KW Expansion Network is a nationwide brokerage that will support business operations of the U.S.-based KW real estate expansion teams and give them a product that will help them compete against brands such as Fathom Realty and eXp.
Keller Williams has long been hailed as one of the first to embrace the team business model in real estate. The newly launched KW Expansion Network will take that support one step further to systematize the process of bringing expansion teams to new markets. While launched, the Network isn’t expected to be fully functional in all 50 states until next year. Technically, the Expansion Network is a national brokerage.
Heading up the new Network will be Matthew Szalecki, who was named senior director of strategy and operations for the Expansion Network. He previously served as director of brokerage operation for Fathom Realty and as a regional operations manager for eXp Realty. RealTrends spoke with Szalecki, who said, “It’s an easy button for expansion teams. We’ve been working on this for a couple of years as we talk to teams and local leadership about what’s working and opportunities for growth, as well as pain points in operations.”
A Keller spokesperson is quick to point out to RealTrends that the move was not in response to competition from brokerage models such as Fathom and eXp, but instead the result of many conversations with stakeholders.
However, strategically, it provides a way for KW to compete with new business models. The KW Expansion Network is a nationwide brokerage. “KW Expansion teams will be licensed through that entity and supported by the local market center,” says Szalecki. “Our market centers are able to offer new growth opportunities that weren’t available before and can partner with expansion teams which will bring agent growth,” he adds.
“Along with the operational efficiencies, expansion teams will be further supported with physical space provided by Keller Williams’ existing local offices for agents to meet with clients, attend live training events and closings, and contribute to the culture of the local market center,” said Szalecki.
In addition to maximizing operational efficiencies for team, the Network will offer a simplified, standardized compensation plan for expansion teams to grow into new markets. Agents will share their commission with the Expansion Network rather than the the local market center.
The new financial model “will make it more profitable for teams and agents. And, the administrative side is more streamlined as it will have a single set of payments and compliance for each state,” says Szalecki. “We decided to put a standard comp plan [in place] to make it predictable. It’s tough for teams to decide which markets they want to enter when they don’t know the costs. This will make that information more accessible.”