If you’ve been in the real estate business for long, you’ve probably heard about eXp Realty. It’s growing fast, doubling its agent count yearly, and expanding around the world. With over 89,000 agents already a part of eXp, buying an eXp Realty franchise may seem like a HUGE opportunity for you.
Unfortunately, eXp Realty is not based on a franchise model. You can’t buy an eXp Realty franchise because eXp doesn’t sell franchises. This is radically different than Keller Williams, Century 21, Re/Max, and other high-profile brokerages. However, eXp Realty runs on a better model than a franchise model.
Instead of a franchise model, eXp Realty runs as a unified whole. It’s one company, one brokerage, and one voice in the real estate industry. Even though you can’t buy an eXp Realty franchise, you can absolutely join eXp Realty and experience a HUGE upside.
The Franchise Model
To really understand the differences, let’s look at how a franchise model usually works:
- Pay around $40,000 to purchase a real estate brokerage franchise.
- Spend around $50,000 more to build out a commercial space to operate your brokerage franchise.
- Lock in a multi-year commercial lease (that you’ll have to sign a personal guarantee on).
- Pay franchise fees with every transaction you make.
- Recruit as many agents as possible.
- Train all your agents.
- Try to sell as much real estate possible with you and your agents
- Attempt to keep the company afloat with whatever overhead you have. In other words, hope that the revenue exceeds all of the expenses.
In the end, you won’t really own what you build with a franchise. While the payout from brand name can be pretty good, you’re still building on someone else’s business and you have to pay them forever.
Basically, you’re stepping into a space where you have huge liability but gain little on the upside.
With eXp’s model, though, everything is different.
The eXp Realty Model
As a REALTOR® at eXp, you don’t have to worry about the huge costs of purchasing a franchise. You don’t have to rent out commercial space for a franchise building or train agents either. Yet you can still get all the upsides of a franchise model.
With eXp, you leverage what the brokerage already has to offer you.
- Use eXp’s online spaces to create and connect with anyone on staff.
- You leverage the 600+ eXp staffers for your business.
- You leverage the ability to operate business internationally (50 States and more than 24 countries)
- Provide your team with tons of eXp world-class training.
- Let eXp assume the risk while you work on closing transactions and earning more.
All you really have to do is perform your work as an agent, increasing production. And then, of course, recruit some agents to join your team.
Why The eXp Realty Model Works
Instead of drowning in up-front costs, you can take the eXp brand name and build a team within its online, versatile model. Just with ONE revenue stream (revenue share) if you attract (recruit) just 10 agents who each cap (they only need to pay $16,000 in commission splits to the brokerage to cap), you’ll earn yourself $28,000 every single year. Again, this is just one revenue share…you can also charge a commission split if you build out a real estate team.
If each one of those agents can attract a single other agent who caps, you’ll not only earn that $28,000 from the original 10, but you’ll also garner an additional $32,000 per year on the additional 10 agents. In the end, you’re netting $60,000 in passive income with only 20 agents! Every. Single. Year.
The team model at eXp continues to grow. You can read a detailed explanation here, but the point is that you can get this model to work for up to seven levels. The more levels, the more income you generate passively. All you have to do is share eXp with a few agents and you get an exponential reward for it.
Building a team at eXp Realty is technically the eXp Realty franchise model. It’s not exactly a franchise, because it works so much better. You can use the brand without taking all the liability on your shoulders (no upfront cost of $100,000+ either!). And you can build a team that generates you income without you having to work for it year after year.
The benefits of joining eXp Realty instead of building out another franchise are endless. eXp Realty will pay you to be a part of expanding their worldwide team. You get to be a part of something unique and new in the real estate world.
For more information on joining eXp Realty, get in touch with me. I’d be happy to answer your questions and help you get started.