eXp For Brokerages: 9 Reasons Why Brokers Join eXp
In the last few years, eXp Realty has become a major talking point in the real estate industry, shattering multiple records and traditional preconceptions of the industry. Agents, teams, brokerages, and even non-licensed influencers have flocked over to align with the first-ever cloud-based independent brokerage.
You’ve probably heard many individuals from eXp Realty talking about the value add proposition of the company from an individual real estate agent perspective and how by joining the company, agents can build wealth and accelerate their business. But very few talk intelligently about the entrepreneurial opportunity for brokers and to partner their entire brokerages with eXp Realty.
So today I want to help paint a picture of why there are so many brokers joining eXp Realty, and the benefits of eXp for brokerages to reduce your liability and increase your scalability.
Now there are a plethora of reasons of how each tool, resource, system, and asset that eXp has to offer can be of value to a brokerage. In this post, I’ve organized these into 8 major benefits of eXp for brokerages:
9 Core Benefits of eXp for Brokerages
- Risk Mitigation
- Expense Reduction
- Outsourcing of Management
- Increase Market Share
- Agent Attraction
- Agent Retention
- Brand Continuity
- Survive Recessions and Market Crashes
- Better Life for Your Agents
1) Risk Mitigation
The first benefit of eXp for brokerages is the most important.
When you partner with eXp, you as the broker-owner become an associate broker of the company. What this means is that you are no longer reliable legally for the actions of your agents.
Because eXp has a team of state brokers in every state and region who are salaried employees of the company, eXp carries the full responsibility of a managing broker for all of eXp agents in every state in the US and every country that eXp is operational in the world. As a broker either you or an employee of yours must hold a managing or sponsoring broker license in order to attract and manage other agents at your brokerage.
Although the laws for this procedure is slightly different in every state, they are mostly consistent in that the managing broker is held responsible for their agents actions.At eXp, you are able to completely remove that liability. Once you partner with eXp, all of the legal liability that used to fall on your shoulders is now outsourced to the brokerage operations and legal departments of eXp Realty. As a broker-owner at eXp, you can no longer be sued for your agents’ actions, no longer have to see a single piece of paperwork, and no longer have to review a single contract.It’s also important to understand the unique opportunity that you have at eXp as a broker. Unlike other national real estate companies, you are not purchasing a franchise by partnering your business with eXp because eXp is not a franchise, we are a cloud-based independent brokerage.
This means that you truly are no longer the “broker” to your agents after you partner your business with eXp and are no longer subjected to the risks that most brokers are while being able to maintain and even grow your team of agents.
2) Expense Reduction
The second benefit of eXp for brokerages is the opportunity for brokers to reduce or even completely eliminate their day to day operating expenses.
As we talked about in the previous section, all brokers and agents partnering with eXp get access to eXp’s cloud based operating system eXp World where they can interact with their state managing brokers, access live training sessions, and speak with over 2000 administrative support staff members all as a part of eXp’s $85 monthly fee.
This allows brokerages who join eXp to lower if not completely eliminate their entire overhead business expenses.
A major benefit of eXp for brokerages is the ability for broker-owners to lower their fixed business expenses and eliminate the need to make payroll.
With over 2000 paid employees in the cloud helping you and your agents with maintenance and management tasks, thats equivalent to a near $100 million employee force that you and your agents have access to.
Also, moving your real estate brokerage to eXp allows you to eliminate the need for a physical office eliminating the monthly expenses that come with it while being operate your business just as efficiently, if not more efficiently, through eXp’s cloud based system.
The cloud brokerage system is a benefit of eXp for brokerages to maintain and run your business at a significantly reduced cost while the 7 tier revenue sharing system is a benefit of eXp for brokerages to grow and scale your business while also lowering your expenses.
With the revenue sharing system at eXp, you as the broker-owner have access to 7 partners above you that act as corporate recruiters to help you grow your business because they are incentivized by eXp to do so through the revenue share model.
Not only is this a major growth tool that you can leverage at your will to grow your current organization of agents, but it also eliminates the cost for you to hire any managers or recruiters to help you recruit more agents.
