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The Keller Williams Strategy For Agents In Real Estate Chapter

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...

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…

Sources used in this document:
References

Keller, K. (2013). Burst goes the real estate bubble: Mortgage fraud and changes in mortgage processes. USFSP. Retrieved from http://131.247.118.4/xmlui/handle/10806/6603

Larcker, D., Baron, J., Tayan, B. (2011). Keller Williams Realty (B). Rock Center for Corporate Governance at Stanford University Teaching Case No. HR-29B, Social Science Research Network.

Larcker, D., Tayan, B. (2015). How important is culture? An inside look at Keller

Williams Realty. Rock Center for Corporate Governance at Stanford University Closer Look Series: Topics, Issues and Controversies in Corporate Governance No. CGRP-48. Social Science Research Network.
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