus Franchise Fee Equals Net – While others talk about SPLIT – it is the NET that matters most. The Amount the Agent Takes Home. |
POST CAP Commission Structure | |||
Total Commission |
Company Dollar |
Franchise Fee |
Net to Agent |
| Total Commission | -100% of Gross Commission to Agent – 0% to the Jersey City New Jersey Market Center | -100% of Gross Commission to Agent – 0% to KWRI | AGENT KEEPS 100% OF THE COMMISSION |
Unlike other companies, this structure ensures that the real estate agents receive a true 100% after the cap. A number of other real estate companies state that they have a cap, and then proceed to charge an administrative or broker review fee on every deal after that. Other real estate firms will actually cause the real estate agents to take home less money each calendar year vs. the Jersey City New Jersey Keller Williams commission structure
Are you already licensed and want to set up an interview? We are looking to add experienced agents that are looking to join Keller Williams to our Jersey City Office. Or are you about halfway thru your real estate class or waiting to take your final state/national exam? Contact me and I will set up a consultation for your with the Jersey City New Jersey Keller Williams office and they will get you the specific cap $ amount and more importantly share with you about the Keller Williams Training and Systems that are designed for you to collect more checks under the 100% based Keller Williams commission split program and keep more of your net in the long run.
Details on the Keller Williams Commission Split for Jersey City New Jersey
(1) Total Commission is Determined by the Value Provided by the Agent to the Customers. There are no SET commission rates in the industry. That being said, agents that actively participate in the Jersey City New Jersey Keller Williams Training have been shown to earn a higher commission percentage dues to a greater ability to demonstrate and provide value to their clients than that of the average, untrained agent. What good is a lower commission split from the real estate company if the agent does not collect the commission amount from the client in the first place?
Training Matters. Whether it is the Ignite Program held at the Jersey City New Jersey Keller Williams office or other training programs like BOLD held in Jersey City. Agents that participate in the Keller Williams Award Winning Training are proven to earn more commissions.
Traditional real estate companies commission structure vs. Keller Williams commission split
Here is a scenario that happens all too often in the real estate business with traditional real estate companies. An Average Agent that is with a non training based company takes a listing. The Listing rate charged to the client is discounted. Even though the agent has a lower split with his broker than the KW Model, He or She still ends up netting LESS because they never collected as much money in the first place. Their gross commission income was less money because their real estate broker didn’t train them how to provide enough value to the home seller to charge a higher commission rate. The agent reaches a point where they don’t have a commission split problem, they lack a training program.
Agents that have participated in the Jersey City New Jersey Keller Williams BOLD Program have shown this by their increase in contracts and closings.
Add to this the second part of the scenario, that the house ends up selling for less than the average median home price because of the discounted service and lack of training on pricing, presentation, negotiations, etc. and the average agent ends up with even less in their pockets as a NET versus the Jersey City New Jersey Keller Williams Agent. Yet they are quick to talk about the low split when comparing real estate companies.
These lack of skills can also show up in another way. Less overall sales during an agent’s calendar year. So while the low split looks appealing on the surface, closer examination shows that when the CAP kicks in, the blended approach that the Jersey City New Jersey Keller Williams Commission Split employees put more money in the agents pocket when the agent is doing more than an average amount of sales per year.
Are you selecting the best real estate company?
I once had a conversation with a new agent that was thinking about joining Keller Williams in Jersey City New Jersey. They also interviewed with other companies in the real estate industry that have a traditional commission split with a sliding scale and no cap system. When they finished their interviews they called me an let me know that they were signing on with another company at an 80/20 split. On paper this looked greater then the same commission structure at Keller Williams in Jersey City.
On the agent’s anniversary year with the other company, they called me and asked if the offer to join KW Jersey City still stood. It sure did. They realized that the lack of a cap system had cost them over $15000 vs. if they had been with Keller Williams in Jersey City.
They are now one of the Keller Williams agents that has see an increase in their gross commission income despite the economic conditions. They also participate in the Keller Williams company profit sharing program to a point where their Keller Williams market center pays the agent more most months than they collect in commission split.
