Winning
Keller
Williams
Offense
Winning Keller Williams Offense
The End Game is….
Cohesive,
well-integrated,
Recruiting/retention
strategy.
Live it every day.
Keller Williams vs Weichert, Realtors
Mission Statement
Keller Williams Realty was founded in 1983
by Gary Keller and Joe Williams with the
mission to build careers worth having,
businesses worth owning and lives
worth living® for its associates.
Keller Williams vs Weichert, Realtors
Mission Statement
To provide world-class service by
guiding our customers through
a personalized and value-added
real estate experience that
saves them both time and money while
achieving their dream of homeownership.
Recruiting vs Customer
Weichert Distinct Advantages
Develop your
local talking
points for
each distinct
advantage.
Weichert Distinct Advantages
•
I am with Weichert, Realtors for 26
years because of Jim Weichert,
his leadership team & family of
companies.
•
Jim’s company is debt-free and it
is evident to me his profits are
reinvested wisely to keep his
organization on the cutting edge of
constant industry changes.
•
National Real Estate Company
Leader as a provider of home
services.
Weichert Distinct Advantages
•
•
•
I am a full-time sales manager
dedicated to my agents’ success. I
refer my personal leads to my sales
associates.
Our office has full time Gold
Services Manager dedicated to
helping them close more sales!
Our office averaged 6.8 closed
units per associate so far in 2010
compared to 4.5 units per associate
in KW Media office.
Weichert Distinct Advantages
•
Did you know the internet defines
the new ‘market share’ and
www.weichert.com has captured it
over all of our competition!
•
WLN scrubbed leads for the Media
Office
–
–
–
–
59 for October 2010
669 year-to-date 2010
7684 leads since inception
338 sales since inception
Weichert Distinct Advantages
Weichert Tool Kit – marketing tools
on line for your convenience
Listing Marketing Tool – is also
available electronically
Out Key sales tools are customized
for buyers and sellers
Marketing Updates are specific to our
local market
www.weichertone.com
Weichert Distinct Advantages
Weichert Lead Generation Systems:
–
–
–
–
–
–
•
•
•
Open Houses
Weichert Lead Network
Weichert Referral Associates
Weichert Relocation
Inter-Office Referrals
Affiliate Referrals
Generated over 4,100 leads to the
Media Office year to date 2010
Open House Program for the
Media Office year-to-date:
703 Open Houses
3,298 Visitors
Average of 91leads per Sales
Associate in Media Office year to
date
Weichert Distinct Advantages
•
•
•
Did you know that Weichert
University recently received the
2010 ASTD Best Award for its
training and development
programs? [I give a copy of the
press release and flyer to speak to
it]
Training & Development has been
an integral part or the Weichert
culture since its inception and now it
is enhanced on-line making training
available to our associates 24/7
In addition, our office supplements
with weekly agent workshops and
sales meeting information
presentations to keep our
associates on top of their game!
Our Office’s New Business Opportunities
Opportunity
Week
YTD
Open House guests
85
3,288
Weichert Lead Network
customers
17
670
Pre-approved buyers
3
110
Other opportunities
2
80
104
4,148
TOTAL:
Promoting Weichert Distinct Advantages
• Deliver regular, consistent Weekly Sales
Meeting Powerpoint Presentations.
• Reinforce value of specific Weichert sales
tools and lead generation systems [what we
have that they don’t].
• Communicate and share sales associate sales
success stories.
• Celebrate individual and team sales
achievements.
Regional Quarterly Sales Associate
Training Event Schedule
Regional Quarterly Sales Associate
Training Event Schedule
Regional Quarterly Sales Associate
Training Event Schedule
• Conducted by top sales associates.
• Each selects niche/area of expertise.
• One to two training sessions per week
held in various regional locations.
• Promote training schedule regionally.
Top 10 Sales Associate Objections to
Keller Williams Model
1. Agents refer to KW as a cult-like culture.
2. Do not want to be responsible for monthly fees,
worried about months when they have no
income.
3. Worried about where their leads will come from.
4. No Relocation business.
5. No Internet lead network type system in place to
support them.
Top 10 Sales Associate Objections to
Keller Williams Model
6. Not interested in recruiting.
7. No real leadership inside the office, everyone
leads.
