Revenue Share Compensation at eXp Realty
eXp Realty’s revenue sharing program is a unique feature that differentiates it from traditional real estate brokerages. It is a part of the overall compensation structure of eXp. Since it is not common for a real estate brokerage to offer a part of the company’s revenue to the agents, most agents who are considering brokerage options don’t know how to fit it into their analysis.
While not every agent takes part in revenue sharing, it is one of the many ways that agents can create income at eXp Realty. It is available to agents who help grow the company by attracting other agents and sponsoring them when they join the company. Here’s a comprehensive look at how it works, including details about commission splits and caps:
- Structure: Revenue sharing at eXp Realty is a layered structure, extending to the 7th level of recruited agents. This means that you can earn from the agents you directly recruit and those recruited by your recruits, up to 7 levels deep.
- Recruitment Bonuses: When you recruit agents to eXp Realty, you have the opportunity to earn recruitment bonuses. These bonuses are calculated based on a percentage of the commissions that agents in your downline pay into the company. Importantly, these recruitment bonuses reset annually, providing an ongoing opportunity to earn from your recruits.
- Tiered System: The tiered system allows you to earn from agents on multiple levels. As agents you recruit build their own businesses and recruit others, you can earn a portion of the revenue generated by agents in your downline, up to the 7th level. Furthermore, for every 5 active agents you recruit, additional bonus percentages are added on each level, enhancing your income potential.
- No Caps on Revenue Sharing: eXp Realty does not impose caps on your potential earnings from revenue sharing. This means that your revenue-sharing income can increase without limits as the company continues to grow.
It’s important to note that revenue share is paid out of the company’s revenue, not the agent’s commission.
- Commission Splits: Agents at eXp Realty pay a 20% commission split to the company until they reach a capped payment of $16,000. Once they reach this cap, they no longer pay a split to the company until their anniversary date, at which point the split starts over.
- Global Opportunity: The revenue-sharing program extends globally, meaning you can recruit agents from around the world, further expanding your revenue-sharing network and income potential. Currently, eXp Realty operates in the U.S. and Canada, and 22 other countries. (89,000 agents, over 2,000,000 listings with the largest independent real estate company in the world.*)
- Sustainability: For those interested in sustainability, eXp Realty’s cloud-based model and lack of physical offices contribute to sustainability. By not investing in brick-and-mortar offices, eXp Realty can allocate more resources to revenue-sharing opportunities. If people wonder if revenue sharing is sustainable, think about how much money is spent on an office and on salaries. For an office of 100 agents, that figure is around $500,000 a year. Without the office expense and with the salaries scaled, there is a lot of money to be given through revenue share!
- Long-Term Equity: In addition to revenue sharing, agents have the chance to become shareholders in the company, potentially leading to long-term equity and financial benefits as eXp Realty continues to grow. Agents receive stock awards (not cheaply framed paper certificates!) for production, and they can purchase stock at a 10% discount with 5% of each commission.
Revenue share is an ingenious way to grow a company. It’s designed to create a sense of community and financial incentive for agents to help grow the company. It makes every bit of sense to me that if an agent brings someone into a company, the agent should benefit, and more than just a Starbucks card or even a $100 bonus.
When writing an analysis of brokerages, it is important to create an additional column for revenue share and stock awards as compensation. Even though agents often don’t think of themselves as “recruiters”, it is not beyond the realm of possibilities to “attract” an agent friend or two to your company, especially when they hear about your stock awards for doing what you normally do anyway. Attracting just one producing agent will pay for being here.
If you sponsor two agents who cap, paying $16,000 into the company, you get 3.5% of each $16,000. That is $1120, which pays your fees for the year. That’s just the beginning, because every sponsorship keeps growing your revenue share. Everyone those agents sponsor, and on down to the 7th level.
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#* As of November 9, 2023.