Have you ever wondered how real estate agents are getting compensated through the eXp Revenue Share Plus model? In this article, we will break down the eXp Realty revenue share plus model in detail. We will explain the compensation structure and payment plan so that you can understand how eXp agents are paid.
eXp is a unique company, and its revenue share model is one of the key reasons for its success. In just over 10 years, eXp Realty has risen from a start-up real estate brokerage in 11 states to the single fastest-growing brokerage in the entire world operational in over 20 countries and growing! If you are considering becoming an eXp agent, or are just curious about how the revenue share plus model operates, then this article is for you!
In our ultimate guide to eXp Revenue Share Plus, we will cover:
-What revenue share is
-How revenue share works
-The benefits of revenue share vs profit share
-exponential vs expansion revenue share
-revenue share earning examples
-how agents are retiring through revenue share
-what is new and improved eXp revenue share plus
What is eXp Revenue Share?
eXp Revenue Share is a unique way of compensating real estate agents at eXp Realty who are taking an active role in growing the brokerage. eXp agents are rewarded by helping grow the company by referring other quality real estate agents to eXp realty who are closing transactions through revenue share.
At eXp Realty, the company shares 50% of all revenue generated by the company back to the agents who have contributed to the growth of the brokerage by referring agents to join eXp every month. If you want an idea of what that number looks like…in the third quarter of 2021 alone, eXp Realty generated a total of $1 Billion in revenue, sharing $500 Million back to the agents!
As you might know, at eXp realty, there is an 80/20 commission split, a $16,000 annual cap, and no royalty or franchise fees. Revenue share is paid to the agents from the 20% of the company side of the commission split up until the cap, so that way the agents at eXp Realty are able to keep all of the commission that they have earned on their transactions.
Here is an example:
If you refer me to eXp Realty and I name you as my sponsor when I join the company, you will get paid a piece of the 20% of my commission split to eXp every time that I close a transaction up until I’ve paid in the full $16,000 cap. By the time that I would have paid in my full $16,000 cap to the company, you will have received a maximum of $2,800 of that $16,000 from revenue share.
If I also refer an agent to join eXp, that agent will fall on your second tier of compensation and my first tier because you were indirectly responsible for referring that agent to eXp. If that agent also pays in their full cap to eXp then I will receive the maximum $2,800, and you will receive a maximum of $3,200 since that agent will be on your tier 2. This goes on for up to 7 generations deep at varying levels of compensation.
What if an agent doesn’t cap?
If an agent at eXp is actively selling real estate but does not cap, you are still able to earn revenue share from each house that they sell. Revenue share is paid as a percentage of an agent’s gross commission on each transaction closed to their referring agents or sponsors.
Let’s say that you sponsored me to eXp Realty, if I close a transaction that yields $10,000 in GCI, I will get 80% or $8,000, the company will get 20% or $2,000. Because I am an agent on your first tier, you will receive 3.5% of the GCI on every deal that I close paid from the company side of the commission split. This means that if I closed a $10,000 transaction, you will receive $350.
In the same scenario, if I earn a $20,000 commission, you will receive $700. A $30,000 commission, $1050, and so on up until I have capped for the year.
The same concept applies to agents on your tiers 2-7 as well at different percentage levels. Here is a graphical illustration of the varying percentages of compensation for a transaction closed by an agent in each of the 7 tiers of your compensation plan:
The eXp revenue share model offers several advantages for real estate agents who want to build a residual income:
– No limit to income potential – Agents are rewarded for their role in growing the company, which means you can refer as many agents as you want.
– Agent are paid based on team performance – Agents earn revenue share through team growth and production.
– Continuous payouts – Monthly payments provide consistent income throughout the year whether you personally sell a house or not.
– Reduced risk – Agents are able to build massive residual incomes in their business without having to risk capital or be liable for their agents’ actions legally.
-Willable – Many agents don’t know this but you are able to will your revenue share position to a family member in the case of an accident as long as that family member also gets their real estate license.
Want to Learn More About This Incredible Opportunity? Click Below to Learn More!
How Does Revenue Share Work at eXp Realty?
Now that you know what eXp revenue share is, you are probably wondering how an agent qualifies to earn any revenue share at eXp Realty. The answer to that question is probably a lot simpler than most people think.
In order to earn revenue share at eXp Realty, you first have to refer other agents to join the company. The cool thing about eXp is that all agents, no matter their experience or production level are able to refer other agents to the brokerage the moment they become an active agent with eXp Realty.
