There are many reasons to join EXP, however I have written an easy to read and straight to the point post with everything out on the table. Everyone in EXP has a 20% split with a $16,000 cap, however, there are several ways to make back your split such as hitting ICON agent status and utilizing the revenue share and stock equity programs. The most common way to become an Icon agent is that you must reach your $16,000 cap and then close an additional 20 units to hit the transaction fee cap of $5,000. If you hit 500k GCI and close at least 10 sides you can also become an ICON agent. After you meet the criteria to become an ICON agent you can earn back your commission split in stock.
Agent Equity Program: You have the choice to enroll 5% of your commission to be paid in EXP stock at a 10% discount.
Sustainable Equity Plan: Close your first home each year with EXP Realty and get $200 worth of EXPI stock. Fully cap each year and get $400 worth of EXPI stock. Sponsor an agent and that agent closes their first home with EXP and get $400 worth of EXPI stock (one time).
Revenue Share Plan: Earn 3.5% of AGCI from your sponsored agents until they cap. 3.8% of the agents your sponsored agents recruit (tier 2), all the way down to tier 7 which is 4.5% of the AGCI.
Fees: To start up at EXP you pay $149. Each Month there is an $85 fee which gives you access to many great products and services. Each transaction there is $25 broker review fee to make sure your files are 100%, and a $40 risk management fee (caps at $500 per year).
Technology: When you sign up with EXP Realty you receive a lot of great technology (just for $85 a month) including Skyslope (Transaction Management), KVCore (CRM), your own website, powerful lead generation platforms (“Making it Rain”), and so much more! You have access to a vast supply of marketing materials in which can be easily co-branded with your own designs.
Healthcare: EXP offers innovative and low-cost healthcare (Insurance and medical cost sharing, telemedicine services, and supplemental insurance).
Training, Training, Training: Training for everybody from top producers who are already running massive real estate businesses all the way down to people who are brand new into the industry. The training at EXP allows people to mastermind with people at their same production level. There is new training EVERYDAY from 8am-1pm PST.
Broker support, file support, admin support: With technology EXP is able to offer complete file support ranging from in-house tech support, to in-house transaction support, to in-house transaction coordinators.
Mentorship program: The mentorship program allows new agents to have a mentor that walks them through their first three transactions and puts them on a fast track to understanding the industry. All mentors are hand selected by eXp. Mentors have to go through a vetting process and must be certified.
Workplace By Facebook: Workplace is an easy-to-use collaboration platform, a lot like Facebook, but built for the world of work. This is a great place to communicate and collaborate with other agents in the company.
EXP World: A virtual world to meet with fellow company agents, teammates, participate in company-wide meetings, daily trainings, and specialized support for any situation you are in. You will be sure to stay up to date on the newest real estate trends and technology!
Conclusion: Even without the revenue share, agent equity program, and the sustainable equity plan, EXP is still highly competitive in regards to commission splits and cap amount. In most cases EXP actually has a lower cap and lower splits than other brokerages, which really makes it a no brainer with all of the extra benefits like health insurance, lead generation and loads of other technology. You definitely do not need to even recruit one person for EXP to be totally worth it! The recruiting is just an added benefit to help you escape the rat race and set up a comfortable retirement for yourself. If you are an ICON level Agent, just think of the money you could be making! It is simply mind blowing!
- Recruit 6 Cappers On Tier 1: For each capper you will receive $2,800 a year, every year. This means you will make $16,800 a year just from these 6 people. You will now be earning over 100% of your commission.
- Recruit 5 Agents (2 Cappers and 3 New Agents), and each of your Agents recruits 2 Agents each (10 new Agents): For each capper you receive $2,800 a year, however let’s say each new agent only sells 3 homes at $10k total commission per sale. You would receive $840 a year for each of your new agents on tier 1 and then $912 for each of the “new” agents on your tier 2. To unlock tier 2 you must have 5 agents in your tier 1. For all of these agents on 2 tiers you will receive $17,240 every year as long as the agents maintain their production. With your help mentoring, these agents should increase each year!
- When things get interesting! To unlock all 7 tiers of recruiting you must recruit 40 agents to your first tier. Let’s say you don’t recruit any cappers, and all of your 40 agents sell 5 houses a year at an average of 8k AGCI. That is $56,000 a year on your first tier. If each of your 40 agents on tier one recruit 2 agents each, and so on down to tier 7 this is what your yearly income would look like (if each agent averaged 5 homes per year).
- Tier 1 (40 agents): $56,000
- Tier 2 (80 agents): $121,600
- Tier 3 (160 agents): $153,600
- Tier 4 (320 agents): $179,200
- Tier 5 (640 agents): $230,400
- Tier 6 (1280 agents): $1,024,000
- Tier 7 (2560 agents): $4,608,000
- Now A More Realistic Calculation… Let’s pretend you only recruit 10 agents. Out of 10 agents, maybe 2 are cappers, and 8 close 5 deals a year. Let’s also assume that each of your Agents recruits 1.2 people with 2 out of 10 being a capper (a realistic average). These numbers are based on $8,000 AGCI per deal.
- Tier 1 (10 agents): $17,760 (2 cappers and 8 w / 5 deals)
- Tier 2 (12 agents): $21,600 (2 cappers and 10 w / 5 deals)
- Tier 3 (14 agents): $17,000 (3 cappers and 11 w / 5 deals)
*Scenario number 4 is not too far-fetched and with that recruitment level you are WELL OVER your 100% commission, and all of your brokerage costs. To sweeten the pot you still receive free EXP stock, including $400 in stock when you recruit a new agent, and $200 in stock when you close your first deal and $400 when you cap each year).
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