Let’s take a look at how revenue share works at eXp. Now, this is all a simplification, but it’s a great jumping off point to learning more about eXp.
How brokerages traditionally make money
Traditionally, brokerages make money from the fees agents pay them. They then use this money a bunch of different ways, be it offices, billboards, staff, franchise fees, etc.
The eXp difference
eXp doesn’t run it like a traditional brokerage. Rather, they run everything off of a 80/20 split. If you want a deeper dive into this you can check out my post here, but for the time being we’re going to keep trucking on ahead.
The way this works is that 20% of each commission goes to eXp until you have hit the cap each year, which is $160,000. After that, 100% of that commission goes to you until your next year.
Now, there are some transaction fees.
For each transaction you only pay:
- $250 transaction fee at closing (which caps at $5,000 per year and then it reduces to $75)
- $25 for broker review
- $40 for risk management (E&O) Fee (that maxes at $500 each year)
So, where does that 20% commission go?
It’s split between the brokerage (eXp) and the agents who recruited you. My old brokerages never paid me, but with eXp I get paid for the people I recruit. They offer profit sharing based on commissions earned from selling real estate. For example, if you sponsor five producing agents into the company and they sponsor their own producing agents, you can earn up to $3,200 annually for each of those other agents, with no limits up to seven levels deep.
Take a look.
So, the more you grow your team the more you earn. This leads to aligned incentives and a lot of special collaboration. If you want to explore how this works check out this rev share calculator I built. This calculator will help you see what you might make depending on how many people you recruit.
That’s not all eXp offers.
If you have any more questions about eXp check out my blog or give me a call at (480) 329-4995 or reach out at firstname.lastname@example.org. I’m always happy to chat about eXp and real estate, and answer any questions you might have