Good news! The highest-priced real estate market in the world is about to experience a revolution in the industry. eXp Realty, the world’s fastest-growing real estate brokerage in history recently took the first steps into East Asia in the form of eXp Hong Kong!
It’s hard for any serious real estate entrepreneur to have missed the news about the vast expansion of eXp Realty but what do you actually know about this seemingly unstoppable brokerage? What makes this brokerage so unique to real estate agents and brokers that they are literally flocking over from their old companies in droves? And what makes eXp Hong Kong such a revolutionary model that stands out above the competition in the highest-priced real estate market in the entire world?
Well that is exactly what we are going to talk about in this post today. The one thing that separates eXp Hong Kong from any other brokerage or real estate company in Hong Kong.
And that is, the ability for real estate agents, team leaders, and brokers to earn 3 different streams of income.
It is obvious that real estate agents can earn one stream of income through the commissions of property sales at most traditional real estate brokerage models in Hong Kong. So how else can an agent earn 2 additional streams of income at eXp Hong Kong?
That is exactly what we are going to cover next. The 3 powerful streams of income for real estate agents at eXp Hong Kong and how you can take advantage of them.
The 3 Streams of Income at eXp Hong Kong
- Sales Commissions
- Company Stock Awards
- Revenue Share
1) Sales Commission
Let’s break down each of these streams of income in detail and take a look at how each can be beneficial to an agent. Since earning sales commissions from the sale of a property is the purpose of a real estate brokerage business and is also the backbone for which the other two streams of income will be paid out, we will cover that first.
At eXp Hong Kong, an agent receives 70-100% of the total sales commission on the sale of a property. Significantly higher than the average commission split between real estate companies and agents in Hong Kong of 50%. In literally the highest-priced market in the entire world, receiving a 20-50% increase on your income can make a dramatic change.
Let’s look at an example of the commission an agent will receive at eXp Hong Kong vs a traditional 50-50 split brokerage company on the sale of a $10 Million HKD home.
If you sell a property at $10,000,000 HKD and receive the typical 1.5% commission from your sale. That amounts to a total of $150,000 HKD in GCI or gross commission income. At a typical real estate brokerage in Hong Kong, the agent who made that sale will have to split their gross commission with their company 50-50. In that case, an agent working at a traditional real estate brokerage company in Hong Kong will take home a total of $75,000 HKD after splitting their sales commission before taxes.
Now let’s take a look at the same example for an agent at eXp Hong Kong.
On the sale of the same $10,000,000 HKD home, an eXp Hong Kong agent will get to keep 70% of the gross sales commission of $150,000 HKD. Which amounts to $105,000 HKD. That is an additional $30,000 HKD earned on the sale of the same home, using the same effort, doing the same thing. Now, what happens if an agent at eXp Hong Kong has hit their company cap.
A cap is the amount of money an agent would have to pay to their company in commission splits each year in order to earn 100% of their commissions on all remaining sales of properties for the rest of the year. At eXp Hong Kong the amount an agent would have to pay to cap and receive 100% on all sales thereafter is $250,000 HKD.
Using the exact same example as before. An agent at eXp Hong Kong who has paid a total of $250,000 HKD to the company in splits will now receive 100% of their sales commission or the full $150,000 HKD! Without even going into the second and third income streams at eXp Hong Kong, you can see agents can already take full advantage of a very high price point market and earn significantly more money on the sales of the exact same homes.
And to simply paint a picture of the amount of effort needed for an agent at eXp Hong Kong to cap and receive 100% of their sales commissions for the rest of that year, let’s take the same example from above and apply it here.
Let’s say that each home you sell in one year is equivalent to the market average of $10,000,000 HKD and you receive the same 1.5% sales commission. On a 70/30 split, you already know that you get to keep $105,000 HKD from that sale, but that also means $45,000 HKD goes to eXp the company. Remember, in order to cap you will need to pay into the company a total of $250,000 HKD each year. So using our example, you will only need to complete 6 transactions each year in order to cap (25,000/45,000=5.5).