Conservatively speaking, a brokerage recruiter’s salary is around $50,000 a year. At eXp that amounts to $350,000 worth of revenue share partners that you have access to a year EVERY YEAR that you DON’T have to pay out of pocket or compensate in any way.
The revenue share model is an extremely powerful benefit at eXp for brokerages because every agent has the same opportunity to recruit other agents to the company.
Once you come on board and partner your brokerage with eXp, the agents that you bring over from your brokerage are also given the same incentives by eXp to attract agents themselves, and the agents they attract will also fall on your revenue share organization for up to 7 tiers removed from you, which in turn is also helping you duplicate the effort to expand your agent count.
Think about this for a second, how much are you paying your agents to attract other agents to your brokerage now? How fast would your brokerage grow if every agent at your brokerage is incentivized to attract other agents to your brokerage?
3) Outsourcing of Management
The 3rd benefit of eXp for brokerages is the ability for you to outsource your management of your agents to eXp’s 2000+ employee force and be able to have both time and money freedom as a broker.
In today’s world, many people strive hard towards their goals but still feel unhappy because they don’t have the time to do what they enjoy – eXp Realty gives brokers an opportunity not only make money doing something meaningful but also the time to enjoy the abundant life you’ve created.
At eXp Realty, agents with teams of over 1,000 agents are currently spending less time managing their teams than the typical independent broker managing 15 agents or less. The main reason why that’s possible is because of the cloud-based outsourcing system eXp World.
Now you probably know that eXp Realty is the first-ever cloud-based brokerage. But what this really means, especially for broker-owners and team leaders, is that eXp is an outsourcing system for your business taking menial maintenance tasks off your plate and freeing up your time throughout the day.
Like we talked about in our first 2 benefits of eXp for brokerages, inside of eXp World, there are over 2000 paid employees in over a dozen departments that you and your agents have access to anytime, anywhere.
Think about this for a second.
As a broker-owner, your job is comparable to running an adult daycare.
It is your responsibility to answer your agents’ questions and assist them with their tasks, providing them the support they need so they don’t leave your company for another brokerage.
You probably see your daily schedule disrupted all the time by 5-10 minute tasks that you have to perform in order to support your agents such as answering a question about their contracts, giving them support on how to use a tool at your brokerage, onboarding new agents , etc.
By partnering your brokerage with eXp, you no longer have to take time out of your busy day to perform these tasks for your agents. With the backing of eXp’s system, you now have a 100 million dollar employee force supporting your agents with their maintenance tasks and daily questions in various departments including payment processing, accounting, tech support, marketing, state broker rooms, etc.
Think about how much of time that can help you free up as a brokerage owner. If you have a brokerage of 40 agents and you had to perform a 5 minute task for each agent, thats over 3 hours of your day!
4) Increase Market Share
The 4th reason why so many brokers are joining eXp is the fact that they can now increase their business’s market share outside of just their local market.
Traditionally a brokerage is only able to operate and recruit agents within the MLS and Realtor Board that their broker’s license is associated with. If a broker wanted to grow their brokerage outside of their MLS, they would need to either find another broker with access to another MLS that they can partner with or join the MLS themselves.
Even if a broker was able to grow their brokerage across multiple MLS systems in their state, they are still not able to recruit any agents outside of the state that they are licensed in unless they set up a separate or sub entity in another state and get licensed as a broker in that state as well.
At eXp, brokers don’t have this problem because you will be able to recruit and partner with agents all across the world in any market that eXp is operational in through the revenue share model.
Revenue share is paid to you as a “referral fee” whenever the agents you recruit to eXp closes a transaction, and as you probably already know, you are able to receive and give a referral to any agent anywhere in the world as long as they have the proper licensing to be practicing real estate where they are.
Currently eXp is operational in over 20 markets outside of the United States and Canada in markets such as Puerto Rico, South Africa, The United Kingdom, Hong Kong, The Dominican Republic, New Zealand, India, Mexico, Australia, Germany, France, Italy, Portugal, Greece, Poland, Brazil, Chile, Colombia, and Dubai.
This means that you are able to partner with real estate professionals in any of the countries listed above, regardless of where you currently hold your brokers license. At eXp Realty you are truly able to build a global real estate business without any unknown risks that are associated with international expansion that you would have with your own brokerage.
