How Does eXp Realty Work
eXp Realty is sweeping the nation faster than any other real estate brokerage in history. In fact, it’s the #1 Agent-Owned Cloud-Based Real Estate Brokerage in the World!
But let’s jump right into eXp Realty and how it works!
eXp Realty is a cloud-based real estate brokerage, meaning that there are no physical brick-and-mortar offices. Agents, team leaders, and brokers collaborate, support one another, teach and train, and build their businesses through eXp Realty’s extensive digital tools and resources. This means you can always be plugged into whatever’s going on at eXp and receive support and training no matter where you’re at.
Another major difference between eXp Realty and most other brokerages is that eXp is not a franchise-based brokerage model. This essentially allows agents to “build a business within a business”. No longer does one need to pay tens or hundreds of thousands of dollars for the opportunity to grow a local franchise. At eXp, you pay $149 to start up and can build your business wherever eXp Realty operates (currently all 50 US states and 14 additional countries, globally)
When Was eXp Realty Founded?
eXp Realty was founded in 2009 by Glenn Sanford. Prior to 2009, Glenn was a real estate team leader at Keller Williams doing around $60 million in sales volume per year. However, when the 2008 housing crisis hit, Glenn was stuck with a ton of overhead and suffered major losses, like many real estate agents at the time.
The housing crash got Glenn thinking that there has to be a better way for real estate agents to build and scale their business without taking on as much of the risk. So in order to materialize this thought, in 2009, Glenn founded eXp Realty.
By 2010, eXp Realty was already in 11 states. By 2013, Glenn took eXp Realty public. This enabled agents to earn stock and become owners of the company just by selling real estate. In 2015, eXp Realty introduced the ICON agent award program which propelled eXp Realty’s growth to over 300% the very next year.
Skyslope
Skyslope is eXp Realty’s transaction management platform. Agent’s use Skyslope to organize their transactions, get forms signed, and upload documents to eXp Realty’s transaction and broker team. One of the greatest benefits of Skyslope is the confidence knowing that your file is complete and has been looked over by eXp Realty’s transaction coordinators and your state broker.
Whenever you have a new file, you input the details and Skyslope populates a checklist based on what’s required in your market for that particular type of file. All required documents have a red mark next to them. Once turned in, this red light turns to yellow as the document gets reviewed by eXp’s transaction team. If the document is complete and correct, the status is approved and you get a green mark next to the document.
This helps you easily see what’s still required for a completed file. Once all documents have been turned in, eXp Realty’s transaction coordinators will issue a “Disbursement Authorization” that you can give to the title company that ensures you receive a separate check from eXp Realty and get paid at the closing table.
eXp World
eXp World is a virtual environment that agents can log in to receive support and training. You download the software to your computer, create an avatar (your virtual person), and then can walk around the campus and visit a wide array of departments and training rooms. The entire process is very simple and intuitive to use.
Within eXp World, you’ll be able to access your broker state room and receive live, on-demand support from your state broker and transaction coordinators. Some additional support departments within eXp World include accounting, tech support, onboarding, and team services.
Additionally, there are multiple auditoriums and classrooms you can join for live training throughout the day. There is a training calendar that goes out every Sunday evening that displays all the upcoming training for the week and where inside eXp World that you can access it. Simply show up when and where the training is taking place and you’ll have access.
Marketing and Branding Center
eXp Realty has a completely built-out marketing and branding center. From day one, agents who join eXp Realty have access to a library of templated marketing materials that they can modify and make their own. eXp Realty is a huge proponent of branding yourself how you see fit, so long as you are compliant with state advertising regulations.
Some of the top resources in the marketing center include buyer and listing presentations, listing and open house flyers, buying and selling guides, social media shareables, and so much more!
Regus Office Partnership
Agents who join eXp Realty receive a free membership to the shared workspaces within Regus local offices. Regus is a nationwide coworking space. Agents can pop in, use wifi, grab a coffee, and take care of work in over 13,000 locations across the US.