But how difficult is it for a single agent to actually close more than 6 transactions each year in a high-priced market like Hong Kong? In an economy like Hong Kong’s where salaries are seemingly decreasing and home prices are rising at an all-time high, some may say that it doesn’t matter what the amount of commission they receive since it is increasingly difficult to close deals in a market where there is such a low volume of transactions. How can you make money when no one can afford to buy a house?
That’s where eXp Hong Kong comes in to help. For most Hong Kong agents, it is increasingly difficult to find buyers or sellers in this competitive market. But luckily for you, eXp Hong Kong equips their agents with the best tools, resources, and training ever seen in the industry to help you not only make more money but close more deals.
But that is not what we will cover in detail in this post.
In a high price point market where agents are finding it increasingly more difficult to sell properties. Most agents make their money by finding renters for landlords. So let’s look at an example of how a rental transaction stacks up for an agent at eXp Hong Kong.
In Hong Kong, the average rent for an apartment is around $15,000 HKD per month. And the industry standard is that the agent responsible for finding the tenant for the landlord receives the first month’s rent. At eXp Hong Kong, an agent who closes a rental transaction receives $10,500 HKD or $15,000 HKD depending on whether they have hit their cap.
So as you can see, the increased commission splits given to the agents at eXp Hong Kong is extremely favorable and allows the agent to earn more money while doing the same things they would be doing before. Whether if it is a sales transaction or a rental transaction, agents at eXp Hong Kong can take full advantage of the earning potential from the single highest-priced real estate market in the entire world just from sales commissions alone.
2) Company Stock Awards
Now that we have gone over the first stream of income for eXp Hong Kong agents, sales commission, and shown you how you can make more money by simply running your business exactly like you had in the past, let’s talk about the second stream of income as an eXp Hong Kong agent and take a look at why it is so much more beneficial for an agent in Hong Kong than anywhere else.
The second stream of income at eXp Hong Kong are stock awards, given to agents who have reached certain milestones in their business each year.
The real estate brokerage eXp Hong Kong is a brand under the banner eXp Global, which is the global brokerage operations company held under the parent company EXP World Holdings LLC, a publicly-traded US-based company listed on the NASDAQ stock exchange under the symbol EXPI. Amongst brokerage companies in both the US and 15 other countries, EXP World Holdings LLC is also the holding company for Success Magazine and Virbela.
Since the central philosophy of eXp Hong Kong is to bring a real estate system that will allow real estate agents and brokers earn more money in the most lucrative real estate market in the world, agents and brokers at eXp Hong Kong can earn shares of EXPI stock by simply doing their job.
There are 5 ways that agents at eXp can earn shares of EXPI stock, based on sales and growth milestones. The 5 ways to earn EXPI stock are:
- Making one sale each year
- Hitting your annual cap of $250,000 HKD
- Opting in to a Voluntary Agent Equity Discount Buy Back Program
- Becoming an ICON Agent
- Helping to Grow the Company and Your own Team of Agents
The first way that an agent can earn EXPI stock is by simply completing one sales transaction. Every year that an agent completes one sale transaction, they will receive a $1,000 HKD EXPI stock award. So as you can see, it does not take much effort to literally acquire ownership in the real estate company that you will be working at.
The second way that an agent at eXp Hong Kong can earn shares of the company stock is by making enough sales or earning enough gross commission income to have hit their annual cap of $250,000 HKD. By hitting your cap each year, you will not only be able to earn 100% of your sales commissions for the rest of the year, but you will also receive $2,000 HKD worth of EXPI stock.
The third way to acquire EXPI stock is by choosing to enroll in the eXp Agent Equity Program. By enrolling in this program, agents will choose to give up 5% of their earned sales commissions for each sale that they make and invest that amount of money into EXPI stock at a 10% discount. This is the fastest way for agents to acquire a substantial amount of EXPI stock, especially if they do a considerable amount of volume in GCI.
The fourth, and most important and substantial way for agents to earn EXPI stock at eXp Hong Kong is also the one method that presents a unique advantage to Hong Kong agents over eXp agents in other countries. As an agent at eXp, you are encouraged and incentivized to be a top-performing real estate agent in your market. At eXp Hong Kong, a top-performing agent is given the ICON Agent Award and with that, a reward of $250,000 HKD in EXPI stock. That’s right, by becoming an ICON Agent, you can earn your entire cap back in stock awards.
