Sponsorship at eXp is really all about real estate agents supporting one another while working together in an incredibly agent-centric brokerage. But if you keep hearing about sponsorship at eXp and don’t quite get it, you’ll want to tune in.
No doubt you’ve had a few calls, DMs, and emails about joining eXp Realty. But whether you’re thinking about doing so or not, you first need to know a few things:
- What’s the role of an eXp sponsor?
- Can you change your eXp sponsor?
- Does your sponsor need to be local?
- What are the qualities of a great eXp sponsor?
Well, let’s dig into a comprehensive breakdown with the answers to all these questions and more.
Sponsorship at eXp Definition
According to the eXp Realty Policies & Procedures manual, this is what the sponsorship program at eXp is all about:
The eXp Sustainable Revenue Share Plan is a way for eXp to say “thank you” to Agents who attract serious and productive professionals who fit culturally with eXp and its core values. Once a joining Agent selects a sponsor and joins eXp, their sponsor enters into a financial relationship with eXp where eXp pays a percentage of Company Dollar to that individual in the form of revenue share. If the sponsor leaves eXp, that financial relationship is severed and their position in the Revenue Share Plan reverts to eXp.
It is the right of a prospective Agent to identify and select the individual they choose to name as their sponsor. The sponsor is the Agent who a joining Agent identifies as the person who most influenced them to join eXp. This declaration is made during the process of completing the ICA. An Agent’s sole requirement to qualify as a sponsor is selection by the joining Agent as the individual who most influenced them to join eXp. The role of sponsor is distinctive from other roles like a mentor, coach, or team leader. In some cases, these roles are assumed by the same person, but they are not mandatory for a sponsor.*
So, in common parlance, this simply means that when you join eXp Realty, you get to name a sponsor. The only criteria for choosing that sponsor is picking the person who most influenced your decision to join eXp. Every agent at the brokerage is eligible to sponsor, no matter how long they’ve been at eXp or how much they’ve sold.
Now, it’s important that you know you don’t have to name a sponsor when you join. But even though it’s not mandatory, it is suggested. In fact, it’s become so strongly suggested that even eXp Realty leaders are facilitating sponsorship—a markedly different strategy than other brokerages who try to sell franchises, forcing agents to pay hundreds of thousands of dollars just to share in some of the company profits.
This brings us to why agents at eXp are constantly sharing about sponsorship at eXp and why you’ll hear this bandied about so much. In other words, why is eXp sponsorship such a big deal?
Why eXp Sponsorship Is a Big Deal
As noted in the Policies & Procedures manual, eXp sponsors join what is essentially a revenue share program. The chosen sponsor at eXp benefits from a portion of the commission earned by the agent who chose them as a sponsor.
At eXp, the commission split is 80/20—you take home 80% of your commission and eXp takes the other 20%. The revenue share sponsors receive comes from eXp’s 20%.
If you look at the chart below, you’ll see that there are 7 tiers of sponsorship. Find a full breakdown of the tiers here, but for now what’s important is that each sponsor receives revenue for agents they sponsor as well as agents that those sponsored agents sponsor, just in varying amounts. The more qualified (i.e., producing) agents you and your sponsored agents sponsor, the more you’ll earn.
It’s crucial to realize that while you can sponsor an unlimited number of agents, you can only earn revenue share until they cap at $16,000 and begin receiving 100% of their commissions. This is why the more agents you sponsor, the more you’ll earn in passive income—I have a few friends who make more than $100,000 per month on revenue share alone!
Ultimately, this is why eXp sponsorship is a big deal to so many eXp agents. But you may now be wondering about the requirements for becoming a sponsor. Surely simply getting someone to name you isn’t all there is to it….
eXp Sponsorship Responsibilities
Well, here’s what the eXp Realty Independent Contractor Agreement actually says:
Sponsor Requirement. A sponsor’s sole requirement to qualify as a sponsor is selection by the joining agent (in this case, Agent) as having been the most influential person in the joining agent’s decision to join eXp. Sponsors are encouraged to support joining agents throughout the joining process and beyond, but are not required by eXp to do so. If Agent’s Sponsor has made representations or promises above and beyond referring a joining agent to eXp, it is the sole responsibility of Agent to confirm Sponsor’s ability and intent to deliver all additional support promised. eXp is not responsible for enforcing agreements between agents made outside of this ICA.
Seriously, the only requirement for an eXp sponsor is that someone chooses them. That’s it! Now, I believe that should be changed, and here’s why.
I get so many messages on a regular basis from new eXp agents asking me for help because they’re “lost.” When I ask if they have a sponsor to help them, they’ll always tell me they can’t get a hold of their sponsor.
The thing is, it’s easy to promise the world if you don’t actually have to follow through, and that’s what many eXp agents do. They entice an agent to join, start earning money from their commission…then do absolutely nothing to help them succeed.
Of course, agents are perfectly capable of fending for themselves. However, the idea that their sponsor promised to help them and then completely ignored them after they joined is horrendous.
So many agents are left to fend for themselves and just aren’t getting the answers and support they need to succeed. This is when they start asking if they can change their sponsor.
Can You Change eXp Realty Sponsors?
