Summary
In This special short episode my co-host May Pham and I will demystifying everything you need to know about eXp Realty.
Topic covered in the show:
1. Is eXp a pyramid scheme?
2. Is Revenue Share sustainable?
3. Everyone is recruiting at eXp, no one is selling houses
4. The stock is not real.
5. It’s a virtual company and everyone are so disconnected
6. eXp realty is losing money
7. eXp is an MLM.
8. You have to recuit at eXp
9. eXp is a better fit for experience agent. I am new, there for I have to go somewhere else
10.There are no support at eXp
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Transcription
1. Is eXp Realty A Pyramid scheme?
Anything is a pyramid scheme when you rob petter to pay Paul. If you look at eXp production.
First and foremost, this is still a real estate company and the agent. And the agent within the company we make it to the top five of the real trends, 500 as production volume, not agent count.
To answer the first question if you want to find out if EXP is a pyramid scheme or not just simply look at our production.
At the traditional real estate you have territorial manager and then you have to franchise owner and you have a team leader, and then you finally have the agent. What do you notice? We have a pyramid. And noticed that all the agent on the bottom, they are working to support the top, right? So, the commission that the real estate agent earn the traditional real estate company, they use that commission to pay for a team leader, to pay for the franchise owner, to pay for a territory leader, and ultimately the owner of the company.
Glenn just basically takes this model of traditional brick and mortar, and he flipped it upside down where you and me and everybody here, I’m listening to the show. You have a chance of owning this company together with us. So, there’s no franchise owner, no teritoral manager. Every agent at exp is the owner
There is no territorial manager. There is no team leader. Everybody here has an opportunity to grow your business. It doesn’t matter if you knew, or if you all, we own this company together, mate, we are caught owning this company. We don’t work for anybody. You and me. We work for each other. Okay.
2. Is Revenue Share sustainable?
Revenue share is sustainable. eXp only share up to 50% of the revenue to the agent. So, if you notice on your revenue check per month sometime it’s going to be under. Sometime it is going to be above with a bonus. this to ensure that the company only pay out 50% of the revenue of the income that it gets out to out to the agent and keep the other 50%
This is to avoid the company always pay out 50% of the gross profit And I’m not sure if we have time to go into the detail, but a lot of the of the rule and the regulation, is to prevent non productive agent to join exp. We don’t want all the agent. Just the good one.
An agent needs to have a gross comission income of $6,000 every six months in order for you to be count as our frontline qualifying agent, there’s an $85 per month fee. And I actually, I personally asked Glen about this and he requested the $85 per month for people that do nothing to stay out of exp. If you’re going to use this platform, you know, you better use it. Or it will cost you 85 bucks per month
From when the company started until now, they are able to pay out $2 billion as revenue share back to the real estate agents.
The owner of the company at a traditional brokerage and keeping all that revenue or the profit for themselves, they split this in half the company keep half, and then half of our revenue go back to the agent, the very people that make this company successful.
So it’s revshare is sustainable. Absolutely.
3. Everyone is recruiting at eXp, no one is selling houses
I wish what you say is true. Only 5% of the agents at eXp is recuting the other 95% still focus on selling houses. I don’t know why but that’s the number where we are at right now.
90% of the agent, 95% of real estate agent at exp Realty, they are still selling houses. Yeah. Yeah. So to come back to your question, I wish what you saying to me is true. May I wish everybody is recruiting more at ExP, but it’s not. It’s only 5%. Yeah. Yeah. You are on the top 10%. I’m on the top 0.5% of the company.
If you have something cool, would you keep it for yourself? Would you share it? I love to share it. So if you have something cool, you know, it just you know, this opportunity that I have. As you know, again, it’s cheesy, but it changed my life. now I’m just,
it’s now my obligation and my duty and my responsibility to share that with the other agent, whatever, whenever they decide to take it or not, it’s going to be, you know, up to that decision, but it’s your job, but it’s my job to share this information and attract the agent the right way into our brokerage.
4. The stock is not real.
I took a piece of of my stock out and see if I can buy something with it. Turn out as true as that is.
Our stock symbol is EXPI We are trading on a NASDAQ
we also announced that we’re now even going to start to pay the dividend to the stock.
You don’t need to be an agent to buy EXPI stock. But as the agent, you can earn it. Instead of buying it.
You get stock when you first cap at exp. You get stock when you on your first closing at exp you get stock when you cap.. And then the biggest award is the icon agent program.
When you manage to get ICON. You will get the entire $16,000 cap back in stock. We won’t go into the detail here.
5. It’s a virtual company and everyone are so disconnected
May, you’re able to leverage this platform, the training and get into the top 10% of the company as far as agent attraction and become ICON in just one year and a half
Are you feeling disconnected? Tell me.
Absolutely not. Yeah, no, I like it at first. When you say that everything is on the cloud. It’s a really strange concept. But actually we, it just creates more advantage because when you need something, when you need trainings, when you need to talk to your broker, when you need to see your accountant, it just one click away.
