Understanding Profit Share

Calculate Profit

If your Market Center does not profit, there is no profit share. So, how is that calculated?

Gross Commission Income (GCI)	$150,000
(-) 70% Agent Split (paid to agents as commission)	$105,000
(=) Company Dollar	$45,000
(-) KW Approved Costs	$22,500
(=) KW Market Center Profit (or Loss)	$22,500

Profit Share Pool

The Profit Share Pool is what get’s shared between the Owners and the Agents. To calculate how big the pool is, we use the following chart.

Pool Level	Agent’s Share	Owner’s Share
Level 1 –> $0 – $2,990 profit	25%	75%
Level 2 –> $2,991 – $11,249 profit	35%	65%
Level 3 –> $11,240 + Profit	50%	50%

Example:

Pool Level	Agent’s Share	Owner’s Share	Notes
Level 1	$2,990 * 25% = $747.50	$2,990 * 75% = $2,242.50
Level 2	$8,250 * 35% = $2,887.50	$8,250 * 65% = $5,362.50	$11,249 – $2,991 = $8,250
Level 3	$11,260 * 50% = $5,630.00	$11,260 * 50% = $5,630.00	$22,500 – $2,990 – $8,250 = $11,260

Now that we know how big the Pool is, we can figure out how much each agent contributed to it.

Your contribution is based upon how much Company Dollar you paid to the Market Center. (Note, if you are capped, the contribution you paid to the market center is $0.00)

So, in this example, let’s say John Public had a total of $3,886 in Company Dollar that was collected by the Market Center. That will give the following calculation:

Name	Agent’s Co$	Divided by	Total Company $	Equals	% of Profit Share
John Public	$3,886	/	$45,000	=	8.64 %

Now that we know John was responsible for 8.64% of the Profit Share total, we can find out the dollar value John contributed to the Profit Share amount.

% of profit Share		Total Profit Share Pool		Contribution to Profit Share
8.64 % (calculated above)	*	$9,265	=	$800

That $800 will now be distrubuted to John Public’s upline.

So John does not receive that. It is divided between John’s 7 level sponsorships like so

Level Sponsor	Name of Sponsor	% Received	Total $ Recieved
1st	Mary	50%	$800 * 50% = $400
2nd	Tom	10%	$800 * 10% = $80
3rd	Joe	5%	$800 * 5% = $40
4th	Nancy	5%	$800 * 5% = $40
5th	Jane	7.5%	$800 * 7.5% = $60
6th	Mike	10%	$800 * 10% = $80
7th	Carol	12.5%	$800 * 12.5% = 100

---

As you can see, all of this is only to take your contribution to the profit share and give it to your sponsors. When you receive a Profit Share check, this process will work in reverse. Instead of you giving profit share to your upline, you need to look at your downline and see how they and their Market Centers are doing. That will tell you how much you will get as a Profit Share check.

Earning Potential

Let’s assume that each month, all agents in your downline are contributing $1,000 towards Company Dollar, and their profit share factor is 24%. That gives a total of $240 left to be distributed to their uplines. Your Profit Share would look something like this

So, if you have 1 Agent you directly sponsor, you will receive $120 / month. If you have 10 agents you directly sponsor, you will receive $1,200 / month.

How do they calculate how much I get paid?

When you get your profit share, it depends entirely upon the individuals you have sponsored. So using the example above in the earning potential section, if you have 1 person directly sponsored; and they do not have anyone they have sponsored, you will receive 50% of the total they contributed to profit share (as explained in the calculations above). For the following example, let’s just say the person you sponsored contributed $800 to profit share. That means you will get $400.

Terms you should know

Growth Share: Residual income paid to Keller Williams associates who help grow the company outside of the United States and Canada. Any Keller Williams associate can participate in and reap the rewards of growth share and/or profit share.
Passive Income: Money you receive without doing anything actively to earn it. For example, rental income, royalties (if you had an album that was selling), and profit share.
Profit Share: A program in the United States and Canada in which market center owners share their profits with the associates who helped grow that office. Any Keller Williams associate can participate in and reap the rewards of growth share and/or profit share.
Profit Share Beneficiary: If allowed by local laws, associates can bequeath their profit share or growth share to a beneficiary. It is a gift – one that can live on to create opportunities in the lives of loved ones.
Profit Share Pool: The amount of profit to be distributed to eligible associates who helped grow the market center in a given month. The calculation is based on Gary Keller and the first Associate Leadership Council’s calculations to ensure both the owners, who invested their money, and the associates, who invested their energy, were rewarded. They made sure it was a win-win deal and it still is.
Profit Share Tree: Everyone names a sponsor when they join Keller Williams, and the system rewards seven levels of sponsors. Those who directly name you (level 1) and then those who name the people who name you as their direct sponsors (levels 2 – 7). A percentage of revenue is disbursed by market centers or regions through these seven levels based on a set formula. Because these programs grow branches like a family tree, they can be referred to as a “profit share tree.”
Sponsor: Everyone names a sponsor when they join Keller Williams. This should be the person who was most impactful on their decision to join the company – regardless of whether it was the first person or last person they talked to about Keller Williams.
Wealth Building: Accumulating the passive income necessary to fund your personal life mission.
Vested: Once an associate has been with Keller Williams for three years and a day, he or she is “vested.” This means the associate can leave Keller Williams and still receive their profit share or growth share. NOTE: You can only be Vested if you do not leave KW and join another Real Estate Brokerate.
100-Percent Plus: Profit share and growth share give associates an opportunity to earn “100 percent-plus,” meaning that a participating associate can earn far greater than the commission split they pay, effectively allowing them to earn more than if they were on a 100 percent split.

Profit share Mastry Podcasts