5) Agent Attraction
The 5th reason why there are so many brokers joining eXp is opportunity for brokers to attract more agents to their business using the revenue share model at eXp.
We mentioned the revenue share system and how it is one of the top benefits at eXp for brokerages in terms of saving time and money in our earlier sections. But let’s take a look at how it can help you grow your business more efficiently as well.
Like we pointed out in the previous section with the revenue share system at eXp, brokers and team leaders are no longer geographically restricted on where they can attract agents to their team. At eXp, you are able to attract any agent anywhere in the US, or in the world, as long as eXp has a presence there.
This is huge for the growth minded team leaders because now they can attract agents and partners from anywhere in the world with no restrictions on where they can operate their business in. As you will see later on, this is a major advantage and safeguard towards recessions and market crashes.
Also, as a broker-owner, the value proposition that you have for the marketplace to agents is your brokerage and it’s resources. Statistically speaking, eXp is the most popular brokerage model in the history of North America amongst agents.
As of the writing of this article, eXp is now the single largest independent real estate company in the world and one of the most important factors that has contributed to that is the revenue share growth model that gives brokers and agents who do partner with eXp to recruit other agents to eXp in order to earn a piece of the company’s revenue when the agents that they recruit close transactions.
We can also look at this fact from two different perspectives.
One, as a broker-owner who is partnered with eXp, you now have the most popular product amongst agents that you can now offer to the marketplace of real estate agents, on top of the unique tools, training, and experience that you can provide above and beyond the eXp value proposition.
On the other hand, because eXp is statistically the single fastest-growing brokerage in the history of North America, it is inevitable that agents from your brokerage will eventually be intrigued enough to at least consider a move to eXp. Why not make the move now or at least consider taking a look at how the eXp model really works and retain those agents before they start thinking about jumping over to eXp themselves?
Because the model at eXp is so powerful and allows top producing agents to build wealth and time and money freedom with the easiest path to retirement that we’ve seen in the industry, by simply partnering your current brokerage with the eXp model, you now have access to the most powerful attraction tool in the entire industry and access to markets in every corner of the world.
6) Agent Retention
In the last section we talked mostly about attraction and how to bring agents to your team or brokerage and the attraction benefits of eXp for brokerages. But what happens when you’ve attracted these agents to your organization? How do you keep these agents on your team for the rest of their careers?
By now you should know that the attrition rate in real estate is absolutely vicious. A recent study showed that the annual turnover for real estate agents is close to 70%.
To put that into perspective, the average employee turnover rate across all industries in the US is 12-15%.
So what are the retention tools and benefits of eXp for brokerages that can help you not only attract agents to your team but also retain them?
For starters, the attraction benefits of eXp for brokerages act also as a retention tool as well. Because agents are able to build legacy incomes and wealth, creating both time and money freedom through the 3 streams of income at eXp, they are more likely to stay at the company.
For example, eXp agents are able to earn stock in eXp’s holding company eXp World Holdings LLC by simply closing transactions or recruiting agents who close transactions. eXp Realty is a core subsidiary of eXp World Holdings, a publicly traded company on the NASDAQ stock exchange. As an agent at eXp, you can earn stock in eXp World Holdings.
eXp’s sustainable equity plan, where agents can earn shares of EXPI stock through reaching performance milestones each year allows real estate agents to own a part of the brokerage that they are working at. Because of this, agents are more likely to stay at eXp for an extended amount of time in order to acquire and build growing equity and also wait for those shares to be vested.
The sustainable equity plan is a major retention tool especially for top producing agents and leaders in your brokerage because top producers known as ICON agents at eXp are able to earn their entire cap of $16,000 back in stock awards each year.
The ICON Agent Award program is a loss leader program at eXp, in order to attract and retain top producing agents and leaders of the industry to the company at a break-even point in order to attract more talent to the company at volume.
On top of that, the revenue share model allows the ordinary agent to become team leaders and build residual income as long as they are successful in recruiting other agents to join the company.
Outside of just the benefits of the eXp model, agents are also more likely to stay at eXp because of the suite of collaborative tools they have access to. Not only is that a massive retention benefit of eXp for brokerages, it also allows your agents to become more productive and produce better results.