So that means that it doesn’t matter if you’ve done 50 transactions or 0 transactions, been an agent for 10 years or 2 weeks, as long as your real estate license is active with eXp Realty, you are able to refer other agents to the company the moment you join the company and earn revenue share from their production.
How To Refer Agents to eXp?
A lot of you might also be wondering how would you go about referring an agent to eXp Realty. Do you have to fill out a form? Sign a special contract? Apply for attractor status?
The answer to all of those questions is no. When an agent wants to join eXp Realty, they first need to fill out a Join Application, which is a non-binding 15-minute online application as a way to express interest in joining the company.
An important note for agents who are looking to join eXp soon or in the future, as of right now, the only way for a prospective agent to view the eXp Realty Independent Contractors Agreement between the agent and the brokerage is by filling out the Join Application.
When an agent is filling out their Join Application, they will asked to name a sponsor before they are able to submit the application and view their ICA. The sponsor that they list can be any active agent at eXp Realty, no matter where they are in the world. This means that an agent in Florida can name a sponsor who is an eXp agent in Texas, or an agent in Mexico can name a sponsor who is an eXp agent in India.
After an agent names an eXp agent as their sponsor, the joining agent will fall on that eXp agent’s tier 1 in their revenue share group and that eXp agent will be able to earn revenue share from the joining agent’s production.
For information on sponsorship at eXp Realty, Click Here
Global Revenue Share
For those that don’t know, revenue share at eXp is paid legally as a referral. This means that as long as an agent is legally able to receive a referral from another agent, they are able to sponsor them to eXp and earn revenue share from their sales.
Because eXp Realty is operational in all 50 American states and 20 international countries, this means that you are able to refer agents to eXp from virtually anywhere in the world as long as eXp currently has a presence in that country.
The size of your business is directly correlated with the size of your market share. At eXp realty, you are now able to work with and earn residual income from the production of agents in over 20 different macro real estate markets and growing!
Over the past few years we have seen agents sponsor other agents to eXp across state and country lines at a massive level. Agents are bringing brokerages of up to and even over 100 agents to eXp Realty from foreign countries that they have never even stepped foot in!
Sponsoring Brokers and Teams
One of the coolest and least known aspects of revenue share is that agents at eXp are not only able to refer individual agents to join the company and earn revenue share from their production, but they are able to bring over entire real estate teams and even brokerages!
In the first 2 months of alone 2021, 30 independent brokerages and 46 mega agent teams moved their entire businesses over to eXp Realty.
As an agent at eXp Realty, you literally now have the ability to partner with entire brokerages of over hundreds of agents and earn a percentage of the commission that each agent on those teams/brokerages earns.
You can almost think of this as an opportunity for you to acquire entire real estate brokerages into your business without having to pay franchise fees, go through painstaking legal processes and risk your own money.
What Makes Revenue Share Possible
Many agents who are still reading this article are probably wondering how it is even possible for a real estate brokerage to share 50% of their revenue back to the agents every single month.
For those that don’t know eXp Realty is a cloud-based independent brokerage that runs their entire business operations through the eXp Metaverse, a fully immersive and interactive cloud-based virtual office environment. Because all brokerage operations at eXp are conducted through the real estate metaverse with digital resources and platforms, eXp Realty does not own a single brick and mortar office, which significantly lowers the expense side of the company balance sheet.
This way eXp Realty is able to save enough money from these lowered expenses in order to give back 50% of all company revenue back to the agents.
Learn More About the eXp Metaverse
The 7 Agents Above You: Picking the Right Sponsor
Lastly, it is important for me to note that not every agent at eXp Realty has found success in revenue share. In fact, only around 12% of the entire company even participates in revenue share at all!
The reason for this is because it is extremely important for agents who are joining eXp Realty to pick the right sponsor, especially if they are interested in building their own revenue share. Many agents at eXp Realty talk about the 7 levels of agents that they are able to recruit below them, but what no one talks about is the 7 agents above them.
Because agents at eXp are heavily incentivized to help any agent that they refer to the company, either directly or indirectly through revenue share, many real estate agents have revenue share teams are giving away massive value to their agents for free so that they can grow their businesses and make more money.
This is why it is important for agents who want to join eXp to look for an agent who is apart of a great sponsorship line at eXp who is able to provide you value to be your sponsor. A great sponsor is someone who is able to provide you additional value and access to additional resources on top of the tools and trainings that eXp has to offer.
To Learn More About the Leading Groups and Sponsors at eXp Realty Click Here
Interested in Learning More About This Incredible Opportunity? Click Below to Learn More About the Fastest Growing Sponsorship Line that Equips You With The Tools to Build a Massive Global Group!
eXp Revenue Share vs Profit Share
One of the most asked questions about eXp Realty’s revenue share program is how it is different from profit share models at other companies. Although the 2 structures may seem similar, the one key difference between the two makes a huge impact on the earning potential of each business model.
