In 2024, the two biggest buzzes in the real estate world are the strong seller’s market across the US and the exponential growth of the first-ever cloud-based real estate brokerage, eXp Realty. In 2021 alone, eXp Realty has grown from 40,000 agents at the end of 2020, to now over 90,000 agents across the world. And the year isn’t even over yet!
So why are agents flocking to eXp Realty in 2024? What makes eXp such an unique brokerage model that it is not only an opportunity for agents, but also the biggest opportunity in business?
Today I want to share with you the top 10 reasons why agents are joining eXp Realty in 2024 in an updated and condensed version of the classic eXp realty explained presentation.
This is: eXp Realty explained – Top 7 Reasons Agents are joining eXp Realty in 2024!
- Independent Brokerage
- 80/20 Commission Split Model
- Three Streams of Income
- Stock Awards
- Revenue Share
- eXp World
- Workplace by Facebook
1) eXp Realty is a Cloud-based Independent Brokerage
The number one reason why so many agents are joining eXp in 2024 is due to the fact that eXp is a cloud-based independent brokerage model, not a traditional franchise or brick and mortar model. In the brokerage world, agents typically can choose from 3 types of brokerage models.
- A franchise brokerage
- An local brick and mortar brokerage
- A national independent brokerage
All three brokerage models are unique and they each offer their own perks and benefits. Usually agents choose between going with a franchise or a local brokerage and weigh the pros and cons between the two.
At a franchise brokerage, the model is typically designed to benefit the broker-owners the most since the main objective of franchise companies is to sell franchises. That is true in any industry. But that doesn’t mean it can’t benefit the agents as well. At franchise brokerages, the broker-owner is provided with a suite of business systems and tools that help both them and their agents generate more leads, convert more sales, and run their business.
But all of that comes at a higher price, which is usually rolled over to agents in the form of higher commission splits, higher desk fees, or other fees such as royalty taxes on sales. Because franchise brokerage owners need to cover their own overhead expenses from owning a franchise and also needing to turn a profit, these additional costs that are conveyed to the agents are typically a necessity for franchise owners to stay in business.
Now compare that to a local brick and mortar brokerage. Although all models are unique, the typical independent local brokerage has lower expenses than a franchise brokerage. What that means is that the agents don’t have to pay as high of fees or splits as they would need to at a franchise shop. But that also means that the agents are getting access to less tools and systems to run their business than they would at a franchise brokerage.
Since the majority of independent local broker-owners runs a smaller operation and has less money to invest in their business, they don’t have the means to provide the suite of business tools that a national franchise chain would be able to provide.
Now that you know the difference between the first two types of brokerage models, it is easy to see why agents are much more inclined to join a national or international cloud-based independent brokerage like eXp. Since eXp is not a franchise, there are no additional royalty taxes and brick and mortar costs that are charged to the agents, just a small monthly brokerage fee to maintain all the business systems that agents get access to. Also, because eXp is an international brokerage operational in all 50 American states and multiple countries, agents have access to similar tools than they would at a franchise office such as lead generation tools, marketing materials, and business outsourcing systems.
2) 80/20 Commission Split
Now that you know that agents at eXp has access to the same tools than they would have at a franchise brokerage while paying less expenses, let’s take a look at the compensation model at eXp and see just how much agents are able to save by moving over.
At eXp, the sales model for agents is a 80/20 split, with a $16,000 cap that resets annually.
This means that on every sale up until an agent caps in a year, they pay 20% of their gross commission to eXp. And once an agent has paid a total of $16,000 in commission splits into the company in a year, they earn 100% of their commission for the rest of the year. That is equivalent to $80,000 in gross commission income every year or, on a 3% commission basis, around $2.66 Million of real estate sold.
Comparing this to the national average, most brokerage in the US has a 60/40 commission split. When that same agent joins eXp, they instantly get a 20% raise on every sale they close. On a $10,000 commission, an agent at eXp would earn $2,000 more than if they would at a 60/40 split brokerage.
What about brokerages with higher splits? There certainly has to be brokerages out there that have a higher split than 80/20 right?