Business Tools That Increase Agent Production
We touched on the benefits of eXp for brokerages and brokers from an agent attraction and retention standpoint in the last two sections. But what about production?
When looking at and analyzing the attraction and retention tools of eXp for brokerages, we have to also consider these tools from an agent production standpoint from both the agent and broker-owner perspective.
For example, eXp World is not only a great outsourcing system for you the broker-owner, freeing up your time and lowering your expenses, it is also able to help your agents increase their productivity and sell more real estate so that your income goes up as well.
Because agents are longer forced to physically drive down to offices and spend time coordinating with third-party services, they are able to expedite their sales businesses, save time by taking their issues and tasks directly to the employees in the cloud, and reinvest that time back into their production.
On top of the time-saving capability, eXp World provides, your agents will also have access to the best training system in the industry as well. In eXp World, all trainings are conducted in virtual training auditoriums and classrooms, lead by instructors who are top producing ICON agents from around the world.
Because top producing agents are incentivized by eXp to be training instructors through the ICON program, eXp is able to pull the best agents from around the world to conduct their trainings instead of being limited to a market center or using third party real estate training companies.
This means that your agents will have access to the best training system in the world lead by top-producing ICON agents, making them more productive by learning the same strategies that the ICON instructors use to become top producing agents around the world.
Also, consider the lead generation and business tools that eXp has to offer for agents as a benefit of eXp for brokerages as well.
At eXp, your agents will have FREE access to KVCore, a state-of-the-art lead generation/CRM follow-up system that gives your agents a competitive advantage in their marketplace.
Agents also have access to eXp’s Workplace, an internal mastermind system of over 88,000 agents that act as a database of all the information that is available through the company.
eXp Realty is truly the most agent-centric brokerage in the world today and by partnering your business with eXp you can offer that as a part of your value proposition for agents, that you no longer have to pay for out of your own expenses as a broker owner.
7) Brand Continuity
A lot of brokerages that consider partnering their businesses with eXp don’t know this, but you are actually able to keep and maintain your current brand after you’ve partnered with eXp.
That means you are able to keep your brokerage’s name, logo, colors, signs, billboards, etc.
Everything that you’ve invested time and money in the past into creating for your business, you are allowed to keep after you partner with eXp. Once you’ve moved your brokerage over, the only change you would make is that now instead of just advertising your brokerage as “Your Brokerage Name” it would be “Your Brokerage Name Brokered by eXp”
As we mentioned in the first benefit of eXp for brokerages (Risk mitigation), you will no longer be the designated managing broker for your agents after you partner your brokerage with eXp. Instead, that responsibility will fall on the shoulders of eXp through our salaried state brokers who are employees of the company paid to serve you and your agents.
This means that you will no longer need to “be the broker”, but will be able to maintain the brand recognition and continue branding your business and your organization the same way that you are doing now as the broker.
This is especially beneficial for brokerages in a smaller market who has spent a substantial amount of time, money, energy, and resources into creating a brand and client loyalty within in their market.
By being able to keep your brand, you now have access to all the value that eXp has for you and your agents while also being able to keep your current identity and customer base.
8) Survive Recessions and Market Crashes
The last major and most important benefit of eXp for brokerages is the fact that as a broker that is partnered with eXp, you are able to prepare for and potentially combat economic downturns and recessions.
To fully understand this point, lets first take a look at how eXp was created and more importantly, when eXp was founded.
eXp Realty was founded by Glenn Sanford, former top 50 real estate agent at Keller Williams and current CRO of eXp Realty, in 2009.
Think about what this means. 2009 was the height of the real estate crash and in the US and the last major recession that we had. eXp Realty was founded during that exact time.
Now there’s no such thing as a recession-proof business model, but a company born out of the last major recession in the US is about as close to it as it gets.
The reason why eXp was able to be born out of a recession and is set up to prepare for potential recessions in the future is that the eXp business model is completely cloud-based.
This means two things.
1) There are no major brick and mortar business expenses and liabilities that can cut into your earnings during a slow market.
2) You are able to grow and operate your business in any market around the world so you are not forced to operate within your own market confines and bound by its restrictions and conditions.
As a broker-owner, the best way to prepare for and combat a slow market of a recession is to lower your expenses.