As the name suggests, revenue share is a type of compensation plan that pays agents a percentage of the company’s total revenue every month for growing the company. eXp Realty pays out 50% of all company revenue back to agents through this program, making it one of the most lucrative forms of income in real estate.
The best part about eXp’s Revenue Share program is that it is completely residual- meaning you continue to get paid every month that your agents are producing sales!
The key aspect of revenue share is that eXp shares their monthly revenue back to the agents, before any expenses are deducted.
Unlike revenue share which gives agents a percentage of the company’s total revenue, profit share is a type of compensation plan that gives agents a percentage of the company’s profits after expenses have been deducted.
This is a huge difference from revenue share because due to changing market conditions, companies that offer profit share only are sometimes unable to pay out any profit share to their agents on some months because they were unable to turn over any profit.
Which One Is Better?
Both eXp Realty’s Revenue Share and Profit Share programs are great ways for real estate agents to make money. However, when it comes down to it, eXp Realty’s Revenue Share program is better because it:
– Pays out agents a percentage of the company’s total revenue before expenses instead of after expenses have been deducted.
– Has a residual component, meaning you are guaranteed to be paid revenue share every month as long as the agents on your team are producing
– eXp Realty is the only real estate company that offers a Revenue Share program like this!
For a full breakdown comparison of revenue share vs profit share click here
Unlocking Your Levels: Expansion vs Exponential Revenue Share
A lesser-known fact about eXp realty’s revenue share model is that agents must qualify to earn the full revenue share percentages for their tiers 2-7 by personally attracting quality, producing agents to the company.
Because eXp a real estate brokerage company that needs to generate revenue from the production of their agents, there are certain safeguards that the company has put in place to make sure that the company and their agents will always be profitable.
In order to unlock the full revenue share payouts for each tier, you must have personally sponsored a certain number of qualifying agents. At eXp Realty, for every 5 qualifying agents that you personally enroll to the company, you unlock a new tier of revenue share. Personally enrolling 5 qualifying agents will unlock your second tier, 10 unlocks the third, 15 unlocks the 4th and so on.
This means that if you personally attract 5 qualifying agents you will get paid on 2 tiers of revenue share. If you personally attract 16 qualifying agents, more than 15 but less than 20, you will be paid on your first 4 levels of revenue share.
In order for an agent that you personally enrolled to the company to qualify so that they can help you unlock your revenue share tiers they must be actively producing agents. When an agent closes their first transaction at eXp, they will qualify for 6 months. After the first 6 months, an agent will have to close at least 2 transactions every 6 months in order to qualify for that 6 month period.
The good news for agents who have big revenue share organizations is that you are still able to earn revenue share from agents in the tiers that you have not unlocked yet. If you have agents who close a sale in a tier of compensation that you have yet to unlock, you will receive the expansion share portion of the revenue share payments which is a fraction of the exponential or full revenue share payment percentage for that tier.
For More Information on Exponential vs Expansion Revenue Share Click Here
Revenue Share Examples
For agents who are not with eXp Realty, it can be difficult to grasp the concept of revenue share, especially from a potential earnings perspective, so here are a few examples of potential earning scenarios that agents can achieve through revenue share.
6 Who Get 6
Let’s say that you joined eXp realty and in your first year you were able to enroll 6 capping agents personally to the company. You will receive $2,800 in revenue share each year for each capping agent on your first tier. 6x$2,800 is $16,800. This means that by simply enrolling 1 capping agent to eXp every other month for one year, you are able to earn an additional $16,800 in residual income each year.
If the 6 agents that you personally enrolled decides that they also want to earn residual income and they all go out and duplicate what you have done and each of your 6 capping agents enrolls 6 capping agents to eXp.
Now you have 36 capping agents on your second tier of revenue share, and because the 6 agents on your tier one will be enough yo unlock your tier 2 of revenue share you now earn an additional $3,200 each year in revenue share for each of the 36 capping agents on your tier 2. 36x$3,200 is $115,200.
Add that back to the $16,800 you earned from your tier one agents and now you will be earning up to $132,000 in revenue share each year.
10 Who Get 10
If we extrapolate those numbers and you hypothetically enroll 10 capping agents personally, you will potentially earn up to $28,000 each year in revenue share from your tier 1 agents considering they all cap.
