eXp Explained: Exactly How It Works
WHAT ARE THE COSTS OF JOINING EXP REALTY?
eXp offers competitive 80/20 splits with a $16,000 cap and the monthly fees are only $85 per month.
Once you cap, if you're able to close 20 more transactions within your calendar year, you're eligible to receive all $16,000 back in eXp stock! This stock does come with a 3-year vesting period, but you essentially paid your broker $0!
Once your $16,000 cap is met, your fee drops to $250/transaction and eventually that drops to $75/transaction.
If you are legally married and file taxes jointly, you are considered 1 person with only one cap. This is a huge advantage to teams of people that are legally married and work together!
The Mandel Team is considered a "Mega Icon Team", meaning your cap is only $4,000 vs $16,000. The transaction fee also does not exist before you cap, and it's only $75/transaction after you cap, saving you even more money. Joining eXp on a Mega Icon Team like ours definitely has its advantages!
RECAP:
80/20 commission split with a $16,000 company cap
$250 transaction fee only after you cap (drops to $75 per deal once an agent caps and does an additional 20 transactions)
$149 startup fee (includes first month Cloud Brokerage fee)
$85 per month Cloud Brokerage fee (this includes your own KV Core transaction management system)
$60 risk management fee (E&O) with $750 annual cap (may vary by state)
$25 broker review per transaction
WATCH "THE MODEL EXPLAINED" BY BRENT GROVE
HOW CAN EXP OFFER YOU ADDITIONAL REVENUE STREAMS?
1. Transactions:
This is the most obvious one, but you keep selling real estate and earn commission. The benefit of eXp is you cap what you pay your broker so if you're a top producer or want to become one, you get to keep more of your hard-earned commission.
2. Referrals:
eXp has built a phenomenal agent to agent referral system. They also have several referral pages in our Workplace groups that are specifically geared towards referral wants and needs. Referrals also count towards your cap!
3. Revenue Share:
Once you make a move to eXp, your colleagues in the business are bound to ask you about it. The beauty of eXp is that they share every $1 they make in splits 50/50 with their agents. Of the 20% eXp collects, half of that goes back into the Revenue Share program. When an agent joins eXp and names you as their sponsor for introducing them to the company, you will start earning a portion of every sale they close, until they cap. Keep in mind, that rev share comes from eXp, NOT the agent so it doesn't cost the agent any extra. The opportunities here are endless.
4. Stocks:
eXp offers you the ability to buy their publicly traded stock at a discount with every commission you make just from selling the houses you're already selling. This does not have a vesting period, so you could sell it right away if you wanted to and there is a built-in profit. Think of it like a company-match on a retirement plan! You also get stock given to you when you sell your first house of the year, when you cap, and when you sponsor an agent that joins the company.
5. Health Insurance:
This isn't a revenue stream, but it can be a life saver, literally. Let’s face it, many of us are self-employed and paying a small fortune for basic health insurance. This added bonus is much needed relief for those that need it.
Learn more about eXp Health Insurance here.
HOW DOES REVENUE SHARE WORK AT eXp?
In a traditional brokerage, if you bring an agent to the office, they may give you a small bonus one time after that new agent does a few deals...maybe. In eXp, the company realizes the agents are the people that bring the value to the company. If the company doesn't have agents that sell real estate, they don't make money. So why shouldn't they give back part of the revenue they earn when that agent sells houses as an incentive to get more agents that sell real estate?
Another great analogy is YouTube. YouTube makes money by putting ads in the beginning and middle of videos that people upload to their website. YouTube understands that without content creators nobody would be on YouTube, and they couldn't generate ad revenue, so they incentivize people to create content by giving them a portion of the ad revenue that is generated on the videos they upload if they have a large enough following. This is revenue share. It's not a pyramid scheme, but a smart economic model.
The revenue share is not an additional fee that the agent has to pay, it comes out of the 20% they are already paying to eXp when they sell a house. There are rules to eXp's revenue share, but the short version is you can get paid up to $2,800 per agent you bring into the company based on how much they earn. If they cap (they make approximately $80,000 in gross commission), you get the full $2,800. If they half cap, you would only make $1,400. Make sense?
They open this revenue share 7 levels deep as an incentive to bring in agents who also bring in agents. In level 2, meaning you bring someone in who also brought someone in, you can get up to $3,200 if that new agent caps, PLUS the $2,800 on the original agent that you brought into eXp. You do need a certain number of Front-Line Qualifying Agents (think of this as "level one agents") to unlock additional levels.
By bringing just a couple other agents you know over to eXp, you could be making thousands of dollars per year!
