joining keller williams

Impact of Joining Keller Williams on

Mega Agent Performance

I. Objective......................................................................................................................

p. 3

II. Methodology ..............................................................................................................

p. 4

III. Key Findings ...............................................................................................................

p. 5

IV. Detailed Results:Summary.......................................................................................................

p. 6

Last Year – Previous Agency First Year – Keller Williams:

Average..........................................................................................................

p. 15

Median...........................................................................................................

p. 21

Last Year – Previous Agency 2005 – Keller Williams:Summary.......................................................................................................

p. 27

Average..........................................................................................................

p. 30

Median...........................................................................................................

p. 36

V. Appendix......................................................................................................................

p. 42

TABLE OF CONTENTS

3

Objective:

To investigate the impact of joining Keller Williams on the production of Mega Agents.

4

Methodology1. We interviewed and surveyed over 300 Mega Agents, 95 of which

met the criteria below:1. Closed 72 transactions or more in 20052. Joined Keller Williams within the last 5 years3. Were full-time agents prior to joining Keller Williams4. Are currently full-time agents

2. We compared their performance before and after joining Keller Williams for the following years:

1. Last full year at their previous agency 2. First full year with Keller Williams3. Last full calendar year (2005) with Keller Williams

3. We were primarily interested in the following production numbers:1. Total volume2. GCI3. Total units closed4. Buyer units closed5. Seller units closed

4. For our final analysis, we computed each agent’s GCI based on their total volume at an assumed average commission rate of 2.53% as many agents could not recall their GCI (GCI = 2.53% x total volume that year).**

5. We also analyzed their responses to the question, “What aspects of Keller Williams have you found to be the most beneficial to you and your business?”

** We used 2.53% as their average commission rate based on the average commission rate from an internal study conducted by KWRI in 2006.

5

KEY FINDINGS

2. The top three contributing factors to their success were…

AVERAGE• 31% in Volume• 31% in GCI• 23% in Total units

closed• 21% in Buyer units

closed• 23% in Seller units

closed

1. In their first year with Keller Williams, Mega Agents experienced an average increase of …

MEDIAN• 23% in Volume• 23% in GCI• 23% in Total units

closed• 2% in Buyer units

closed• 34% in Seller units

closeda) Education & Trainingb) Culturec) MREA Mindset and

Models

6

SUMMARY

7

FIRST YEAR GROWTH - VOLUME AND GCI

** Numbers do not reflect decimal points. Percentages were calculated with actual numbers.

$19.9M

$16.0M

$502K

$405K

$15.1M

$13.0M

$383K

$329KMEDIAN

AVERAGE

MEDIAN

AVERAGE

% change

Volume

GCI

+23%

+31%

+23%

+31%

Previous Agency Keller Williams

Dollar amount

PREVIOUS AGENCY

PREV

PREV

KW

KW

KELLER WILLIAMS

KELLER WILLIAMSPREVIOUS AGENCY

8

FIRST YEAR GROWTH - TOTAL, BUYER & SELLER UNITS


Units

43

52

30

43

80

95

32

42

29.5

35

65

77

MEDIAN

AVERAGE

MEDIAN

AVERAGE

MEDIAN

AVERAGE%

change

Total

Buyers

Sellers

+21%

+23%

+23%

+34%

+2%

+23%


PREVKW

PREVIOUS AGENCYKELLER WILLIAMS





9

“WHAT ASPECTS OF KELLER WILLIAMS HAVE YOU FOUND TO BE THE MOST BENEFICIAL TO

YOU AND YOUR BUSINESS?”

Rank Percentage

1 Education & Training 62%2 Culture 41%3 MREA Mindset & Models 38%4 Events 32%5 Team Concept 26%6 KWRI Systems & Support 22%7 Coaching 12%8 Autonomy 11%9 MC & Regional Leadership 11%

10 Pay Structure & Profit Share 9%

Reasons given…

10

“WHAT ASPECTS OF KELLER WILLIAMS HAVE YOU FOUND TO BE THE MOST BENEFICIAL TO

YOU AND YOUR BUSINESS?”

Rank Percentage

11 Cost of Doing Business 8%12 KWRI Leadership 4%13 Brand Recognition 3%14 Ownership Opportunities 3%15 Mega Agent Recognition 2%

Reasons given…

** Please see the appendix for detailed reasons. Percentages will not add up to 100% as agents were allowed to give multiple responses to this question.

11

DEMOGRAPHICSThe average Mega Agent in our

sample…

1. Has 15 years of experience in real estate2. Joined us in 20023. Works 48 hours a week

12

WHO WERE THEY WITH PRIOR TO JOINING KW?

24%

76%MAJOR

FRANCHISED BROKERAGE

INDEPENDENT BROKERAGE

76% of agents were with a major franchised brokerage

** Numbers are rounded to the nearest whole percentage.

13

WHO WERE THEY WITH PRIOR TO JOINING KW?Ran

k MAJOR FRANCHISED BROKERAGES Percentage

1 RE/MAX 34%2 Coldwell Banker 17%3 Century 21 9%4 Prudential 7%5 Realty Executives 2%6 Crye-Leike 1%7 Ebby Haliday 1%8 ERA 1%9 GMAC 1%

10 Home Services of America 1%11 Long & Foster 1%

Of the agents who were with a major franchised brokerage, most (34%) were with RE/MAX


14

Rank

INDEPENDENT BROKERAGES % Ran

kINDEPENDENT BROKERAGES %

1 John L. Scott 2%

12 Paradigm 1%

2 Reese & Nichols 2%

13 Patterson-Schwartz 1%

3 Carole Jones 1%

14 Royallepage 1%

4 Crown 3 1%

15 Rutledge 1%

5 Edina 1%

16 Sellstate Achievers 1%

6 Homesmart 1%

17 SIA 1%

7 Hometown 1%

18 Statewide 1%

8 Irongate 1%

19 Trust USA 1%

9 John Hall & Associates

1%

20 Venture 1 Properties 1%

10 Jones Healy 1%

21 Watson Realty 1%

11 Lone Star 1%

WHO WERE THEY WITH PRIOR TO JOINING KW?

