KW to slash profit sharing for former agents
Starting next July, former KW agents who compete against the company will see their profit share distribution reduced from 100% to 5%.
Key points:
- KW President Marc King said the new policy "highlights our commitment to supporting those who continue to grow and journey with us."
- Former agents who have retired or left the industry will not be affected by the change.
- In an effort to win back former agents, KW said they will restore profit sharing benefits to agents who return within six months of the policy effective date.
Keller Williams agents who leave the brokerage for a competing company will see a massive reduction in their benefits next year.
The real estate giant is making a significant adjustment to its profit sharing program, aimed at rewarding agents who stay with the company — or who come back within six months after the policy change takes effect.
In an email, Keller Williams President Marc King said the company is reducing the profit share distribution for former KW agents who have moved to another brokerage to just 5%. Previously, vested former agents would benefit from a 100% profit share distribution even if they went to a competing firm.
Former KW agents who have retired or left the industry altogether will retain their full profit share distribution.
Implementation of the new policy will take place on or before July 1, 2024, but it includes an incentive for those who have left: Former agents who return to the company within six months of the effective reduction date will have their profit share restored to 100%.
"This change to Profit Share highlights our commitment to supporting those who continue to grow and journey with us," King said in the email. "We were built by agents, for agents. And remaining on that path requires we ensure Profit Share continues to be vital to our strong and growing culture."
The new policy, which impacts only U.S. and Canada agents, was approved by the company's International Associate Leadership Council on Aug. 16 at KW's Mega Agent Camp.
The company did not specify how many people it expects will be impacted by the change, or how much the profit share distribution could increase for agents who remain with the company.
Keller Williams did call out its total distributions to date, however, which exceed more than $1.58 billion since the profit share program was launched in 1987.