What is Cap Management?
Cap Management is a simple, yet powerful system for strategically placing Company Dollar Anniversary Dates for proven Cappers. Cap Management is only used for associates who are new to Keller Williams and to the Market Center, not existing or transferred associates.
Because Cap Management only applies to new associates, it is logical that it ties closely to recruiting. It allows your team to strategically recruit agents who will provide Company Dollar when other agents are at full commission. It means that you ensure that you have high producers rolling over each month and a more even distribution of Company Dollar across the year.
NOTE: Associates may not choose their Company Dollar Anniversary Date; only your Operating Principal and Team Leader can make this decision following established market center policy per the KWRI Policies & Guidelines. The associate should agree to the decision in writing.
Cap Management DOES NOT apply to the Franchise Royalty Cap. Every agent pays towards this cap from day one.
Why use Cap Management?
Top associates entering the Market Center benefit from Cap Management because the delayed Company Dollar Anniversary Date allows them to jumpstart their business at Keller Williams. The Market Center benefits from a more even and predictable distribution of Company Dollar.
Who is eligible for Cap Management?
This program is only for new agents joining the Market Center. Never move the cap reset date of an existing associate. Cap Management only applies only to agents who meet all three of the following criteria:
- Associate’s current production (verified through MLS reports or BrokerMetrics) is greater than needed to cap.
- Newly hired associate (Cap Management does not apply to existing associates)
- New Company Dollar anniversary Date is approved by the OP and is on the OP’s Cap Management timeline
Cap Management should be a win-win. A delayed cap is a great recruiting value proposition because it helps defray the transition expenses the mega agent will incur when they move to Keller Williams. That said, some associates may prefer to not delay their anniversary date.
Add an Associate to WinMORE under Cap Management
To signal a new associate's cap management in WinMORE, the MCA will make two adjustments from the normal Associate Entry: Adding a New Associate to WinMORE process:
On the main Associate Detail tab, the MCA will enter the future month of the agreed-upon cap managed company dollar date. In the example below, you'll see that the associate's start month/year is 12/2010 meaning that the associate was first entered into WinMORE in December 2010. WinMORE defaults to the first of the following month as the company dollar anniversary, which would be 1/2011. In this case, the associate has been cap managed for six (6) months, so the MCA entered the company dollar anniversary date of 7/1/2011.
On the Commission tab, the MCA will enter $0.00 into the company dollar cap field and leave the cap defaults field empty, unless the cap agreed upon will be different from the market center default.
Since the associate has been cap managed for their first six months, their company dollar cap for the first six months is $0.00. The MCA will need to enter $0.00 in the company dollar cap field.
NOTE: OP, TL and/or MCA may not modify the Royalty Anniversary Date.
NOTE: If you transmit before editing the associate’s Co$ Anniv. Date field, you will need to contact MCASupport@kw.com for further instructions.