Are you curious about the eXp Realty commission split and other fees associated with becoming an eXp agent, broker, or team leader?
In this post, I share in-depth all the costs and opportunities associated with joining eXp Realty.
The commission split and fees I discuss in this article are exactly what I and every other agent at eXp pay to the company.
All Things Equal
The first thing to note about eXp Realty is that all agent's commission splits are the same across the board. No agents receive exclusive deals, unlike at many other real estate brokerages. All agents at eXp Realty pay the same commission split and fees regardless of tenure, transaction volume, etc.
This equal treatment embodies eXp Realty's core value of transparency and ensures that all agents have the same opportunity to succeed.
80/20 Commission Split
All agents at eXp Realty receive an 80/20 commission split. This split caps at $16,000 gross commission paid into the company. When an agent earns $80,000 in gross commissions in a single year, they will pay 20% of that to eXp Realty. That is a total of $16,000. $80,000 x 20%. Once this happens, that agent will receive 100% of their commission minus a transaction fee, risk management fee, and a broker review fee.
After an agent-caps, they go to 100% and only pay $250 per transaction. If an agent pays in $5000 in transaction fees after capping, they will move to a $75 per transaction fee for the remainder of the anniversary year.
For example, let’s say you sell 60 homes in one year with an average commission amount of $6,000 per transaction. Here is how your eXp Realty commission split would work out:
- Transactions 1-14 would be on an 80/20 split with NO transaction fee.
- Transactions 15-35 would be on 100/0 split with a $250 transaction fee.
- Transactions 36-60 would be on 100/0 split with a $75 transaction fee.
To explain, you would cap on your 14th transaction ($6,000 x 14 transactions = $84,000). Transactions 15-35 would all be at $250/per transaction totaling $5,000. Transactions 36-60 would be at $75 per transaction.
Risk Management Fee (Errors & Omissions)
Many agents are familiar with the term errors and omissions. At eXp Realty, we call this the risk management fee. The risk management fee varies by country, but in the US, it is $40 per transaction. Once an agent hits $500 in risk management fees paid for the year, the agent will no longer pay risk management fees for the remainder of the anniversary year.
Broker Review Fee
All US agents pay a $25 per transaction broker review fee. This fee does not cap. For agents in Canada, this fee is $29 per transaction.
Complete Commission Split and Fees Example
In the example above where an agent does 60 transactions. They’re total eXp Realty Commission Split paid for the year would equal:
- $16,000 - Cap
- $5,000 - $250 Transaction Fees
- $1,000 - $75 Transaction Fees
- $500 - Risk Management Fees
- $1,500 - Broker Review Fees
- $24,000 - Total eXp Realty Commission Split Fees
How would you like to earn $16,000 of those fees back? Read below about the ICON agent program at eXp Realty and see how you can do just that.
ICON Agent Program
As agents at eXp Realty, we can earn our entire $16,000 cap back each year in the form of eXp Realty stock. There are two ways you can qualify for the ICON Agent Program, based on your production at eXp Realty. Please note that it's one or the other, not both. Additionally, you need to satisfy the cultural requirement explained below.
Cap Plus $5,000 in Capped Status Transaction Fees
The first way is "$16,000 paid in company cap plus capped status transactions in the same anniversary year resulting in capped status transaction fees of not less than $5,000."
An example of this would be selling 35 transactions at an average commission income of $6,000 per transaction. You would cap at 14 deals. You would pay $250 per transaction for deals 15-35, equaling $5000 in capped status transaction fees. Therefore, if you met the cultural goals of eXp Realty detailed below, you'd qualify for ICON agent Status.
$500,000 Annual Gross Commission Income Plus ICON Qualifying Fee
The second way you could qualify to become an ICON agent is by achieving an "Annual gross commission income of $500,000 or more with a minimum of 10 closed transactions and payment of an "ICON Qualifying Fee." This fee is equal to $5,000 less capped transaction fees paid during the same anniversary year.
An example of this would be that you sold ten homes at an average commission income of $50,000 per transaction. You would cap on your second transaction. Then you pay a $250 transaction fee for your next eight transactions totaling $2,000. Finally, you would have a remaining $3,000 to pay for the "ICON Qualifying Fee" to be eligible for ICON Agent status for that year. The "ICON Qualifying Fee" is optional and only required if you wish to qualify for ICON agent status.
The last part of becoming an ICON agent is to "Demonstrate company culture by giving back by teaching a class, serving on a panel, or serving on a committee. Also, an ICON agent must have a willingness to promote eXp Realty within their community."
That’s it! Once you’ve accomplished the above requirements, you would earn $8,000 in publicly traded eXp World Holdings (EXPI) common stock. This stock vests after three years.
You would acquire an additional $4,000 after one year, once your cultural requirements are fulfilled and verified.
ICON agents earn the last $4,000 in stock awards after attending each of the two annual eXp Realty events.
eXp Realty Commission Split Conclusion
In conclusion, the eXp Realty Commission Split is very generous compared to the majority of brokerages out there. Especially when you consider the ICON Agent Program, eXp Realty is genuinely unique. Combine this with all the tools and training that eXp Realty provides to real estate agents, and you get an excellent opportunity to grow your career in real estate.
Do you have any questions related to the eXp Realty Commission Split? Put them in the comments below and I would be happy to answer them.