Calculating Downline Profit Slides from Presentation

1. Calculating Downline ProfitSlides from Presentation Keller Williams

2. Four Steps to KW Profit Share[Employed Monthly] The Market Center Calculates Profit The Market Center Splits the Profit The Profit Share Factor is Calculated The Profit Share is Dispersed How You Earn Downline Profit

3. Step 1 – The MC Calculates Profit MC gross closed commission $1,070,124 Less KW royalty fee 27,416 Equals net gross commission $1,042,708 Less agent commission 910,671 Equals company dollar retained 132,037 Less KW approved expenses 58,378 Equals KW profit $ 73,659 How Downline Profit is Earned

4. Step 2 - The MC Splits the Profit How Downline Profit is Earned

5. Step 3 - The Profit Share Factor is Calculated On a monthly basis the MC profit share factor is determined MC’s total profit share pool $34,844.50 Company Dollar Amount $132.037 To determine the Profit Share Factor = .2639 How Downline Profit is Earned

6. Step 4 – The Profit Share is Disbursed What each agent paid in Company Dollar for the month is multiplied by the profit share factor to find the amount of profit share that will be distributed to that agent’s branch in the Profit Share Tree / Down-line on the 21st of the following month How Downline Profit is Earned

7. Office must be profitable for the month. Sponsoring agent must close a unit. Downline agent must close a unit. 100% Cappers do not qualify. Criteria for Qualifying for Monthly Downline Profit

8. Step 4 – The Profit Share is Disbursed Example: if an agent paid $1800 in Company Dollar in the month, multiply that $1800 by the Profit Share Factor of .2639 [$1800 X .2639 = $475.02] $475.02 will be distributed to this agent’s branch How Downline Profit is Earned

9. Step 4 – The Profit Share is Disbursed Background: Each agent names a ‘sponsor’ when they join KW Realty A sponsor is the one person the agent perceives to be primarily responsible for bringing him or her to the company In this example, the person that was named as his sponsor will receive 50% of $475.02 The person their sponsor named receives 10% and so on How Downline Profit is Earned

10. Step 4 – The Profit Share is Disbursed How Downline Profit is Earned

11. Special Note A MC must be profitable in order for there to be profit distributed If an MC is not profitable, an agent in that MC can still build his or her profit share tree / down-line in anticipation of MC profitability An agent in an unprofitable MC can still receive profit share from agents in their profit share tree / down-line who are in profitable MCs How Downline Profit is Earned

12. 2. Special Note An agent must pay Company Dollar in a particular month in order for Profit Share to be distributed to that agent’s branch in the profit share tree. How Downline Profit is Earned

13. 3. Special Note The Profit Share system is coordinated throughout all of North America. An agent could join a MC in Massachusetts and name an agent in an Ottawa MC as his or her sponsor How Downline Profit is Earned

14. 4. Special Note Once an agent has been with KW for 3 years and a day, he or she is vested When an agent is vested, he or she can leave KW and still receive profit share 5. Special Note Agents can will their profit share to a beneficiary How Downline Profit is Earned

15. 6. Special Note Agents can – and often do – receive more in profit share than they pay to their MC Company Dollar Cap 7. Special Note Receiving $100 per month in profit share would be equivalent to having $24,000 after-tax invested for a year at 5%. Requires no investment on the agent’s part How Downline Profit is Earned