Transcript Keller Williams - FTP Directory Listing
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
saves them both and real estate experience that
time value-added
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 Open House guests Weichert Lead Network customers Pre-approved buyers Week
85 17 3
Other opportunities TOTAL:
2 104
YTD
3,288 670 110 80 4,148
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 Equals net gross commission 27,416 $1,042,708 Less agent commission Equals company dollar retained Less KW approved expenses Equals KW profit 910,671 132,037 58,378 $ 73,659
How Downline Profit is Earned
Step 2 -
The MC Splits the Profit
LEVELS PROFIT SHARE
25%
POOL
$747.50
OWNER
75% 1). 1 st $2,990 of profit 2). Next $8,250 of profit 3). Profit over $11,240
Totals
35% 50% $2,887.50
$31,209.50
$34,844.50
65% 50%
PROFIT
$2,242.50
$5,362.50
$31,209.50
$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 21 st 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
1 st 2 nd 3 rd 4 th 5 th 6 th 7 th
Total % SHARE
50% 10% 5% 5% 7.5% 10% 12.5%
100% WHOLE
$475.02
$475.02
$475.02
$475.02
$475.02
$475.02
$475.02
RECEIVES
$237.51
$47.50
$23.75
$23.75
$35.63
$47.50
$59.38
$475.02
How Downline Profit is Earned
1. Special Note – 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 / down line 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: • Personal Marketing & Advertising: • Postage: • Copy Machine: Actual Actual Actual $.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) • E&O Insurance: $26.00 / Free Space ($9 / Voice Mail) ($7 / T-1 internet) ($5 / Help Ticket) ($10 / Phone) $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: $44 / Each (est.) • Sold Signs & Name Riders: $ 8 / Each • Color Photo Cards: $60 / 1,000 (est.) • Permanent Desk Fee (Optional): $125, $100, or $75 per month • Royalty Fee (6% of GCI): • Processing Fee: $3,000 Maximum $50 / Transaction
What Keller Williams Associates Pay For
KW Agent Variable Expenses
• 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 • • • • • •
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. Company Generated Leads.
2. Superior Internet Website Traffic.
3. WLN scrubbed live lead referrals.
4. 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 – 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
!