By Jim “Gymbeaux” Brown, December 4, 2018
The graphic is what it is! The question is what are you doing to help insure your financial future by taking advantage of a system that is available to everyone?
Ever since 2000 I fell in love with the Keller Williams Realty International’s Profit Sharing System. As a side note, please note that I used the word “system” as compared to “program” for a reason. Would you prefer to have an anti brake locking program or an anti brake locking system on your car. It is only a word but “systems” work, “programs” not necessarily but I digress.
Back to taking advantage of profit sharing. I do not remember the exact month and year that I received my first profit sharing deposit directly into my checking account but I know it was shortly after I joined the Keller Williams Realty team of REALTORS®. More importantly, I have received a Profit Sharing deposit every month since like clockwork without fail.
I have heard arguments both for and against engaging in the Keller Williams Realty Profit Sharing System and frankly, the arguments against it dumbfound me because there are no legitimate reasons to be against it or doubt it validity. It is a system that works!
The only argument that seemingly might bear fruit against the system is that a lot of agents have told me that they do not want an experienced agent from another company to feel like they are encouraging them to join Keller Williams because they are going to make money off the other agents’ decision to join. On the surface that may sound logical but if you really understand the Profit Sharing System you then understand that you, the agent, are NOT making money off a newcomer’s production. You are making money that otherwise would have gone to the ownership of a Keller Williams Realty Market Center. In fact, the numbers have clearly shown that owners across the Keller Williams Realty map give as much as 48% of their profits back to agents who help them grow their Market Centers by encouraging agents both new to the business and experience to join the Market Center’s team of agents. It is really that simple. The actual calculation of the amount each agent receives is much more complicated but unlike some of the “promises” I have experienced in the real estate business, this one is done by computer and like I said earlier, without fail, a deposit is made directly into my checking account.
If you are currently engaged in listing and selling as compared to me being totally retired from the business, profit sharing may not seem all that important to you. Still, if you are eligible to receive profit sharing you will quickly discover that the profits you receive can and oftentimes do cover all of your ancillary dues and fees to run your real estate business. For example, before I retired in 2012, it was not only possible, it was probable that IF you were eligible to share in the profits, you would easily cover the $1,000 it would cost for Board Dues, MLS Dues, License Renewals, etc. In 2012 in Slidell, Louisiana, I calculated it would cost about $1,000 in such fees and dues to keep your license active. Of course that number varies depending on your location around the world.
It became obvious to me and I included it in the training I conducted, that Keller Williams Realty Agents should spend as much time on developing their Profit Sharing Tree as they do their Listing and Selling of real estate. Listing and Selling is a TODAY activity while Profit Sharing is both a TODAY and TOMORROW activity but especially the TOMORROW activity.
For example, I retired December 31, 2012. I will have been fully retired for 7 years come this December 31, 2018. And for the past 7 years and before that, I received a deposit in my account every month. That means that there has been 84 deposits into my checking account – 84!
I cannot speak for anyone but myself yet I am positive that no two people’s retirement will be financially the same. If you have NOT done any investing and have no retirement from another company, you will have ONLY your Social Security to rely upon when you retire. If you HAVE done savings towards retirement you then have your savings that you can withdraw or withdraw only the interest on your savings or both plus Social Security. If you are fortunate as I am, I have a retirement pension from my military service, plus several other resources but it is the Keller Williams Realty Profit Sharing that made a significant impact on the quality of my retired life. Think about it, you receive a deposit on the 21st of each month assuming you have participated in the Profit Sharing System by helping your Market Center or any Market Center to grow and expand. That is why every agent should work as hard on their Profit Sharing Tree as they do their Listing and Selling.
I don’t want to provide numbers because it could be considered as bragging and that is NOT what this Nugget is all about. Suffice it to say that every year I have earned as much in Profit Sharing as a lot of Americans earn as their salaries to exist upon. Think about that.
WHAT WILL YOUR RETIREMENT LOOK LIKE
WHEN YOU ARE FINISHED DOING WHAT YOU ARE DOING?
Where will you live?
Will you provide money for children’s college education?
Will you have a second home?
Will you engage in charitable activities?
Will you travel the country/world?
Will you have sufficient income to fund the lifestyle you desire?
If you have not given much consideration to questions such as these, how will you be able to retire when you desire to? I can assure you that by simply suggesting that a person thinking of a real estate career or an experienced agent at another company speak to your Team Leader, could make a lifetime benefit for you and your family and later your estate.
If you have any questions regarding profit sharing, please feel free to call me at 985-640-3564 or email me at JimBrown@gymbeaux.com.
LAGNIAPPE, a Louisiana term meaning something extra. If you the real estate agent want a great way to put aside money to cover all your dues and license fees, consider doing the following:
- 1 Never spend a one dollar bill – NEVER!
- 2I f an item costs 89 cents, use a $5.00 bill or higher
- 3 When you get home put all your unused One Dollar Bills in a box, I bind them together with a Bull Dog type clip in bundles of $50.00.
4. By year’s end you will have easily collected in excess of $1000.00 enough to pay all of your dues and license renewal fees.
Don’t laugh at this suggestion because it works. I know because I have been doing it for years. Now that I am no longer engaged in real estate, I use the money for Christmas gifts every year.