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eXp Realty Commission Split and Cap: The #1 Ultimate Guide!

eXp Realty Commission Splits and Cap Explained

Most real estate agents have heard of the amazing 80/20 eXp Realty commission split and the awesomely low $16,000 annual cap. But what does that mean? And are there cases where the split and cap are different? Why, yes: for specific types of teams, the recently launched Referral Division, and for eXp Commercial.

Let’s break down the real estate agent eXp Realty commission split and cap variations, from single agents and self organized teams, to standard teams, Mega ICON teams, and domestic partnerships, as well as eXp Commercial and eXp Referral Divisions.

What is a commission split?

A commission split is where a real estate agent and their managing broker agree to split the real estate commissions on a percentage basis from the sale of a property. Commission splits can range widely from 40/60 to 95/5, where on the higher end agents typically will not have an opportunity to cap (see next section).

For example, if the commission split is 80/20 and the total commission from an agent’s sale is $10,000, then $8,000 would go to the agent and $2,000 would go to the brokerage.

What is a commission cap?

A commission cap is where a brokerage agrees to put an upper limit on commissions paid to the broker each year. Commission caps can vary widely from never capping to $30,000+ to cap. Once an agent “caps” for that year, their commission split would go away and they’d then earn 100% commission for the rest of that anniversary year.

For example, if an agent joins a brokerage in January, and hits their commission cap of $16,000 in August, then they will earn 100% commission for the rest of the year until their cap resets again in the following January.

eXp Realty Commission Split and Cap for Single Agents

eXp Realty Commission Split for Single Agents

For the vast majority of eXp agents, the eXp Realty commission split is simply 80/20 – 80% of each commission check goes to the agent and 20% goes to eXp Realty. This happens on every transaction until an agent caps and then goes to 100% commission! There are no additional percentage based fees like franchise fees or desk/office fees.

The eXp Realty Commission Split is 80/20 for single agents & Self-Organized team agents.

Most outside agents don’t know this but we believe it is a really important fact to shed light on. HALF of all the commissions paid to eXp Realty is immediately paid back out to the agents in the form of revenue share!

That means that eXp is only actually taking 10%, and with that 10% are creating a ton of value in the form of training, tools, support staff, benefits, partnerships, awarding company stock share, and more! This is truly an agent-centric brokerage. Learn more about eXp Realty.

eXp Realty Commission Cap for Single Agents

The eXp Realty commission cap is $16,000 for single agents. After paying $16,000 to eXp Realty from the 20% commission split, agents go to 100% commission for the rest of that anniversary year! The anniversary year typically starts in the month an agent joins eXp.

The eXp Realty Commission Cap is $16,000 for Single Agents, Self-Organized Team agents, and Domestic Partnerships (combined)

eXp Realty Commission Split and Cap for Teams

There are four types of teams at eXp Realty. Each team has a different eXp Realty commission split and cap arrangement. In the sections below we will VERY briefly explain the team type and the eXp Realty commission split and cap structure for each.

eXp Realty Commission Split and Cap for Teams

Note that we are not discussing revenue share teams in this post, you can learn more about eXp Realty revenue share in this great post.

eXp Realty Self-Organized Teams

Self-organized teams are exactly how it sounds. These teams are the most common, the easiest to form, and closely resemble a simple referral agreement between the team leader and the team agents. Self-organized teams can set themselves up in any commission split arrangement that they’d like.

Typically, self-organized team agents will pay a predetermined commission split to the team lead. Then the eXp Realty commission split will be applied to the remaining agent commission. This is exactly how and agent to agent referral arrangement works.

eXp Realty Self-Organized Team Commission Split and Cap

For example, let’s say the self-organized team’s structure is that team agents pay a 30% commission split to the team for team provided clients. If an uncapped agent closes a transaction with a $10,000 commission, the team lead split will be $3,000. Of the remaining $7,000, eXp Realty’s split is $1,400 (20%), and the agent earns $5,600. Not bad for not having to generate that lead!

Some teams – such as one ran by one of the cofounders of this blog – only apply the team split to team provided leads. That means that agents who generate their own client just have the standard 80/20 split for those leads. It’s a win-win!

In summary, for self-organized team agents, the eXp Realty commission split and cap is the same as for single agents, it just gets applied after a team split per transaction – if there is one.

eXp Realty Standard Teams

A standard team is required to have an eXp Realty commission split of at least 25% the team leader. The team split is set by the team leader. There’s pros and cons of an eXp Realty standard team.

With standard teams, agents will usually have the option to reduce their cap by half. That means standard team members can pay an $8,000 cap before going to 100% eXp Realty commission split rather than the normal $16,000.

eXp Realty Standard Team Commission Split and CAp

However, when an agent chooses to half cap, they are no longer eligible for the ICON agent award. Standard team leaders must pay the full cap.

