If you’re looking to buy or sell a home, choosing the right real estate brokerage is crucial. Two of the biggest names in real estate today are Compass and Keller Williams.
Both companies have grown rapidly in recent years and now operate nationwide. But there are some key differences between Compass and Keller Williams that you should understand before making your choice.
A Brief Comparison Table
| Category | Compass | Keller Williams |
| Founded | 2012 | 1983 |
| Headquarters | New York, NY | Austin, TX |
| Agent count | 19,000+ | 190,000+ |
| Location types | Company-owned offices | Franchised offices |
| Commission structure | 100% commission | Commission cap model |
| Monthly fees | Fixed around $200/month | Variable based on sales |
| Training | Individual coaching, digital courses | Boot Camp, classes |
| Technology | Proprietary platforms | Leverage external partners |
| Culture | Sales-driven, fast-paced | Collaborative, relationship-based |
| Recruiting | Selective, interview based | Open to all licensed agents |
| Departing | Lose access to Compass tech | Can still use KW tools |
Overview Of Compass
Compass is one of the fastest growing real estate brokerages in the United States. Founded in 2012 as Urban Compass, the company has expanded to over 19,000 agents in 300+ offices across the country.
Compass employs a technology-focused approach to real estate. The company has built proprietary software to enhance the home search process for buyers and market listings more effectively for sellers.
Key features of Compass technology include:
- Compass Concierge – An AI-powered platform that provides real-time data and insights to agents.
- 3D home tours – Allow buyers to virtually tour homes on their own time.
- Compass Coming Soon – Lets sellers test market demand before officially listing.
- Marketing suite – Provides listing promotion across social media, websites, email, and more.
Compass offers 100% commission to agents instead of a split model. This competitive commission structure has attracted top-producing agents to the brokerage.
Overview Of Keller Williams
Keller Williams (KW) was founded in 1983 and is now the largest real estate franchise by agent count, with over 1,000 offices and 190,000 associates. The company has a presence across the Americas, Europe, and Asia Pacific.
Unlike other national brokerages, each Keller Williams office is independently owned and operated. This allows flexibility for each market’s needs while still benefiting from the company’s training, technology, and support infrastructure.
Some key elements of the KW model include:
- Profit sharing – Associates get a share of their market center’s profits.
- Cap model – Agents pay a cap on fees that increases as their sales volume grows.
- KW Command – A proprietary lead generation and contact management platform.
- Kelle – AI-powered mobile app that provides listing alerts, market data, and more.
- KW Listing System (KWX) – An integrated platform to manage listings and transactions.
Also Read: Comparison Between Motovo And Zillow
Comparison Between Compass And Keller Williams
Company Cultures
When it comes to company culture, Compass and Keller Williams have some similarities but also important differences.
Both brokerages aim to create collaborative environments for their agents instead of a cutthroat, competitive atmosphere. Teamwork is encouraged through models like profit sharing at KW and group commissions at Compass.
However, the Keller Williams vibe is more overt with its official motto “God, family, business.” The company culture focuses on personal growth and contributing to the community.
Meanwhile, Compass presents itself as more sales-driven, tech-focused, and fast-paced. For some agents, Compass’ startup style environment provides energy and opportunity. But others may prefer the lower key, relationship-based culture of KW.
Technology Platforms
Utilizing technology to improve real estate transactions is a priority for both Compass and Keller Williams. But their approaches have key variances.
Compass has built an array of proprietary tech tools in-house specifically for their agents and clients. The aim is to automate and streamline parts of the real estate process through AI and digital platforms.
In contrast, Keller Williams taps into outside tech partnerships to offer solutions like Command CRM, Kelle app, and KWX system. The goal is integration under the KW brand rather than developing new products.
For some agents, Compass’ unique tech capabilities give them an advantage. Others are satisfied with Keller Williams’ leveraging of existing real estate tech tools.
Training And Support
When joining a real estate brokerage, access to training and support is vital – especially for new agents. Both Compass and Keller Williams offer robust training programs.
KW is renowned for its comprehensive new agent training that covers lead generation, marketing, contracts, and much more. The intensive Boot Camp program teaches the end-to-end process of selling homes. Ongoing training is provided through regular class offerings.
At Compass, every agent is assigned an individual coach. Plus, agents have access to free digital training courses on topics like pricing, negotiation, social media marketing, and more. Local branch offices provide mentoring and training events as well.
