No one is talking about it, but eXp Realty just made 4 monumental changes to its Independent Contractor Agreement and Policy & Procedures that all agents should be aware of. That includes you, whether you considered joining eXp Realty in the past, whether you joined and then left eXp, or whether you’re active at eXp right now.
I want to highlight these changes because they are recent and also because they address some of the most significant reasons many agents haven’t joined eXp Realty already…at least, based on the conversations I’ve had with 2,000+ agents.
However, there is still one major change that eXp Realty needs to make to truly see the explosive growth it’s looking for. We’ll get into that too—so let’s dive in!
4 Major Changes at eXp Realty
Here is a quick overview of the four major changes eXp recently made that I want to draw attention to.
Referral Division
The eXp Referral Division allows agents to keep an active real estate license with a broker while taking a break from traditional real estate agent responsibilities.
In the Referral Division, agents can refer new leads to other agents for a “referral fee” (usually a percentage of the income that the active agent earns after completing the transaction).
This is a beneficial relationship for agents who don’t want to do daily real estate business but still want to gather leads and agents who want to do business but may need help getting more leads.
With the Referral Division, agents no longer have to join the MLS or the National Association of REALTORS (NAR) in order to join eXp. In addition, eXp reduced the monthly fees for agents in this division.
What Are the Fees To Be Part of the eXp Referral Division?
There is a $50 monthly fee to be part of eXp’s Referral Division. This fee provides access to eXp World, Workplace, Skyslope, My eXp, eXp World, and eXp University, as well as eXp’s vast network of professionals around the world.
What Is the Referral Division Split?
Splits are 75/25 on referrals to eXp agents and 70/30 to non-eXp agents. Keep in mind that this is your split with the brokerage (eXp)—you can charge whatever split you want as a referral fee.
It’s also important to note that agents in this division cannot cap or reach ICON level at eXp.
Why Join the Referral Division?
Many of our agents prefer to focus on generating business rather than signing contracts and buying or selling homes.
For example, Phyllis is an agent in my group who consistently refers dozens of clients each month to others in the team who want to go through the transaction process with clients.
Phyllis does the marketing and draws people in while other agents in her group meet the leads, show homes, prepare contracts, and go through the whole transaction.
The Boost Program
eXp created the Boost program to incentivize independent teams and brokerages to join the brokerage. However, these teams must share eXp’s values and goals and provide a good cultural fit.
The Growth Team at eXp Realty gets to determine each team’s cultural alignment and manage the agreement terms for bringing each team onboard.
The qualifying criteria for a team eligible for the Boost program (a financial incentive from eXp) include:
- Must be an independent team or brokerage culturally aligned with eXp, home to more than 50 agents, and making a minimum of $100 million (US/CAN) in the previous 12-month fiscal period. (Some international and/or additional qualifications may apply.)
- Cannot be affiliated with any non-independent franchise.
- Must be culturally aligned with and committed to adhering to the eXp Realty model.
- Must be invested in their continued growth with eXp Realty.
- Must participate in the eXp Realty Sustainable Revenue Share and Agent Equity programs.
- Must agree to incentive and retention terms and timelines.
If teams meet these criteria, eXp offers an incentive to get them to join. In addition, any agent whom that team names as sponsor gets to add the team to their revenue share group.
The Tier 7 Threshold
As you may be aware, the revenue share program at eXp comes with several “tiers.” At its most basic, each tier represents a different percentage of revenue share a sponsoring agent can earn based on how many qualified, income-earning agents they sponsor.
At this time, eXp is improving its competitive and aligned compensation model, even while many other companies are imposing more fees or increasing thresholds to keep up with the inflating market.
Until now, sponsors had to have 40 or more Front Line Qualifying Agents (FLQAs) in order to earn both the eXponential and eXpansion share of revenue from agents. As of today, they only need 30 FLQAs!
This change is going to allow sponsors to earn more money more quickly as they expand their team to further horizons. It’s just one more example of how eXp remains entirely agent-centric and, thus, continues to add more agents under its wings.
New Mortgage Loan Initiation Rules
The final change to eXp Realty is agents’ new ability to engage in mortgage loan origination activities in transactions in which they have a personal or financial interest.
All that sounds confusing, but it’s basically just a new way of allowing agents to make money where they have a potential conflict of interest.
As you know, mortgage loan originators help clients find a loan, mortgage rate, etc. so they can buy a home. Then, the client finds a real estate agent to help them find the right home that they can afford with that loan/mortgage option.
Now, eXp agents can act as both the agent/broker and as a mortgage loan originator, if desired and allowed by law. This means you can help your client find a good loan, a good mortgage, and a good home.
What New Changes at eXp Mean for You
Are you an agent at eXp Realty? Are you considering joining eXp Realty? If so, these changes represent MAJOR steps forward in how eXp treats and supports its agents.
If you’d like to learn more about eXp Realty and what it means to join this amazing, agent-centric brokerage, reach out for more information! I can share more about how eXp works and how you can be a part of a fantastic, community-centric team with tons of bonus resources and services to offer.
Major Change eXp NEEDS To Make
Now, there is one final change that eXp needs to make to really bring in more agents. This change is pretty simple, but could be so powerful—eXp should allow agents to deal in property management!
We’ll see if eXp Realty ends up making that change and dealing in the property management side of things. But even if it doesn’t get there anytime soon, at least you know the major changes eXp HAS made and how they can change your career at eXp (and your life) for the better!