There’s also a production requirement for standard teams at eXp Realty: the team must close a minimum of $6 million in closed transactions or 30 transactions each year.

To sum it up, for standard team agents, the eXp Realty commission split is the same 80/20 split after the team split. However, agents can cap in half the transaction volume ($8,000 cap) and go to 100% eXp Realty commission split and only have the team split remaining.

eXp Realty Mega ICON Teams

Mega ICON teams are how it sounds: big production teams. These teams usually number more than 10 agents. The team split is again set by the team leader and must be a minimum of 25%.

At Mega ICON teams, the eXp Realty commission split is still the same but agents now “quarter-cap.” Team agents pay a reduced $4,000 a year in brokerage splits to cap and go to 100% commission.

eXp Realty Mega ICON Team Commission Split and Cap

Mega ICON teams must complete at least $40 million in closed transactions or 175 transactions a year and must have a minimum of 10 capping agents on the team (quarter-capping). There are a few other details you can read about here.

So, for Mega ICON team agents, the eXp Realty commission split is the same 80/20 split after the team split. However, agents can cap in a quarter of the transaction volume ($4,000 cap) and go to 100% eXp Realty commission split and only have the team split remaining.

eXp Realty Domestic Partnership Teams (Married!)

A domestic partnership at eXp Realty is a married pair of real estate agents acting as one. They’ll have the same combined split, cap, and E&O fees.

The big differences are that they will only be eligible for a single ICON award as a combined team, and that their monthly fee is $149 instead of $85. Domestic partnership teams at eXp Realty can also start their own standard, self organized, or Mega ICON teams.

In summary, for Domestic Partnership team agents, the eXp Realty commission split is the same 80/20 split and the same $16,000 cap for the COMBINED two married agents. You can think of it as half cap per agent, but it doesn’t exactly work that way since one agent can contribute more than the other to the cap.

eXp Realty Domestic Partnership Team Commission Split and Cap

Learn More About the Types of eXp Realty Teams

You can learn more about the four types of eXp Realty teams in this helpful article.

eXp Commercial Commission Split and Cap

Transaction amounts are typically much larger in commercial real estate than residential! The eXp Commercial commission split is the exact same 80/20 split at eXp Realty. The eXp Commercial commission cap is $20,000 versus eXp Realty’s $16,000 cap.

On larger average transactions, commercial agents still have the opportunity to cap quickly. And an 80/20 split – until now – has been just about unheard of in the commercial real estate space! Splits are usually MUCH less favorable.

eXp Referral Division Commission Split and Cap

Recently, eXp Realty formed an eXp Referral Division. This allows agents to go into a referral and self-representation only status. Agents will eliminate the need for MLS or REALTOR associations and pay a lower monthly fee of $50. However, agents still keep revenue share.

eXp Referral Division agents have a 75/25 split on referrals to eXp agents and 70/30 to non-eXp agents. There is no cap or ICON award as a Referral Division agent.

You can still choose to be a referral only agent and not be in the referral division. The advantage here is that agents that are earning all rev share and referrals can reduce their MLS, REALTOR, and other expenses and workload!

eXp Realty Cap Deferment Policy

Agents who want to join eXp Realty but recently capped at their current brokerage can opt to defer their cap upon joining eXp Realty. This means that they can REMAIN CAPPED at 100% commission split at eXp Realty until the month that they would have reset their cap at their previous brokerage.

It is important that if you want to defer your cap upon joining eXp Realty, that you arrange this BEFORE signing up. Feel free to schedule a call with us to learn more and take advantage of the eXp Realty cap deferment!

Other eXp Realty Costs and Fees

To summarize one time and recurring eXp Realty fees and costs, here is a short list. Keep in mind that most brokerages have a monthly fee and have a transaction fee after an agent caps and goes to 100% commission.

  • It costs $149 in the first month to join eXp Realty
  • After that, the monthly fee for all the support, training, and value is $85 a month
  • There is a $25 broker review fee per transaction
  • There is a $40 E&O (liability insurance) fee per transaction that caps at $500 a year
  • After an agent caps at eXp Realty and goes to 100% commission, there is a $250 transaction fee for the next 20 transactions – this caps at $5,000 a year
  • After an agent caps their transaction fee, they become an ICON agent. Two things happen:
    • They are awarded $16,000 in EXPI company stock – they earn their cap back!
    • The per-transaction fee drops to $75 per transaction.

For more, check out our detailed eXp Realty Costs and Fees article.

Learn More About eXp Realty & Our Free Partnership Team!

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For more eXp Realty details, check out our comprehensive About eXp Realty – Everything You Need to Know article.