Of course, there are plenty of brokerages out there with higher splits, and each brokerage has a unique compensation plan that can not be generalized into one simple example. Each case is going to be different and unique and you are going to have to do the math depending on the details. But for hypotheticals, let’s just take a look at how the eXp business model would compare against a 90/10 split brokerage with no cap.
Let’s say that you are an agent who closes 47 transactions in a year and sells around $19 Million in real estate each year. According to this example, you are selling 47 homes at a price of $400,000 every year. On average your gross commission on a 3% basis for each transaction is $12,000. At a 90/10 split brokerage with no cap, you would have earned in that year, $507,600. (12,000×0.90=$10,800×47=$507,600).
Now let’s look at how the same example stacks up for an agent at eXp Realty. At $12,000 GCI for each transaction, an agent would need to close 7 transactions to cap at eXp Realty. ($80,000/$12,000=6.7). On those 7 transactions, the agent would have earned a total of $64,000 on an 80/20 split. After capping, the agent gets to keep 100% of their commissions on the other 40 transactions that year which amounts to $480,000. ($12,000×40=$480,000). Adding that back to the initial $64,000 earned before capping, that is a total of $544,000 earned in commission income.
That’s nearly a $40,000 difference between the two!
3) eXp Realty Allows Agents to Build Wealth Through 3 Income Streams
A lot of agents don’t know this but at eXp Realty, you are not only able to earn one stream of income through sales, but you have the opportunity to earn 3 streams of income and build wealth and time and money freedom.
Most agents work as solo-preneurs or are considered self-employed in the cashflow quadrant. That means the real estate agent is dependent on themselves and only themselves as the only source of income in their lives. Although that does give real estate agents a lot of flexibility, it does not give them a lot of freedom.
Even the highest producing and most successful agents in the nation have trouble finding time freedom even though they earn a lot of money. In fact, the more successful you are as an individual agent with no other streams of income, the less time you will have.
That is because most real estate agents don’t have any leverage in their business. They are reliant on themselves and only themselves to provide an income and run their business. They don’t have equity, they don’t have any duplication, they don’t have any residual income, and they only have one stream of income. This is why we often hear the phrase: Real estate agents don’t retire, they just expire.
At eXp Realty, agents are able to build wealth and with that, time and money freedom through all 4 wealth-building components: Equity, residual income, duplication, and multiple income streams. Agents at eXp are not just sales agents, they are business owners that now have multiple leverage components to their business. At eXp, you can earn an income through sales, revenue share, or stock awards. Three separate but related income streams that agents can leverage at the same time.
We touched on the powerful sales model at eXp in the previous section and showed you how you are able to earn more net commissions each year as an agent at eXp Realty. As for the other 2 income streams, agents can build equity that grows on it’s own and become part owners of eXp by earning stock awards and create a residual income stream through the global revenue share team building model.
4) Stock Awards
In this section we are going to go into more detail on how stock awards are so beneficial for agents and how eXp has helped agents build an equity component in their businesses.
eXp Realty, eXp Commercial, and eXp Global are all owned by the company EXP World Holdings LLC, which is a publicly traded company on the NASDAQ exchange. Because of this, agents at eXp are able to earn shares of EXPI stock for completing milestones in their sales business each year, and also have the opportunity to acquire EXPI stock at a discount through the agent equity program.
Because agents at eXp are incentivized to produce sales and run their businesses more efficiently, eXp Realty awards agents of all levels shares of EXPI stock for reaching goals within a calendar year. For example, once an agent closes their very first transaction on their anniversary year, they earn a $200 stock award from the company. That same stock award is given to every agent every single year that they reach the milestone. That’s right, as long as you sell one house each year, you are given a $200 stock award by eXp realty!
The same annual incentive is given to agents who cap as well. A capping agent receives a $400 stock award each year that they hit the $16,000 cap. Agents can also voluntarily opt in to a discount program to purchase shares of EXPI stock at a 10% discount and earn instant equity by putting 5% of every transaction towards purchasing EXPI stock.
But the biggest stock award of all is reserved for the highest performing agents at the company as way to reward these outstanding individuals, but also as motivational tool for other agents to improve their business as well. At eXp, top producing agents who close an additional 20 transactions after they’ve hit their cap is named an ICON agent and they are eligible to receive their entire cap of $16,000 back in the form of EXPI stock. That’s right, top producers can literally earn their entire cap back in stock awards!
