The Keller Williams Strategy for Agents in Real Estate

Keller Williams I would like to work for Keller Williams Realty Services. Keller Williams has the best training program in the world and is the number one realty services provider in North America in terms of agents attached to the franchise (Larcker, Tayan, 2015).

The business model of Keller Williams is based on the motto "God, Family, Business" in that order and the entire organization is run like a big family, with individual agents teaching the Ignite class (designed to "ignite" one's business right out of the gate) and always helping any facet of the business that one might be struggling with. The organizational culture of Keller Williams is one that focuses on the agent rather than the broker and supports the idea that every agent is CEO of his own company.

To that end, Keller Williams also has a profit sharing system in place in which profits from transactions are divided up among agents who assist in recruiting/bringing new agents to Keller Williams. In short, Keller Williams has a great business plan that focuses on the fundamental values of society.

Three factors that affect Keller Williams' business model are: 1) the external economic factor (the bursting of the housing bubble in 2008 from which the market has not yet recovered even as house prices have risen); 2) the social factor of Keller Williams' reputation among competing brokerages, who view the franchise with mistrust and as a "cult," which keeps agents from crossing over and joining in on the profit sharing business; and 3) the fact that it does not advertise but depends solely on word of mouth for its business.

Of these three, I believe that the two most important factors that the company needs to focus on in order to achieve success and thrive are the first two -- the economic factor of the economy facing depression and the social factor of the company's reputation needing to be clarified. The company is already competitive in terms of having the most agents, but in terms of market share, it has some work to do in order to utilize those agents to perform more effectively.

To this end, it has a world renowned training program (BOLD), and it also has a business plan based on "core values and principles" which are designed to keep the organization focused on most important things first (Larcker, Baron, Tayan, 2011). The first factor -- the economic downturn factor -- is significant because if the economy is in a downturn it is more difficult for a Real Estate Broker to drum up business (less money in the economy means fewer buyers/investors).

So it becomes essential for Keller Williams to hone in on that sector of the market that is buying and selling and capture this market. This will require sizable expertise in marketing and salesmanship as well as motivation (through programs like Ignite and Bold) which drive new and old agents to succeed at levels never before imagined.

Whether they are doing so independently or as part of a team, the end goal is the same: to generate leads, to make contacts, to secure listing presentations, to market, and to close transactions. Doing so in an economic downturn is especially hard because there are fewer potential clients. This means that one has to know one's market especially well so as to have the maximum amount of information to be able to provide to clients.

But it also means that one must have the special skill and charisma needed to reach out to clients and get them to work with you. The second factor, which relates to the reputation of Keller Williams among other brokerages, should also be addressed.

This is an important obstacle to overcome because it blocks the brokerage from being able to recruit high-performing agents from other brokerages who might like to bring their talents to a new agency (feeling themselves unappreciated in their current brokerage or disliking the commission split ratio that they must accept) but are reluctant to make the change because of misconceptions about what Keller Williams is all about.

The reality is that Keller Williams and the agents who work with the organization view themselves as all being on the same team rather than in competition with one another. There is a culture of respect that the organization tries to cultivate. Other brokerages dislike this "familial" values core that Keller Williams paints as the secret to its success and they also dislike the commission split which favors the agent at Keller Williams.

Three business actions to overcome the factors identified above would be: to conduct surveys and seminars and workshops in order to brainstorm and identify the needs of the current market and what can be done to take advantage of them. Keller Williams should recognize that this economy is a new economy and is not likely to be similar to that of the early 2000s, which was fostered by easy credit and loans. That era is over and banks are more restrictive in terms of handing out mortgage loans to buyers.

So Keller Williams should examine what can be done to help buyers secure loans (identify strategies for reducing debt-to-income ratios, boosting credit scores, and legitimizing income consistency) (Keller, 2013). It should also focus on identify the niche market that is still buying, selling and investing in real estate and develop a strategy to target that market.

The second action to consider would be to educate agents on how to proceed in a market downturn, how to focus time and energy so as utilize the vital resources needed to secure business in a way that is not wasteful. Old methods of securing business may prove to be outdated and agents should be educated on what methods are current and working now. The third action to consider would be to educate other agents from competing brokerages on why Keller Williams is a good fit for them.

This means putting out in the public consciousness a positive picture of what it means to work with Keller Williams. This campaign should be about spreading the good word about the core values that the organization represents in an effort to open the eyes of others agents in the industry looking to be part of a company that truly represents their best interests and wants them to succeed in the business. In conclusion, I would like to work for Keller Williams.