When you facilitate a real estate transaction, you represent either a buyer or a seller. You will be paid a commission according to the value you put into the deal. This amount is generally 3% of the sale on the residential side of the US residential real estate market.
There are two spectrums of the real estate commission split. On one end, you have a discount or flat fee brokerage that provides limited or no training to give the real estate agents back 100% of their commission.
On the other end, real estate brokerages charge an arm and a leg just to hang your license with them. I know some brokerages charge as high as 70% on your first commissions to handhold you through the first few deals. As a new agent, how do you know which type of commission splits will work for your business?
What is the eXp commission split, where does it fall between the spectrums, and why do exp agents love it so much? Let’s find out!
First, we have to understand why we need to split. Why can’t you keep 100% of your commission? Well, you can. But that will substantially limit your support and growth opportunities.
The eXp Realty Commission Split
eXp Realty is a global brokerage. In this article, I will discuss only the US commission split. Let’s dive right into it.
Commission & Cap
The eXp commission split and fees are unbeaten in the industry. Since the company does not have any physical brick-and-mortar locations, eXp Realty offers a competitive 80/20 split for all agents and brokers. It doesn’t matter whether you are a new agent or a top-producing agent, the split remains consistent across the entire United States.
This system is very different from Keller Williams’s franchise model. As a cloud-based brokerage, eXp Realty has no franchise fees. Instead, we’re just one big family across the entire US continent.
The commission cap is $16,000. It means that you do not have to pay into the company forever. The moment any exp realty agent pays $16,000 in commission, their annual cap gets fulfilled, and they can enjoy 100% eXp commissions.
Once the agent hits the anniversary date, the annual cap will reset, which in turn resets revenue sharing. We will also cover revenue sharing in this article.
Once exp realty agents reach their cap, they only have to pay $250 per transaction. Once they have paid an additional $5,000, the transaction fees are reduced to $75 bucks and that agent becomes “ICON.” You can start earning stock awards in the ICON agent program- more on that soon.
There is currently no minimum production to hang your license with eXp Realty.
I called this the country club fee. All it will take for any agent to join eXp is a one-time fee of $149, which already covers the first monthly fee of $85. The $85 paid each month covers your access to eXp World, training videos, educational resources, and so much more.
There is a $25 broker review fee on every transaction, allowing you to rest peacefully at the end of the day, assured all of your paperwork is under review by our competent broker team. They dot the i’s and cross the t’s to ensure you comply with your state. For a non-detail-oriented person like me, that is music to my ear.
A $40 Error and Omission insurance will be deducted on each transaction. This is also capped at $500 per year. In the event of any lawsuit, you will be glad that eXp Realty has your back!
There are no other additional fees associated with eXp Realty. However, the brokerage offers many additional income opportunities and wealth-building tools that easily outweigh other brokerages.
Despite the inflation during the past few years, eXp Realty was able to keep its commission split and fee the same since inception. Talking about consistency, I take my hat off to the leadership of this amazing company.
Exp Mentor Program Split and Fees
For all real estate agents new to the industry, eXp Realty requires new agents to enroll in the mentor program. New agents will be required to pay another 10% to the assigned mentor, and another 10% to the eXp mentorship program.
Do you really need a mentor? Are you the type of agent that is self-motivated and self-learning, or do you need hand-holding? You can read more about the eXp Mentor program in this article. As much as I love the company, I have a different definition of real estate mentorship.
How eXp Realty Agents Can Keep 100% of Their Commission
This is perhaps the main reason why eXp realty attracts so many top-producing agents from all over the world. The company’s secret sauce is the ICON agent award program. Only real estate agents get to earn commission here, and they also receive stock.
As I mentioned above, once the agent is capped at $16,000 and also paid an additional $5,000 by selling approximately 20 more houses, they will become ICON agents. An ICON agent at eXp realty enjoys the benefit of receiving $16,000 of cap money back in the form of eXp stock, allowing them to take ownership of the brokerage. The stock symbol is EXPI and is currently trading on the NASDAQ stock exchange.
