eXp Realty Explained: A Comprehensive Guide
How Does eXp Realty Work
eXp Realty is sweeping the nation faster than any other real estate brokerage. It’s the #1 Agent-Owned Cloud-Based Real Estate Brokerage in the World!
I’ve been with eXp Realty since 2017, and it’s completely changed my life and business. Before eXp Realty, I owned an independent real estate brokerage here in San Antonio, TX. You can read more about my background and transition here. But let’s jump right into eXp Realty and how it works!
eXp Realty is a cloud-based real estate brokerage, meaning 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 in all 50 US states and 22 additional countries globally). With this new model, you can leverage eXp Realty’s systems, support, training, and reach to scale your real estate business to the highest levels.
One other unique aspect of eXp Realty is the culture and collaboration between agents within the company. Because agents have a large sense of ownership, a major mindset shift occurs with agents at eXp. It’s all about how we can grow this together and support one another versus the much more common what’s in it for me mindset you see at many other brokerages. I’ve met some of my best friends and business partners through eXp Realty which has helped me to take my business to the next level!
When Was eXp Realty Founded?
eXp Realty was founded in 2009 by Glenn Sanford. Before 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 businesses without taking on as much risk. So 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 company owners by selling real estate. In 2015, eXp Realty introduced the ICON agent award program, propelling eXp Realty’s growth to over 300% the next year.
In 2018, eXp Realty opened operations in all 50 US states and Canada. Today, eXp Realty is open in over 14 additional countries, including Mexico, the UK, Australia, South Africa, India, and many more!
Is eXp Realty Sustainable?
A question that many agents have when they hear about eXp Realty is if the company is sustainable. Because eXp Realty gives so much back to agents through revenue sharing, stock compensation, and lead generation tools, many agents wonder if the eXp Realty business model is profitable and can last into the future.
The view I have is that our model is highly sustainable. eXp World Holdings, the parent company for eXp Realty, has little to no debt and has been profitable every quarter since the fourth quarter of 2019.
Our sustainable revenue-sharing model pays out up to 50% of the company dollar back to agents, allowing the other half to go towards overhead and profit. And because eXp Realty has no physical brick-and-mortar offices, the overhead is substantially less than comparable brokerages.
Looking at the company’s quarterly financial earnings, you’ll see that fixed overhead expenses run around 30% of company dollars. This leaves around 20% as a healthy profit margin.
Additionally, most brokerages break even off their real estate sales division and earn mainly from affiliated services, like mortgage, title, insurance, property management, and other business partnerships. eXp World Holdings is just starting to get into this side of the business, which leads me to believe there is still huge upside potential.
And finally, because eXp Realty is now a global company, our sustainability is not as dependent upon how the real estate market is doing in the US. As our company grows into additional countries, we become more diversified and sustainable.
Agent Tools and Resources
Does eXp Realty Provide Leads
eXp Realty provides some leads to agents; however, not enough to sustain a business with. Leads across the eXp Realty corporate website filter through round-robin to agents in the respective market. These leads are assigned via kvCORE. The number of leads assigned depends on how many eXp agents are in the market and the demand for housing in the area.
In general, it’s best if agents treat these leads as a bonus, not something they rely on for their business. The actual lead generation opportunity with eXp Realty is based on providing kvCORE to all agents.
kvCORE
At eXp Realty, all agents are given access to a massive lead-generation platform called kvCORE (Formerly called Kunversion). kvCORE is an all-in-one solution that gives agents their lead-generating website and back-end CRM database. Used together, this system helps agents generate leads from various sources online and with traditional methods.
The front-end website looks fantastic and is informative to potential leads and clients. Users can create an account that will let them save properties and searches so they may be alerted to changes. Also, you’ll have access to all the properties they are looking at, saving, and which searches they are interested in.
The powerful CRM system allows agents to manage an extremely large database of leads without ever dropping the ball on communication. Some of the features of the kvCORE CRM include smart email drip campaigns, texting straight out of the system, and the ability to create landing and squeeze pages to support lead generation by even the least tech-savvy of agents.
For more information about kvCORE, check out my ultimate kvCORE guide.
Skyslope
Skyslope is eXp Realty’s transaction management platform. Agents 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 of 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 quickly 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 where 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 stateroom 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, you can join multiple auditoriums and classrooms 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 you can access it. Show up when and where the training is taking place, and you’ll have access.
Click here for a free two-week guest pass to eXp World. You’ll be able to attend training, interact with other agents and staff, and explore the entire campus!
eXp Enterprise
At eXp Realty, all agents have an enterprise dashboard that shows current and closed transaction details, cap and fees paid to date, and revenue share and stock earned. You’ll know exactly where you stand related to your cap, how much income you’ve earned for the month and year, and how many agents have joined your revenue-sharing organization.
I used to have a spreadsheet that I built to track my transactions, commissions, and goals. I had to update it manually and ensure accuracy. Now, with eXp Enterprise, I log in, and all my transaction details are in there, going back all four years that I’ve been with eXp Realty!
Marketing and Branding Center
eXp Realty has an entirely built-out marketing and branding center. From day one, agents who join eXp Realty have access to a library of templated marketing materials they can modify and make their own. eXp Realty is a huge proponent of branding yourself how you see fit, as long as you comply 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 shareable, and so much more!