Ultimately, Keller Williams places a heavier emphasis on training real estate fundamentals. Meanwhile, Compass focuses more on technology platforms and marketing tactics.
Commission And Fees
For real estate agents, the commission structure and fees charged by a brokerage significantly impact earnings potential.
A unique aspect of the Compass model is offering agents 100% commission on sales. Most brokerages employ a commission split, often in the range of 70/30.
Keller Williams commission structure varies by market center but typically follows an income cap model. Once agents surpass their fee cap – from $12,000 to $60,000 annually – they keep 100% commission thereafter.
Compass charges agents lower fixed monthly fees compared to Keller Williams. Compass fees cover desk space and tech access, averaging around $200 per month. Keller Williams’ cap model means variable fees based on sales production.
For newer agents or those doing fewer transactions, Compass’ lower fixed fees may be more affordable. Top producers at KW can maximize earnings by surpassing fee caps quickly.
Also Read: Comparison Between Redfin And eXp Realty.
Joining And Leaving A Brokerage
Both Compass and Keller Williams aim to build loyalty and long-term relationships with their agents. But the process for joining and leaving reveals core differences.
Compass has a selective recruitment process, focusing on proven agents with existing business. Joining requires extensive interviews plus recommendations from current Compass agents.
Keller Williams allows any licensed real estate agent to join by completing required training and classes. Requirements vary by market center but are designed to confirm commitment more than past sales achievements.
Departing Compass means giving up many of the company’s proprietary technology tools. Agents lose access to Compass software and systems after leaving.
At Keller Williams, agents can generally continue using Command, Kelle, KWX, and other company tools if they change brokerages. The open architecture approach makes switching easier.
Pros And Cons Of Compass And Keller Williams
Compass
Pros
- Generous 100% commission model
- Cutting-edge proprietary technology
- Lower monthly fixed fees
- Strong marketing support
Cons
- Less training for new agents
- Selective recruitment process
- Lose tech access if leaving
- Potentially intense sales culture
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Keller Williams
Pros
- Well-rounded training programs
- Commission cap model rewards production
- Keep using KW technology after departing
- Collaborative company culture
Cons
- Variable commission split model
- Monthly fees based on sales levels
- Less emphasis on proprietary tech
- Must pay for additional KW tools
Which Is The Right Fit For You?
When choosing between Compass and Keller Williams, first reflect on your real estate business goals and work style preferences.
Newer agents may benefit more from Keller Williams’ extensive training offerings. But for established agents who want cutting-edge tech tools, Compass has strong appeal.
Those focused on maximizing commissions may be attracted to Compass’ uncapped model. But capping fees at higher production levels can also boost earnings for top KW agents.
If you thrive in a fast-paced, sales-driven atmosphere – Compass. If you prefer a lower key, collaborative environment – KW.
Be sure to also consider company culture fit and what happens when you decide to leave the brokerage in the future.
By evaluating commission structure, technology offerings, support resources, and company values, you can determine which real estate brokerage is the better match for you.
Also Read: Comparison Between Berkshire Hathaway And Keller Williams.
Frequently Asked Questions (FAQ)
Compass stands out through its proprietary technology platforms designed specifically for real estate transactions. Other unique features are generous commission structure, marketing emphasis, and selective agent recruitment.
Compass was originally founded in 2012 as Urban Compass. The company rebranded as Compass in 2015.
Keller Williams is the largest real estate franchise in the world by agent count with over 190,000 associates globally. But it is not the biggest real estate brokerage overall. That title belongs to Realogy, parent company of Coldwell Banker, Century 21, and Sotheby’s International Realty.
Both KW and eXp offer agent profit sharing and commission cap models. But eXp is a fully virtual brokerage without physical offices. Keller Williams has traditional brick and mortar office locations led by market center owners. EXp also focuses more on a cloud based tech ecosystem versus Keller Williams’ approach of integrating various real estate tech tools.
Also Read: Comparison Between HomeSmart And Keller Williams.
Conclusion
Choosing a real estate brokerage like Compass or Keller Williams can greatly impact your business and career. Consider all aspects like company culture, technology platforms, training, commission models and more.
Analyze both your current situation and future goals. With these insights, you can determine the brokerage that is the best fit for you.