We still have a lot of event to go to. And especially like the event last week in Dallas, we were able to meet like thousands of agent in the U S to come over. So definitely it’s a, no brainer
if you’re afraid of not having fun, it’s a lot of fun too. Yeah. Since you mentioned the training one of my favorite classical when I started is the real estate 101 happened on a Sunday at 8:00 PM.
And when you lock into that class, Is that at 6:00 PM to 8:00 PM. Yeah. And when you logged in, man, you have 300, 400 people on the cloud on a Sunday night
How many real estates company out there can offer a weekly training on a Sunday night of 400 people? NONE but eXp
and especially during the pandemic, we are still in the pandemic. We are still here. So, the fact that yes, we able to grow within this unfortunate event. And still after. Benefits to the agent when I come to the trainings and all the services.
Yeah. And then I guess past, you know, reach out to me, reach out to me and we will be able to send you a guest pass for you to come in, to experience.
6. eXp realty is losing money
If you don’t know what to do. Look at the number.
From 2016, all the way to 2020, the exp brought in a total of 1.8 billion in 2020, as far as revenue bringing into the company, 1.8 billion. And you know, what’s the cool thing about this is maybe we don’t have DEBT!
eXp made 1.8 billion and we don’t have any debt. So just think about that.
And I think that the fact that the dividend. It is a statement
If you look at the dividend out, even right now, what our stock price at $50, the dividend is about 0.3%, which is not much, but it’s, it is a statement to the world, that growth company, they usually don’t pay dividend. We do.
7. eXp is an MLM
Somebody had positive thing about MLM. Somebody has negative thing about MLM. For me, I have nothing again MLM
Call eXp whatever you like. At the end of the day. It is a platform for you to run your business on. It could be anything you want it to be: An MLM company. It could be a real estate company. It could be a tech company. It could be a leadership company.
It could be a personal development company. Somebody call eXp is an ultimate MLM company because we don’t have lotion and potion and what a to sell. We sell real estate. So EXP can be anything for you.
This is all about your mindset. You know, if our model work for you then we welcome to the big family! Call it whatever you like. We will still love you!
8. You have to recruit at eXp
You don’t have to. It is simply an option, an extra avenue for the agent to generate residual or passive income. No one will force you to do it. May be I should.
I am not foricing anyone to recuit with me. But the more you hang out with me, the more you stay in eXp, the more you will love the company and recuting become a natural path of the business.
There’s two sales when it come to EXP, the first sale is when you come on board into the company, that’s the first sale.
The second sale is you want you really into your EXP – when you really understand our call value our model, and you want to help your fellow agent have a better life. Again, its chessy, but really I do want to help my fellow agents to have a better life for himself or my family.
That is why I do agent attraction.
This is my opportunity. My responsibility. This is also your opportunity, your responsibility, to go and grow this company. And we’ll get well compensated for growing the company, not the team leader, because we don’t have team leader position.
That’s so cool. And it’s put everybody into their leadership position when you started growing your career. I never thought that I cannot be in the position that I don’t know. I feel like I got to inspire the outer. I got to guide the otters along the way, but you slowly somebody’s going to put you on you in the position.
You can not stay at exp and do agent attraction without being a good leader. The model forced you to grow into a leader. You have no option!
Yes. But it’s a good thing. Ssometimes you need a little push to step out of your comfort zone and if you just do everything so comfortably,
May, you’re going to be success at any other broker that you’re going to go to. I know you’re going to help your fellow agent regardless, but only at eXp you will get compensated for that. Not a cheesy starbuck giftcard. Just want to put it out there for everybody to understand this
9. eXp is a better fit for experience agent. I am new, there for I have to go somewhere else
Okay. So now for this, I got to ask you May because you are New
Oh, okay. Yeah, definitely. I’ve been doing real estate for one and a half year now. Totally new. I interview with so many brokerages at first, but I found out through a good click with exp. So definitely the two. The two items that I really want to stress out for any new agents out there is the benefit of getting yourself trained well.
At exp with over I think, 80 hours of trainings, now they just have more trainings later on. And the fact that. On the cloud. So locally, so you can jump in anytime that you’re free to get yourself dressed as compared to, you know, like some other broker that I know they have a certain numbers of training per day and you have to be at the office, which is not really working for me.
I think that the fact that eXp offering so many trainings, so many technologies to help you grow your busienss. Definitely come here and I feel like I’m a good example for any new agent that can be successfull at eXp
10.There are no support at eXp
There are multiple layer of support at eXp
You have a support from other people in your revshare group.Aand you do have a support at the broker level when it comes to contractual questions. When you don’t know about a certain term on your contract, we have workplace, we just going to go to what place and message the managing broker and right away,
And I think that’s really make a difference in this industry. You got to make everything fast. You got to find the answer as soon as possible, and definitely is a thousand percent of support that you’re going to have when you you you’re. It.
The group culture is really important and this is what me, Jeff, Amanda, and all the leaders in the group trying to craft. We create a culture, a platform that promote growth, we promote collaboration where as a new agent, you feel comfortable to reach out to me to reach out to pretty much anybody in the group and ask the question
Real Estate is a team sport. If you do it alone. it’s going to be very hard at one point, we do it together, help from each other, the result is going to multiply.
