The Top 20% Producers Inspire, Motivate, Participate and Listen
In 1986, Gary Keller and his first team of top producers, the Associate Leadership Council (ALC) lost seven of their agents. These agents didn’t have any particular beef with KW, they just wanted “better deals” and thought that other brokerages could give them better opportunities.
Keller didn’t look at the loss as a failure, but an opportunity to improve his business model. They were like other traditional real estate companies at the time, giving agents the traditional commission split. They knew that in order to create a world-class company with world-class people they had to do something that others weren’t doing and he and the first ALC constructed the WI4C2TS belief system that KW continues to adhere to and thrive under.
From that model, their unique commission split and Profit Share System was created and propelled them to where they are today–the second-largest real estate company in the country.
What led to this new concept? Keller and the ALC studied different business models and the one that came close to their concept of treating associates as business partners was Trammel Crow, a real estate and investment firm founded in 1948 that gave their associates percentages of the profits of each deal they managed.
Within three years, KW’s Profit Sharing System was solidified.
“We created a program that would treat our real estate sales associates like legitimate partners in the business. We created a program that allows associates to build a business inside a real estate company that is as powerful as if they owned the company themselves.” Gary Keller
The new culture wouldn’t work without the system and vice versa. The first ALC was part of that culture and now KW has this team of top producers in place for every Market Center in every region of the KW family.
How the ALC works
Normally, this group of individuals is made up of the top 20% of Keller Williams® agents within each Market Center. Its purpose is to give associates an open-book and open-door policy of viewing the Center’s profit and loss statement and agents have a say in how policies and procedures affect the company. It’s an active program that allows all members to express themselves and participate fully in the operation.
In traditional real estate companies, decisions are made from a corporate level in which agents must abide by. The ALC works as a representative for their Market Center because the Keller Williams® business model works on the theory that the top-producing agents in a particular market know better than anyone how to run that business. The result: No management surprises and profits are generated from the owner’s profits–not from agents’ commissions.
The ALC meets monthly and acts as the Market Center’s Board of Directors, to make major decisions with the Team Leader (broker). Meetings are open to everyone (and encouraged) so that all associates can have a voice. This open-door policy is the crux of KW’s successful, “win-win” strategy that lives up to its mission of treating people as business people, involved in the common goal to exceed the limits.
The ALC holds ownership and management accountable for budget, production, profit, education, standards and principles. These individuals are passionate about leadership and build the first level of their profit share tree to 15 as soon as possible.
As Mo Anderson, Vice Chairman of KW stated: “I believe with all my heart that the most important thing you need to do as an ALC member is hit your goals, because if ALCs don’t hit their goals, the market center doesn’t grow.”
A Culture of Learning, Sharing and Achieving Goals
Keller Williams® Realty is an inspiring culture that reflects a common bond between its company, employees and customers. At first, these new concepts may seem daunting, but they’re simply the tried and tried principles of making decisions that are the right ones for all concerned. No other real estate company offers its associates a comprehensive mentoring program, residual income for life, the ability to earn in excess of 100% commission and hands-on management support.
The KW system resonates with my core beliefs that something worth having is something worth working for. When working for a company that merges high standards of personal and professional practices, the sky really is the limit!
For more information about Keller Williams New York City , contact me or my team at (212) 838-3700.