The Real Estate Business doesn’t fully understand the Commission Structure at KW Jersey City
If they did, they would do away with sliding scale systems or variable cap programs and and actually provide a generous split with a fixed cap system. They would also stop hiding desk fees when talking to new real estate agents.
Jersey City New Jersey Keller Williams Training Creates Top Teams in the Industry
(2) Company Dollar is CAPPED Each Anniversary Year. The agent has a predictable time of the year when they can plan and forecast. In the typical Win-Win fashion of the Keller Williams Model, it also provides a level of predictability to the Jersey City New Jersey Keller Williams office that can plan on having a level of income throughout the year as agents roll off of the CAP and begin to contribute company dollar again. By doing so, the Keller Williams Model removes a level of the seasonality faced by other real estate companies.
If an agent does not have enough productions to meet the CAP amount for the anniversary year, the are not penalized. They do not have to the pay the office the difference and the amount is not rolled over to the following year of their real estate career. (This has to be pointed out because some companies commission splits include these types of penalties or structures that require the agent to pay, even if they are not selling any homes for that month or year.) Keller Williams agents don’t have to worry about this. This makes the system perfect for new agents.
(3) CAP Amount Varies by Market Center. If you were reading this page trying to find out the specific CAP of the Jersey City New Jersey Keller Williams office… Sorry. This site is not just going to publish “the number”. Contact me and I will set up a consultation for your with the Jersey City New Jersey Keller Williams office and they will get you the specific cap.
How is the Jersey City New Jersey Keller Williams Commission Split Determined
***The Market Center cap is determined by an associate vote of the Agent Leadership Council (stakeholders), based on operating expenses and economic conditions for that specific KW market center.
The higher the operating expenses of a Keller Williams market center are, the higher the agent commission cap will be in that office. Think of it this way. The cap for an office in a major metropolitan city like New York City is going to be greater than the cap charged at the Jersey City New Jersey Keller Williams Market Center.
The cap($3,000/year) for the international fee (franchise) does not fluctuate, no matter where you are in the United States.
In both cases, once an agent hits the cap, the money for the remainder of that anniversary year is the agent’s – not a calendar year, so no matter when you start, you have a full 12-month year to increase your gross commission income and net income.
If a KW agent does not reach either cap in a year, they DO NOT have to make up the difference…the cap is simply a max payout per anniversary year and not a penalty if it is not reached.
More important than the amount of the cap is the way in which this money is spent. The Jersey City New Jersey Associate Leadership Council, Ownership and Leadership ensure that the money that is collected via the company dollar is spent in an Agent Centric manner. Not only are they watching over the finances of the market center, they are operating in an open book policy. This ensures that money is not being spent on unallowable expenditures or programs. You don’t want a bunch of prima donna’s running the business. The associate vote in the Keller Williams company is key to maintaining low operating expenses. This above all else differentiates that Jersey City New Jersey Keller Williams Commission Structure & Splits from any other company.
(4) Franchise Fee is CAPPED Each Anniversary Year. And paid to a privately owned, debt free company. Decisions are made along with investments in Training and Technology that benefit the Agents of the company and not Wall Street Shareholders.
Also this amount is capped. Other companies talk of a lower commission split for the office, but downplay the fact that they have a franchise fee and that this franchise fee for these other companies never goes away or gets reduced.
Also, when the company is spending the money on technology initiatives, are they turning over your data and the company data to other companies that are looking to take market share or are they committed, like Keller Williams is, to protecting your data? The KW Data Rights Pledge: We will always respect your data as your business and we will always allow you to take your data with you.
(5) The Franchise Fee Usually CAPS before Company Dollar. Due to the amount as compared to the calculation of the company dollar. Thus there can be a number of transactions that do not include a Franchise Fee.
Blanket Statements like “Our Split is only X and Keller Williams is 70/30” do not always tell the entire story. Also, a note for new or prospective agents. When you ask “How much is your split?”, make sure you know… The Rest of the Story.
Not all Commission Splits and Commission Structures are the same. Seek First to Understand and your Net take home pay will thank you in the long run.
Have more questions? Let me know.