Coldwell Banker Vs. Keller Williams: How Do These Real Estate Giants Compare?

When it’s time to sell your home or make a major property purchase, choosing the right real estate agent is crucial. Two of the largest residential brokerages in North America are Coldwell Banker and Keller Williams, giving home buyers and sellers ample options for agent representation. But how do these real estate giants truly stack up?

We’ll compare factors like company structure, commission models, training programs, tools, and more. Read on for an in-depth look at the Coldwell Banker Vs. Keller Williams rivalry to make an informed choice between these industry leaders.

A Brief Comparison Table

Factor	Coldwell Banker	Keller Williams
Year Founded	1906	1983
Company Structure	Franchises local offices	Franchises individual agents
Commission Model	Variable split with local offices	Capped base split for agents
Training Approach	Foundational sales skills	Extensive methodology-focused
Market Share	6.5% of US existing home sales	14% of US existing home sales
Agent Reputation	Attracts prestigious veterans	Draws entrepreneurial and new agents
Costs for Agents	No franchise fee, varying office splits/fees	High franchise startup and recurring fees, but better splits

Company Backgrounds

To start, let’s look at some background on Coldwell Banker and Keller Williams, including when each was founded.

Coldwell Banker History

The roots of Coldwell Banker reach back to 1906 when young entrepreneurs Colbert Coldwell and Benjamin Banker opened their own real estate office in San Francisco. This original Coldwell Banker office focused mainly on commercial real estate transactions.

In the 1960s and 70s, Coldwell Banker began expanding via acquisitions of regional real estate firms. By the 1980s they had a strong national footprint focused mainly on residential sales. Today they have over 3,000 offices with 90,000+ affiliated agents across 40 countries.

So Coldwell Banker has a long history and reputation in the real estate world. Their nationwide network and international scope give clients strong representation.

Keller Williams History

Keller Williams was founded much more recently in 1983 by Gary Keller and Joe Williams in Texas. It began as a single office, but started growing rapidly via profit sharing with agents. This created an incentive for Keller Williams agents to recruit more agents, fueling rapid expansion.

They surpassed Century 21 as the largest real estate franchise in the US in 2018. Now Keller Williams has over 1,100 offices and 190,000 agents across the Americas, Europe, and Asia.

So Keller Williams is a relatively new but fast-rising powerhouse in real estate. Their growth has been remarkable despite their late start in the industry.

Comparison

When comparing backgrounds, some key differences emerge:

• Heritage: Coldwell Banker has over a century of history. Keller Williams was founded in the 1980s.
• Models: Coldwell Banker grew via acquisitions. Keller Williams expanded via agent profit sharing.
• Scope: Both have strong domestic and international networks.

So Coldwell Banker wins for heritage, while Keller Williams takes rapid growth. Both ultimately built large real estate networks.

Also Read: Comparison Between Weichert And Keller Williams.

Company Structure and Models

There are also important distinctions between each company’s structure and business models.

Coldwell Banker Structure

Coldwell Banker has an overall traditional franchise structure. Local Coldwell Banker offices must be independently owned and operated. Individual real estate agents then affiliate with these local offices to gain access to the Coldwell Banker brand and listing database.

So agents are not direct franchisees of Coldwell Banker corporate. This gives local offices independence, but agents have less influence on brand decisions.

Keller Williams Structure

Keller Williams has an “upside down” organizational structure. Instead of franchising to local offices, they offer franchises directly to individual agents. Agents can then open their own Keller Williams offices wherever they want.

So agents have a lot of flexibility and autonomy when starting new offices. And they have a louder voice influencing the brand since there are no regional office middlemen.

Commission Models

For commissions, Coldwell Banker uses a variable split model. Offices or broker owners determine what percent of commissions their agents get, often scaling based on sales volume and experience level.

Keller Williams commissions use a capped model. Agents always keep a minimum base percent of their sales no matter what. For example, a common base cap is 70/30 where the agent gets at least 70% of their sales. Keller Williams agents never make less than the base cap even as they scale sales.

Comparison

Key structure and commission model differences:

• Local offices: Coldwell Banker franchises offices. Keller Williams franchises agents directly.
• Agent influence: Keller Williams agents have more sway over branding.
• Commission splits: Keller Williams has a base cap model while commissions are variable with Coldwell Banker.

So Keller Williams offers agents greater flexibility and better commissions. But Coldwell Banker provides stronger localized support.

Training and Technology

Top-notch training and technology resources empower agents to better serve clients. This is another area where the brands differ.

Coldwell Banker Training

Coldwell Banker has a comprehensive new agent training program called CBx that combines online and in-person coaching. Local offices provide supplemental programs to help agents build skills.

There are also online Coldwell Banker University courses agents can take to gain designations and certifications. These courses span topics from luxury home marketing to military relocation tactics.

So Coldwell Banker prioritizes fundamental sales skills with added designations in niche topics. Local offices fill any other training gaps.

Keller Williams Training

Training is a major emphasis at Keller Williams anchored by their Keller Williams University. KWU offers extensive course tracks focused on their unique sales methodology, lead generation approaches, and productivity-based models.

Instead of one-off designations, Keller Williams training fosters a shared company culture and way of doing business. Classes use a common vocabulary enforced by local market centers. Training prepares agents to leverage the company’s proprietary tech tools.

