Sure, eXp Realty is still one of the fastest-growing brokerages in the nation—in fact, as of this writing, the brokerage just surpassed 89,000 agents! However, lots of agents are leaving eXp Realty too. The question is, why are so many agents leaving?
Let’s get real and dig into this. I am happily working with eXp Realty right now, but that doesn’t mean I don’t see the flaws that cause some agents to leave. There is a top reason (which I’ll share at the end) that agents are leaving eXp Realty, but there are several other reasons that are worth consideration as well, including:
- The Passive Income
- The Competition
- The Fees
- The Overwhelm
- The Virtual Space
The Main Reasons Agents are Leaving eXp Realty
Let’s dive into why agents are leaving so that you can decide for yourself if eXp Realty is the brokerage you want to join today.
1. The Passive Income
One of the biggest draws to eXp is the opportunity to earn passive income by sponsoring new agents and earning from the income that those new agents generate. However, while this benefit attracts many agents, it often doesn’t play out as well as they thought it would.
To be honest, when agents first come into eXp Realty…they’re promised the f***ing moon. Agents already in eXp are trying to bring in sponsored agents for that passive income and they’re selling “passive income this, passive income that” as hard as they can.
The truth is, a lot of agents join eXp and never actually sponsor a producing agent. Sure, you can get an agent to join…but if that agent never closes transactions or does the work to earn money, they’re not going to get you ANY passive income either.
It is entirely possible to generate a fantastic income with the revenue share program (I’m proof of that!). However, if you come into eXp already planning to spend money that you don’t have and you can’t earn, you’re going to be disappointed.
2. The Competition
eXp is the first of its kind—the first online brokerage, the first with such a huge revenue share program, etc. However, it isn’t the only brokerage of its kind anymore.
Several other brokerages (such as Real Broker and Fathom Realty to name just two), have sprung up using a very similar model to eXp Realty. These brokerages offer revenue share, cloud-based systems, and more in a similar vein to eXp.
Essentially, just as Uber and Lyft are now equal but different rideshare services competing with each other for customers, eXp is an equal but different brokerage competing with Real, Fathom, and various others.
Obviously, each brokerage has benefits, and there’s no one to say that one brokerage is right or wrong for someone else. You may find you prefer certain aspects of a different brokerage for good reason!
The point is, many agents are leaving eXp Realty to join a similarly modeled brokerage with the idea that it will be more lucrative, work better for them, or end up blowing eXp out of the water one day.
3. The Fees
Depending on their business practices, the fees at eXp Realty could be too much for some people. Many agents never complete more than four transactions in a year, which means they won’t be able to take advantage of all of the five ways to earn stock at eXp Realty.
If you’re only completing four transactions a year while paying $85 a month for tech, 20% of each commission (eXp operates on an 80/20 split), and $65 per transaction for a broker review fee and E&O Insurance, well, you’re not going to earn a whole lot. Plus, eXp makes all agents join the National Association of REALTORS® (NAR), which comes with a fee as well.
There are transaction shops and brokerages out there that either don’t charge monthly fees or charge very minimal ones. There are some that don’t require NAR membership or that don’t require any payment until an agent closes a transaction. These types of brokerages can be very appealing to an agent who doesn’t close a lot of transactions.
Ultimately, it depends on your individual practices. If you work hard and close several transactions each year, you will earn more than enough to make up for the fees and maximize eXp’s potential. But if you’ll never get more than a few transactions completed in a year, the fees may be too much.
4. The Overwhelm
Honestly, eXp is not the easiest brokerage to onboard with. As soon as you sign up, you’ll get what feels like 10,000 emails pouring into your mailbox. You’ll have a huge learning curve while you figure out how to:
- Connect with the MLS.
- Find all eXp resources.
- Sign up with all the technology platforms.
- Learn the online transaction management method.
- Etc.
If you don’t have a dedicated sponsor from eXp there to act as a guide through the onboarding process, you may struggle to get everything done in a timely manner and ensure you’re not missing anything important.
If you’re not plugged into someone who can answer your questions, you’re going to end up incredibly confused. That’s why we have agents leaving eXp Realty. Even in my group where I do provide a dedicated concierge, some agents who join on Monday end up leaving on Wednesday because they’re too overwhelmed.
For some people, eXp is not the right fit, especially if they’re not willing to work to learn new systems. However, much of the overwhelm can be handled if you join with the right sponsor. You can always connect with me if you want dedicated support during the sign-up process.
5. The Virtual Space
Running a business completely online can be challenging, especially if you’re not super computer-savvy or if you really need physical connection to hold you accountable. The online space can get lonely if you allow it to.
One of the most important aspects of Agent First Group is that we connect daily with various activities to ensure that no one is left alone without the motivation, focus, and accountability that teammates can provide.
Many agents struggle with not having someone there to chat with while they muddle through transactions and pursue their real estate career “in the real world.” Therefore, many agents end up leaving eXp Realty to find a physical brokerage.
It is worth noting that eXp offers physical office spaces through its partnership with REGUS. You can always set up an office. You could also get together with other local agents or one or two assistants to keep the physical aspect while still working with a virtual brokerage.
The BIGGEST Reason for Agents Leaving eXp Realty
When you hear it, it may seem pretty simplistic, but there is one main reason that so many agents are leaving eXp Realty—in fact, it’s led to thousands of agents leaving every year!
The biggest reason agents are leaving is because they’re going out of business.
In the real estate world overall, there’s an 80%+ agent failure rate. And eXp Realty doesn’t perform magic to make transactions appear for real estate agents. If an agent fails in real estate because they don’t have enough business, well, they’re going to leave eXp Realty.
In the world today, the amount of transactions closed is expected to dip. Many agents are leaving real estate or failing to join in the first place out of fear that the market is going in the wrong direction. And, of course, the market is always moving and changing, but that’s a topic for a different day.
The point is, if an agent is going to fail in real estate, it doesn’t matter what brokerage they’re with. In truth, eXp offers tons of support, but no one will make it in real estate without putting in the effort to get transactions.
So, there you have it. eXp Realty is a challenging brokerage to join, but, ultimately, you could be just as successful there as anywhere else if you put in the effort. If you need help getting started and want to onboard without becoming completely overwhelmed, don’t hesitate to get in touch!