eXp Realty Review – Compensation Plan Video
Real Estate Expert Jim Gray dives into how the compensation plan works at eXp Realty
“When you join a brokerage, one of the most important things to consider is the commission split.
After you sell a home the brokerage you work for will take a portion of the sale. It is not uncommon for starting agents to have to pay as much as 40% in commission for every house they sell.
eXp Realty takes a different approach. Agents that work for their company can keep 80-100% of what they make. As you can imagine, this makes them a very attractive company to work for.
Read on to find out more about what eXp offers and what you can look forward to if you are thinking of joining their team.
What is eXp Realty?
eXp is known for being the fastest growing cloud based real estate firm in the country. Without a brick and mortar location, they are able to save money that can be reinvested in their agents and their company. They also offer agents the opportunity to become shareholders. This allows for unprecedented financial growth.
The company started in 2002 and has been on a promising trajectory ever since. They currently have 50,000 agents working for them, a number that has more than doubled annually in the past few years.
They also boast impressive record revenue numbers. Their revenue for 2020 reached 1.8 billion, an 84% increase from 2019’s $980 million.
eXp has offices in all 50 of the United States as well as Canada, Mexico, UK, Portugal, South Africa, India, France and Australia
Now let’s take a look at what an agent can expect when they join with the company.
Commission and Splits
While most brokerages start off their agents with a 60/40 split, eXp offers a generous 80/20 until you reach a commission cap of $16K. Once you hit $16K, you will be able to keep all your income. However, there is a $250 transaction fee for the next 20 transactions. The fee falls to $75 after that.
Note that new agents who sell less than three homes within the past 12 months at the company will be in the eXp mentor program and subject to an additional 20% split with their mentor.
eXp goes out of their way to keep agent costs down by charging E & O (Errors and Omission) insurance fees on a per transaction basis. This allows agents to pay just $40 per transaction until they reach their $500 cap. There’s also a $25 broker review fee to ensure all contracts are legit.
How Much Can Agents Save?
Agents who join eXp can save a considerable amount of money due to the brokerage’s zero royalty and franchise fees, low startup fees and minimal E&O Insurance. Agents that bring in an $80,000 GCI (Gross Commission Split) can save as much as $8000 a year. Top producing agents that sell more than 20 homes a year and bring in a GCI closer to $300,000 can save as much as $60,000.
Additional Income Offers
ExP makes every effort to save agents money. But they also provide ways for agents to earn additional income.
For example, if you join the EXPI Stock Awards Program, you will have the opportunity to receive company stock for getting your first annual transaction under your belt, hitting your transaction cap and/or bringing a new agent into the company. Here’s how the awards program works.
eXp Stock Equity Plan
The first option of EXPI Stock Awards is the eXp Stock Equity Plan. This allows agents to receive stock in the company for bringing in new agents, hitting commission caps and completing transactions.
ICON Agent Award
The ICON Agent Award Program allows agents to receive their $16,000 commission cap back in eXp stock. In order to qualify, you must sell 20 homes, and/or earn an annual GCI or $500K and pay at least $5000 in transaction fees. In doing so, you will receive $12,000 worth of stock as well as an additional $4000 if you attend the two annual eXp conferences.
Revenue Share Program
When you join the Revenue Share Program you will receive $400 worth of EXPI stock for every agent you introduce to the company. eXp will also cut you in on a 3.5% share of the commission those agents bring into the company. The more agents you bring in and the more revenue they generate, the more you stand to make.
eXp stocks are also available for purchase on the stock market. Agents can use 5% of their commission checks to buy stock at a 10% discount.
Most stock awards are vested after 3 years so if you hit your commission cap, you will be able to cash out your award three years later.
Low Up-Front Fees
When you join a brokerage, you want to be really careful about those up-front fees. These cover things like the use of a desk, supplies, educational resources and marketing materials. Although these are useful tools, some companies take advantage of their agents by charging unreasonable fees.
eXp’s cloud-based format as well as their generous attitude allows them to keep agent start up fees as low $149. The fee includes:
- The set-up of a lead generation website
- 1000 business cards
- A contact management system
- Membership to the Regus Business Center
- Google apps that assist with email and storage
- A hello fax and toll free 800 number
- A Skyslope Transaction Management System
- Membership to Breakthrough Broker
- A personal agent attraction web site
- Access to the eXp World virtual campus
After the initial startup, agents are required to pay an $85 monthly fee for an ongoing supply of marketing tools and 60 plus hours of live training sessions. You’ll also have access to training videos that provide comprehensive information on how to generate income and build your customer base.