In short, yes. But it’s difficult. Here is what the Policies & Procedures manual states:
In order to maintain the integrity of eXp Sustainable Revenue Share Plan, eXp may only grant changes in sponsorship in very limited situations. Changes in sponsorship are only permitted under very extraordinary conditions that meet one or more of the criteria below. Except in situations with extenuating circumstances as determined by eXp, sponsorship change requests must be submitted to eXp via email at compliance@exprealty.net within thirty (30) business days of the final onboarding date of the Agent requesting the sponsorship change. Sponsorship change request criteria:
a) Errors (1) Clerical, administrative, or system errors on the part of eXp. (2) Mis-identification of sponsoring Agent by eXp or joining Agent (e.g., John Smith as opposed to Jon Smith). (3) Omission of sponsor name during the enrollment process (if requested by eXp, in its sole discretion, Agent may be required to provide evidence of prior relationship with the requested sponsor and their attraction efforts). (4) Sponsor change requests within the same Revenue Share Group in cases where the Agent has mis-identified sponsor as the upline/team leader (requires written approval from the current sponsor).
b) Misconduct (1) Misleading or fraudulent attraction efforts where a prospective Agent is led to believe they are signing up under a specific individual but the listed sponsor is another Agent not previously discussed or disclosed to the prospective Agent. (2) Sponsorship change based on improper enrollment of the prospective Agent without their authorization or signing up a prospective Agent without disclosing eXp as the brokerage. c) Brokerage Migration (1) In situations where an independent brokerage moves to eXp and the joining Agent had previously been with eXp and is still within the Original Sponsor Window (as such term is defined in the ICA), eXp will allow the joining Agent to select a new sponsor under the joining team.
It is possible to change eXp Realty sponsorship, but it is rare. I have had a few friends succeed, but, as you can imagine, the situation was pretty bad. The most common way to succeed at changing sponsors is to leave eXp Realty for 6 months and then return under a new sponsor.
This is why I am sharing this information here—it’s crucial that you do your research ahead of time to choose the RIGHT sponsor. Even eXp will show you a video explaining the import of this decision while you’re signing up as an eXp agent.
Now, your next question may be: What if my sponsor leaves eXp Realty?
What If My eXp Sponsor Leaves?
What happens if your sponsor leaves eXp Realty? Or what happens if you’re a sponsor and you leave eXp Realty?
Here’s what we see in the Policies & Procedures manual:
If the sponsor leaves eXp, that financial relationship is severed and their position in the Revenue Share Plan reverts to eXp.
So, basically, if you leave eXp after gaining sponsored agents, you forego your revenue share.
Nothing changes for sponsored agents when their sponsor leaves, except for the relationship and resources they’ll likely lose. You’re not going to see lower-tier sponsors suddenly becoming the main sponsor and earning more money. The sponsoring agent’s position reverts to eXp Realty.
What’s The Difference Between eXp Realty Sponsors and Mentors?
According to the Policies & Procedures manual:
Generally, if an Agent has not been licensed in any state for a period of twelve (12) or more consecutive months, or has not completed three purchase Transactions or sale Transactions (or any combination thereof) within the twelve (12) month period immediately preceding the Agent’s Onboard Date (collectively, the “Mentor Program Requirements”), the Agent will be required to participate in the eXp Mentor Program, as a mentee, upon transfer of their license to eXp…If an Agent enrolled in the eXp Mentor Program has not been assigned a mentor, then that Agent’s mentor shall be that Agent’s State Broker.
In short, a mentor at eXp has more responsibilities than a sponsor does. An agent can be both a mentor and a sponsor but does not have to be. If, however, an agent is a mentor, they are required to help new agents learn how to navigate eXp and the real estate business as a whole.
You can apply to be a mentor in your state if you desire. The requirements to be a mentor with eXp Realty include:
- Completion of at least eight real estate transactions within the last 12 months.
- Completion of at least two transactions within the eXp Realty system.
- Completion of all required certification steps, including a 1-2-hour course.
- Attendance at at least 8 of 12 monthly Mentor Mastermind Workshops held in eXp World.
- Attendance at at least 50% of their respective state meetings.
Agents usually become mentors to give back and help other agents or to generate another revenue stream as mentors will take home 10% of each of the mentee’s first three transactions.
Qualities of a Great eXp Sponsor
Alright, now you know pretty much all you need to know about sponsorship at eXp Realty. But now that that’s covered, you probably want to know what sponsor you should choose? Again, this is the person MOST influential in your decision to join eXp Realty.
But, at the end of the day, you need a sponsor who adds value to your business. You can join eXp Realty without a sponsor…but why would you do that if you can find a sponsor who helps you do real estate better?
I believe these qualities to be essential for a great eXp sponsor to offer:
- Community – a group of likeminded agents to meet with and discuss wins, woes, and worries.
- Support – around-the-clock help for tech issues, real estate questions, and more.
- Training – intensive training opportunities to prepare you for the real world of real estate.
- Resources – scripts, videos, programs, and more to help you get ahead.
- Services – personal access to staff who will help you with marketing and do the heavy lifting for you.
The main reason that our group, the Agent First Group (AFG), is growing so much is because we do offer these qualities to all agents who join us. We strive to give our agents all they need to succeed in real estate, including access to our internal staff.
Here are a few examples of AFG agents who are seeing incredible success after joining our program:
- Jared is closing 2+ additional transactions and working 10 hours less per week using our Facebook lead generation services.
- Franco referred 35 transactions that closed last month after we helped coach him to success on YouTube.
- Alejandra is closing 4+ transactions per month by using Instagram marketing.
- Phyllis referred 20 transactions that closed last month by leveraging Facebook groups to connect with interested buyers, sellers, and real estate agents.
If you’d like to learn more about how the Agent First Group can help you succeed as a new eXp Realty agent, reach out and I’d be happy to chat with you about transforming your real estate career for the better.