the keller williams profit share tree
DESCRIPTION
This is a powerpoint presentation from KW's Family Reunion 2009 about How KW associates can build wealth and passive income from building their profit sharing tree.TRANSCRIPT
KW004
Grow Your Profit Share Tree: Amplify Your Life
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Madison Offenhauser California–LA Coastal and
California–Westside LA Regional Director
Gene Frederick Virginia Regional Director
Presenters
Grow Your Profit Share Tree
They say that money doesn’t grow on trees … it does on this one.
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Grow Your Profit Share Tree
Welcome!
Two Big Goals
1. Know how to enjoy the privilege of being treated like a stakeholder.
2. Have a plan to activate your passive income potential.
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Grow Your Profit Share Tree
Why Profit Share?
• We believe our associates should be treated like stakeholders.
• We believe that together everyone achieves more.
• So we split every Market Center’s profits between the owners who took the risk and the associates who helped the Market Center grow.
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Completely … Passive Income
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What is Passive Income?What is Passive Income?
Money that you receive without doing
anything actively to earn it.
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How Does It Work?1. An associate joins any Market Center and names you
as their sponsor.2. The associate pays Company Dollar.3. The Market Center has a profitable month.4. Profit Share is automatically deposited to your account
the following month.Note: You are sharing in the owner’s profits.
5. After three years and a day, you are “vested.”6. You can will your Profit Share to a beneficiary.
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How the Tree Grows
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YOU
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How the Tree Grows
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YOU
your sponsor
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How the Tree Grows
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YOU
your sponsor
your sponsor’s sponsor
The Profit Share system goes back seven levels.
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How the Tree Grows
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YOU
your sponsor
When someone names you as their sponsor, they go into your “first level.”
names you
names you
namesyou
Your first level
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How the Tree Grows
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If an associate names someone in your first level as a sponsor, they go into your “second level.”
YOU
your sponsor
your 1st level
your 1st level
your 1st level
your 2nd level
your 2nd level
your 2nd level
your 2nd level
your 2nd level
your 2nd level
your 2nd level
your 2nd level
your 2nd level
The tree can grow
seven levels.
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Focus on the First Level
• Time is the nourishment that grows the other levels!
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Is It Too Late?Is It Too Late?
Absolutely not! Your opportunity is now.
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Four Steps to Profit Share
• Every month, Market Centers split their profits. Roughly 52 % goes to the owners who took the risk, and 48 % goes to the associates who helped the company grow.
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Is It Real Money?Is It Real Money?
It sure is.
continued …
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Four Steps to Profit Share (continued)
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Take a Closer Look
Step 1: The Market Center Calculates ProfitStep 2: The Market Center Splits the ProfitStep 3: The Profit Share Factor Is CalculatedStep 4: Profit Share Is Dispersed
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Four Steps to Profit Share (continued)
Step 1: The Market Center Calculates Profit
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Market Center Gross Closed Commissions $1,070,124
Less Keller Williams Realty Royalty Fee - $27,416
Equals Net Gross Commission = $1,042,708
Less Associate Commission - $910,671
Equals Company Dollar = $132,037
Less KW Approved Expenses - $58,378
Equals KW Profit (or Loss) = $73,659
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9continued …
Profit Share Pool Owner Profit
Level 1 First $2,990 of profit 25% $ 747.50 75% $ 2,242.50
Level 2Next $8,250 of profit 35% $2,887.50 65% $ 5,362.50
Level 3Any profit over $11, 240 50% $31,209.50 50% $31,209.50
Totals $34,844.50 $ 38,814.50
Step 2: The Market Center Splits the Profit
Four Steps to Profit Share (continued)
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9continued …
Profit Share Pool Owner Profit
Level 1 First $2,990 of profit 25% $ 747.50 75% $ 2,242.50
Level 2Next $8,250 of profit 35% $2,887.50 65% $ 5,362.50
Level 3Any profit over $11, 240 50% $31,209.50 50% $31,209.50
Totals $34,844.50 $ 38,814.50
Step 2: The Market Center Splits the Profit
Four Steps to Profit Share (continued)
Or … roughly 52 % of profit goes to the owners who took the risk, and 48 % goes to the associates who helped the company grow.
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Four Steps to Profit Share (continued)
Step 3: The Profit Share Factor Is Calculated
On a monthly basis, the Market Center’s Profit Share factor is determined by dividing the
Market Center’s total Profit Share pool by its total Company Dollar amount.
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Four Steps to Profit Share (continued)
Step 4: Profit Share Is Dispersed
What each associate paid in Company Dollar in a month is multiplied by the Profit Share factor
to find the amount of Profit Share that will be distributed to that
associate’s branch in the Profit Share Tree.
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How the Money Grows
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Profit Share Distribution
From Your 1st Level 50 %
From Your 2nd Level 10 %
From Your 3rd Level 5 %
From Your 4th Level 5 %
From Your 5th Level 7.5 %
From Your 6th Level 10 %
From Your 7th Level 12.5 %
Total 100 %
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How the Money Grows
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Could It Be Real Money to Me?Could It Be Real Money to Me?
It sure could.
• What could it do for you and your family?
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Want to Opt-In to Opportunity?
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Just refer. That’s it.
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Inspire Interest and Make an Impact
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1. Talk to people.
2. Build relationships.
3. Refer people to your Team Leader.
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Keep the “Thwart” Away
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• Never say anything negative about someone else’s company.
• Never say anything negative about someone else’s broker.
• Never say anything negative about what you think they might be experiencing.
continued …
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Keep the “Thwart” Away
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Never say anything like the following:
• “Why do you even work there?”• “Don’t you get it?”• “Why would you pay your company so
much money?”
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Be Honest and Real, and Refer
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You Build the Relationship …You Build the Relationship …
Your Team Leader recruits.
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Where Do You Find People?
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• Everywhere.• Start up a conversation and see where it
goes.
continued …
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Where Do You Find People? (continued)
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Co-op Strategy• If you enjoyed working with them, say so. • Invite them to coffee.• If you never met them face-to-face, tell them
that you’d love the opportunity. • Give a small gift of appreciation. • Then, just 1) talk, 2) build a relationship, and
finally 3) refer them to your Team Leader.
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Where Do You Find People? (continued)
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• Stay in relationship.• You have nothing to lose.
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Where Do You Find People? (continued)
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• What is a limiting belief you have?• Now, unlimit your thinking!
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Real-Play: Where Will You Find People?
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1. Break into small groups.
2. As a group, list where could you talk to people.
3. Individually, list people you know.
4. Share your ideas.
5. Write down additional ideas.
Time: 5 mins.
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Real-Play: What Will You Say?
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1. Stay in your groups.
2. Create two scripts.
3. Share your scripts.
4. Write down additional scripts.
Time: 20 mins.
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Ready to Refer?
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Complete the agent recruiting referral information form.
Keep the relationship with your referral growing!
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How Much Do You Want?
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Profit Share is an equal opportunity, unequal outcome program.
What could you do with passive, long-term income?
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Plan for a Prosperous Tree
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• Plant the Seed• Cultivate Your Tree• Collect Profit Share
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You’re Ready!
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• You know how to enjoy the privilege of being treated like a stakeholder.
• You have a plan to activate your passive income potential.
continued …
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You’re Ready! (continued)
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Amplify your life now.
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KW004
Thanks for Being Here!
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