Build a Team
Once you get situated in the eXp brokerage, consider setting your sights set on building a team. There are four different kinds of eXp teams you may build. Here are your options.
Traditional Team
A traditional team is the most common choice for eXp agents. The structure has the team leader collecting the 80/20 commission split with a $16,000 cap. The team members have a $8000 cap and pay a minimum 75/25 split to the leader which figures into their annual cap.
So here’s an example of how that would play out:
Say a team member sells a home that yields $10,000 in commission. The leader would get their 25% split of $2500 with that $2500 going towards the leader’s annual cap.
20% of the remaining $7500 would be shared with the broker (for a total of $1500). The agent would keep the rest of the money making for a $6000 payday (minus any miscellaneous fees).
In order for a team to be recognized as an eXp traditional team, they will need to have closed at least $60 million or 30 transactions in the past year. The team leader must also provide a team roster to the agents to sign which serves as a written contract. If you are unable to create your own contract, eXp may be able to provide you with a standard agreement that can be used as is or customized.
Mega ICON Team
The Mega ICON Team is a good choice for larger teams of ten or more members. The team leader has the $16K cap while the members have a $4000 cap.
Requirements for the ICON Team are as follows:
- The team needs to sell 175 homes or close $40M in transactions in the past 12 months.
- The team must have a combined cap of $56,000 which includes 10 agents at $4000 each and the team leader’s $16K cap. The cap must be reached each year. Note, this may be a difficult goal for teams of 10, but larger teams will be able to reach that number easily.
- The team leader must submit a team roster signed by the members.
Self-Organized Team (or Group)
Self-organized teams are perfect for agents starting out with smaller teams. The team leader is still subject to the $16,000 commission cap but the members don’t have any cap at all.
There are several benefits of this structure including the following:
- No team roster or formal agreement is required.
- No minimum commission split is required (splits can be set as low or high as you would like them to be).
- Agents can still qualify for eXp stock awards for ICON agent and for reaching their annual cap.
This is a terrific option for agents who are looking to build their brands and their teams.
Domestic Partnership
Domestic partnerships are ideal for couples that are legally married and would like to join eXp as a team. No written agreements or commission caps are required, and the partnership can be dissolved at any time.
eXp Revenue Sharing
eXp’s lack of brick and mortar locations means lower expenses and more revenue sharing opportunities for agents. The company is able to share half of their 20% split with agents.
Additionally, agents who bring new people to the company can make as much as $2800 for everyone they introduce. They will earn between 0.2% and 5% of what those agents earn. This is on top of the 3.5% they will be making off their recruit’s commission.
Every month, agents will receive a payment based on the revenue share created in the previous month. They also have access to the Enterprise dashboard which allows them to track everything they earned.
If recruiting isn’t for you, keep in mind that this is a completely optional feature. However, it’s a great way to bring in extra money.
Education and Training
eXp offers comprehensive education and training that includes 60 hours of classes that take place at corporate offices. Agents can log in to learn from agents throughout the country.
In person opportunities are also available. There are lunch and learns, regular meetings and in-person classes that take place on a regular basis.
eXp also provides mentorship and sponsorship opportunities.
Your sponsor will be the person that recruited you into the company. During your time at the company, they will offer you guidance helping you understand how to use technology and giving you valuable tips to help you grow your business.
You will also be assigned to a mentor who will help develop your real estate skills. Mentors are certified with tons of experience under their belt, and they are chosen based on your geographic area so in person meetings are completely doable. If you have a mentor you would like to be paired with, let eXp know and they will do their best to make it happen.
eXp’s doors are always open. You can pop into their virtual office to visit their technology or accounting offices almost any time. They are open 10 to 12 hours a day and available to answer any questions you might have.
Additionally, if you ever have need for a physical office space, eXp has an agreement with Regus Business Centers. Agents can access their offices for meetings and events at no additional cost. With 3000 co-working spaces located across the country, you are bound to find one that’s convenient for you.
After you pass your real estate license, you will need to find the brokerage that’s right for you. eXp is a preferable choice due to its generous commissions, revenue share and stock options and extensive training and educational resources. Call a center to find out more and determine if they are the best agency for moving your career forward.”
Explained by Jim Gray, a professional real estate agent and a professional real estate agent coach for more than two decades.
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