eXp Realty is one of the fastest-growing brokerages in the world. With over 55,000 agents and operations in over 16 countries, there’s no question that eXp Realty is quickly becoming the leader in the real estate world. So, how exactly is it that eXp Realty works?
There are several things you should know about this fully online brokerage. It’s a unique and powerful new way of doing real estate that you’ll definitely want to be a part of! Here are the main points:
1. eXp Realty Is a Cloud-based Brokerage
The first of its kind, eXp Realty was created by Glenn Sanford in 2009 as a brokerage that worked off a cloud model similar to Netflix and Amazon. eXp Realty works by awarding agents for their hard work. All the training, education, and resources that eXp provides as a brokerage are held in the cloud (online).
When you join eXp Realty, you’ll get marketing resources, online transaction management, thousands of hours of training, and online support from thousands of worldwide agents all accessible from your eXp Enterprise dashboard.
2. eXp Has an 80/20 Commission Split
Nearly every brokerage has its own commission split. Some brokerages work on a different model and charge monthly fees, but for most, the brokerage will take a small percentage of each transaction you complete.
At eXp, the split is 80/20–you get to take 80% of each transaction home and the other 20% goes to the brokerage.
3. eXp’s Commission Split Caps at $16,000
eXp Realty works by offering a pretty low cap. Once you cap at $16,000 (i.e. when your broker gets $16,000 in commission split), you can take 100% of your commission home, minus some small transaction fees.
4. eXp Has a Monthly Brokerage Fee
To cover the 60+ hours per week of training, support and innovative technology, you’ll have a monthly brokerage fee of $85.
5. eXp Has a Couple More Transactional Fees
In addition to the brokerage fee, you’ll pay $25 per transaction for a broker review and $40 per transaction for errors and omission insurance (aka risk management insurance).
The broker team in every state (and country) reviews all transactions. You will pay the broker fee on every transaction regardless if you have capped or not. It is the only fee that never caps.
The e&o insurance fee, however, does cap at $500 per year. You’ll need 12.5 transactions to cap this fee.
6. eXp Operates In All 50 States
eXp Realty currently operates in all 50 states and 24 countries. Each state has its own staff and team that run the brokerage in that state according to that state’s rules.
7. eXp Has Five Ways to Earn Stocks
There are five ways to earn stock at eXp.
- On your first sale, you’ll earn $200 worth of stock in the company.
- When an agent you sponsor makes their first sale, you’ll earn $400 additional stock.
- After you cap (pay $16,000 to the brokerage, or roughly $2.66 million in sales volume), eXp awards you $400 more in stock.
- When you reach ICON status (by fulfilling specific cultural and transactional goals), that initial $16,000 that went to eXp from your first several sales is converted into stock for you.
- As an agent, you can use 5% of your commission to purchase stock at a 10% discounted rate (Agent Equity Program).
8. eXp Agents Can Earn Revenue Share By Attracting Agents
eXp runs a revenue share program for sponsoring agents. Every agent who joins eXp Realty gets the chance to choose a sponsor who was responsible for helping them join the brokerage.
The sponsor helps the new agent through the application process and may provide additional support throughout the agent’s tenure at eXp Realty.
As a sponsor of other agents, you get to share in a small percentage of their revenue. There are seven tiers of this revenue share program. The tiers are based on how many agents the agents you sponsor will bring into the company when they start sponsoring.
The “Revenue Share Program” operates from the commission split that goes to eXp, NOT from an agent’s commission. 80% goes to the agent and 20% goes to the brokerage. It’s from the 20% that the revenue share operates in–NOT touching the agent’s 80%. You can earn a small percentage of that 20% from agents you sponsor.
With seven tiers, you can earn several different percentages. You can read the full breakdown here. Initially, you’ll earn 3.5% of each of your sponsored agents’ closed transaction in the first tier.
9. eXp Realty Is the Fastest-Growing Brokerage in the Country
In the last few years, eXp has expanded exponentially. New agents are joining every day–in the last two years, it has added over 30,000 agents.
In addition, according to the last REALTrends 500 report, “eXp was named No. 1 Public Independent (NASDAQ: EXPI) after experiencing 21% agent growth year-over-year.” eXp also closed out as the No. 1 in sides, No. 1 top mover in sides, and No. 1 top mover in volume. These rankings are based on real estate transactions in the United States in 2022.
If you want to be a part of one of the fastest-growing and most successful brokerages in the world right now, join eXp Realty! If you’re looking for a sponsor who can show you how eXp Realty works and how to get started with the amazing support, resources, training, and services that my group can offer, reach out to me and I will answer all your questions.