There are two ways one becomes an ICON Agent at eXp Hong Kong. The first way is to complete an additional 25 transactions after hitting your cap each year. Now that might be difficult to do in a high-priced market like Hong Kong. Which makes the second way to become an ICON Agent much more appealing to Hong Kong agents. The second way for an agent to become an ICON agent at eXp Hong Kong is to produce an annual GCI of $4,500,00 HKD. In a market where the average home price is $10,000,000 HKD, that is a much more accomplishable goal than to complete over 25 transactions each year.
Earlier, I mentioned that the ICON Agent Award is much more advantageous for a real estate agent in Hong Kong than it is in other countries. Let’s put that into perspective.
As a real estate agent in the US at eXp Realty operating under the US brand, ICON agents receive a $16,000 stock award each year. As an agent at eXp Hong Kong, because the cap is much higher, ICON agents receive a $250,000 HKD stock award each year. Considering the current exchange rate of $1=$0.13 HKD, $250,000 HKD is equivalent to $32,201.10 USD. That is more than double the amount of money that you will have earned in EXPI stock than if you were an eXp Agent in the US!
As you can clearly see, there is a much higher income earning opportunity for an agent in a high priced market like Hong Kong even within the same eXp business model.
The last way that an agent can earn EXPI stock is also a good transition into the 3rd way that agents at eXp Hong Kong can earn an income, which is building their team of agents and helping eXp grow as a company. By simply introducing another agent to eXp Realty and bringing that one agent on to your team, you are eligible to receive a $2,000 HKD stock award each year that one agent closes one transaction. This is the second-fastest way for agents to earn a substantial amount of EXPI stock, and in the next section, we will explain exactly why that is.
3) Revenue Share
The third and most unique and lucrative income stream for agents at eXp Hong Kong is revenue share. Revenue share eXp’s team-building structure that allows growth-minded and entrepreneurial agents who have goals to start their own team to do so with little red tape and no additional expenses or requirements.
Agents who build their team through revenue share at eXp Hong Kong are able to earn residual income each month from the agents that they introduce to the company without taking any additional splits from the agents on their team. When you introduce or “sponsor” an agent to join eXp realty, the company will pay you 3.5% of the gross commission income on every sale that the agent produces until he or she hits their cap. Since revenue share is paid out from the company side of the commission split, the agent does not lose any part of their commission allowing you to run a team without having to take income from the agents.
Using the same numbers from the sales commissions example, if an agent you sponsor to the company closes a sale that yields $150,000 HKD in gross commissions, you will receive $5,250 HKD in revenue share for helping the company grow. If they close a transaction that pays $300,000 HKD you receive $10,500 HKD. You will continue to receive revenue share from this agent until they cap at the company for the year in which you will have received a total of $29,167 HKD in revenue share and a $2,000 HKD stock award from the sales production of this agent.
Although a powerful income model for the growth-minded agents and brokers, the real power of the revenue share model lies within the cascading aspect. Because the agents that you have sponsored to the company are also given the exact same incentives as you to grow the company, you will have the opportunity to earn revenue share for the agents that they sponsor into the company on top of the revenue share you are earning from the agents you sponsor directly.
Let’s say that you sponsored one capping agent, each year that this agent caps you will receive $29,167 HKD in revenue share. Now let’s say that the agent you sponsor goes out and sponsors another capping agent to the company. Now you will receive an additional $33,333 HKD in revenue share from the production on that agent on top of the $29,167 HKD you will receive from the agent that you directly sponsored totaling to $62,500 HKD in revenue share each year those two agents cap.
Here is another case study of an organization of 12 agents at eXp Hong Kong:
If you personally sponsor 6 agents to the company who caps each year and they each sponsor one capping agent on their own, you can earn up to $199,998 HKD for the production of each of the agents on your second level of sponsorship ON TOP of the $175,002 HKD you earn from the 6 agents that you directly sponsor. That’s a total of $375,000 HKD that you can potentially earn in revenue share income each year!
