The real estate industry has been slammed, but Keller Williams has endured times like this before. "Keller Williams was founded 26 years ago during one of the toughest markets on record - when interest rates were higher than 18 percent," says CEO Mark Willis. "So our business model prepares us for fluctuating economic situations."
The key, Willis says, is understanding that the consumer does business with the agent and not with the company: "We can only grow if our agents do."
With that in mind, Keller Williams has survived the downturn by focusing on supporting and educating its agents. Throughout 2009, agents had free online training, regional seminars on using technology and social media as sales tools and a tour of North America by the company's co-founder, Gary Keller. Keller also laid out the tactics in his new book, Shift: How Top Real Estate Agents Tackle Tough Times. The most important tactic for Keller Williams franchisees, according to Willis, is "leading with revenue" - that is , spending only money that the business has generated. It seems to have worked. The company saw a cumulative 86 percent increase in franchise owner profits for 2009, and while the National Association of Realtors' membership decreased by 7 percent, Keller Williams' agent count grew to more than 76,000.
By Tracy Stapp, Entrepreneur Magazine, May 2010
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