Of the agents who were with independent brokerages, most were with John L. Scott (2%) or Reese & Nichols (2%)


15

DETAILED RESULTS: AVERAGE GROWTH

Last Year - Previous Agency

First Year – Keller Williams

16

Average volume increased by 31% in the first year

PREVIOUS AGENCY FIRST YEAR

$15.1 M$19.9 M

0

5

10

15

20$ Millions

31% 31% INCREASEINCREASE

PREVIOUS AGENCY


17

Average GCI increased by 31% in the first year


$383 K$502 K

0

100

200

300

400

500

600$ Thousands 31% 31%

INCREASEINCREASE

PREVIOUS AGENCY


18

PREVIOUS FIRST YEAR

77 units95 units

0

20

40

60

80

100


PREVIOUS AGENCY

Average total units increased by 23% in the first year

units


19

Average buyer units increased by 21% in the first year


PREVIOUS AGENCYFIRST YEAR

35 units43 units

05

1015202530354045

21% 21% INCREASEINCREASEunits

20


42 units52 units

0

10

20

30

40

50

6023% 23%

INCREASEINCREASE

PREVIOUS AGENCY

Average seller units increased by 23% in the first year

units


21

DETAILED RESULTS: MEDIAN GROWTH


First Year – Keller Williams

22

Median volume increased by 23% in the first year


$13.0 M$16.0 M

0

5

10

15

20$ Millions 23% 23%

INCREASEINCREASE

PREVIOUS AGENCY


23

Median GCI increased by 23% in the first year


$329 K$405 K

0

100

200

300

400


INCREASEINCREASE

PREVIOUS AGENCY


24

PREVIOUS FIRST YEAR

65 units80 units

01020304050607080


PREVIOUS AGENCY

Median total units increased by 23% in the first year

units


25

Median buyer units increased by 2% in the first year


PREVIOUS AGENCYFIRST YEAR

30 units

0

10

20

30

40

50 2% 2% INCREASEINCREASE

units

29.5 units

26


32 units43 units

0

10

20

30

40

5034% 34%

INCREASEINCREASE

PREVIOUS AGENCY

Median seller units increased by 34% in the first year

units


27

RESULTS SUMMARY


2005 – Keller WilliamsPlease note:

While these numbers are impressive, these numbers might be misleading as the average agent in this sample joined us in 2002. We’ve included the information here for informational purposes only.

28

2005 GROWTH - VOLUME AND GCIKEY FINDINGS


$24.9M

$19.4M

$630K

$492K

$15.1M

$13.0M

$383K

$329KMEDIAN

AVERAGE

MEDIAN

AVERAGE

% change

Volume

GCI

+50%

+64%

+50%

+64%


Dollar amount


PREVKW


PREVKW

29

2005 GROWTH - TOTAL, BUYER & SELLER UNITSKEY FINDINGS


Units

50

61

35.5

49

94

111

32

42

29.5

35

65

77

MEDIAN

AVERAGE

MEDIAN

AVERAGE

MEDIAN

AVERAGE%

change

Total

Buyers

Sellers

+40%

+46%

+44%

+56%

+20%

+45%



PREVKW


PREVKW


PREVKW

30

DETAILED RESULTS: AVERAGE GROWTH


2005 – Keller WilliamsPlease note: While these numbers are impressive, they might be misleading as the average agent in this sample joined us in 2002. We’ve included the data here for informational purposes only.

31

Average volume increased by 64%.

PREVIOUS AGENCY LAST YEAR

$15.1 M

$24.9 M

0

5

10

15

20


INCREASEINCREASE

PREVIOUS AGENCY


32

Average GCI increased by 64%.


$383 K

$630 K

0100200300400500600700$ Thousands

64% 64%

INCREASEINCREASE

PREVIOUS AGENCY


33

Average total units increased by 44%.


PREVIOUS LAST YEAR

77 units111 units

0

20

40

60

80

100

120


PREVIOUS AGENCY

units

34

Average buyer units increased by 40%.


PREVIOUS LAST YEAR

35 units

49 units

0

10

20

30

40

50units

PREVIOUS AGENCY


35

Average seller units increased by 46%.



42 units61 units

010203040506070


PREVIOUS AGENCY

units

36

DETAILED RESULTS: MEDIAN GROWTH


2005 – Keller Williams

37


Median volume increased by 50%.


$13.0 M

$19.4 M

0

5

10

15


INCREASEINCREASE

PREVIOUS AGENCY

38

Median GCI increased by 50%.



$329 K

$492 K

0

100

200

300

400


INCREASEINCREASE

PREVIOUS AGENCY

39

Median total units increased by 45%.


PREVIOUS LAST YEAR

65 units

94 units

0

20

40

60

80

10045% 45%

INCREASEINCREASE

PREVIOUS AGENCY

units

40

Median buyer units increased by 20%.


PREVIOUS LAST YEAR

29.5 35.5

05

10152025303540

units

PREVIOUS AGENCY


41

Median seller units increased by 56%.



32 units

50 units

0

10

20

30

40

5056% 56%

INCREASEINCREASE

PREVIOUS AGENCY

units

joining keller williams

Documents

year keller williams

aspects of keller williams

keller williamslast

keller williamsare

keller williamswe

calendar year

year previous agency

total units closed21