Again, if the 10 agents on your tier 1 all duplicate what you have done and they each go out and enroll 10 capping agents of their own, you now will have 100 agents on your second tier of revenue share. 100x$3,200 is $320,000. Add that back to the $28,000 and you are looking at potentially earning $348,000 in revenue share each year considering all of your agents cap.
Not Every Agent Will Cap
To think that every agent you enroll will cap is unrealistic. But what if we took those numbers and cut them in half? What if every agent you enrolled only produced enough to pay half of their cap into the company each year.
In example 1, you will still be earning $66,000 in revenue share each year. In example 2, that’s $174,000.
How Agents Are Retiring Through Revenue Share
In this next example, I am going to show you how an average real estate agent can retire through the revenue share model.
6 Who Each Get 1
In the last section we talked about a scenario where you personally enroll 6 capping agents and they all duplicate what you have done and each enroll 6 capping agents. But what if we shrunk those numbers a bit. What if the 6 capping agents you enrolled each only enrolled 1 capping of their own?
In this example you are still earning $16,800 each year from the 6 capping agents you personally enrolled. But now you only have 6 capping agents on your tier 2 instead of 36. 6x$3,200 is $19,200. Adding that back to $16,800, you are going to earn $36,000 in revenue share each year that you can put towards your retirement.
Comparing that to a traditional retirement plan where an agent is earning $100,000 a year, living off of a $48,000 a year lifestyle, agents who participate in revenue share can retire much faster than a traditional real estate agent.
To See a Side By Side Retirement Comparison Click Here
If You Want to Learn More About How You Can Retire Through eXp Revenue Share Click Below!
The Next Evolution: What is eXp Revenue Share Plus?
Earlier in this article we talked about the difference between revenue share and profit share. Although the 2 are similar in structure, it’s easy to see why revenue share is the more lucrative model.
But what if there was a program out there that somehow combined the two, what if there was a real estate model that could offer agents both revenue share and profit share?
Revenue Share + Profit Share: eXp’s Revenue Share Plus Program!
eXp Realty has just recently announced a brand new initiative for the revenue share program called eXp revenue share plus where agents are able to earn profit share on top of the revenue share that they already earn!
How is this possible?
eXp Realty is a real estate brokerage company that is held under the parent holding company EXP World Holdings LLC, a publicly traded company on the NASDAQ that owns several other companies such as Virbela, a technology company that is leading the development of the metaverse, Success Magazine, a coaching and self-development media company for business owners, and other companies that provides real estate related services such as title, lending, and mortgage companies.
eXp Revenue Share Plus is a program put in place in 2022 where eXp World Holdings LLC will now be sharing 50% of the profits generated each month from all non real estate brokerage affiliated companies held under the entity back to the real estate agents who have helped grow eXp Realty by attracting other agents to the company on top of the 50% of total revenue already being shared back to the agents.
Yes, that’s right.
eXp Agents who actively help the company grow by referring and attracting other agents to eXp Realty are now earning both revenue share, derived from 50% of the total revenue generated by the brokerage each month before expenses, and profit share, derived from 50% of the total profit generated by all other companies held under eXp World Holdings each month after expenses.
This is a massive evolution to the already game-changing and life-changing revenue share model at eXp Realty. With the implementation of eXp revenue share plus, agents are now able to increase their income even more by helping the company succeed.
At eXp Realty, agents are truly able to earn over 100% of their commissions through the many additional streams of income the brokerage is offering the agents.
If You Want to Learn More About The Incredible Opportunity Of The eXp Revenue Share Plus Program Click Below!
Bonus: Top 14 Ways to Build Revenue Share
If you have stuck through this entire article then you are probably extremely excited about the revenue share opportunity and want to jump into it as fast as you can!
As a bonus for sticking through this article. Here are the top 14 ways that you can meet more agents and start building your revenue share today!
- Enrolling Agents You’ve Worked With
- Referrals From 3rd Party Vendors
- Holiday Parties
- Referrals from Family and Friends
- Local Open Houses
- Facebook Groups
- Social Media
- Sponsor Real Estate Schools
- Sponsoring Real Estate Investing Events
- Using BrokerMetrics (Brokers Only)
- Referrals From Other Brokers
- Picking the Right Sponsor!
Are You Ready to Take Advantage of a Once in a Lifetime Opportunity?
eXp Realty has always been and will continue to be the company that offers real estate professionals the best opportunity to grow their income exponentially and build lasting wealth through residual income. With eXp revenue share plus, agents now have an even greater opportunity to increase their income by helping the company succeed.
Are you ready to take advantage of this amazing opportunity?
If so, then I highly recommend enrolling in eXp Realty and start building your own empire today!
Click below for more information on how to become an eXp agent!