If you are reading this, you want to understand the eXp realty revenue share program, how it works, and whether it is a pyramid scheme or not. Let’s cover what eXp Realty’s revenue share is NOT first.
Revenue share is not a get-rich-quick scheme
The Builders and Leaders at eXp Realty will share how hard it is to make money from eXp’s revenue-sharing program. Only 10% of all eXp agents ever generate any money from this program.
Attracting an agent the right way requires a different mindset and skillset, and not a lot of real estate agents does not have the skill ready for it.
Revenue share is not passive income – At least in the beginning
If anyone said you could get rich quickly by recruiting people into eXp, run as fast as you can. Yes, revenue sharing will eventually create residual income for you and your family, but you have to work at it initially. Building a business take work. Building a stream of income, especially passive, will take work.
Building an empire takes time, effort, and sacrifice. However, it will be worth it in the end.
Revenue share is not Exit Realty
I don’t know why real estate agents confuse eXp realty with exit realty. eXp Realty is in no way related to Exit Realty. We have an exit strategy for our agents and brokers, but we are not Exit Realty.
Revenue share is not profit share
This is probably the most significant difference between eXp Realty vs. Keller William Realty. Keller William has a similar model where the profit (after taxes and all expenses) will be shared among all agents according to the profit and loss of each market center.
This number is hard to track, and I will give you a dollar if you can find any KW agents that could adequately explain the profit share program since the amount of money generated from the profit share is small. This is the least of anyone’s concerns at Keller William Realty.
A revenue share program, on the other hand, is sharing the gross profit (revenue).
eXp Realty committed to share 50% of its income back to eXp realty agents and brokers and operate the entire company base on the other 50% of its revenue.
The amount of revenue share simply reflects the value you can add to real estate agents and brokerage. If you can understand this, then everything else will be significantly easier.
Revenue share is not a pyramid scheme
I have a whole section here that talks about the pyramid scheme aspect of eXp Realty. A scheme is where Bob recruits Peter into the company and gets paid immediately using the money that Peter paid into the system. That’s a scheme.
With the exp realty revenue share program, Bob will not get paid until Peter closes a real estate deal and produces commission income. As Peter’s sponsor, Bob will now have to do whatever it takes to make sure Peter gets trained up and sells some real estate.
It will be impossible for a scheme to be uplifted on the NASDAQ stock exchange. eXp World Holdings are the holding company of eXp Realty under the stock sticker EXPI. Exp World Holdings, LLC is a publicly traded company on the US stock exchange.
Revenue share is not for selfish individuals
As the name suggested, the word “share” is inside the revenue share program. As one big eXp Family, we share our experiences and best practice, collaborate, and lift each other. If the word “share” is not in your dictionary, then eXp realty will not be a good fit for you. Can you still join exp realty? Yes, but it won’t be a cultural fit.
Is eXp Realty a multi-level marketing company?
I will leave this to you to interpret. eXp Realty could be anything you wanted it to be. It could be a tech company, or it could be a real estate company. Some people told me it is the Greatest Multi Level Marketing Company ever created on earth. eXp Realty could be a cult; who knows…
If you asked me, eXp Realty is simply a real estate company with a network marketing component attached to it for growth. That would be the cleanest answer.
What is Revenue Share, then?
As the name suggested, eXp revenue share is simply the revenue to you and me for growing the brokerage. eXp Realty’s revenue mainly comes from selling real estate. The company split is 80/20 with a $16,000 cap. As a real estate agent, you will keep 80% of your commission, and 20% will go to eXp.
eXp realty agent and broker will get compensated for growing the company in the form of paid revenue share
eXp Realty committed to sharing 50% of its revenue, generating for selling real estate, and other avenues of income back to its agent and broker for helping eXp Realty grow the company.
eXp Realty does not have a team leader on salary to grow the company.
eXp Realty does not have a giant billboard.
eXp Realty does not have a full-time recruiting staff
But eXp Realty has me, the one who is super excited about helping real estate agents and the one who is typing this blog at midnight to grow the company for eXp Realty.
Revenue share is math
“If you don’t know what to do, do the math, and the math will tell you what to do” – Russel Gray – The Real estate radio guys
When I look at the eXp Realty revenue share program, I know the math will work out. Real Estate investment is just math. If you did the math right, then the rest will fall into place.
eXp Realty did the math correctly by sharing up to 3.5% of the gross commission and up to $2,800 back to the sponsor for each agent they bring in.
example:
Ken has been working at a traditional brokerage for 2 years and he is frustrated with the support and technology that the brokerage has to offer. It’s a flat fee brokerage. he gives nothing and gets..nothing. He could not close any deal at this brokerage
After learning about the eXp model from Huy, Ken was able to see that eXp Realty offers 80 hours of live training per week and provided lead generation tools, and Ken also received tremendous support from Huy and his revenue share group.
