Everything You Need To Know About eXp Realty Revenue Share
eXp Realty Revenue Share is an exciting opportunity for real estate agents, brokers, and team leaders from all over the country to build an additional income stream while still earning commissions from selling real estate.
eXp Realty is a cloud-based real estate brokerage with no brick-and-mortar offices worldwide. Because of this, eXp Realty’s overhead is significantly lower than traditional brokerages. With these cost savings and because eXp Realty doesn’t employ expensive corporate-paid recruiters, eXp can afford to pay its agents and brokers a percentage of the revenue generated from each agent they sponsor into the company.
This opens some interesting opportunities for agents looking to build wealth and generate additional income streams other than just selling homes. The best part of the eXp Realty revenue share program is that it is paid monthly (on the 22nd of every month). This becomes a great way to supplement the roller coaster income most agents experience.
What is Revenue Share?
eXp Realty Revenue Share is a percentage of revenue that agents earn for attracting that agent generating the revenue into the company. All agents at eXp Realty are on an 80/20 split with the company. When an agent closes a deal, a percentage of the company’s 20% goes back to the agent that sponsored them. We’ll get into the breakdown of percentages later on.
But for now, remember that eXp Realty pays Revenue Share from eXp’s percentage of the commission split, the 20%. We’ll refer to this 20% as “company dollar.” Revenue Share is paid out on every deal until the agent caps for the year, and no more company dollar is earned.
The cap is $16,000 in gross commission income paid into the eXp Realty. This totals $80,000 in total commissions. $80,000 x 20% = $16,000 paid into eXp Realty. The agent is at 100% for the rest of the year until their cap resets.
Once the agent’s cap resets on their anniversary with the company, Revenue Share starts back up all over again.
Why is Revenue Share Important?
The importance of Revenue Share for real estate agents cannot be understated. Most agents work decades and don’t have much to show for it at the end because all the commissions earned over the years get spent along the way of life.
eXp Realty Revenue Share is different, however. Even when agents stop selling real estate, they will continue to earn income from the Revenue Share program.
There are no vesting requirements. However, you do need to keep an active real estate license and have eXp Realty hold it. Revenue Share is looked at like real estate commissions, and for commissions to be paid in most states and countries, you need an active real estate license.
Diversify / Multiple Income Streams
Another reason eXp Realty Revenue Share is so important for real estate agents is that it allows agents to diversify their income.
We all know that as real estate agents and brokers, we have bad months from time to time. Even months when we may make no income at all.
Revenue Share helps to smooth out the off months and make the good months even better!
Who Can Earn Revenue Share?
Revenue Share is paid to any real estate agent or broker with an active real estate license held by eXp Realty. It doesn’t matter if you have only been licensed for one month or 20 years. You can begin earning Revenue Share immediately.
In most real estate brokerage models, a share of the earnings is only given to the broker-owner, franchise or regional manager, or paid recruiters and team leaders.
eXp Realty is not a franchise model, and there are no territories for sale. eXp Realty is one very large real estate brokerage that spans all 50 US states, Canada, and soon Australia, and the UK.
This means you can earn Revenue Share as an agent with eXp and Revenue Share from agents in all the above-mentioned areas.
Also, there is no production requirement to earn Revenue Share. You can sell as many or as few homes a year as you would like.
Revenue Share Model Comparisons
Perhaps you are trying to compare the Revenue Share model to other income-earning opportunities within real estate. A few other models are commonly compared to eXp Realty’s.
Keller Williams Profit Share
One of the most commonly compared models to Revenue Share is Keller-Williams profit share.
Profit share is paid in a 7-tiered system, similar to eXp Realty but the major difference is that the money paid is off the bottom after expenses have been paid for that market center.
The problem with this is two-fold. First, you are getting paid less per transaction when you sponsor an agent because it’s based on profit rather than revenue.
Second, every market center is independently owned and operated, meaning that profit is not even guaranteed. There are many circumstances where a sponsor may not earn any profit share for a sponsored agent if the market center is unprofitable.
