Example
Sally is a new agent with Keller Williams and is ready to start building her real estate career. The cap in her office is $18,000/yr. This breaks down to $15,000 to the market center and $3,000 to KW International for the franchise fee. Sally knocks it out of the park in her first 12 months and closes a total of $4M in sales. She has a Gross Commission Income (GCI) of $120,000. From this amount, $18K is paid as her commission split. The remainder, $102,000, goes to Sally.
Let’s raise her GCI to $200,000. She still only pays $18K/year to KW and takes home $182,000. She knows exactly how much she will pay her broker in a given anniversary year. If she didn’t reach her cap, she’s not required to pay the difference. KW doesn’t get paid unless Sally gets paid. She doesn’t work for Keller Williams. Keller Williams works for her.