Ken made the move to eXp and closed more deals to generate more leads, have more fun, and close a deal with a gross commission income of $10,000
Ken keeps $8,000 give $2,000 into eXp before he capped. Out of this $2,000, eXp Realty will take $350 and give it to Huy, because Huy is the one who introduced the eXp model to Ken
Ken keep on closing the deal until he capped. After he capped, Ken will be on a 100% commission until his anniversary date, and Huy received up to $2,800.
Revenue Share is duplication
Now Ken got excited. He started posting on social media about his closing deal, bought some fancy shoes and just seem to be happier. Kim, his friend at the old brokerage, got curious and bought him a drink to see what was up.
Ken is now in an “oh sh*t” moment. He is excited about eXp but doesn’t know enough about it yet explained to Kim. Ken asked Huy if Huy can help him help Kim out and the 3 of us showed up at lunch.
Kim on the other hand is not looking to close more deals like Ken. She has been in real estate for 15 years and looking for a way to close fewer homes, but maintain the same amount of income to spend more time with her family.
After learning from both Ken and Huy that eXp has a mentor program that allows the experienced agent to mentor new agents and get paid. Kim found a small way out of her production. She joined eXp realty, scaled-down production, and started mentoring new agents.
Kim’s total commission for the first month with eXp is a surprising $10,000. Kim will keep $8,000 give $2,000 into eXp. Ken will get $350 and Huy will get $380.
Huy gets more revenue share from Kim’s closing, which incentivizes Huy to help Kim even more than Ken. Ken is totally happy about that.
“If it can not be duplicated, it does not matter” – Jay Kinder
Revenue share is sustainable
eXp Realty sees that this model could potentially make Huy lazy since Ken and Kim are now doing all the work. they implemented an FLQA requirement, which stands for front-line qualifying agents to make sure that Huy continues to bring in good people, not his mom, not his uncle that does not do real estate into eXp Realty.
For Huy to get paid on Kim, he needs to maintain at least 5 front-line qualifying agents. It means that all 5 agents that Huy brings in the need to close at least $6,000 in gross commission income every six months.
Every 5 agents additional agents that Huy brings in will unlock for him another level of pay, tier 3, and so on, all the way to the seven levels.
Revenue share is transparency
It is like clockwork on the 22nd of every month. Huy will get a direct deposit from eXp realty directly to his bank account for the amount of closing that Ken and Kim made in the previous month. Revenue share is paid monthly, maybe early, but never late. There is a dashboard for Huy to check the production of all the sponsored agents in his group.
Huy will know exactly who is a Rockstar in his group so he can congratulate him or her for the closing, or reach out to struggle a sponsored agent and see if there is anything he could do to help.
Revenue share is getting paid like a broker – without the liability
While still closing his own deals, Huy also realizes that he is also getting paid for the closing of Ken and Kim whether he like it or not. A light bulb just went off in his head: Is this what independent brokerage and team leaders trying to do?
They go out to recruit good people to build teams and build their own brokerage so that one day they can potentially exit the business.
The main difference between building at eXp Realty, and building at the traditional real estate brokerage is that there is no overhead or liability to build here
Huy took this idea seriously, he went out to the marketplace and shared as much as he could with all the team leaders, and independent brokers, but he ran into big issues. He has no idea how to talk to a team leader or an independent brokerage.
Revenue share is unconditional support
Lucky for Huy, other people in eXp Realty are willing to help and ask for nothing back. Jeff & Amanda are the #1 Team in the country in 2022 at eXp Realty selling 650+ homes a year.
Their time is expensive, but everything Huy needs help, Jeff is there, and Amanda is there. On time, never late, and full of energy no matter how the day went. Jeff always showed up with full energy and was eager to help Huy talk with the team leader and broker and explain to them the benefit and features of eXp Realty.
Take Chuck Fazio for example. Chuck is not even in my revenue share group. He closed down his entire brokerage of 900 people and made the move here to eXp Realty. Fast forward, Chuck is making north of $400,000 in Gross income a month from the exp realty revenue share program.
Huy has no business of getting his attention, but every time Huy texted him at workplace and asked for help
Chuck ANSWERED and asked for NOTHING back.
Revenue share is technology
It is probably noteworthy to know that all of the above will not be happy if not for the technology that is powered eXp Realty. eXp World powered by Virbela is the Metaverse behind eXp Realty that allow the company to operate in the cloud with no brick-and-mortar offices.
