Brokerage Comparison

eXp vs Keller Williams Commission Splits: Which Brokerage Is Better?

Understanding brokerage commission structures is critical to your bottom line. We compare the exact commission splits, caps, franchise fees, and passive income opportunities of eXp Realty vs Keller Williams so you can see which model keeps more money in your pocket.

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The Split: 80/20 vs. 70/30

eXp Realty operates on a simple, company-wide 80/20 split. This split applies to every agent in the company, regardless of their office location, experience, or production level. You keep 80% of your commission, and 20% goes to the brokerage.

Keller Williams structures splits locally, with each individual franchise or market center setting its own parameters. Typically, the base split at KW is 70/30 (70% to the agent, 30% to the office) or 64/36. This means you start with a higher brokerage cut right out of the gate compared to eXp Realty.

The Cap: $16,000 vs. Local Variable Caps

The cap is the maximum amount of commission split you pay to the brokerage in a year, after which you keep 100% of your commission. eXp Realty has a flat, non-negotiable $16,000 cap for all agents.

Keller Williams has a split cap system consisting of two parts: a local office cap and a corporate royalty cap. The local market center cap typically ranges from $18,000 to $25,000+ depending on local overhead and operating costs. In addition to the local cap, Keller Williams charges a 6% corporate franchise/royalty fee that caps at $3,000. This brings the total effective cap at KW to between $21,000 and $28,000+, significantly higher than eXp's $16,000.

Franchise and Hidden Fees

Franchise fees are a critical difference. eXp Realty is a cloud-based, single global brokerage. Because there are no local physical franchise owners to pay, eXp charges zero franchise or royalty fees.

Keller Williams is a traditional franchise model. Every franchise office (market center) is independently owned and operated. To fund the international brand, Keller Williams charges a 6% royalty fee on every transaction on top of your local split until your $3,000 royalty cap is met. This fee is non-negotiable and eats into your commission on every early deal.

Revenue Share vs. Profit Share

Both companies offer passive income systems to reward agents for recruiting, but the mechanics are fundamentally different. eXp Realty uses a Revenue Share model, while Keller Williams uses a Profit Share model.

eXp Revenue Share is paid from the top-line commission before the brokerage takes its split. If an agent you sponsored closes a deal, you receive a percentage of that transaction volume directly from eXp's share of the split, meaning you are paid regardless of whether the local office is profitable. Keller Williams Profit Share is paid from the net profits of the local franchise after all expenses, leases, and salaries are paid. If the local market center is not profitable, no profit share is paid, making KW profit share less predictable and typically much smaller than eXp revenue share.

Questions & Answers

eXp vs Keller Williams Commission Splits, FAQs

How does the eXp Realty commission split compare to Keller Williams?+

eXp Realty has a standard, company-wide 80/20 split that caps at $16,000, after which agents earn 100% of their commission minus a minor transaction fee. Keller Williams uses a local split that varies by franchise (market center) but is typically 70/30 or 64/36, plus a 6% company-wide franchise fee that caps around $3,000. Each local market center sets its own cap, usually between $18,000 and $25,000+.

What is the real cost of franchise fees at Keller Williams?+

Keller Williams charges a 6% franchise or royalty fee on every transaction, which is paid to the corporate parent company and is separate from your split with the local office. This fee typically caps at $3,000 per year. eXp Realty is a cloud-based brokerage with no franchise fees or local desk fees, meaning you keep more of your hard-earned commission from day one.

How do cap structures differ between eXp and Keller Williams?+

eXp Realty has a single, non-negotiable $16,000 cap for all agents, regardless of location. Keller Williams has a split cap structure consisting of a local office cap (typically $18,000 to $25,000 depending on the market center) and a corporate royalty cap (typically $3,000). This means the total effective cap at Keller Williams is usually between $21,000 and $28,000+.

What is the difference between eXp Revenue Share and KW Profit Share?+

eXp Revenue Share is paid from the top-line commission before the company takes its split, meaning you are paid based on the sales volume of agents you sponsor. Keller Williams Profit Share is paid from the net profits of the local market center after all franchise expenses, overhead, and lease costs are paid. Because revenue share is paid first, it is generally much more lucrative and predictable.

Are there monthly fees at eXp Realty vs Keller Williams?+

eXp Realty charges a flat monthly fee of $85, which includes your CRM, lead generation software, training, and support. Keller Williams monthly office fees (often called desk fees or technology fees) vary by franchise but typically range from $50 to $150+ per month, depending on the local market center and any desk or office space you choose to rent.

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