Jay Papasan, vice president and executive editor at KW Publishing, recently studied 72 of Keller Williams’ top profit share earners to understand how all associates could grow their wealth through the tool. Each individual that Papasan studied succeeded in taking home at least $1 million in largely passive income.
Profit share is one way in which Keller Williams exemplifies the principle of success through others. Each month, market centers share roughly half of their profits with the agents who helped them grow and made them profitable.
The company has distributed more than $1 billion to associates who have helped the company grow. Last year, profit share distributions exceeded $174 million. In the past four years, profit sharing has totaled more than the preceding 21 years combined. This is due to Keller Williams’ staggering growth. Agent count has moved from 68,337 in 2009 to over 180,000 today with profits increasingly rapidly each year.
In analyzing the 72 top profit share earners, Papasan noticed that they were very enthusiastic during their first six years in the profit share tree, averaging 26 sponsorships during that time – about one sponsorship each quarter – and a current net of 15. This, he says, is a very attainable goal.
Once an associate sponsors at least 15 people, it then takes about 15 years to make $1 million.
“That’s nothing,” Papasan says. “If you’re investing in the stock market, you’re going to be contributing to that for a lifetime so that you hopefully can be a millionaire when you’re 55.”
Earn YOUR Million
Step 1: Get Involved
“Profit share isn’t about recruiting; it’s simply about speaking about why you love your job,” Papasan emphasizes. This means plugging into Keller Williams’ technology (such as Kelle and Referrals), being active on KWConnect, and tuning into live trainings and events so you can explore what gets you excited.
“When you’re engaged, those conversations will start happening naturally and your tree will build,” Papasan says. “And we know that time will do really magical stuff.”
Step 2: Build a Habit
In order to gain 15 sponsorships, you should make it a habit to invite people to join. When you find yourself on the phone or at a networking event with an agent from another company, offer to take them to coffee to learn about their business and how you can help them add value to it. Seek out agents in your area who have a proven track record of success. As always, it’s essential to be genuine. “You don’t have to recruit,” Papasan says, “you just have to have conversations.”
Step 3: Meet Your Goals
Set goals and be intentional and accountable to them. Aim for a certain number of conversations each month, Papasan suggests, so that you take some of the luck out of the equation. Even with this actionable effort, remember that the profit share form of investing requires no upfront money, significantly fewer hours spent working, and little liability. “It actually is a win-win for the owners and the people who are creating that growth,” he says. “We’ve spent 30-plus years perfecting this system.”