8. Poor Internet website presence.
9. No Luxury Properties marketing and/or division.
10. Skeptical about the profit share – Amway like.
How You Earn Downline Profit
Four Steps to KW Profit Share [Employed Monthly]
1. The Market Center Calculates Profit
2. The Market Center Splits the Profit
3. The Profit Share Factor is Calculated
4. The Profit Share is Dispersed
How Downline Profit is Earned
Step 1 – The MC Calculates Profit
MC gross closed commission
$1,070,124
Less KW royalty fee
27,416
Equals net gross commission
$1,042,708
Less agent commission
910,671
Equals company dollar retained
132,037
Less KW approved expenses
58,378
Equals KW profit
$ 73,659
How Downline Profit is Earned
Step 2 - The MC Splits the Profit
LEVELS
PROFIT
SHARE
POOL
OWNER
PROFIT
1). 1st $2,990
of profit
25%
$747.50
75%
$2,242.50
2). Next $8,250
of profit
35%
$2,887.50
65%
$5,362.50
3). Profit over
$11,240
50%
$31,209.50
50%
$31,209.50
Totals
$34,844.50
$38,834.50
How Downline Profit is Earned
Step 3 - The Profit Share Factor is Calculated
On a monthly basis the
MC profit share factor is determined
MC’s total profit share pool
$34,844.50
Company Dollar Amount
$132.037
To determine the Profit Share Factor = .2639
How Downline Profit is Earned
Step 4 – The Profit Share is Disbursed
What each agent paid in Company Dollar for
the month is multiplied by the profit share
factor to find the amount of profit share that
will be distributed to that agent’s branch in the
Profit Share Tree / Down-line on the 21st of the
following month
Criteria for Qualifying for Monthly Downline Profit
• Office must be profitable for the month.
• Down line agent must close a unit.
• 100% Cappers do not qualify.
How Downline Profit is Earned
Step 4 – The Profit Share is Disbursed
Example: if an agent paid $1800 in Company Dollar in
the month, multiply that $1800 by the Profit Share
Factor of .2639
[$1800 X .2639 = $475.02]
$475.02 will be distributed to this agent’s branch
How Downline Profit is Earned
Step 4 – The Profit Share is Disbursed
Background:
• Each agent names a ‘sponsor’ when they join KW
Realty
• A sponsor is the one person the agent perceives to be
primarily responsible for bringing him or her to the
company
• In this example, the person that was named as his
sponsor will receive 50% of $475.02
• The person their sponsor named receives 10% and so
on
How Downline Profit is Earned
Step 4 – The Profit Share is Disbursed
LEVEL
% SHARE
WHOLE
RECEIVES
1st
50%
$475.02
$237.51
2nd
10%
$475.02
$47.50
3rd
5%
$475.02
$23.75
4th
5%
$475.02
$23.75
5th
7.5%
$475.02
$35.63
6th
10%
$475.02
$47.50
7th
12.5%
$475.02
$59.38
Total
100%
$475.02
How Downline Profit is Earned
1. Special Note
–
–
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A MC must be profitable in order for there to be
profit distributed
If an MC is not profitable, an agent in that MC
can still build his or her profit share tree / downline in anticipation of MC profitability
An agent in an unprofitable MC can still receive
profit share from agents in their profit share tree /
down-line who are in profitable MCs
How Downline Profit is Earned
2. Special Note
–
An agent must pay Company Dollar in a
particular month in order for Profit Share to be
distributed to that agent’s branch in the profit
share tree.
How Downline Profit is Earned
3. Special Note
–
The Profit Share system is coordinated
throughout all of North America. An agent
could join a MC in Massachusetts and name an
agent in an Ottawa MC as his or her sponsor
How Downline Profit is Earned
4. Special Note
–
–
Once an agent has been with KW for 3 years and
a day, he or she is vested
When an agent is vested, he or she can leave KW
and still receive profit share
5. Special Note
–
Agents can will their profit share to a beneficiary
How Downline Profit is Earned
6. Special Note
–
Agents can – and often do – receive more in
profit share than they pay to their MC Company
Dollar Cap
7. Special Note
–
–
Receiving $100 per month in profit share would
be equivalent to having $24,000 after-tax
invested for a year at 5%.
Requires no investment on the agent’s part
*Based on $270,000 Sales price with a commission rate
of 6% less 6% marketing fund.
Weichert Value vs Keller Williams
*Based on $270,000 Sales price with a commission rate of 6% less 6% marketing fund.
Weichert Value vs Keller Williams
Weichert Value vs Keller Williams
“I’m worried about
covering these
expenses month to
month.”
What Keller Williams Associates Pay For
EVERYTHING!!!
