Are you ready for a once in a lifetime opportunity to become an instant leader in your local market in South Africa? If you are then this post is for you!
You’ve probably heard a lot of buzz about the new cloud based real estate agency eXp Realty coming to South Africa. And the biggest reason for that is the eXp Realty South Africa Revenue Share program, a plug and play team building system that agents in South Africa can participate in and build wealth through duplicatable residual income.
You’re probably wondering what all the excitement is about regarding eXp Realty South Africa Revenue Share and want to know more about how the specific details of this business model works. Well look no further, because in this post I am going to be going through the 4 things you MUST know about the revenue share program at eXp Realty South Africa!
Table of Contents
4 Things you Must Know – eXp Realty South Africa Revenue Share
- What is Revenue Share
- Specific Numbers and Compensation Plan
- The Potential of Global Cascading Revenue Share
- How YOU Can Dominate Your Market
1) What is Revenue Share?
Before we dive into the details of this post I want to take some time and explain what revenue share is and how it works specifically within the real estate space.
Revenue sharing is when a company or business takes a percentage of their revenue earned by the sales efforts of their associates and shares it back to the associates. Some examples of companies and organizations using the revenue share model are YouTube and National Sports leagues.
When it comes to real estate, revenue sharing is still a very new model that was previously unheard of until recently it was introduced. A real estate agency uses the revenue share model to attract new agents to the company without having to spend substantial amounts of money and instead, reinvests that money back to the agents as a reward for helping grow the company.
The most common revenue share model seen in real estate is when a real estate agency shares the company earned revenue back to their agents for referring and attracting real estate agents to the company. This is usually done based on the sales effort of the agents and typically only paid when agents that you refer to the company are actively making sales.
Although this is a new concept within the industry. It has allowed real estate companies such as eXp Realty become the fasted growing real estate company in the history of North America.
2) eXp Realty South Africa Revenue Share Numbers and Compensation Plan
Now that you have a basic understanding of what revenue share is and how the model works. Let’s take a look at the specific model and numbers of the eXp Realty South Africa Revenue Share program.
As an agent at eXp Realty South Africa, when you refer, or sponsor, one agent to the company. You are eligible to receive 3.5% of their gross commission income annually all the way until they have capped at the company.
Because the eXp Realty is paying agents revenue share from the company’s revenue that they are receiving from agent splits, they are only able to pay out revenue share for every agent that you sponsor up until they have capped at the company (paid a total of R150,000 in commission splits to the company)
This means that for each agent that you sponsor directly to the company, you are able to receive up to R21,000 every year if they have made enough sales to hit their cap.
For example, if you sponsored 6 agents to the company who all hit their cap every year, you would be making a total of R126,000 a year in revenue share.
Now that might not seem like a lot of money every year, but the true power in eXp Realty South Africa Revenue Share is the cascading aspect.
Cascading Revenue Share
Cascading revenue share is where you are not only able to make revenue share through the company from the sales efforts of the agents you directly sponsor to the company, but also from the agents that they sponsor to the company as well.
For example. At eXp Realty South Africa when you directly sponsor an agent to the company you are earning 3.5% of their gross commission income. But if the agent that you directly sponsor decided to sponsor another agent to the company, you will not only be making the 3.5% of gross commissions from the agent you directly sponsor, but also 4% of the gross commissions of the agents that they sponsor up to R24,000 for each agent.
Here is another example.
Say you directly sponsored 6 capping agents through the eXp Realty South Africa Revenue Share program. You are able to make R126,000 a year in revenue share. Then each of the 6 agents you directly sponsor one agent to the company on their own. You now have a total 12 agents in your revenue share organization, 6 in your front line and 6 in your tier 2. On top of making the R126,000 in revenue share from the agents you directly sponsor, you are now also able to make an additional R144,000 from the agents in your tier 2 if they all hit their cap each year. That’s a total of R270,000 in revenue share every year.
The eXp Realty South Africa Revenue Share allows revenue share to be paid to agents all the way up to 7 levels of sponsorship in your organization with altering compensation numbers:
- Up to R21,000 Per Agent
- Up to 24,000 Per Agent
- Up to R15,000 Per Agent
- Up to R9,000 Per Agent
- Up to R6,000 Per Agent
- Up to R 15,000 Per Agent
- Up to R30,000 Per Agent
Once the percentages are added up for all 7 tiers of compensation the end result is around 10% of the gross commission for each agent. That means that eXp Realty is essentially sharing 1/2 of their total revenue from their 25% back to the agents!
Another number of note that agents have to consider for eXp Realty South Africa Revenue Share is the total number of active agents you must directly sponsor in order to unlock the revenue share payment for each of the tiers. eXp Realty wants their agents to be actively participants in sales and growth while also helping their agents grow so they have set a certain number of agents that you must directly sponsor before you are eligible to be paid revenue share for each tier:
- Directly Sponsor One or more Agents
- Directly Sponsor 5 or more Agents
- Directly Sponsor 10 or more Agents
- Directly Sponsor 15 or more Agents
- Directly Sponsor 20 or more Agents
- Directly Sponsor 25 or more Agents
- Directly Sponsor 40 or more Agents
Now this might seem like a daunting task but there are currently over 40,000 agents in South Africa alone and I am sure you know at least one agent in your network that are looking for a new opportunity or a company with a higher compensation plan. Start there and plan to attract 1 agent every two months.