Winning Keller Williams Offense

1
WinningKeller WilliamsOffense
2
Cohesive, well-integrated, Recruiting/retention
strategy.
Winning Keller Williams Offense
The End Game is.
Live it every day.
3
Mission Statement
Keller Williams vs Weichert, Realtors

• 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.

4
Mission Statement
Keller Williams vs Weichert, Realtors

• To provide world-class service by guiding our
  customers through a personalized and
  value-addedreal estate experience that saves
  them both time and money while achieving their
  dream of homeownership.

5
Recruiting vs Customer
6
Develop your local talking points for each
distinct advantage.
Weichert Distinct Advantages
7
Weichert Distinct Advantages

• I am with Weichert, Realtors for 26 years because
  of Jim Weichert, his leadership team family of
  companies.
• Jims 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.

8
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.

9
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

10
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

11
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

12
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!

13
Our Offices 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
TOTAL 104 4,148
14
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 dont.
• Communicate and share sales associate sales
  success stories.
• Celebrate individual and team sales achievements.

15
Regional Quarterly Sales Associate Training Event
Schedule
16
Regional Quarterly Sales Associate Training Event
Schedule
17
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.

18
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.

19
Top 10 Sales Associate Objections to Keller
Williams Model

1. Not interested in recruiting.
2. No real leadership inside the office, everyone
   leads.
3. Poor Internet website presence.
4. No Luxury Properties marketing and/or division.
5. Skeptical about the profit share Amway like.

20
How You Earn Downline Profit

• Four Steps to KW Profit Share Employed Monthly
• The Market Center Calculates Profit
• The Market Center Splits the Profit
• The Profit Share Factor is Calculated
• The Profit Share is Dispersed

21
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

22
Step 2 - The MC Splits the Profit
How Downline Profit is Earned
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
23
How Downline Profit is Earned

• Step 3 - The Profit Share Factor is Calculated
• On a monthly basis the
• MC profit share factor is determined
• MCs total profit share pool
• 34,844.50
• Company Dollar Amount
• 132.037
• To determine the Profit Share Factor .2639

24
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 agents branch in the Profit
  Share Tree / Down-line on the 21st of the
  following month

25
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.

26
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 agents branch

27
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

28
Step 4 The Profit Share is Disbursed
How Downline Profit is Earned
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
29
How Downline Profit is Earned

• 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

30
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 agents branch in the profit share tree.

31
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

32
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

33
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 agents part

34
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.
35
Weichert Value vs Keller Williams
36
Weichert Value vs Keller Williams
37
Im worried about covering these expenses month
to month.
38
What Keller Williams Associates Pay For

• EVERYTHING!!!

39
What Keller Williams Associates Pay For

• KW Agent Start Up Expenses
• National Application Fee 25
• National Bookkeeping Set Up Fee 25 (annually)
• Technology Fee 75 (annually)
• Agent Billing Escrow Deposit 200
• Total 325

40
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

41
What Keller Williams Associates Pay For

• KW Agent Variable Expenses
• Communication Package
• 31.00 / with Desk 26.00 / Free Space
• (9 / Voice Mail) (9 / Voice Mail)
• (7 / T-1 internet) (7 / T-1 internet)
• (5 / Help Ticket) (5 / Help Ticket)
• (10 / Phone) (10 / Phone)
• EO Insurance
• 300 (10 discount if paid by Jan 1)
• 150 due by Jan 15 / 150 due by June 15

42
What Keller Williams Associates Pay For

• KW Agent Variable Expenses
• Yard Signs _at_ 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) 3,000 Maximum
• Processing Fee 50 / Transaction

43
What Keller Williams Associates Pay For

• KW Agent Variable Expenses
• KW Internet Consortium Fee 10 / month
• Broker Reciprocity (Mandatory) 10 / month
• MLS (TReND) Fees Actual
• Board of Realtor Membership Fees Actual
• New Agent Career Launch 99.00

44
What Keller Williams Associates Pay For

• Average Monthly Carrying Expenses
• 375.00

45
Keller Williams Average Annual4,812.00
Keller Williams vs Weichert Realtors
What Agents Pay for

• Weichert Realtors Average Annual
• 798.00

vs
includes start-up expenses
46
Keller Williams Commission Program
47
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.

48
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 associates downline
  profit.

49
Keller Williams Model EO 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 EO 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

50
How many hours/days to spend on recruiting?
Keller Williams Team Leader
Monday Thru Friday 900 a.m. to Noon Recruiting
Calls
51
Keller Williams Team Leader Agreement
52
Where do you earn more?
53
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

54
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.

55
Weichert Advantages over Keller Williams

• Leading International Relocation Company.
• Company Paid Print PR/Advertising.
• Capital Properties Estates, hi-end presence.
• Brand focus on the customer.

56
Keller Williams Talking Points

• QA
• Assumptive Questions to provoke agent thinking
  to lead them

57
Keller Williams ICA Sensitive Clauses
58
Keller Williams ICA Sensitive Clauses
59
Keller Williams ICA Sensitive Clauses
60
Keller Williams ICA Sensitive Clauses
61
Keller Williams ICA Sensitive Clauses
62
Comparison Shopping Grid
63
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

64
Best Weichert defenseis the right offense!
Weichert Value Summary Slide Strategy
Sell the Weichert Difference Every day!