Are you considering joining eXp Realty? Any career move is a huge decision that could affect you for the rest of your life. Before choosing to join eXp, there are five important details to consider. Please don’t make a decision without enough information!
According to the wisdom of Colin Powell and other great leaders, a person should make a decision based on the 40-70 rule. Basically, if you have less than 40% of the information, you don’t have enough, but if you have more than 70% of the information, you’ve waited too long. You want to make your choice right in that sweet spot, relying on just the right amount of information balanced against the right amount of risk.
By some estimates, the average person makes 35,000 decisions a day. Some of those decisions are not terribly important to our futures, but many of them are. Making career moves is one of the biggest decisions you’ll ever make. Before making the choice to join eXp, check out the 5 important details in the following paragraphs.
1. What is the Commission Breakdown at eXp Realty?
The commission breakdown at eXp Realty is 80/20. With every typical transaction, 80% of the commission goes to you as the agent and 20% goes to eXp. However, this split caps at $16,000. Once $16,000 has been paid to eXp Realty from their commission split, you move to a 100% commission split.
Also note that if you’re brand new to the business, your initial commission split will be a little different. When eXp hires new agents who have made less than three transactions in the last 12 months, they require these agents to join the mentor/mentee program.
For the new agent’s first three transactions at eXp, they will work with a mentor and the commission split will be 60/40. The extra 20% will be used to pay for the agent’s eXp University fees and the mentor’s efforts. After the first transactions, the 80/20 split goes into full effect until the agent caps.
Overall, the commission split at eXp is pretty typical, but the cap is low and the benefit of getting help from a mentor for those first few transactions is undeniable.
2. Will I Use All the eXp Resources?
Consider the extra resources you’ll be paying for when you join eXp Realty. Agents at eXp have access to kvCORE for marketing resources, Skyslope for transaction management, and Regus for free office locations if they prefer not to work at home. There are of course many more resourcesat eXp–but these are the main ones.
These are all fantastic resources, but they do come at a cost. Is it worth it to you to pay that 80/20 commission split to have those resources? Will you use them regularly? Will they help you grow your business?
It’s important for agents to take marketing, networking, training and a support structure seriously, but many agents already have their own resources for getting all this done. Do you need the extra eXp has to offer? Would it be a better deal to take it? Or would you prefer to go it on your own?
3. Can I Work Digitally?
Working from a remote location isn’t for everyone. You may miss important events and connection with coworkers by doing everything alone. If you’re a person who needs support and daily socialization, remote work may not work well for you.
You’re certainly capable of working remotely, but you may just not want to. A lot of agents genuinely refuse to work remotely, and they do it for good reason. If you prefer face to face guidance and don’t get along well with computers, you’ll want to find a brokerage that offers an office environment.
4. What If I Need Help?
Joining a new brokerage is NEVER easy, no matter how long you’ve been in the business. And when you join a brokerage like eXp that’s entirely online, it can be a lot harder to engage with others and understand how the brokerage process works.
In order to truly succeed at eXp, you need to find a good sponsor. I’ve broken down the process of finding a good sponsor in detail in this article, but it’s not super complicated. You need a sponsor who is willing and eager to help you transition into a new brokerage.
The best sponsor will offer you something in return for joining eXp with their sponsorship. Every sponsor has different ways of supporting agents, from marketing advice to client leads, so just make sure what they offer is something you need. Choose a sponsor who is willing and eager to guide you through the process of joining eXp Realty and getting used to the new online environment.
5. What Are the eXp Realty Fees?
Every brokerage comes with hidden fees that you don’t understand at first glance. It’s important that you know exactly what fees eXp will charge you before you decide to join them.
eXp Realty has 3 main fees in addition to the regular commission split and the sign-on fee of $149.
- $85 per month to cover the technology and training you have access to. This fee must be paid regardless of your sales volume. If you’re not planning on a lot of transactions, consider carefully if joining eXp (or any brokerage) is worth the cost.
- $25 per transaction for broker reviews. Every state and country has a broker review team that will review each of your transactions. This fee never caps, so you will pay it the whole way through regardless of the number of transactions.
- $40 per transaction for risk management (E&O Insurance) until you cap at $500.
These aren’t huge fees, but they do add up over time. Make sure you’re comfortable paying them before you take the final step to join eXp Realty.
So, Should You Join eXp Realty?
You should now have the right amount of information (between 40% and 70%) to make an informed and wise decision. eXp Realty has a lot of benefits, but not every benefit is useful for every person. Think carefully about the reasons you want to join eXp Realty and if the online brokerage setup will work best for you.
If you’d like more information and guidance in making your choice and applying to eXp Realty, don’t hesitate to reach out to me. I can answer all your questions and help you get started on this next step whenever you’re ready.