By now you have probably heard of the first ever cloud based brokerage, eXp Realty. A truly revolutionary brokerage model that is 100% agent centric, allowing agents to build wealth through 3 income streams, eXp has changed the way real estate agents run their businesses and live their lifestyles.
If you’ve taken a serious look at the eXp Realty business model, you know that revenue share is one of, if not the most attractive factors for agents looking to join the company. In my opinion, it is because of the revenue share model, that eXp is growing as fast as it is, adding over 15,000 agents within the first 6 months of 2021.
But what do you know about revenue share? How much detail about the revenue share structure at eXp do you really have?
In this eXp revenue share breakdown post, we are going to cover an important detail that is often missed when agents, brokers, and team leaders research and learn about revenue share. And that is the difference between expansion and exponential revenue share at eXp.
What is eXp Revenue Share?
The first thing that we should address is the issue of what revenue share at eXp actually is. For those that don’t know, agents at eXp are incentivized by the company to attract other agents to eXp and help the company grow.
Because of this, instead of hiring corporate recruiters and investing heavily into company expansion, eXp shares a portion of company revenue, generated by the agents, back to the agents that were responsible for introducing those agents to the company. In total, eXp shares 50% of their total company revenue generated back to the agents for helping the company grow.
How Does Revenue Share Work?
At eXp, agents are only rewarded for their efforts to grow the company when the agents that they introduced to eXp have completed sales transactions. This way, the company is able to compensate their agents on a performance basis and also, this allows agents who do decide to participate in revenue share earn residual income on a monthly basis.
As an agent at eXp, if you directly sponsor one agent to join the company, you are paid a total of 3.5% of that agent’s gross commission on every sale up until they have capped at the company and no longer have to pay commission splits. Because the eXp pays revenue share on the company side of the commission split, your revenue share for each agent is also capped. So that means, if you have an agent that you sponsored to eXp, you can earn up to $2,800 from that agent’s production every year.
But because eXp is heavily invested in their agents and the growth efforts they bring to the company, revenue share at eXp is not paid for just one level. What that means is, revenue share at eXp is cascading, up to 7 levels, so you are not only making revenue share for agents that you directly attracted to the company, but also for the agents that they attract to the company as well.
For example, if you directly sponsored one agent to the company, you would make 3.5% of their gross commission on every sale up until they cap. If that agent decides to sponsor an agent, you would now not only make 3.5% of their gross commission on every sale, but also a percentage of the gross commissions on every sale of the agent they sponsored as well up until they cap.
This carries on for up to 7 tiers of agents in your organization at varying levels of payments on each tier. Below is a breakdown chart of the maximum capped revenue that you can earn every year on one agent at each revenue share sponsorship level.
eXp Revenue Share Breakdown: Expansion vs Exponential Share
Now that you know how the revenue share model at eXp works, it’s time to dig into the details of the compensation plan. Notice that in the above example on having agents on two tiers, I did not specify the percentage you would receive from an agent you sponsored on your second tier.
That is because the percentage you would receive from that agent varies depending on your specific situation. What does that mean?
FLA vs FLQA
Because eXp is first and foremost a real estate brokerage company and the only way for agents to even receive revenue share is by first generating revenue through gross commission income by selling houses, there are certain safeguards that the company has put in place to make sure that the company and it’s agents will always be profitable. So because of that, all agents at eXp have a distinction based on their focus and their production.
As an agent, you are either an FLA (Front Line Agent) or an FLQA (Front Line QUALIFYING Agent) to your sponsor based on your production. When you close your first transaction at eXp, you will be counted as an FLQA for 6 months. After that, every 6 month period that you close 2 transactions or generate a total of $5,000 GCI, you will be counted as an FLQA for your sponsor for that 6 month period. If you did not meet those production benchmarks, you will be an FLA to your sponsor.
Why Does This Matter?
You might be wondering why the FLA vs FLQA designation is important in terms of revenue share. The reason why these production benchmarks and designation that come with them are important is that it can affect the amount of revenue share you earn from your agents in tiers 2-7.
And this brings us back to the initial explanation of expansion share vs exponential share.
At eXp, you are either paid an expansion or an exponential share PLUS the expansion share for the efforts of your agents on your tiers 2-7, and the determining factor for which share you receive is how many FLQAs that you have personally attracted to the company.
Because agents must be producing sales and earning commissions for eXp to be profitable, they have set these benchmarks in place in order to encourage growth leaders at the company to attract more producing agents and motivate their non producing agents to become producing agents.
Expansion vs Exponential Percentages
At eXp, depending on the number of agents on your front line that you have directly attracted to the company, you are either awarded an expansion share or an exponential share for your revenue share income earned from agents on your tiers 2 through 7.
Here is a breakdown of the difference between earning only the expansion share from your agents in tiers 2-7 and earning both the expansion share and the exponential share. Notice also, that there is no expansion share for your tier one, that is because your exponential share is always unlocked for agents that you directly sponsored to eXp.
As you can see, the amount of revenue share you earn is drastically changes between earning only the expansion share vs earning both the expansion and exponential share. If an agent on your second tier closes a $10,000 commission sale, you will earn $20 from your expansion share and $380 from your exponential share. If you did not have enough FLQAs on your first tier, you would only earn $20, if you did have enough FLQA for your tier 2 exponential share to be unlocked, that $20 would now be a $400 revenue share.
Here you can see for yourself, the comparison of your revenue share cap for each agent on your tiers 2-7 for expansion and exponential shares.
As you can see, the earning potential that you would have for each agent in your total 7 tier organization would be drastically different between the two.