As you can see, an organization of 12 agents, a relatively small organization at eXp, can already yield a lucrative residual income each year. Now let’s assume that from the example above, each of the 6 agents on your first line of sponsorship duplicated your success and they each sponsored 6 agents on their own.
Now you have an organization of 42 agents total, 6 on your first level of sponsorship and 36 on your second level of sponsorship. With that specific revenue share example, you can earn up to $1,374,990 HKD in revenue share each year, $175,002 from the 6 agents on your first level of sponsorship, and $1,199,988 HKD from the 36 agents on your second level of sponsorship, if all 42 agents in your organization cap.
Revenue share cascades up to 7 levels of sponsorship with varying percentages of compensation at each level of sponsorship. Here is a graphic of the complete breakdown of the compensation percentages and maximum earning potential that each sponsored agent will yield for you on all 7 levels of sponsorship:
Now that you’ve seen the power of revenue share, think of the growth opportunity for any agent looking to start their own real estate company. Instead of being forced to purchase a franchise, where a large investment is usually required along with additional licensing and contractual obligations, an agent in Hong Kong can now build a large real estate team business for only $1,000 HKD a month with no other additional expenses.
On top of the low cost for agents to start a real estate business, once again the income opportunity for agents adopting the revenue share model in Hong Kong is far greater than that of an agent in another country. In the US, revenue share payment caps for one tier-1 agent at $2,800 USD per year. At eXp Hong Kong, revenue share payment caps for each tier-1 agent at $29,167 HKD or $3,756 USD per year. Since the revenue share model yields the same percentages in each country that eXp is operational in, with only the cap varying between countries, it is wise for growth-minded eXp agents to focus their efforts on the revenue share opportunities in higher-priced markets.
And coming from the highest-priced real estate market in the world, real estate agents in Hong Kong are looking at the biggest income-earning opportunity that eXp has to offer yet.
To Learn More About Revenue Share and How to Start Your Own Real Estate Team in Hong Kong, Schedule a FREE Private Consultation Below!
How is this Possible?
Now that you’ve seen all 3 income-earning opportunities at eXp Hong Kong and the potential for real estate agents to exponentially increase their income either as a growth leader or a sales leader, you are probably wondering how this is possible and how eXp can turn a profit giving so much money back to the agents.
Well, that is because eXp Hong Kong is 100% cloud-based and operates their entire business with no brick and mortar expenses in an interactive remote workplace environment known as eXp World, a software developed by EXP World Holding subsidiary, Virbela.
eXp World is truly a revolutionary achievement in the real estate industry across the globe, allowing real estate agents across the world to connect with colleagues, administrative staff, executives, and partners in every corner of the world while helping agents and employees save time, lower capital, and outsource major parts of their business for free.
Inside eXp World, agents are given an avatar representation of themselves and can move around freely in a cloud-based campus. This allows us to travel to and from different locations within the cloud representing different departments of the company such as tech support and training, giving agents at eXp Hong Kong the freedom to visit each department from the comfort of their own home in live time, without having to preschedule meetings like you would using other remote working technologies such as Zoom.
On top of the 16 different support departments within eXp World that amounts to a total of over 600 real-life employees, eXp also conducts its world-class training, eXp University inside virtual education auditoriums, allowing agents to capitalize on top tier training while saving time. For the owner of a brokerage company, by partnering your business with eXp, you can essentially outsource your entire business with access to a 600 person employee force and the number one training program in the world for only $1,000 HKD a month.
Book Your FREE eXp Hong Kong Private Consultation Below and Receive a Complimentary 2-Week eXp World Guest Pass and Private Virtual Tour.
For the growth-minded individuals in Hong Kong, you can now take advantage of the business opportunity that eXp presents by partnering your current business with eXp Hong Kong. A compensation model that yields 3 lucrative streams of income coupled with a world-class business outsourcing backend system and the opportunity to grow your business presence into 15 different countries, eXp Hong Kong is the number one destination for the forward-thinking real estate entrepreneur.