Ongoing education opportunities help Keller Williams agents continually hone their approach instead of just learning basic skills upfront. KWU keeps material updated to reflect changing markets and new methodologies.

Tech Tools

For technology, Coldwell Banker offers the CBx suite including lead gen, marketing, transaction management, and CRM tools. Keller Williams has a similar proprietary tech stack called KW Command with lead gen, marketing, transaction, and back office tools tailored for their models.

Comparison

With training and technology, the core differences are:

• Fundamentals focus: Coldwell Banker emphasizes foundational sales abilities.
• Methodology focus: Keller Williams centers training on their unique models and culture.
• Tech integration: Keller Williams tech is more baked into models and training.

Keller Williams prioritizes ongoing structured training to perpetuate company methodologies. Coldwell Banker leaves more training choices up to local offices.

Size and Market Share

In terms of current scale and market footprint, how do these brands stack up?

Coldwell Banker Size

As mentioned earlier, Coldwell Banker has over 3,000 offices with around 90,000 affiliated real estate agents. They sell homes valued from $100,000 to luxury properties over $100 million.

Per industry analysis, Coldwell Banker handled over $150 billion in residential real estate sales volume in 2021. Their market share was 6.5% of U.S. existing home sales by dollar volume.

So they have a strong national presence, especially with higher-end real estate transactions. But their overall market share falls behind rivals like Keller Williams.

Keller Williams Market Share

Keller Williams ended 2021 with 1,100+ market centers and over 190,000 real estate agents worldwide. The brand was involved in over 1.1 million transactions in 2021 worth more than $300 billion.

This gave Keller Williams a 14% share of U.S. existing home sales by dollar volume – more than double Coldwell Banker’s market share. The company has grown sales volume by around 10% annually in recent years.

Comparison

For size and market share:

• Agent count: Keller Williams has about twice as many agents as Coldwell Banker.
• Sales volume: Keller Williams handles nearly double the transactions by dollar value.
• Market share: Keller Williams has over double Coldwell Banker’s market share based on sales.

So Keller Williams is significantly ahead by scale and current market share metrics. But Coldwell Banker maintains a strong presence especially in high-value homes.

• Agent Reputation

We can’t overlook the importance of brand reputation, which impacts the caliber of agents attracted to each brokerage.

Coldwell Banker Reputation

The heritage Coldwell Banker name carries prestige, especially in more affluent areas. The company is known for working with higher-end listings and clients with greater net worth.

These factors, along with their training programs, tend to attract very experienced agents. Coldwell Banker agents often specialize in areas like luxury real estate sales, relocations, and commercial transactions.

Keller Williams Reputation

Keller Williams attracts ambitious agents because of the financial upside of profit sharing and capped commissions. Agents just starting out often join because of Keller Williams’ strong training programs and startup resources.

The focus on agent-centric models also draws established agents who want more autonomy and influence over branding. Tech-savvy agents are also attracted by the integrated tools for marketing and lead generation.

Comparison

For agent reputation and talent, notable contrasts include:

• Prestige: Coldwell Banker skews towards highly experienced agents.
• Financial appeal: Keller Williams attracts entrepreneurial agents.
• Training: Keller Williams develops many new agents.
• Tech appeal: Keller Williams wins for tech-focused agents.

So Coldwell Banker agents often carry more individual prestige. But Keller Williams develops and empowers more agents in total through their models and training.

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• Costs for Agents

Coldwell Banker and Keller Williams have different fee structures that impact costs for agents.

Coldwell Banker Costs

With Coldwell Banker, the franchise fees and recurring dues are paid at the local office level. Individual agents pay nothing directly to the franchise.

Agents must negotiate splits and any fees with their affiliated office or broker. Splits usually range from 50/50 to 70/30 in the agent’s favor for experienced hires. Fees vary by office but often include desk fees, monthly tech fees, and more.

So costs come down to the local office. But agents may pay fees covering 40% or more from their commissions.

Keller Williams Costs

Keller Williams has a $60,000 – $90,000 franchise startup cost, depending on the market. Agents pay ongoing annual franchise fees of around $15,000 – $30,000.

For commissions, agents keep at least their base percent cap (often 70% or more). The market center may charge a 10% – 15% office fee from the remaining split.

Capped commissions let Keller Williams agents keep more commission dollars, offsetting the franchise costs. Profit sharing also defrays recurring fees.

Comparison

The key differences in costs for agents are:

• Coldwell Banker: No franchise fee, but varying splits/fees with local offices.
• Keller Williams: High initial and recurring fees, but agents keep a larger percent of commissions.

For top producers, Keller Williams can be more cost effective long-term thanks to their favorable commission structure. But lower producers may do better under traditional split models like Coldwell Banker’s.

Also Read: Comparison Between Keller Williams And Century 21.

Frequently Asked Questions (FAQs)

Final Verdict

So when choosing between these leading brokerages, which is the better brand for agents?

For newer agents, Keller Williams often provides better training, resources, and financial upside. But established agents may prefer Coldwell Banker’s prestige and split models giving higher instant income.

Ultimately there’s no “right” answer – it depends on your experience level, business goals, market presence, and more. Both Coldwell Banker and Keller Williams offer major advantages, so choose the opportunity that best fits your needs as an agent.