Keller Williams offices generally run on a 70/30 commission split: agents keep 70% of their commissions, while 30% goes to the brokerage. Once an agent reaches their office’s annual cap, they move to a 100% split for the rest of their anniversary year.
For example, on a $500,000 home sale with a 3% commission, the gross commission is $15,000. Under a 70/30 Keller Williams commission split, the agent earns $10,500 before additional fees. Keller Williams also charges a 6% franchise fee, which would deduct $630, leaving the agent with approximately $9,870.
Depending on the office, caps usually range from $18,000 to $36,000 or more. After hitting the franchise and market center caps, agents keep the full $15,000 on a $500,000 sale, minus other small fees. For high-volume agents, this can mean thousands of dollars in extra income compared to brokerages with permanent splits.
Against competitors, Keller Williams’ model is often seen as more agent-friendly. While some brokerages may start agents at a 50/50 or 60/40 split, Keller Williams starts agents on a higher split and offers a clear path to 100%.
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Keller Williams fees at a glance
Here’s an example of how Keller Williams’ commission structure works on a $500,000 home sale with a 3% commission (close to the average commission rate). This shows what an agent keeps before and after reaching their market center and franchise fee caps.
| Standard split (70%) | Cap met (100%) | |
|---|---|---|
| Gross commission (3%) | $15,000 | $15,000 |
| Agent commission after split | $10,500 | $15,000 |
| Franchise fee (6%) | $630 | $900 |
| Desk fee | $100 | $250 |
| Transaction fee | $250 | $100 |
| Net pay | $9,520 | $13,750 |
How the Keller Williams commission split works
Keller Williams agents typically start on a 70/30 commission split, though some offices may offer variations like 80/20 or 60/40.[1] With the 70/30 model, you keep 70% of your earnings and pay 30% to the brokerage until you hit your caps. After capping, you move to a 100% split until your reset date.
On a $10,000 commission, you’d net about $6,050 after a 6% franchise fee ($600), a $100 desk fee, and a $250 transaction fee. Once capped, the same scenario would pay closer to $9,650, as only the desk and transaction fees would apply.
Keller Williams commission caps
Keller Williams has two caps: a $3,000 franchise cap and a market center cap set by each local office. Market center caps usually fall between $15,000 and $36,000, but they can be higher in expensive markets. Once you hit both, you keep 100% of commissions until your next work anniversary date.
For example, if your market center cap is $20,000, once you’ve paid that plus the $3,000 royalty cap, your remaining deals for the year are nearly all profit. A $15,000 commission check would pay out at almost the full amount, minus small office or transaction fees.
Other fees
Beyond the Keller Williams commission split, agents often pay desk fees, which usually range from $75 to $100 or more per month. These fees can cover office space, utilities, and administrative support.
Agents also pay transaction fees on each closing. These can vary widely — anywhere from about $50 to $400 or more per deal — and help cover compliance and processing costs.[2] Because both desk and transaction fees differ by Keller Williams office, it’s important for agents to confirm the exact amounts with their market center.
New agents may also pay a mentor fee of 10–25% of their gross commission income as part of the mentorship program. This program helps new agents set up and make their first sale.
Keller Williams pros and cons
- Path to 100% commission. After hitting your cap, you keep nearly all of your earnings until your next anniversary date.
- Strong training and mentorship. New agents benefit from structured coaching, education, and experienced mentors.
- Technology and tools. Keller Williams provides CRM systems, marketing platforms, and transaction management software.
- Large referral network. With one of the biggest agent counts in the U.S., referrals can flow between markets.
- Initial 70/30 split. Newer agents give up more commission compared to 100% brokerages.
- Royalty fee. The 6% franchise fee (capped at $3,000 annually) cuts into earnings.
- Office and transaction fees. Monthly desk fees and per-deal charges can add up, especially in high-fee markets.
- Cap amounts vary. In expensive markets, caps can exceed $36,000, making it harder for agents to reach 100/0 commission splits.
Keller Williams commission split: What agents think
Agent feedback on Keller Williams’ commission model is generally positive, especially from newer agents who value the training and mentorship. Many highlight the cap system as a major advantage compared to brokerages that always take a cut. Still, some feel the franchise fee and office expenses can eat into profits.
Many agents praise the training and resources provided:
“Phenomenal training and value. Seriously I don’t know why anyone would go anywhere else!”
Experienced agents often highlight the cap system as a benefit:
“I have been with KW for ten years, have capped every year since going full time (2019) and have become one of the productivity coaches in our office.”
Others point out that while the split is favorable, the support can feel limited compared to full-service brokerages:
“KW is a bare bones, high split, on your own brokerage. Many people make more money with a brokerage that takes a bigger split but provides training classes, support staff, office services, etc.”
Some are critical of the costs, noting that fees can outweigh the benefits in certain markets:
“It's extremely expensive and you'll pay more than the value you will receive.”
How Keller Williams compares
| Keller Williams | Century 21 | Coldwell Banker | |
|---|---|---|---|
| Commission split | 70/30 | 60/40 to 90/10 | 50/50 to 90/10 |
| Commission cap | Two caps — $3,000 franchise; $15K–$35K+ office (varies by market center) | $0–250,000+ GCI (varies by plan) | No universal cap |
| Franchise fee | 6% | 6–8% | 6–8% |
| Desk fee | Varies; $50–125+/mo possible | $0–100+/mo | $110+/mo |
| Other fees | Transaction fees vary ($50–399). May have startup fees (e.g., $245) | $295–395 transaction fees possible | Marketing materials |
Keller Williams' clear split and caps give agents a defined ceiling on what they’ll pay. Century 21’s commission splits and gross commission income (GCI) vary, while Coldwell Banker offers splits up to 90/10 but has no universal cap, making costs less predictable.
All three brokerages charge around 6–8% in franchise fees, and desk fees are broadly similar. Keller Williams, Century 21, and Coldwell Banker agents also face additional fees, like startup and transaction fees or out-of-pocket expenses for marketing materials
Ultimately, the right choice comes down to how quickly an agent expects to scale and which fee structure feels most manageable.
Bottom line
Keller Williams’ commission split is straightforward: agents typically start at a 70/30 split, with a $3,000 franchise fee cap and a market center cap that’s usually between $15,000 and $36,000.
Once capped, you keep 100% of your commissions until your next anniversary date, with only desk and transaction fees still due. For agents who produce consistently, this can mean significantly higher take-home pay compared to brokerages without caps.
Still, the upfront 70/30 split and fees — especially when transaction costs can hit $400 or more per deal — can be challenging for newer agents.
If you want to maximize earnings faster, one way to do it is by increasing deal flow. The Clever Partner Agent program connects you with motivated buyers and sellers, so you can close more transactions and make the most of your commission structure.
FAQ
Does Keller Williams charge desk fees?
Yes, many market centers charge desk fees, typically between $75 and $100 per month, though the exact amount varies by office.
How is commission split in real estate?
Gross commissions are split between the agent and their brokerage according to the office’s split agreement.
What is a commission split cap?
A cap is the maximum amount an agent pays to their brokerage in a year. Once it’s met, the agent keeps 100% of their commission until the cap resets on their anniversary date.
What is a franchise fee?
A franchise fee, sometimes called a royalty fee, is a percentage of commission paid to the parent brand. At Keller Williams, it’s 6% of gross commission income, capped at $3,000 annually.