How Does the Icon Program Work?
I won’t go into detail here, but you can find the details of the eXp stock program in this article. The moment the agent achieves ICON status, they are immediately compensated with $8,000 worth of EXPI stock options. The following $4,000 and $2,000 (2x) will be released by the agent satisfying the culture requirement of the ICON agent program and attending eXp-approved events.
Essentially, if an agent achieves ICON status at eXp and satisfies all the culture and event attendance, They will have a 100% plus commission split at eXp Realty. I am not a stock expert and can’t say anything regarding the company’s future performance, but eXp Realty stock has been growing ever since the company was founded.
Agents earn not only commission but also stock awards. There is an additional $200 worth of stock options awarded to the agent on their first transaction. There are many ways to earn extra income streams in this company.
Currently, 5% of the agents within eXp Realty have achieved ICON status. The best way to meet eXp ICON agents is to attend either the EXPCON in Vegas or the shareholder conference in Florida. These are two eXp mega events that take place annually.
The events are open to non-eXp Realty agents and are probably one of the best ways to come and do your due diligence on the company.
The Optional Revenue Share Program That Might Change Your Life
I know it sounds cheesy, but I will say it again because it’s true: eXp Realty’s revenue share program has changed my life along with many other agents.
If you are new to real estate, think of the program as a referral program. For example, when you eat at a great restaurant, you naturally share with your friends and family without expecting any payback from the restaurant. The same thing occurs at eXp Realty. When you work at a great brokerage, you naturally share it with other real estate agents, like me writing this blog, and don’t expect any payback.
BUT eXp Realty will pay you back in terms of revenue share since you are helping the company grow. At other brokerages, the best they can give you when you refer an agent is a Starbuck gift card. Not over here!
How Does Revenue Share Work?
We will have a separate article that covers the detail of the revenue-sharing program. But to keep it simple, think of it as a referral fee. You read this blog, you like me (I hope), and I like the company. Since I am the one who introduces you to the company, you will name me as your sponsor.
Of course, I will help in every way I can as you get started. Let’s say you earn $10,000 in commission when you close your first deal. You keep $8,000 and send $2,000 to the company. Out of that $2,000, they will pay me back $350 as a referral fee.
Benefits of Revenue Share
Many agents took advantage of this program and created a level of wealth that one can only imagine. I have never seen any company that produces a large number of millionaires over a short amount of time.
The amount might seem little at first. You may be wondering, “why would you work so hard, writing this long article just to attract an agent, then have to depend on him to earn just $350 bucks? I’d rather just go out and close a deal.”
It will be slow at first, but if you work at it and put other agents’ interests before yourself, your group will grow organically. Then, one day when you look at the revenue share check that you got on the 22nd of the month, you will flip out of your chair as I did.
My reaction when I first saw this model is probably similar to what is going on in your head right now. It is a pyramid scheme!!
Then I thought again, can a pyramid scheme company trade on the NASDAQ? I don’t think so.
What if it is a real pyramid scheme? Well, you already have 80% of your commission plus the free stock the company gives you. What kind of investment can protect you with an 80% downsize when things go wrong and an unlimited upside? No model out there except eXp Realty.
There are other brokerages copying this model but good luck to them copying the culture and the leadership we have here in the company – especially in my group.
People may join for the split, for the stock, for the rev share. They will stay because of the culture that we have.
eXp Realty is the best brokerage for real estate agents and real estate brokers out there, with a competitive eXp team commission split to attract top producers in the company. We don’t want all the agents, just the good ones.
The company is growing at the speed of the internet with no brick-and-mortar location. Currently, eXp Realty has over 84,000 agents and has expanded to over 21 countries worldwide. eXp Realty is on track to hit 500,000 agents in five years, with – or without – you
The question is…
Are you going to sit on the sideline at another brokerage and watch us grow? Or are you going to participate, play the game, and grow the company to 500,000 agents with us?
Only the people playing the game get paid, not those watching it.