Objective: keep our associates happy by not overcharging them on fees when they are in 2+ market centers
The Pain Points: What happens when we aren’t keeping tabs on our dual affiliates? Most often, they get overcharged for something – 2 annual renewal fees, double royalty, and things like that. How does that affect you – the MCA? Confused or perhaps angry associates and extra work with refunds or credits, Adjustment DAs to refund royalty, and royalty exceptions and adjustments.
Evolution of One Royalty: With more and more associates growing their businesses by joining multiple market centers, MCAs are seeing an increase in royalty exceptions and associates reporting overpayment issues. Here’s an overview of KWRI’s Royalty policy and procedures:
As of May 2021, associates owe only one royalty – one total of $3000 – per royalty anniversary year, no matter how many market centers or regions they join. This is commonly known as the One Royalty Policy: Associate Royalty for Licensed Associate in Multiple Market Centers in Multiple Regions. This is different from the past where a transfer or affiliation in two different regions meant that an associate would pay $3000 in each region – which is no longer the case.
Put simply: an associate pays one royalty no matter how many market centers or regions or states or expansions or KW specialty communities the associate is affiliated with.
This is a direct result of the Dual Affiliation Policy: Dual Affiliated Associate Role – Associate in More Than One MC which allows associates to affiliate with as many market centers as their state commissions allow. Simply put, KWRI places no restrictions on an associate’s ability to grow their business beyond the walls of their first market center.
The Process: So what do MCAs need to be doing? To learn which associates you share with another market center (or two or three), please review your Duplicate Associates Report at least once a month: KWConnect > Reports > Market Center > Duplicate Associates Report; this report is updated once a month a few days after Multi-Year Trends become available. Then establish a system for Tracking Caps Across Multiple Market Centers in cooperation with each MCA you share an A or PO associate with to ensure that your shared associates are never overcharged on their One Royalty.
See also
Associate Transfer Process (use for dual affiliation as well)
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