What Keller Williams Associates Pay For
KW Agent Start Up Expenses
•
•
•
•
National Application Fee:
National Bookkeeping Set Up Fee:
Technology Fee:
Agent Billing Escrow Deposit:
Total:
$25
$25 (annually)
$75 (annually)
$200
$325
What Keller Williams Associates Pay For
KW Agent Variable Expenses
•
•
•
•
•
Personal Office Supplies:
Actual
Letterhead and Envelopes:
Actual
Personal Marketing & Advertising:
Actual
Postage:
Actual
Copy Machine:
$.05 / each B/W
$.38 / each Color
What Keller Williams Associates Pay For
KW Agent Variable Expenses
• Communication Package
$31.00 / with Desk
($9 / Voice Mail)
($7 / T-1 internet)
($5 / Help Ticket)
($10 / Phone)
$26.00 / Free Space
($9 / Voice Mail)
($7 / T-1 internet)
($5 / Help Ticket)
($10 / Phone)
• E&O Insurance:
$300 (10% discount if paid by Jan 1)
$150 due by Jan 15 / $150 due by June 15
What Keller Williams Associates Pay For
KW Agent Variable Expenses
•
•
•
•
Yard Signs @ Actual Cost:
Sold Signs & Name Riders:
Color Photo Cards:
Permanent Desk Fee (Optional):
• Royalty Fee (6% of GCI):
• Processing Fee:
$44 / Each (est.)
$ 8 / Each
$60 / 1,000 (est.)
$125, $100, or $75
per month
$3,000 Maximum
$50 / Transaction
What Keller Williams Associates Pay For
KW Agent Variable Expenses
•
•
•
•
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KW Internet Consortium Fee:
Broker Reciprocity (Mandatory):
MLS (TReND) Fees:
Board of Realtor Membership Fees:
New Agent Career Launch:
$10 / month
$10 / month
Actual
Actual
$99.00
What Keller Williams Associates Pay For
Average Monthly Carrying Expenses
$375.00
Keller Williams vs Weichert Realtors
What Agents Pay for*:
Keller Williams
Average Annual
$4,812.00
vs
Weichert Realtors
Average Annual
$798.00
*includes start-up expenses
Keller Williams Commission Program
Keller Williams Model: Who Runs Sales Office
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Regional Franchise Owner –Individual who owns
multiple franchises.
Regional Director – Reports to regional franchise owner
and has responsibility of opening offices.
Franchise Sales Person – signs up individual franchises.
Operating Principles – people who “buy in”, usually the
Broker.
Team Leaders – usually not the broker, has recruiting
goals with net activities for the “Market Center”.
Agent Leadership Council – Top 20% of producers in
Market Center.
Keller Williams Model: Managing Expenses
•
Franchise Owners are required to manage their
expenses
– 10% to 12% range is the acceptable norm
– No higher than 12% for a start-up which could run
as high as 26% - 30%
– Franchises can lose their franchise license if
expenses run consistently too high
The expenses of a MC are used to calculate profit which
ultimately impacts the amount of distribution to a
sales associate’s downline profit.
Keller Williams Model: E&O Insurance
• Keller Williams ICA requires the agent to
indemnify the Licensee and Company from any
and all claims regardless of guilt or innocence
– Agents are charged per transaction [range of $30 to
$50] for E&O Coverage
– Agents must pay a deductable the amount varies
based on franchise litigation history which includes
vulnerable situations
– Deductibles vary between $800 - $1750 depending
upon litigation history of franchise
Keller Williams Team Leader
How many hours/days to
spend on recruiting?
Monday Thru Friday
9:00 a.m. to Noon
Recruiting Calls
Keller Williams Team Leader Agreement
“Where do you
earn more?”
Weichert True Split Calculator
Found on Weichertone.com
• Managers Best Practices
• Click on Recruiting Section
• Click on Tools
• Scroll down to Overcoming
Objections
• Click on True Split
Calculator
Weichert Advantages over Keller Williams
1.
2.
3.
4.
Company Generated Leads.
Superior Internet Website Traffic.
WLN scrubbed live lead referrals.
Broker/Sales Manager devoted to sales
associate business development.
5. Broker/Sales Manager runs office, not sales
associates.
6. Company sponsored free training.
Weichert Advantages over Keller Williams
7. Leading International Relocation Company.
8. Company Paid Print PR/Advertising.
9. Capital Properties & Estates, hi-end presence.
10. Brand focus on the customer.
Keller Williams Talking Points
Q&A
[Assumptive Questions to provoke
agent thinking to lead them]
Keller Williams ICA
Sensitive Clauses:
Keller Williams ICA
Sensitive Clauses:
Keller Williams ICA
Sensitive Clauses:
Keller Williams ICA
Sensitive Clauses:
:
Keller Williams ICA
Sensitive Clauses:
Comparison Shopping Grid
Weichert Value Summary Slide Strategy
• Live and Promote Weichert Distinct
Advantages Daily.
• Educate sales force on Keller Williams model
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Recruiting
Sales Lead Generation
Sales Associate Pays for Everything
Pyramid Model Reputation
Weichert Value Summary Slide Strategy
Best Weichert defense
is the right offense!
Sell the Weichert
Difference Every day!