Life is full of hard decisions, especially for real estate agents. As an independent contractor, there is no safety net–should you join the eXp Realty brokerage or the Keller Williams brokerage? There’s no guarantee which is better. Either could make or break your career, and you won’t know until you get there.
With the constant shifts in the real estate industry these days, it can be even harder to decide where to focus and when to invest in something that’s really going to last. Think about it–knowing what you know today, would you have invested all your money in Blockbuster when they started out, or would you have gone with Netflix?
Looking back, it’s easy to say. Right in the face of it, it’s a little harder. But one of those big decisions is one you’re probably thinking about right now: should you stay with your current brokerage, buy a brick-and-mortar real estate franchise, or try something completely different? In this article, I’ll share with you how eXp Realty as a brokerage is the real estate industry’s Netflix and how you still have time to jump on board.
How eXp Realty Works
The Model
eXp Realty is a fully agent-centered model. When Glenn Sanford started the company in 2009, his desire was to reward agents for their hard work. That’s why he created a model based on providing high income from multiple revenue streams. He also understood the value in agents owning their work along with owning their business (i.e. equity).
eXp is the first fully online real estate brokerage out there. That’s right, there are no brick and mortar offices to hold eXp Realty down. All 85,000+ agents at the time of this writing network, collaborate, and thrive virtually.
The Compensation
- Commission: When you join eXp, you’re going to get commission at an 80/20 split, so you take home 80% of every transaction. That stays in place until eXp has received $16,000 (when you cap), which is equivalent to selling $2.66 million in sales volume. After you cap, the split goes away and you earn 100% commission.
- Stock/Equity/Shares: At eXp, there are five ways to earn stock:
- When you make your first transaction ($200 in stock)
- When an agent you sponsor makes their first transaction ($400 in stock)
- When you cap ($400 in stock)
- When you reach ICON status ($16,000 in stock)
- When you enter the Agent Equity Program and use 5% of your commission to purchase stock at a 10% discount
- Revenue Share Program: In addition to the stock, you can participate in the revenue share program. This program allows you to sponsor agents that join eXp and earn a percentage of the revenue they generate. This revenue is earned off the top, meaning you get it from the gross income, and it’s earned from the 20% of the commission split that goes to eXp. This plan includes seven tiers (ranging from 0.1%-4.5%), starting with agents you personally sponsor in tier one, then moving on to agents that your agents sponsor in tier two, and so on.
- There are seven other revenue streams–be sure to watch this video to find out what they are and how they work. Just know you can be financially rewarded from companies that offer home warranties, exchange currency, do lending, secure utility connections, etc.
The Low Cost
At the eXp Realty brokerage, there are no overhead desk costs like you pay in a brick-and-mortar brokerage. After a startup fee of $149 (which includes the initial monthly fee) all you have to pay is your $85 a month for the technology (Website, CRM, Email Autoresponder, Text Autoresponder, etc.) and education (60+ of LIVE training every week) you get to access. Note: this is the U.S. plan. In other countries, things may break down differently. If you want to know more, contact me.
As far as transaction costs, you pay $25 for broker review and $40 for errors and omissions (which caps at $500) on all transactions until you cap at $16,000.
Here’s an example:
BEFORE CAP: $500,000 sales price x 3% commission = $15,000
SPLIT BREAKDOWN: 20% goes to the broker ($3,000) and 80% goes to you, the agent ($12,000)
AGENT TAKE HOME: $12,000 – $25 broker review – $40 errors and omissions = $11,935
After you cap, you pay $250 per transaction, $25 for broker review, and sometimes the $40 errors and omissions cost. Often though, this has already capped as well.
AFTER CAP: $500,000 sales price x 3% commission = $15,000
SPLIT BREAKDOWN: 0% goes to broker ($0) and 100% goes to you, the agent ($15,000)
AGENT TAKE HOME: $15,000 – $250 transaction fee – $25 broker review – $40 errors and omissions = $14,685
Note: The transaction fee of $250 caps at $5,000. So, when you reach $5,000 in transaction fees for the year, it drops to $75 per transaction.
The Technology
You get access to a TON of technology with the eXp Realty brokerage. That $85 a month covers everything you need to successfully run your online real estate agency.
- eXp World–the platform where you can connect with agents from around the world, get training, chat with your broker, and find any information you seek about eXp.
- Skyslope–All you need for storing, sending, designing, and signing paperwork can be found on this super convenient and easy to use platform. Everything will be reviewed by a compliance team to make sure it works with your state.
- eXp Workplace by Facebook–As of 2023, eXp is active in 50 states and 24 countries. On this platform, you can connect with agents from any of them.
- kvCORE–Anything you could want in the way of website creation, single-property websites, marketing, and lead generation is based in kvCORE. This is one of the top benefits of joining with this cloud-based brokerage (kvCORE costs more than $500 per month outside of the brokerage).
- eXp Enterprise–Keep track of EVERYTHING on this platform. From sales volume to transactions to programs, or even the work your sponsored agents are doing, you’ll see it all on this home base.
With all that technology, you’ll be ready for anything. You can get real-time support, engage in daily educational opportunities, collaborate with agents and brokers, partake in large-scale meetings, share information, and find answers to questions in any specialized department. Literally, you have it all, right there on the computer.
The Collaboration
As mentioned, there are eXp agents in all 50 states–over 85,000 agents overall. That means that if you’re ever dealing with questions about other state laws that you can’t answer, you can connect with an agent from that state to get the information you need. And that’s not just limited to the United States, either. eXp agents are also working right now in 24 countries around the world.
Not only can you connect with these agents around the globe, but you also have access to a wide range of educational resources from experts in all different areas. EVERY day at eXp, agents and realty experts provide 60+ hours of live training. You won’t be able to watch that all in a day, but you can go back and review what’s relevant for you anytime you need. With that training, you can see what other agents, including ICON agents, are doing to be successful and easily figure out how to incorporate those practices into your business.
A Few Bonuses
In addition to the typical benefits, you’ll find a few bonus benefits you may not have thought of.
- eXp offers a range of low-cost healthcare options to agents, including telemedicine options and supplemental insurance.
- ICON Agent awards are offered to agents who achieve specific cultural and production goals in their anniversary year. Once you reach ICON status you earn stock, plus you can engage with other ICON agents in training opportunities.
- You get a big discount on CEShop, where you can find all the continuing education you need to keep up with state requirements.
- You get to choose your own sponsor. This is an important step, because joining a fully online brokerage can be confusing at first. If you join eXp with a sponsor, make sure it’s a good one who is dedicated to helping you and supporting you through the first weeks. With the proper help, you’ll get the inside scoop on how to work in eXp without having to figure it all out yourself. It’s a great way to start succeeding quickly.
Is eXp Realty For You?
Now that you’ve seen it broken down, it’s time to make that big decision. Should you invest in eXp Realty, this up-and-coming online brokerage? You’ll get access to tons of technology, an agent-focused program, and worldwide support. It could be a great investment both for your business and for your future. Plus, you’ll get discounts on healthcare and education. And if you join with the right sponsor, you’ll get personal help in developing your business for ultimate success.
If you partner with me, for example, I’ll provide you with free lead generation services and extensive education and training from experts in the field. You’ll also get access to a huge community of amazing eXp agents, free services and resources, and 24/7 support. Go ahead and get in touch with me, and I’ll do my best to answer your questions and help you make one of the best investments of your life.