In business, the only two ways to increase income is to lower expenses or increase revenue.
When business is slow because of uncontrollable erroneous market conditions dropping revenue, the only way to sustain your business and not turn a negative profit is to lower expenses, which eXp allows you to do with a suite of outsourcing systems that you and your agents have access to.
Also, think about the global and international business opportunity and what that can do for your business during a recession.
On a smaller scale, let’s assume that the current local market that you are in is experiencing some unusual fluctuations and the home prices are dropping. As a traditional brick and mortar brokerage, you are locked in to that market and forced to stay within your local market and operate your business in those conditions.
At eXp, you as the broker-owner can now attract agents to your team in any state in the US, so if you are in a lower price point market, you are longer restricted to run your business only in that market and can now expand your organization into a higher-priced market through the borderless revenue share model.
On a global scale, the ability for you to run your business and attract agents anywhere in the world is a major benefit of eXp for brokerages.
Now not only are you able to combat local market crashes, you now have a way to be able to adjust your strategy and prepare for nationwide recessions.
Since you are able to grow your team into any market in the world, your business can now run in multiple countries, therefore diversifying your business that traditional brick and mortar brokerages are unable to do.
9) Giving Your Agents a Better Lifestyle
The final benefit of eXp for brokerages is the fact that you are now able to give your agents and their families a better lifestyle.
As a broker-owner, there is no question that you care about your agents and their successes. After all, that is why brokers always do their best to go above and beyond their pay grade to help their agents so they can help give them and their families a better life.
But the reality is, because running a traditional brokerage business model is so difficult, brokers rarely ever have the proper financial resources and time to invest into their agents to help give them a better a life.
When you partner your brokerage with eXp, your agents instantly get the opportunity to make a better lifestyle for themselves and their families.
eXp offers agents 3 streams of income, wealth building components, and residual income, your agents can become business owners at eXp instead of just being self-employed.
Your agents now have the opportunity to earn stock awards and build a stock portfolio by owning a piece of their company through eXp’s equity awards. They also have the opportunity to build a monthly residual income through revenue share that can give them both time and money so they can spend more time building a more efficient sales business or spend that time with their families.
On top of the opportunity to build multiple streams of income for your agents, both you and your agents will also get access to a full suite of brokerage tools that you might not have been able to give to your agents before such as:
- An 80/20 Commission Split With a Few Transaction Fees
- A $16,000 Annual Cap
- Real Estate Tech Solutions in the Form of KVCore as a Part of An Agent’s $85 Monthly Fee at eXp
- Exceptional Brokerage Support Through eXp World
- An Over 88,000 Agent Referral Network
- And More!
Why so Many Brokerages are Partnering with eXp?
So now you know 9 major benefits of eXp for brokerages and broker-owners.
Time-saving tools, lowered expenses, 2000 paid employees, 7 partners acting as your recruiters, training, no liability, etc. All of these are reasons why so many independent and franchise broker-owners are moving their entire 10, 20, 40, 50, or even 100 agent brokerages to eXp.
As a business owner, the entrepreneurial opportunity at eXp is absolutely endless. Just over the past year, the company has already more than doubled the number of agents at the company and given over 100 broker-owners and team leaders a new and improved lifestyle. The crazy thing is, eXp is only still at the bottom floor of the growth phase and is nowhere near maturing as a company.
We have only just scratched the surface of the suite of benefits at eXp for brokerages and there are many new benefits being rolled out as you read this article.
For example, if you are the owner of an independent brokerage firm, eXp has just recently launched a new incentive program for independent brokers who produce over $100 Million in sales volume and over 50 agents that want to partner with eXp in order to make the transition process smoother.
Through the launch of its boost program, eXp is now actually offering financial incentives to independent brokers who qualify to move their business over to eXp to take advantage of the cloud-based platform and it’s many benefits for brokers.
Do you want to build wealth, get your time back, lower your expenses, attract and retain more talented agents, and grow your business into a global real estate phenomenon?
I’d love to have a private conversation with you about how we can help you do exactly that, the additional opportunities of eXp for brokerages and the additional value add tools that our organization at eXp specifically designed to benefit broker-owners. Just click on the button below and book a private strategy session to change your life today!
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