Additionally, if you wish to meet a client, you can reserve a conference room or office space for the hour. This is an additional fee but is very affordable (typically around $30/hr). There’s also a receptionist at the front that will greet your client and take them back to your office.
Finally, you receive a discount if you wish to upgrade into a full dedicated office space that you can reserve month-to-month.
Training at eXp Realty
If there’s one thing you can be sure of it’s that there is no lack of training available at eXp Realty. eXp Realty hosts over 80 hours of live training per week. Additionally, much of this training gets recorded and uploaded to eXp’s library of on-demand training.
Training at eXp Realty is hosted mostly by top practicing real estate agents around the country sharing their strategies, resources, and mindset. I equate the training to going to a real estate conference every week. There are so many different topics each week with different perspectives as agents share what works in their local markets.
Live Weekly Training
eXp Realty offers over 80+ hours of LIVE training every week. This training can be accessed anywhere you have internet access via our cloud campus. Training ranges from lead generation, contract training by state, scripts and dialogues, social media management, video and blogging, and much more…
Training classes are taught by ICON agents from all over the country. ICON agents the best eXp agents, associate brokers, and team leaders that have reached a certain production requirement. The quality of training that exists within eXp is like no other company out there!
eXp Realty Mentor Program
New agents who’ve not yet completed three transactions in the previous 12 months will be assigned a mentor upon joining eXp Realty. The mentor is a local real estate agent, who meets a required amount of production to be able to mentor other agents. This mentor is there to help with any questions the new agent may have.
Additionally, there is a custom-built mentor learning management system (LMS) with modules and lessons to help the new agent get up and running quickly.
There is an additional 20% split that gets charged to the mentee for these first three transactions. This means agents on the mentor program start out at a 60/40 split. Once the mentee closes three transactions and graduates from the mentor program they go to the typical 80/20 eXp Realty commission split.
Real-Time Support
At eXp Realty, there are over 600 corporate staff to help support agents and brokerage operations. Support from our team is available 11 hours per day, 5 days per week.
Agents can access support by logging into eXp World, directly messaging staff through Workplace, text, email, or phone call.
eXp Realty staff range from transaction management, agent concierge, tech support, accounting, HR, team support, onboarding support, plus many other departments.
Broker Support
At eXp Realty, there is a designated managing broker in all 50 states. Also, depending on how many agents are within the particular state, there can also be Assistant State Brokers.
For example, in Texas we have our designated managing broker plus five additional assistant state brokers. As an agent in Texas, I can reach out to any of the six brokers for support.
Additionally, state brokers are paid a salary and do not compete with agents. This means the brokers are more easily accessible and focused on supporting the agents of their state.
Transaction Management
eXp Realty also provides dedicated transaction support specialists to ensure agents files are complete and accurate. Through the use of Skyslope, agents can turn in documents for review and receive feedback almost instantly. Also, eXp Realty’s transaction coordinators create disbursement authorizations to give to the title company to ensure agents receive their commission directly at closing.
In-Person and Virtual Events
eXp Realty hosts two large in-person events each year, EXPCON and eXp Realty Shareholder Summit. Thousands of agents travel from all over the world to attend these events and learn from some of the top agents and keynote speakers on the planet. Because eXp Realty owns the SUCCESS brand, we have keynote speakers from the likes of Tony Robbins, Rory Vayden, Grant Cardone, John Salley, and so many more!
In addition to the company sanctioned events, there are massive agent led events throughout the year. I just recently got back from an eXp event in Cabo San Lucas, Mexico with over 800 agents. In August, 2021, there will be another agent led eXp event in Dallas with over a couple thousand agents!
Revenue Sharing
eXp Realty gives real estate agents the opportunity to earn additional income streams. The first additional income stream is revenue sharing.
Revenue Sharing is eXp’s way of giving back a percentage of the revenue that eXp receives from commissions earned to the agent for helping to grow the company. This money comes from eXp Realty’s side of the split.