Owning an Independent Brokerage
Many independent brokers look at the eXp Realty business model and wonder why they would merge their brokerage into eXp Realty when they can already recruit and earn income from sponsoring agents.
While this is true, there are many reasons why eXp Realty may be a better option. Read my blog post comparing the independent brokerage model to eXp Realty. But for now, here are two main reasons to consider eXp Realty over building an independent brokerage.
The first is scalability. With eXp Realty’s model, you can scale your business to all 50 US states, Canada, and even more countries coming soon, and you do not need to join a single MLS except for the one you already belong to.
The benefit here is that you cannot only personally sponsor agents from wherever you may meet or know them, but your sponsored agents can also tap into their networks all over the country which will help build your organization much faster.
Next is leverage. With most independent brokerage models, the broker-owner is responsible for doing so many jobs. Recruiting, retention, creating systems and tools, accounting, training, transaction management, operations, and many more.
At eXp Realty, you get to leverage all the support of over 400 and growing US and Canada-based employees that handle most of these tasks for you so you can focus on doing what you, as an independent broker-owner, most likely do best, recruiting and sales.
Additionally, you will see a massive increase in leverage on the recruiting side.
In most independent brokerages, the broker is responsible for 90% or more of the agents paying into the brokerage. At eXp Realty, it’s not uncommon for agents to attract a handful of agents personally but have an organization of many more agents, sometimes hundreds or even thousands of agents.
This is all because agents at eXp Realty get paid Revenue Share up to 7-tiers down. Even when you sponsor an agent, it doesn’t stop with them. Eventually, that agent you sponsored will likely sponsor someone, and you’ll also earn Revenue Share from that agent. This continues to happen as agents sponsor agents, 7-tiers down.
Because the names are similar, it’s not hard to confuse eXp Realty with Exit Realty. However, the two business models couldn’t be more different.
Exit Realty is a franchise business model where broker-owners buy into a territory and grow an office locally. Additionally, they offer their agents a share of the commission generated from agents they sponsor, but it stops at only 1 tier. This means only the agents they sponsor earn them income.
This takes away all the leverage we discussed above from the 7-tiers and forces agents to constantly recruit to make any money from the opportunity.
How Revenue Share Works
Ok, so let’s talk about how the eXp Realty Revenue Share program works.
Seven Tiers of Revenue Share Payout
First, you’ve already heard me mention tiers in this post many times. Let’s start here and discuss the different tiers and how they work.
Any agent that you sponsor will be on your Tier 1. You cannot nor would you want to add an agent to any other Tier, 2-7.
Whenever an agent you sponsor attracts another agent, that new agent is on your Tier 2. This continues in this manner until you have agents on your Tier 7.
Revenue Share Maximum Payout and Percentages
Now that you know which tiers agents fall on within your Revenue Share organization, it’s helpful to know how much you can earn from each one.
Here’s a chart that shows the percentage you earn from agents on each level and the maximum Revenue Share you can earn from each agent on that particular level each year before they hit their cap.
You’ll notice that each tier is worth a different percentage. Any agent you sponsor (Tier 1) is worth 3.5% up to $2800 annually. This means when an agent you sponsored closes a $300,000 deal and earns a 3% commission, $9,000. You earn 3.5% of the $9,000, which equals $315, which gets paid on the 22nd of the month after the transaction closes.
Now let’s take a look at Tier 2. Again, Tier 2 would be an agent that one of your sponsored agent sponsors. One interesting thing to note is that you earn MORE for agents on this Tier than your Tier 1. You earn 4% for all transactions that close on this tier up to $3,200 annually per agent. Let’s take another example. $300,000 home closes from an agent on your Tier 2. That agent earns $9,000 (3% of $300,000). You earn $360 for that one deal! Better yet, the agent you sponsored who sponsored the agent on your Tier 2 earns $315 as well.
Floor Qualifying Required Agents
You may have seen a column labeled “FLQR” in that chart above. This stands for Floor Qualifying Required Agents.
You’ll need a minimum number of Tier 1 (personally sponsored agents) to “unlock” Tier 2-7.
