eXp Inside & Out:
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What You Need To Know:
EVERYONE HAS AN 80/20 SPLIT UNTIL CAP.
20% of each commission check goes to eXp Realty until you have paid in a total (read: maximum) of $16,000 for the year. After that, 100% goes to you until you start a new anniversary year. Transaction fees still apply, more on transaction fees below.
Self organized teams do not have a reduced cap, their cap is the standard $16k. TLHG is a self-organized team. This allows us to have a smaller team split (20%) on just team deals (instead of all your deals!)
But, FYI Standard Teams have a reduced cap of $8,000 per year and Mega Icon Teams have a reduced cap of $4,000 per year. Standard teams and Mega Icon teams require a minimum of 25% of each commission check paid to the team leader. Again, TLHG is not a Standard Team or Mega Icon team.
After you cap, you only pay:
$250 transaction fee at closing, maximum of $5000 per year (20 more transactions) then it is reduced to only $75 per closing for the rest of the anniversary year.
$25 broker review
$40 risk management (E&O) ($500 max per year, which can happen in as little as 13 transaction)
And! This is for the entire remainder of the anniversary year! The schedule starts over every anniversary.
One time sign on fee of $149. This includes your first month of $35 plus $50 fees.
$50 per month technology fee - includes sky slope transaction management software, KVCore CRM, and eXp World (ask about a guess pass!)
$35 per month eXp University Tuition - includes 40+ hours of online training per week. And even more previously recorded trainings.
Per Transaction Costs (same as mentioned above in splits):
$40 E&O (TLHG shares this fee with team members on team deals)
$25 Broker Review fee
Company &/or team split until applicable cap
THAT'S IT. NO DESK FEES. NO FRANCHISE FEES. NO QUARTERLY OR ANNUAL DUES.
Setup a call with me and send me your annual transaction numbers, current splits, and fees ahead of time and I will run through the numbers with you on zoom!
One of the best consequences of this system is that agents truly have an incentive to help agents they sponsor sell real estate. Isn’t that, like, what we are trying to do here anyway? 🤔
There is no benefit to recruiting agents who don't produce, which is my favorite part. I want to sell houses, not a brokerage. I want to help agents. I want a culture and a community; eXp's attraction model offers me everything I am looking for!
Some brokerages offer profit-sharing to agents who sponsor agents into the brokerage. eXp offers revenue sharing, which is based on commissions earned from selling real estate, not limited by the profitability of any particular market center or a franchise (there are no EXP franchises fyi.) This makes a huge difference in the size of our revenue share checks!
Single Agent Revenue Share: eXp pays you 3.5% of the commission earned by any agent you personally sponsor into the company. This compensation comes from the company's portion of the split up to $2800/year.
Multiple Agent Revenue Share - agents also earn residual income from the producing agents that are sponsored into their overall group. For example, if you personally sponsor five producing agents into the company, and they sponsor their own producing agents, you can earn up to $3200 annually for each of those other agents, which represents up to 4% of the gross commission, with no limits up to seven levels deep!
eXp Realty is a publicly traded company (symbal EXPI) and is listed with the NASDAQ. Stocks go up. Stocks go down. No guarantees or promises can be made here, but how much stock are you getting with your current brokerage??
Agents can earn or purchase shares in several ways:
AT NO COST (“Awarded Shares”):
$200 in stock awarded for the first transaction of your anniversary year
$400 in stock to any agent or broker who caps (pays a full $16k over the year to eXp)
$400 in stock for each agent you sponsor into the company upon that agent’s first closing
There is a 3 year vesting period before awarded (vs. purchased) shares “vest” or belong to the agent. This encourages stability by giving agents an incentive to stay with eXp in order to benefit from the Equity Awards Program.
Stock investments are easily
one of the best assets of the brokerage! One day, I received an email and I found out I had $4000 invested. It felt like free money, I didn't even know it existed and I had only been with the brokerage for
about 8 months!
AT REDUCED COST (“Purchased Shares”):
Agents may elect to have 5% of each commission (after splits and fees) automatically invested in shares of the company at a 10% discount of Fair Market Value. In doing so, you are effectively “dollar cost averaging” by buying when the stock is at different prices. This helps you avoid buying a lot of shares at an all-time high for example. Purchased shares are not subject to the 3 year vesting period. (FYI- Chelsea does the automatic 5% purchase!)
AGENT ICON PROGRAM:
Top agents who meet certain production goals are considered to be influences in the real estate community, and attend the 2 major eXp events of the year can earn the icon designation whereby their entire $16,000 cap is given back to them in the form of shares of the company. In this case, 25% of the shares vest immediately, and the other 75% vest in the usual 3 year time period.
Experienced agents may choose to become certified as mentors, giving a helping hand to new agents in the company. New agents are required to use the mentor program for their first few transactions and give 10% of their commission on those deals to their mentor. This provides an excellent opportunity for agents to leverage their experience to help others while also receiving compensation!
eXp has no physical office space! We are a completely virtual/cloud brokerage. Our virtual office is called the World! If you need to talk to a broker, speak with an accounting specialist, get quick transaction help--literally anything operational--you can do it in the World and get help at lightning speed. I'll be honest, at first I thought it was pretty "hokey." Over time, as I've needed assistance and explored the World, I've been more than impressed. The level of help I've received and the speed at which I"ve been able to get that help has honestly been quicker than when I was at a brokerage with a physical office where I personally knew my managing broker.
You can explore the World before you even join eXp! Want to talk to a broker or explore? Sit it on some trainings? Click the button below!