Orlando, FL | February 9, 2015
Company announces executive leadership transition; expansion into Costa Rica and Spain
ORLANDO, FLORIDA (February 9, 2015)– After another record-setting year of growth, productivity and profitability gains, Keller Williams announced it has become the largest real estate franchise by agent count in the world. The Austin, Texas-based company added a net gain of 17,000 associates in 2014, increasing its worldwide associate count to more than 112,000.
“We’re #1 and we’ve just begun,” co-founder and Chairman Gary Keller said.
Keller also announced an executive leadership transition, with Chris Heller becoming CEO and John Davis stepping in as president. Heller and Davis succeed legendary Keller Williams leaders Mark Willis and Mary Tennant, who are joining Keller and Vice Chairman Mo Anderson on the company’s board of directors. The executive transition is only the third major leadership change in the privately held company’s 32-year history.
“Keller Williams truly is a company built by agents for agents,” Davis said. “We’re all agents. And we share the same mindset, values and vision.”
The announcement was made during Family Reunion, the company’s annual training and networking convention. More than 10,000 Keller Williams associates attended a special session focused on the State of the Company, with thousands more participating via watch parties from Keller Williams market centers around the world.
“We are honored, we are humbled and we are excited to get to work with you to lead Keller Williams to new opportunities,” Heller told the crowd.
For three years, Heller and Davis have been preparing for their new leadership roles. As president of KW Worldwide, Heller launched the first Keller Williams regions outside of North America. During the State of the Company presentation, Heller welcomed hundreds of international guests from more than 20 countries and introduced two new regions — KW Costa Rica and KW Spain. He also reported that last year the number of associates outside of North America more than doubled and the number of market centers more than tripled.
As vice president of growth, Davis has led the regions and a companywide recruiting and accountability initiative that has fueled historic agent count, productivity and profitability gains. Working with local and regional leaders, the Growth Initiative has increased the company’s agent base by one-third in the past two years.
“We have the best systems and models. We have the best training and coaching. We have the best people and culture. And we’re thrilled to have the best leaders to guide us through the next chapters in our extraordinary history,” Keller said.
During a dynamic, high-energy presentation featuring the success stories of individual agents, Heller and Davis announced that the company’s associates had outpaced the industry and shattered Keller Williams records in 2014:
- Transactions increased 16 percent to more than 700,000 units
- Sales volume was up 17 percent to $185 billion
- Commissions earned increased by 16 percent to almost $5 billion
The extraordinary productivity gains, which were powered by the company’s focus on training and technology, drove profitability for franchise owners (owner profit was up 22 percent year over year) and contributed to historic Profit Share distributions to associates. Each month that a market center is profitable, roughly half of its profits are returned to the associates who have helped the company grow. Ninety-eight percent of offices were profitable for the year — an astonishingly high figure for franchise businesses.
Moreover, the company shared more than $98 million with associates through Profit Share and Growth Share — an increase of 25 percent over 2013. Since the program’s inception in 1996, the company has distributed more than $573 million in profits with associates. Profit share per agent has almost tripled over the past five years.
“The opportunity to lead Keller Williams is a tremendous honor,” Heller said. “And we’re going to work hard for you every single day. We understand it’s what you do that fuels your success and ensures our collective success. And it’s thanks to you that we’ve become the largest real estate franchise in the world and are on the path to becoming the worldwide leader in transactions and sales volume.”
Davis emphasized the company’s commitment to helping agents succeed in their local markets. “It’s what you’re doing in your local market that is building your business and making you the real estate expert of choice,” he said. “And that means more opportunity for you and more opportunities for your family. Keller Williams is committed to creating deeper and more determined pathways for you to succeed faster.”
About Keller Williams Realty, Inc.
Keller Williams Realty, Inc. is the largest real estate franchise by agent count in the world, with approximately 700 offices and 120,000 associates in more than a dozen countries around the world. In 2015, Keller Williams was named the No. 1 training organization across all industries in the world by Training magazine. The company has grown exponentially since the opening of the first Keller Williams Realty office in 1983, and continues to cultivate an agent-centric, education-based, technology-driven culture that rewards associates as stakeholders. The company also provides specialized agents in luxury homes, commercial and farm and ranch properties. For more information or to search for homes for sale visit Keller Williams Realty online at (www.kw.com). For more information about KWWorldwide, please visitkwworldwide.com.
As a seasoned real estate industry expert with an in-depth knowledge of the market dynamics, leadership transitions, and global expansions, I can attest to the significance of the events outlined in the article regarding Keller Williams. My extensive experience and understanding of the real estate landscape enable me to provide valuable insights into the various concepts and developments discussed.
1. Keller Williams' Global Leadership Transition: The article highlights a major leadership transition within Keller Williams, with Chris Heller taking over as CEO and John Davis assuming the role of president. Such transitions in leadership are critical moments in a company's trajectory, and the fact that this is only the third significant change in the company's 32-year history underscores the stability and strategic approach of Keller Williams.
2. Record-Setting Growth: Keller Williams achieved remarkable growth in 2014, adding a net gain of 17,000 associates and surpassing 112,000 associates globally. The ability to consistently attract and retain a large number of agents is a testament to the company's appeal, business model, and the effectiveness of its leadership.
3. International Expansion: The announcement of expansion into Costa Rica and Spain signifies Keller Williams' commitment to global reach. Chris Heller's role in launching the first Keller Williams regions outside of North America demonstrates the company's strategic focus on international markets.
4. Training and Technology Focus: The article emphasizes the role of training and technology in driving productivity gains. Keller Williams attributes its extraordinary success in 2014, including a 16 percent increase in transactions and a 17 percent increase in sales volume, to the company's focus on training and technology. This aligns with the broader trend in the real estate industry, where technology and continuous learning are increasingly pivotal to success.
5. Profitability and Profit Share: The company's emphasis on profitability is reflected in the impressive 22 percent year-over-year increase in owner profit. Additionally, the Profit Share program, where profits are shared with associates, has been a significant contributor to Keller Williams' success. The article mentions that 98 percent of offices were profitable for the year, an outstanding figure in the franchise business.
6. Commitment to Agent Success: The closing statements by Chris Heller and John Davis underscore Keller Williams' commitment to supporting agents in their local markets. The focus on creating opportunities for agents to succeed aligns with the company's agent-centric culture and education-driven approach.
In conclusion, Keller Williams' achievements in 2014, leadership transition, global expansion, and commitment to training and technology position it as a powerhouse in the real estate industry. The company's focus on agent success and its track record of profitability contribute to its standing as the largest real estate franchise by agent count in the world.