Workplace By Facebook
Workplace by Facebook is probably the tool I use the most at eXp Realty. Workplace is identical to the regular Facebook that we are all used to. However, it’s a separate platform exclusive to eXp Realty agents and staff. There is a desktop and mobile version available.
Within Workplace, you have a news feed full of announcements, recorded training, posts by agents, and referrals. You can join groups, just like on regular Facebook. Examples of groups include your state group, kvCORE discussion, referral network, real estate training 101, and many more.
Finally, just like on regular Facebook, you have messenger built into Workplace. This means that you can message anyone within the company that you need. This includes your state broker, eXp staff, and fellow agents. This is one of the easiest ways to collaborate and even meet new agents within the company from all over.
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 additional fee is affordable (typically around $30/hr). A front desk receptionist will greet your clients and take them back to your office.
Finally, you receive a discount if you wish to upgrade to 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, there is no lack of training available at eXp Realty. eXp Realty hosts over 80 hours of live training per week. Additionally, 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 many 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 via our cloud campus anywhere you have internet access. 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 are the most productive 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!
On-Demand Training Library
If you miss training or want to catch up on the thousands of hours of training that has taken place in the past here at eXp Realty, you’ll love the eXp University Library. You can access this content library, categorized by topic, anytime, anywhere!
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 the required amount of production 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.
An additional 20% split gets charged to the mentee for these first three transactions. This means agents in the mentor program start 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.
SUCCESS Coaching
eXp Realty acquired SUCCESS magazine and the SUCCESS brand in 2020. Since that time, they’ve released some exciting news! One of the most exciting announcements has been the addition of coaching for eXp Realty agents through the upcoming SUCCESS coaching. eXp Realty is actively building out this platform, which will be available to agents in the latter half of 2021.
Real-Time Support
At eXp Realty, over 600 corporate staff help support agents and brokerage operations. Support from our team is available 11 hours per day, five days per week.
Agents can access support by logging into eXp World and directly messaging staff through Workplace, text, email, or phone call.
eXp Realty staff include transaction management, agent concierge, tech support, accounting, HR, team support, and onboarding support, among many other departments.
Broker Support
One of the most common questions I get asked is who’s my broker and how I get help from them. At eXp Realty, a designated managing broker exists in all 50 states. Also, depending on how many agents are within the particular state, there can 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. Using 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.
Agent Collaboration
In addition to eXp Realty staff and brokers, agents will find tons of support from other agents through tools like Workplace and eXp World. Whenever I have a question, I post it to Workplace, and within minutes, I have the answer. Workplace also has a great search function built-in. Most of the time, the answer to my question can already be found through a quick search.
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 worldwide to attend these events and learn from some of the world’s top agents and keynote speakers. 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 recently returned 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!
For more information on upcoming eXp Realty events, check out my page here.
Revenue Sharing
eXp Realty allows real estate agents 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 traditional brokerages like brick-and-mortar offices, redundant staffing positions, 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 across the US and Canada regardless of whether the agent they attract to the company is in the same state. Also, revenue share is paid per deal the agent closes regardless of if the agent does one deal a year or is a capping agent.
Stock Awards
A major benefit to building your business at eXp Realty is gaining ownership of 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 typically do in real estate. 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, given to agents for free, is vested for three years. This means the agent needs to stay with eXp Realty for three 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 the $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 can receive their ICON status and stock award. With an average commission amount of around $6,000, an agent would expect to become ICON with around 32 transactions within one year.
Agent Equity Program
Finally, an agent can take advantage of eXp Realty’s direct purchase plan. This optional program allows agents to have 5% of their gross commissions automatically deducted to purchase eXp stock at a 10% discount to the publicly traded stock.
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 must 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 ten 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 with licenses can join forces and share one $16,000 cap and a $135 monthly fee.
For more information, check out my article on eXp Realty Team Structures.
eXp Realty Fees and Commission Split
eXp Realty believes that the broker’s value proposition 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 startup cost 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 per transaction after paying $5,000 in transaction fees.
In addition to the above fees, the agent pays $40 per transaction for risk management (which caps at $500 per year) and $25 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 for the startup, $139 monthly, $17 per transaction risk management ($200 cap), and $29 for broker review.
For more information about the eXp Realty commission split and fees, check out my post here.
Licensed in Multiple States
For agents 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 processes for all their transactions. Everything is streamlined and centralized regardless of how many states an agent works in!
How To Join eXp Realty
Joining eXp Realty is as easy as completing three steps.
- Head to join.exprealty.com and click on the “Apply as an Agent” button in the top-right corner. Please fill out the application (It takes around 10 minutes).
- After completing your online application, eXp Realty will send you the independent contractor agreement. You’ll electronically sign this document and name your sponsor at the very end.
- Upon completing the independent contractor agreement, you’ll receive an email from your state broker letting you know how to transfer your state license to eXp Realty.
If you’d like to learn more about the benefits of naming myself, Kyle Handy, as your sponsor here at eXp Realty, check out my eXp Realty Partner Page. Get free access to all my agent training courses, weekly Zoom calls, and a private Facebook community when you partner with me!
The Onboarding Process
Once you’re officially licensed with eXp in your state, the eXp Realty onboarding team will begin setting up your accounts for kvCORE, Skyslope, eXp Enterprise, and Workplace.
kvCORE can take 3-5 business days to set up, but you’ll receive access to most all other tools within the same or the next day.
Check out the full eXp Realty onboarding process here.