Unlocking Exponential Shares
Now that you know the difference between expansion and exponential shares at eXp and have seen a side by side math comparison between the two and their earning potentials, you are probably wondering how you would be able to unlock your exponential shares for tiers 2-7.
We mentioned earlier that the number of FLQAs, or producing agents, on your first tier of sponsorship plays a part in this. What this means is that, in order to unlock your exponential share for each tier, you must have a certain amount of FLQAs on your first tier.
The number of FLQAs that you would need to unlock each tier will vary. Here is a chart breakdown of the amount of FLQAs you would need on your first line in order to unlock your exponential shares for each tier:
- Tier 1 – Always Unlocked
- Tier 2 – 5 FLQA
- Tier 3 – 10 FLQA
- Tier 4 – 15 FLQA
- Tier 5 – 20 FLQA
- Tier 6 – 25 FLQA
- Tier 7 – 40 FLQA
Let’s break this down even further and give an example of what this means.
For example, if you attracted 5 producing agents who are all FLQAs, you would have unlocked your exponential share for tier 2. So that means if an agent on your second tier closes a transaction that yields $10,000 in commissions, you would receive $400 in revenue share. But if an agent in your third tier closes that same transaction, you would not earn $250, but instead you would only earn $1.
Now let’s say you had 10 agents on your first tier that qualified to become FLQAs, you now have unlocked your exponential share for your tiers 2 and 3. So that means, using our previous example, if an agent on your third tier closes that same transaction, you would now earn $250.
How Many Tiers Should I Unlock?
Although this seems like a silly question, it should be noted that personally attracting FLQAs and keeping them FLQAs does take effort and time. And if you are like most agents, you aren’t looking to join eXp for more work, you are looking to join eXp because you want time and money freedom for you and your team.
So it would be wise to take some time to determine how many exponential tiers you should unlock in order to best use your time.
From historical data from the company and personal case studies, the optimal amount of tiers that a growth minded revenue share leader should unlock is 3 tiers. Because of the duplication aspect of revenue share, the real wealth is not built on your own personal achievements but built on the collective achievements of those on your team. As a growth leader, you would need to shift your mindset from trying to personally attract as many possible to attracting other leaders and helping them reach their personal goals so that your efforts are duplicated within them.
Remember that the company is on a growth curve and that you do have to compete for market share if you are looking to build revenue share. Although the opportunity is vast and it is predicted that the growth of eXp Realty would continue for 5-7 years at least, you still want to take advantage of the current market share and jump on the opportunity when you can. And spending the time to develop other leaders in your organization is much more beneficial for your overall growth than trying to unlock all 7 tiers on your own from the start.
FLQA Status for Growth Leaders
By now you probably realize that the revenue share opportunity at eXp is not just a massive opportunity in real estate, but also a massive opportunity in business. And because the entrepreneurial skillsets needed to be a successful growth leader in revenue share is different than the skillsets needed to be top agents, this opportunity is not necessarily limited to just real estate agents.
There are plenty of Top 100 Influencers at eXp now and many more in the future that has either a limited or no background at all in real estate. Although they would still need to be licensed to be a part of eXp, they don’t spend much time if any on sales or production and focus more on the growth leg of the company.
Even though these growth-focused agents may not produce much is any sales, they provide a much different but a much-needed service to eXp and other real estate agents, by developing the growth of the company and expanding eXp’s market share in every market around the world. Because every real estate company needs a strong growth branch in order to be sustainable, the growth leaders at eXp are just as important as the agents that only focus on sales.
That is why eXp has launched a new initiative for agents who directly sponsor these growth leaders and have allowed certain attractors to counted as FLQAs as well by meeting certain benchmarks.
For an agent to be counted as an “attractor FLQA” they would need to sponsor directly on their first tier, 10 FLQAs themselves AND have a total of 200 or more qualified agents on their first 3 tiers in their revenue share group.
Because these attraction focused agents are brining in other producing agents, their efforts to help the company grow have also in turn helped the company generate more revenue, so as a way to also encouraging growth focused agents to attract producing agents and develop their agents to become better and produce more sales, eXp has allowed revenue share focused agents who has met the criteria to also be counted for their sponsor as a FLQA.
This is an especially important factor for those looking to attract broker-owners who are looking to partner with the company. Since most broker-owners are not producing agents themselves, they can not be counted as an FLQA through the traditional qualifying benchmarks. Now, with the new attractor FLQA status launched, broker owners with significant sized teams that reach the attractor FLQA qualifying benchmarks can now also be counted as FLQAs for their sponsors. This can be huge for agents that have teams of a lot of agents across their tiers 2-7, but are struggling to fill their tier 1.
Learn More About eXp Revenue Share!
The revenue share model at eXp is definitely one of the most unique and the single most powerful business models in the real estate brokerage world. Sharing revenue to agents for helping grow the company is truly one of the most ingenious ways to build a exponentially growing brokerage and a culture of excitement and purpose.
Now agents of all experience levels around the world can build wealth, time, and money freedom, and global real estate organizations from their own homes with little if any investment of money at all. To call revenue share a game-changer in the real estate brokerage space is an understatement. Whether if you are a producing agent or a growth leader, the possibilities at eXp for you to build generational wealth are endless. In a model specially designed to reward both the efforts of sales production amongst agents and endless expansion amongst leaders simultaneously, it is easy for agents to show off their unique skillsets in a 100% collaborative environment.
If you are excited about the opportunity at eXp or if you have any questions regarding the compensation structure or revenue share numbers, click below and book your free one-on-one strategy session with a top 3% influencer at eXp!
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