Keller Williams Profit Share Program to end for defectors.
Keller Williams Profit Share Program to end. Associate Defectors will no longer receive payments from the lifelong Keller Williams Profit Share Program
Keller Williams associates that jump ship to a competitor will no longer be able to receive profit shares from the company’s lifelong Keller Williams Profit Share Program.
The policy is not retroactive and will only apply to associates that join on or after April 1.
Keller Williams also increased the profit sharing vesting period, which is how long a KW associate has to be with the company before lifetime profit share benefits are unconditionally bestowed, to seven consecutive years, up from three consecutive years.
The policy changes are mandatory and must be implemented by April 1 across all market centers.
The changes seem to be the result of efforts made by a group of top KW earners last year to change the profit share program to limit it to associates that remain with Keller Williams.
The new policies appear geared to reward company loyalists and prevent competitors from raking in company money.
In 2018 Keller Williams CEO Gary Keller challenged all eXp Realty agents formerly with Keller Williams – and eXp World Holdings CEO Glenn Sanford – to give back the $1 million in profit sharing they’ve received from the company.
Keller Williams has 159,372 agents in the U.S. and Canada and a total of 169,317 agents worldwide, as of Dec. 31, 2019. The company has lost agents in four consecutive months.
Here is the letter sent to their market centers:
Leaders,
This afternoon, the biannual meeting of the International Associate Leadership Council (IALC) took place at Family Reunion. A group of KW delegates representing associates, market centers and regions met to hold a thorough and thoughtful discussion on two motions brought forth from the field related to policies core to our profit share program.
Following a presentation of findings from a year-long profit share task force, a debate of the motions commenced, and ended in two votes with the following outcomes:
Amend the profit share vesting period from three consecutive years (current policy) to seven consecutive years. PASSED
Amend the terms of lifetime profit sharing. When a vested associate makes the business decision to move to a competing brand, their profit share no longer follows. PASSED
These changes are proposed to go into effect on or after April 1, 2020, and will NOT affect current associates or those who join before this date.
Be assured that any changes to the program, now or in the future, are determined entirely by our Keller Williams family through the IALC. Pragmatic and aligned with the WI4C2TS, profit share remains a cornerstone of the KW culture.
This historic vote faithfully represents the integrity of our culture instilled by Gary Keller in collaboration with the first IALC at the company’s inception over 37 years ago. A reflection of our interdependent model and transparency at the highest level, we stand together with our owners and associates in true partnership.
We thank all who participated today and will now begin working in close partnership with the task force to determine the fine details that make these changes a win-win for all. As these developments unfold, we are committed to keeping you informed.
Sincerely,
Your KWRI Executive Team
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