Let just face it, is eXp realty a Pyramid scheme? What happen when it is, and what happen when it is not? I got asked this question many many times over and also lets address the elephant in the room.
If you know my story, 5 years ago when i am quitting my full time jobs at Schlumberger. I didn’t want to trade a job for another job. Unfortunately this what most people getting into real estate does, and they didn’t even know about it.
They trade a full time W2 job with one boss, working from Monday to Friday to another full time job with Unlimited number of bosses working from Monday to Sunday. I mean.. LOL. What a smart trade off. Why would someone make that trade? Because they hope for 3 thing when they are looking into Real Estate, just like I did.
- Financial Freedom.
2. Location Freedom.
3. Time Freedom.
Most scheme out there will give you none of it! Sale commission along might give you Financial Freedom, but it is not going to get you to live any where you want. You have to keep selling houses forever, and If you ask how long and hard real estate agent work for their commission, they will tell you that time freedom is a myth. This industry alone should be already be called a Scheme to begin with.
So before I quit my job. I already set my mind: I am not going to join one of this traditional brokerage that be like anyone else. I NEED A SCHEME. A Scheme that will give not only Financial Freedom, But also Location Freedom, and Time Freedom. In order to achieve all these three type of Freedom, you need another two components on top of your commission. It is called Equity and Cash Flow.
- The Commission will pay the bill.
2. The Equity will make you wealthy.
3. The Cash Flow will make you rich.
Luckily at eXp Realty we have all two of the above, plus the scheme to make it Three!
First and foremost, eXp Realty is a Real Estate Brokerage. Agent still make most of their money through selling houses. We are recently ranked No.1 On Real Trend 500 as far Production volume
if you are in Houston and you happen to looks up the top production team and agent in har.com. They just happened to be with eXp Realty as well
Second is the Equity, You earned stock. This is a publicly trade company, you can just pull out your phone and buy the company stock, EXPI at any given moment, but better. You get to earn it. eXp agent earned stock when they 1st close a deal, when they cap, and especially when they hit ICON.
Third is the eXp Realty Pyramid Scheme
that everyone is talking about. eXp agents get pay for growing the company. The official name for it is eXp Revenue Share. In order to grow the company and allow everyone to participate in it, our founder, Glenn Stanford made a genius move: He committed to run the company only on 50% of the Revenue. The other 50% He will pay it back to the agents, especially the one that helped grow the company. At your current brokerage, you might get a Starbuck gift card when you found a great human being and introduce him to your broker. Bravo! Here is your gift card. Don’t blame your broker either. They simply don’t have anything else to offer you!
Because we have this thing that people called the pyramid scheme, you get pay every single time that agent closed a deal until he cap. And NO it is not a Scheme because Glenn only committed to pay out up to 50% of the company revenue, in order to keep the company from becoming a Pyramid Scheme, or in another word, keep eXp Realty a sustainable Real Estate company. If you just come here to find out the short answer, here it is
You can choose to participate in the scheme, or you don’t. No one will force you. You can just be a happy agent here, selling tons of houses, get equity. Pay the bill and be wealthy via the stock
But let me tell you…This Scheme that Glenn created…I remembered i got so excited, I tried to explained eXp to everyone but no one listened, except a few people. They joined me. they closed a ..rental deal. My first Revenue share check was $5.21 bucks from this girl name Jhoana. I didn’t even know her. She got recruited into my Scheme by another agent. I never worked this hard for 5 bucks.. I mean..screw this. This is really a Pyramid Scheme. Look it has 7 Level! not just 2.
Then my friend Khai joined all the sudden. I told him, dude..don’t follow me. I don’t know what i am doing yet. This might be a Pyramid Scheme. He didn’t listen.
Then he closed a deal. I got a couple hundreds bucks. i was gasping for air, to be honest, in my 1st year of real estate. I barely sell anything. Those couple hundreds bucks from his closing actually mean a lot to me. It’s like having a rental house but without putting down the down payment. this SCHEME IS WORKING I SAID!! Let’s tell more people about this PYRAMID SCHEME called eXp Realty
I got my hope back. I tell a couple more people. some joined, some don’t so what, I keep on selling houses. The more houses i sell, the more agents i met and all I need to do is ask if they ever heard about this thing call the “eXp Pyramid Scheme”?
Then all the sudden, my eXp Texas Broker congratulated me for this thing call ICON Agents for selling a lot of houses. They gave me some stocks, and the stocks skyrocketed.. I now have this nest egg of EXPI stock that i can converted to cash anytime i want with a mouse click. My glass trophy worth over 100K each. the SCHEME JUST GOT WAY BETTER.
Then I get really excited I tell people more, and this time i actually believe in it so much that I genuinely helped other people with their own business, help them sell more houses, not just recruited them into the company. Then I discovered what i am doing is actually called Leadership. People started calling me a Leader? What Leader? I am just trying to get people into this Scheme ya’all.
Fast forward now. I’m now a 3x ICON at eXp Realty going for my 4th years, and this thing that called eXp Pyramid Scheme is now my official Sale Organization consisting 182+ of amazing human being. With so many ICONs agents, Leader and Builder in the group that is building their real estate business. We stay humble and help others. I can’t tell you how grateful i am and how many agent life we are able to impact, not just buyers and seller.
Khai and Jhoana still stay with me until today and they are killing it in their business, and has become key leader in my sale organization.
That $5.21 bucks that i worked so hard for turned into five digit USD monthly Cash Flow, with me working or not. The final piece of the puzzle to solve the Freedom Equation
This is a scheme that give me the the freedom that i need and I am forever grateful for it. And I will never stop to grow and help other real estate agents achieve this, if not more.
So…Is eXp Pyramid Scheme?
Grant Cardone is it in. It must be a scam.
Everyone will have their own opinion. Obviously if you read until this final line, You are curious about eXp Realty and you want that freedom.What do you want eXp to be for you, and it will be whatever you think it is.
You and yourself only can make your business either a scheme, or Freedom. The choice is yours.
In The Picture
We sneak out from for our Annual leadership conference in Cabo for some wine and cheese. Ran into The Billionaire Glenn Sanford on the way back.