The amount of saving from not having an overhead like rent to pay, and coffee to make allow the company to offer an eXp revenue share model
Revenue share is CASHFLOW
“The rich do not work for money. The rich work for Equity and Cash Flow” Robert Kiyosaki
I made the above my business and investment philosophy whenever looking at a new opportunity. Does the business has the two most important component for wealth building: Equity and Cash Flow?
Equity for eXp agents is covered in this article.
Cash Flow is Revenue share.
If anyone told you that you can live from your rental income, ask them to show you the math. How many rentals you will need to acquire in 5 years to net $94,000 Annually
That would be a whole lot of doors.
I don’t want to crush your dream but you can forget about cash flowing them in this high-interest environment. We will be glad the whole thing will just break even.
What if there is a better way for real estate agents only?
Huy, just like any smart investor, sees no opportunity for growth in the single-family investment. He made it a business goal to connect and attract at least 5 producing agents per year into this organization.
Huy then help each of them duplicate the same thing he did through mentorship and support.
Today, Huy’s revenue share check exceeded all his investment combined.
Revenue Share is an exit strategy
If you are anything like me, I would not trade my IT job for a sale job. Call it self-employed, call it entrepreneurship if you want. At the beginning of your career as real estate agent, it is a sale job.
However, Huy saw the light in the tunnel. he does not know how to get there yet but at least He saw it. That light is the day when he met up with Jeff & Amanda and they showed him the revenue share model.
Revenue share is personal development
It will sound cheesy I know. however, the eXp revenue share program will force you to become a better person. It will make you work yourself, to become a better human being overall.
Bird of a feather flocks together.
The easiest way to attract high producing agents is to become a high-producing agent yourself. The best way to attract happy people to your group is you first have to be happy.
You get the idea, revenue share will make you a better person whether you like it or not. Your wife, husband, kids, and relatives will see the change and they will question you. Get ready for it.
Personal Development is a big part of revenue share. You have to be ready internally when big money shows up, or disaster will be right there waiting for you.
Revenue share is global
Pack your bag because it is time to get out of your backyard. eXp’s revenue-sharing program works across the globe since eXp Realty is an international company.
eXp Realty is currently operating in 22 countries around the world. in 2022
The sun never set at eXp Realty.
Do you have real estate friends from Mexico, Canada, Europe, India, Hong Kong, or Japan? What is stopping you from sharing this opportunity with friends around the world, and inviting them to our big family?
eXp realty fees and eXp realty offers will however differ from each country. Setup a meeting with me to learn more about the country you are interested in.
Revenue share is Leadership
I’ve saved the best for last. Revenue share is nothing but leadership. Leadership is the single most important factor in any organization.
In order to be successful in eXp realty revenue share program, you have to become a leader, a servant leader, putting your agent’s interest at first before your own.
Back to our example again, under the leadership of Jeff and Amanda, Huy was able to attract a team and high-producing agents into his revenue share group.
He also inspired and mentor Ken and Kim, which is now key leaders in his organization. Under Huy’s leadership, his organization grew from a few people to north of 200 real estate agents in just a couple of years.
Today, Huy organization is one of the most diverse group in eXp Realty with agents come from all walk of life and different background.
Revenue share is freedom
All of this tie down to your goal in Real Estate. Do you want to have a real estate job or a real estate business? For Huy, the additional stream of income from eXp realty revenue share allows him to take time off and take his family to see the world whenever.
Huy came back from Europe, his organization is now better and stronger than ever. There are even more leaders being molded in his absence. The Event is still going, support is continuous. everyone backs each other up as if they are family.
Huy knew that he has built a business and not a job.
Revenue share program gives Huy Time Freedom, Location Freedom, and Finance Freedom
Revenue share is Legacy
Revenue share is about leaving a legacy. It is not about how much revshare you are going to make.
It is about how many life that you are able to change.
Joining eXp Realty changed my life.
“The amount on your revenue share check is simply a reflection of the value you are able to add to other agents” – John Tsai
Not to get too technical but your legacy does not stop with you. There is a way to leave the legacy, your revshare check to your kids. Speaking frankly, as long as eXp Realty is still in business and you are dead, your kid will get pay revenue share.
Conclusion
The name I used in the example might be true, might not be true. But the stories are real. Revenue share program could be a lot of thing.
For Huy and everyone in his organization. Revenue share is a movement, a message, an ideology that real estate agents and brokers longs for.
It is Freedom. It is Legacy
#exprealtyproud
