KW Begins Notifying Former Brokers Of Revenue-Sharing Cuts
Individuals who left Keller Williams for a competitor have begun receiving letters telling them that their revenue share earnings might be lowered from one hundred pc to five %.
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A bit over three months after Keller Williams announced it might slash revenue share earnings for brokers who fled to rivals, the corporate’s market facilities have begun notifying people of the approaching modifications.
A letter from a KW market middle, obtained by Inman this week, reminds recipients that attributable to a choice in August, revenue share earnings for folks qualifying as “competing associates” will go from one hundred pc to five %. The letter additionally notes that such people will obtain a 30-day discover earlier than the discount happens, and that they “could have six months from the day the discount happens to return to Keller Williams and be reinstated to your standing earlier than the discount to five %.”
“It will go into impact on or earlier than July 1, 2024 and you’ll obtain one other notification 30 days prematurely of this implementation,” the letter provides.
The letter additional notes that people who return to Keller Williams inside the six-month timeframe will return to getting one hundred pc of their revenue share earnings. The letter concludes by stating that “particulars are nonetheless being refined round timing and reporting for this, although all modifications are anticipated to be carried out no later than finish of second quarter 2024.”
Inman obtained the letter from a supply who requested to not be publicly named. The letter got here from an independently owned market middle, and the supply mentioned it was distributed extensively. The letter additionally consists of extra details about renewing firm charges that’s sometimes distributed presently of yr, and would thus have gone out to people who aren’t impacted by the revenue sharing modifications as properly.
Keller Williams first announced the small print of the profit-sharing cuts at its August Mega Agent Camp in August. On the time, President Marc King mentioned the choice was made to assist “those that proceed to develop and journey with us.” The corporate additionally famous on the time that it might ship a letter to vested brokers — or those that stay at KW for seven consecutive years — affected by the coverage giving them six months to return and never have their revenue share reduce.
Although the letter Inman obtained this week largely reiterates these earlier bulletins, it’s vital that the corporate’s market facilities have now begun the method of individually notifying people in regards to the upcoming cuts.
The cuts come after a 2019 push from some prime KW earners to restrict the revenue share program to associates who stay with the corporate. That push led the franchisor in 2020 to trim the program for defectors who joined KW after April 1, 2020, then later left for a rival. The most recent change is extra sweeping, impacting people who have been with Keller Williams earlier than that date.
Each modifications are, apparently, designed to reward KW loyalists and stop rivals from raking in firm cash.
The present change additionally seems to be the newest improvement in a public rivalry between Keller Williams and eXp Realty. In July 2018, as an illustration, firm co-founder and present Government Chairman Gary Keller challenged all eXp Realty brokers previously with Keller Williams to present again the $1 million in revenue sharing they’d obtained from the corporate.
Correction: This story was up to date after publication to replicate the truth that the letter was not solely despatched to people impacted by the revenue sharing modifications.
