Have you ever wondered how much you can earn from eXp Realty in comparison to other brokerages? According to Indeed, the average salary for a real estate agent is around $90,000 a year. But it can vary drastically depending on which state you’re in, what brokerage you’re with, the type of real estate you sell, and how many transactions you close a year. In order to determine approximately how much you could make from eXp Realty, you can use this handy commission calculator. Simply input:
- Number of Transactions
- Total Sales Volume
- Average Commission
The tool will do the rest for you! You don’t have to try and guess with this calculator–adding in your average monthly sales will get you an answer instantly!
Using eXp’s Revenue Calculator
Consider this scenario:
You make 25 transactions a year at an average sales price of $400,000. Your total sales volume is $10,000,000 at 3% commission.*
PRE CAP Production
Now, let’s take those numbers and plug them into the eXp Realty model with our eXp Realty commission calculator. First, we’ll examine what you earn before you cap, that is, while you’re still paying the eXp commission split.
eXp will take 20% of each commission until you cap at $16,000 (given eXp has an 80/20 split). You will also pay a Risk Management Fee of $40 per transaction until it caps at $500 and a Broker Review fee of $25 per transaction (which does not cap). You’ll pay eXp $85 per month for the ability to sell real estate as well as the technology and support the brokerage provides. Altogether, this leads to a net pre-cap commission of $62,525.
In this instance, it would take you just under 7 transactions (6.67) to cap (you’ll need $2,666,666 in sales volume to cap at a 3% commission). This means you get $7,333,333 in sales volume at 100% commission with only the transaction fee applied. Your Risk Management (Errors and Omissions Insurance) fee for the year was $280 and the broker review fee for the year was $175.
POST CAP Production
Now, let’s see how much you’ll make after capping at eXp.
All told, your net post-cap commission earnings are $214,680! And with only TWO more transactions you could have reached the ICON agent status (after capping, you only need 20 more transactions to reach ICON status).
Since you capped, you only had to pay $250 as a transaction fee on each transaction post capping. So, you paid $4,750 in transaction fees, which was very close to capping at the $5,000 needed to reduce the transaction fees down to $75 per transaction.
Also, you capped with your E&O by paying $120 post cap and reaching the $500 capping mark. The broker review fee, which doesn’t cap, was $450 for the year post-cap.
In the end, you’ll have earned a total of 92.4% of your commissions for a year at eXp! As you can see, you had so many transactions billed at 100% commission split that you ended up with far more than you’d have made simply following the 80/20 split that eXp offers before capping.
Taking Stock Into Consideration
At eXp Realty, in addition to earning through the traditional method of selling real estate, you also have several opportunities to earn stock. Upon your first transaction with eXp Realty, you’ll earn $200 in stock. When you cap, you’ll earn $400 in stock. And when you reach that ICON status, the original $16,000 you paid into the company through commission splits is converted into EXPI stock for you.
In addition, agents can choose to join the Agent Equity Program at eXp. With this program, you can use 5% of each transaction to purchase stock at a 10% discount. That means you could have bought $15,246 worth of stock with only $13,860. Basically, you’ll be earning $1,386 in instant equity on your money!
A final way to earn stock is by sponsoring agents. If you sponsor an agent who joined eXp, you could earn $400 in stock on that agent’s first sale.
The eXp Realty commission calculator gives you a visual example of what stock could look like for you in several situations:
- After your first transaction
- If you sponsor an agent with a closed transaction
- When you cap
- When you hit ICON
- After participating in the Agent Equity Program
The 5%, 10%, and 25% columns are just examples of what the stock value would be if the stock rose by that percentage.
Taking Revenue Share Into Consideration
Revenue share is another important aspect of calculating earnings with the eXp Realty commission calculator. In this example, you don’t have a sponsored agent, but if you sponsored one agent, you would have earned $2,800 when your sponsored agent capped. PLUS, you would have earned that $400 from the sponsored agent’s first transaction.
This chart might look complicated, and you can read a further breakdown of revenue share here. Basically, you earn a percentage of revenue share from each agent you sponsor and each agent that your sponsored agent sponsors. The percentage you earn depends on the quality of each agent and whether or not the agent caps.
Calculating Your Total Compensation
So, with these numbers in mind, let’s look at how much you’ll earn in a typical year at eXp Realty. We have a total of $277,205 in net commissions. Then $200 in stock for your first transaction plus the $400 in stock for capping. Assuming you participate in the Agent Equity Program, you instantly gain $1,386 on your money by investing $13,860 and getting $15,246 worth of stock.
This means your total compensation is $279,191 (assuming the price of the stock stays the same and you participated in the Agent Equity Program).
Now that we have that on paper, let’s look at two more hypotheticals that are reasonable to make:
- Let’s assume you attract just one agent to eXp and they end up capping at eXp realty. This means you earn $400 in eXp stock for their transaction and $2,800 in Revenue Share. So that’s $3,200 for that one agent’s production, and the $2,800 can repeat again next year! There’s no telling how much you might end up with!
- If you would have done 2 more transactions at eXp, you would have reached ICON status! By reaching ICON, you can earn back the entire $16,000 you paid into the brokerage in the form of eXp stock.
So if these two hypothetical items would have occured, you’re looking at $19,200 in additional compensation. How wild is that?
To use the calculator to estimate your personal numbers, head over to this page. If you have further questions about the calculations used or about joining eXp Realty, don’t hesitate to reach out to me. I have built an amazing group of individuals, the Agent First Group, who are supporting each other to increase earnings and create incredible real estate businesses! If you’re thinking of joining eXp, you’ll want to check out our team’s resources, services, community, and other benefits that will help you create the career of your dreams.
DISCLAIMER
*These figures are not a guarantee, representation or projection of earnings or profits you can or should expect. They also do not include expenses incurred by Agents in operating their businesses. eXp Realty makes no guarantee of financial success. Success with eXp Realty results only from successful sales efforts, which require hard work, diligence, skill, persistence, competence, and leadership. Your success will depend upon how well you exercise these qualities.