Because eXp Realty does NOT have all the overhead experienced by most traditional brokerages like brick and mortar offices, redundant staffing positions, and corporate recruiters, team leaders, and franchise owners, eXp can reward agents off the top, in the form of revenue sharing.
This revenue share can be earned from agents all across the US and Canada regardless of if the agent they attract to the company is in the same state or not. Also, revenue share is paid per deal the agent closes regardless of if the agent does 1 deal a year or is a capping agent.
Stock Awards
A major benefit to building your business at eXp Realty is the ability to gain ownership in the company you’re working for. As agents close deals and share the model with other agents, they earn eXp Realty stock. There are three main ways eXp Realty agents can earn stock within the company.
Sustainable Equity Plan
With the Sustainable Equity Plan, eXp agents can receive free shares of eXp Realty stock for doing things they would normally be doing in real estate anyways. For example, when an agent closes their first deal each year, caps, or attracts someone into the company and that agent closes their first deal.
This stock, which is given to agents for free, is vested for 3 years. This means the agent needs to stay with eXp Realty for 3 years from the time they are awarded the stock.
ICON Agent Award Program
The ICON agent program awards agents who reach their commission cap and do another $5,000 in transaction fees to eXp in the same year their $16,000 that they paid into their commission cap back in the form of eXp stock.
An agent hits their commission cap of $16,000 by earning $80,000 in gross commission in one year. 20% of that goes to eXp equaling $16,000. After that time, the agent earns 100% minus a $250 transaction fee. If the agent does another 20 deals at a $250 transaction fee equaling $5,000 they are now eligible to receive their ICON status and stock award. With an average commission amount of around $6,000, an agent would expect to become ICON around 32 transactions within one year.
Agent Equity Program
Finally, an agent can elect to take advantage of eXp Realty’s direct purchase plan. This is an optional program that allows agents to have 5% of their gross commissions automatically deducted to purchase eXp stock at a 10% discount to what the stock is being publicly traded at.
Team Structures at eXp Realty
There are a few different team structures available at eXp Realty.
Self-organized team – In a self-organized team, there is no minimum production from the team leader. All agents on the team can work transactions independently of the team leader and have their own $16,000 cap. This form of a team is mostly for marketing purposes.
Standard Team – With a standard team at eXp Realty, Team Leaders are required to have produced a minimum of $6 million in volume in the previous 12 months. Agents on a standard team qualify for a half-cap ($8,000). A minimum of 25% of each team agent deal must go to the team leader.
Mega ICON Team – A Mega ICON Team Leader must produce over $40 million in the previous 12 months and have 10 agents to qualify for a Mega ICON Team. Agents on a Mega ICON Team receive a quarter-cap ($4,000). A minimum of 25% of each team agent deal must go to the team leader.
Domestic Partnership – Married couples who both have licenses can join forces and share one $16,000 cap and $135 monthly fee.
eXp Realty Fees and Commission Split
eXp Realty believes that the value proposition of the broker to the agent should be so good that it would be irresponsible for an agent to hang their license anywhere else. Supporting that belief is the extremely low cost of startup and monthly fees for all the value gained with eXp.
The initial startup is $149, which includes 1000 business cards. After this, the monthly fee is $85 and includes your tech and education.
The split is 80/20 with a $16,000 cap. After an agent-caps, they go to 100% with a $250 transaction fee. This transaction fee is then reduced to $75/transaction after paying $5,000 in transaction fees.
In addition to the above fees, the agent pays $40/transaction for risk management (which caps at $500/yr) and $25/transaction for broker review.
All of the fees above are based on a US agent. For Canada, the split stays the same, however, the fees are as follows: $199 startup, $139 monthly, $17/transaction risk management ($200 cap), and $29 for broker review.
Licensed in Multiple States
For agents that are licensed in multiple states, eXp Realty is a great choice. You can join eXp Realty in every state you hold a license and only pay one commission cap and monthly fee.
