Keller Williams Vs. EXP realty Vs. Small brokerage

[Carlos Pelegrina]

I just got my sales license in NYC, my main purpose to have it is to use it as a support for my investing, and my architecture practice. 

My hope is to have MLS access in different states as NJ & OH what I'm still not sure if its possible. it would be just to analyze comps in those states

When I took my 75 hs course, the trainer told us we were crazy to go with the big ones referring as sharks to learn the trade.

talking with a successful real state agent friend she suggested the big companies are the best if I have the chance to be part of a team.

After some meetings these are the 3 options I'm considering;

1. I had a great interview in a boutique office with a broker who I really like and respect (6/7 persons office) She does investment with foreigners and know about investing
2. I went to a career night in Keller Williams, where the trainer fell short in selling me into it, but the REIANYC leader who I really respect, told me she loves it and its a great company.
3. Many people talk wonders about EXP, my only concern is as new in the field, I'm not sure if the on line platform would be enough to learn the trade and make it work, it seems it works wonders for experienced people. and also their presence in NYC market is not that big yet. what I'm not sure how would work for me.

Any tips or ideas experienced agents?

I'm at lost

[Darren Sager]

@Cara Lonsdale as a fully vested agent partner (as I am) for 20 plus years at KW I'm actually surprised by your view of how KW's business model actually works.  Saying that the cap for an agent in AZ is the same as the cap for an agent in Manhattan, or anywhere else for that matter shows you don't understand their business model.

KW is a franchise.  In fact there are two levels of franchise operations in KW outside of the corporate level from what I understand.  And of course you can look this up.  KW has regional owners and then local owners, which are known as Market Centers.  These are your brick and mortar locations which the agents "work" out of.

Every Market Center sets their own cap.  For those who don't know most KW agents have the opportunity to pay up to a certain amount in commissions on an annual basis and then basically move to 100% commission less a transaction fee on all sales and rentals.  Most KW agent will tell you they work on a 70/30 split and but they in most cases fail to mention the regional franchise owner's 6% they have to give so they really start off at a 64/36 split every year.  I was with KW for around 8 years I believe.  Anyway my cap at my office at $35,000.  The cap at the KW office in Hoboken NJ is I believe is around $47,000.  The cap from what I was told in Manhattan, is well over $100,000 (someone recently told me it was $145,000!) and no where near doing just $2M in sales to get to 100% commission.  My GCI, or Gross Commission Income was $4.2M to be able to cap based upon a 2.5% split on one side of a transaction.  In Manhattan, it would equate to around $20M in sales, 10X the sales volume you're promoting, just to be able to get to work at the 100% level less the transaction fee.  Every KW office is different.  EXP on the other hand has one cap nation wide set at $16,000 with an actual 80/20 split.  I will say because I've been told that NYC will be basically an island within EXP. The cap number is expected to go up, because of the additional costs of doing business  there.  So I wouldn't count on their being a $16k cap however I'd be sure to bet that it won't be anywhere near KW's.  And again no regional fees.  

Funny story, although EXP has an office in Peoria, AZ, they are (in most cases) required to have a physical office in the state they operate in, according to the local state laws.  In NJ, we have an office of which I'll never use just like I didn't use my KW office in NJ.  In NY EXP has an office but most likely every EXP agent will never go there.  The broker of record for that state needs to have an office in that state, and hence why it's there. 

Now let's talk about KW profit share and how that works.  Every Market Center has expenses which are different and the profit share you receive can vary dramatically from Market Center to Market Center (as well as change monthly). There is no set guidelines as to how much profit they need to set out to those agents that brought in that agent into that office.  I have 2 direct agents in my downline at KW that have worked in different market centers in different states.  In one of my monthly KW statements, one generated $2,375 in "profits" and the other $2,358 in profits.  One would think that since the "profit" on these two was only a $17 difference to each office that I would receive almost an identical payout from each one, yet that was not the case.  One I received $163.83 and the other $1.23.  Yes, $1.23.  On a first line direct that I brought in!   To say I wasn't happy about this was an understatement.  When you have a physical location you need to support that location, and all the people who are employed by that market center.  They get paid first, before any "profits" are shared along with the Market Center owner.  Every Market Center is allowed to share whatever they want.  There's no set guidelines and to me not knowing what and how they calculate it is unfair to those agents who help build the business up.   EXP revenue share model is set and calculated out of top line revenue to the company.  When an agent enters in the details of their transaction into the system (kind of like KW's Greensheet system) you automatically get a detailed update as the agent who brought them in what your revenue share will be.  There's no guessing, or hoping that the Market Center had a good month so that they'll give you a bigger share.  It is what it is.  

And then EXP offers ownership to every agent in multitudes of ways to earn company stock as well as purchase it at a discounted rate.  KW is privately held, doesn't report it's numbers to anyone so you just have to take someone else's word that all is happy and well in the KW universe.  KW has no plans to offer agents true ownership of the national company from what I was told.   Also EXP, since they have no franchises, allows you to expand into any area you want to and not have to join another Market Center with an additional cap and regional fee like KW requires.  Those who operate a team will truly understand the magnitude of this.  This post cannot go into enough detail on just how big that is for agents.  

Now one might think that I don't like KW based upon this post and nothing can be further from that.  I enjoyed my time there tremendously and would still be there if EXP didn't exist.  Moving to EXP from KW was not an easy decision.  It was simple though.  Anyone who is in this business and is a true business person can easily determine that EXP's business model is more streamlined and set up for the future.  KW agents who comment on it not having any real understanding as to how it functions different to is to me a disservice to all BP members.  Cara I'm in no way trying to be mean spirited towards you either by me posting this.  I do think you need to do more homework on how things work over there.