5) Revenue share
On top of the equity opportunity at eXp for agents to become part owners of the company. The third stream of income at eXp, the revenue share model, is for agents, team leaders, or even former broker-owners that are growth minded.
At eXp realty, there are no corporate recruiters to grow the company, saving expenses each year that can be paid back out to the agents. Because there are no recruiting expenses for the company, eXp Realty has heavily incentivized it’s agents to become growth leaders and grow the company in place of salaried corporate recruiters.
As an agent of any experience, you are able to sponsor other agents to eXp Realty and earn an override on their gross commission on every sale up until they cap. The agent you sponsor does not lose any money because the company is sharing their revenue with you as the sponsor instead of taking an additional split from the agents like traditional real estate teams.
For each agent that you directly sponsor to the company, you receive 3.5% of their gross commission income on each transaction that they close throughout the year, every year, up until they cap, at that point you would have received a total of $2,800 from that agent. If you sponsor 6 capping agents to eXp, you would receive $16,800 in revenue share each year.
The real power of revenue share lies in the duplication component. Because revenue share is cascading, much like a traditional network marketing model, you are able to earn revenue share for agents cascading up to 7 levels. So that means if an agent you directly sponsored on your first tier sponsors another agent, you are able to earn revenue share for that agent’s production as well as the agent you directly sponsored to the company.
You can do this for up to 7 levels of agents at different compensation levels. Here is a table to show the maximum amount of revenue share you can earn each year from one agent in each of the 7 tiers.
6) eXp World
The 6th reasons why so many agents are joining eXp Realty in 2021 is the fact that they are getting access to the most powerful time saving business outsourcing tool in the industry, eXp World.
eXp World is an internal cloud officing system that runs on virbela, a software company owned by EXP World Holdings LLC, that allows agents, employees, staff, brokers, and executives interact and collaborate in a virtual office campus. In eXp World, agents get access to over a dozen corporate and business operations departments that is ran by over 600 paid employees working live time in the cloud.
Inside eXp World, agents can troubleshoot and outsource much of their maintenance tasks to cloud employees such as tech support specialists, accounting, and much more at their fingertips from the comfort of their own homes. Instead of having to spend the time, energy, and money to drive down to their office or use a paid third-party service to resolve tech, accounting, payment, and contract questions, agents are able to simply log on to eXp World from their computers and resolve their business issues with a real-life employee in the cloud.
Agents also receive traditional broker support from a team of state brokers inside eXp World as well. Instead of having to physically meet with your broker within their very limited office hours, you can now simply visit them inside eXp World on your computer and resolve any contract, liability, or transaction issues saving both you and your broker time.
Also, there are over 50 hours of live and recorded training that can be accessed inside eXp World auditoriums lead by ICON agent instructors and special guest trainers such as Tony Robbins who teach the very same strategies that they use to build a successful business.
Along with eXp World, agents at eXp also get access to an internal company mastermind called Workplace, where all 55,000 agents have the chance to share their resources, data, experiences, and thoughts.
Inside eXp Workplace agents are able to communicate and share data internally with company executives, staff members, and fellow agents in a social media-like platform. Agents are able to track down important company documents, spreadsheets, templates, tools, and websites that are put out by other members of the company.
Aside from being a 24/7 company-based database and mastermind system, Workplace also acts as a referral hub for agents to trade client referrals and share specific deals within the company to all 55,000 agents from around the world at eXp Realty. Through company-administered groups and chatbot systems, agents are now able to find referral partners, deals, and clients anytime anywhere in a matter of minutes, better serving their clients’ needs with more efficient services.
Join eXp Today!
Knowing what you know now about eXp and it’s benefits, you can probably see why agents are flocking over to the company in droves in 2022. Wealth building, technology, financially sound, community, and improved service are all reasons why some of the biggest names in real estate are partnering their businesses with eXp Realty in 2022.
Are you ready to take part in this revolution and build wealth and financial freedom as a real estate agent? Click the Button Below to Book a FREE NO OBLIGATIONS strategy session!