Because eXp Realty is one large brokerage rather than a series of franchises, agents only need to learn one set of systems and process for all their transactions. Everything is streamlined and centralized regardless of how many states an agent works in!
How To Join eXp Realty
The Onboarding Process
STEP 1: Submit joining application and the Independent Contractor's agreement at www.join.exprealty.com.
Please allow 30+ minutes to complete the application and ICA, and be sure to have your real estate license and direct deposit information handy! PLEASE select “YES” for text notifications and make a note of your onboarding REFERENCE NUMBER to be able to check your statues online here> https://onboardingstatus.expenterprise.com/ Log into https://joinapp.exprealty.com/SSO/ to continue or to finish your application at any time Once completed, you will receive an email with your login credentials for Guest Pass. (Subject: eXp World Guest Pass & Join App)
STEP 2: Download eXp World and take a World tour ASAP so you can check on your onboarding process DAILY! This will keep your “file on top of the pile” and cut your onboard time in half!
To download eXp World go to http://download.exprealty.com/
To watch a quick video tutorial click here> SHORT eXp World Tour SHORT eXp World Tour
Contact us for a tour or to schedule a tour directly with eXp, email: expdocent@exprealty.com
STEP 3: Transfer your Real Estate License.
This is state specific so please reach out to us for questions or contact your eXp State Broker. Since I assist California agents most frequently, here are the license transfer instructions and broker information for California.
STEP 4: URGENT* MLS Transfer
After transferring your license, IMMEDIATELY update your MLS with eXp Realty as your broker. (If you do not, you will lose your MLS access)
STEP 5: Transfer your listings to eXp with your MLS.
Please contact your MLS for instructions first and then your state broker.
STEP 6: Confirm Email Forwarding.
You will receive an email with the subject "Item 4: Activate Your eXp Realty Account - Verify Your Email Alias”. Click on the link inside to confirm and move forward with onboarding.
STEP 7: Passport Login Credentials.
You will receive an email with the subject "Item 5: Welcome to eXp Realty! Your Passport Account". Click the link to activate your eXp Passport account:
*Please check your SPAM folder
Team Structures
1. Traditional Team
This team format is the most common in the real estate industry. At eXp, the team leader has a $16K cap (with an 80/20 commission split) and the agents on the team have a half cap of $8,000. The agents on the team pay a minimum commission split of 75 / 25 to the team leader for all of their transactions in addition to contributing to their annual eXp cap.
Here’s a quick example of how the traditional team commission splits would break down at eXp Realty:
** Once the team member reaches their annual cap of $8000, they only pay a small transaction fee to the broker.
Team Requirements: In order to be recognized as a Traditional Team at eXp Realty, your team needs to have closed at least $6.0M in business or 30+ transactions in the last 12 months. Also, the team leader must submit a team roster as well as a written team agreement to eXp that is signed by each agent. If you don’t have a team agreement, eXp does offer some standard agreements that you can use and/or customize.
2. Mega ICON Team
If you have a large team with 10+ agents, the Mega Icon Team structure at eXp Realty is an incredible option. Each agent on the team has a quarter cap of just $4,000 and like the traditional eXp team model, the team leader’s commission cap remains at $16,000.
eXp Realty Team Requirements:
3. Self-organized Team (or Group)
This eXp Realty team format is quite common with real estate agents who are just starting a small team or partnership. Under this structure, all of the agents in the “group” pay the regular $16,000 annual cap (80/20 commission split) and there is no minimum commission split that needs to be shared with the team leader.
While a reduced cap is always attractive when setting up a team, there are several benefits to forming a Group:
This is a great option for those who would like to begin building their brand and testing out the team structure or for those teams that have high producers who qualify for the ICON agent stock award (where they receive up to $16K back in stock each year.).
4. Domestic Partnership
This team structure is for those who are legally married and would like to join eXp Realty as a team. No written agreements or team commission splits are required and this partnership can be dissolved or established at any time during your time with eXp.