If you stopped selling houses today, how much money would you get deposited into your bank account every month? Probably $0 for most agents. But consider how this revenue share could change that.
If you wanted $3,000 per month ($36,000 per year) in passive income from your financial planner, following the 4% retirement rule, you'd need to give that financial planner $900,000 in cash so he or she could invest it and give you 4% per year which is $36,000 (or $3,000 per month) to live on.
If you joined eXp and in just 3 years were able to just bring 6 people to the company, you would be making $16,800 in revenue share assuming all 6 of those agents capped.
Now it's not crazy to think that each of those agents could also sponsor 1 agent each. If everyone is happy at the company, why wouldn't they speak positively about it to other agents. That would mean you have 6 people in your level 1, and 6 people in your level 2. You'd make $19,200 from your level 2 agents on top of the $16,800 from your level 1 agents.
Voila, that's $36,000 in passive income. Now what sounds easier and more realistic... saving up $900,000 in cash to give to your financial advisor, or this revenue share example?
DO I HAVE TO JOIN THE MANDEL TEAM?
NO, you don’t! And that’s the beauty; we are business partners whether you are on my team or not. Here are the ways we can work together.
Join as a new agent:
You will be assigned a mentor through eXp Realty. However, you will also have me and my operations manager as a resource for additional training, guidance and support.
Join as a solo agent:
You run your own business the way you have been at your current brokerage, just maybe more efficiently once you are here. You have me as a mentor and resource for taking your business to the next level. You also get access to our Fast Forward group which will teach you how to significantly speed up your business growth and you will learn how to sell more houses. The key is you have to implement what you learn.
Join as a domestic partnership:
You will run that partnership however you see fit, and you will also have my support as a mentor and resource for anything you may need.
Join as a team leader:
You will run your team however you want. Now this is where you will really benefit. You have access to my systems that have been perfected after over 10 years in the business. Through losses, wins, etc.… I have built an organized and efficient business model. I've hired the right coaches and modeled my personal business based on what I know works in today's market. I’m an open book to whatever you may need!
Join as a team member under a different team:
You still have your team's leadership but also access to everything I and the Fast Forward Movement have to offer. This can be anything from training, to coaching, to event invites and more.
Join as a team member of The Mandel Team:
You will have a reduced cap of $4,000 vs $16,000 along with all the things that we provide to our team. Message me for that separate list.
eXp Luxury
Emerging from a foundation of relentless innovation and unwavering dedication to delivering the pinnacle of luxury experiences in the real estate industry, eXp Luxury presents an unparalleled white-glove service that caters to your needs on a global scale.
By obtaining your eXp Luxury certification, you unlock access to an exclusive realm of elite marketing strategies, precisely the caliber that your high-profile clients anticipate from a top-tier real estate agent. This certification not only elevates your professional standing but also empowers you to meet and exceed the expectations of the most discerning clientele.
Learn more about eXp Luxury by clicking here.
eXp Exclusives
Agents operating within the United States and Canada benefit from a new feature that allows them to share off-market and pre-market property listings. This innovative feature is designed to enhance the real estate experience for both agents and clients alike.
The sharing process is facilitated through a mobile application which not only streamlines the sharing process but also ensures that all parties involved have access to the most up-to-date and exclusive property listings. This is a significant step forward in the real estate industry, as it allows for a more efficient and transparent transaction process. Every client wants access to off-market properties. Now you can give it to them.
Learn more about eXp Exclusives by clicking here.
Does eXp give you leads?
Introducing an exclusive opportunity for eXp agents: Ready, willing, and able buyers and sellers at your fingertips.
We understand that securing high-quality referrals can be a challenging task, particularly in a fluctuating market. To address this, eXp Realty has established a market-leading division that leverages our extensive network to deliver opportunities directly to you.
Whether it's military, relocation, or affinity certification, our platform caters to a wide range of needs. With REVENOS, the potential for revenue growth is limitless. Seize this opportunity to elevate your business and maximize your earnings.
Learn more about the exclusive REVENOS lead generating platform by clicking here.
Does eXp have a commercial division?
eXp Commercial stands at the forefront of the virtual commercial and residential real estate industry, revolutionizing the field with their innovative cloud-based model. This pioneering approach empowers agents across the globe, providing them with the tools and platform they need to excel in the digital age.
By leveraging cutting-edge technology, eXp Commercial is not only transforming the way real estate transactions are conducted but also shaping the future of the industry. Their unique model offers unparalleled flexibility and convenience, making them a trusted partner for real estate professionals worldwide.
Learn more about eXp Commercial by clicking here.