For example, to unlock tier 2, you need a minimum of 5 personally sponsored agents in the company.
To unlock tier 3, you need a minimum of 10 personally sponsored agents.
And so on down the chart until you hit 40 personally attracted agents and unlocked all seven tiers.
Revenue Share Examples
So the charts are great and all… and now it’s maybe making a little more sense, but let’s put this into real-world numbers so you can see how Revenue Share works as an income stream.
Here are a couple of examples of Revenue Share in action.
5 by 5
Let’s use the example of an agent who goes out and sponsors five agents. Let’s say it took this agent five years to do this. They successfully bring over one agent per year.
This is a highly passive example that anyone can do, even selling real estate part-time or new to the business.
Let’s also assume that we go out and help those five agents do the same thing over those five years.
That looks like five agents on your tier 1 and 25 on your tier 2. If you remember correctly, you earn $2800 for each capping agent on your tier 1 and $3200 for each capping agent on your tier 2.
If we do the math, that equals $14,000 annually from the agents on your tier 1 and $80,000 for the agents on your tier 2. A total of $94,000 annually.
Now you’re probably thinking, what if some agents don’t cap? And that’s most likely going to be the case. From what we’ve seen, the average is most agents are half capper.
This means we would conservatively say that in that scenario, the max is $94,000 if you know all high-producing agents. But realistically, you will most likely see around $47,000 annually.
Either way, that’s nearly $4,000 / month for introducing eXp Realty to 5 agents over five years and helping those agents do the same thing.
10 by 10
Let’s kick it up a notch. Let’s say you have higher ambitions. Maybe you already run a team or brokerage and have over ten agents.
In this example, I will show you how that starts to add up to a lot of money quickly.
Let’s say you are gung-ho and go out and get ten agents in 2 years. That’s 5 per year and doable. (Side note: There are agents at eXp Realty that have attracted over 40 agents in their first six months!)
In the next four years, we will help those ten agents go out and get ten each… Wait a minute! You’re probably thinking not everyone will go out and get ten agents no matter how much help. And you’d be correct.
What does happen, though, is this. 1 to 2 agents get 0, 2 to 3 get around 5, 2 to 3 get around 10, and 2 take it all the way and get 25 or more. This averages out to 10 for each of your 10. We’ve seen it time and time again already as eXp Realty has climbed to over 20,000 agents.
So then, this looks like ten agents on your tier 1, which equals $28,000 annually. One hundred agents on your tier 2. That’s $320,000 annually. The total annual income is $348,000 with full capping agents. If we assume again that the average agent is a half-capper, this scenario will produce $174,000 annually.
The Value of Residual Income
Now let’s put this into perspective for that currently investing or looking to create a retirement plan.
A well-known study called the Trinity Study states that a safe withdrawal rate on retirement funds is 4%.
If we use that number and relate it to how much annual income is produced through Revenue Share, it’s easy to see how powerful even attracting just a few agents can be long term.
Suppose you attract ten agents after 3-5 years and earn $175,000 annually in residual income through Revenue Share. To provide the same income level in retirement, you’d need $4,375,000 withdrawn at 4% and provide the same $175,000 annually.
What’s harder to do, is attract ten agents personally and help those agents duplicate your results or save up over 4 million dollars. Even if you could save for 20 years, you would need to save over $200,000 per year (after taxes and normal living expenses).
Tracking Your Revenue Share
Transparency is one of the best things about the eXp Realty Revenue Share program. eXp Realty has built a dashboard that tells you, in real-time, exactly how much you have earned in Revenue Share throughout the month. Also, you can log in and see exactly how many agents you’ve attracted, how much production those agents have done, and your whole organization down to 7 tiers at a glance.
Revenue Share Dashboard
(*Actual numbers have been removed to comply with eXp Realty policy regarding sharing of Revenue Share dashboard.)
MY FLA – The total number of agents sponsored on your tier 1 husband-wife teams counted as one spot.
MY FLQA – The total number of ACTIVE agents sponsored on your tier 1. To be active, the agent must have done either two transactions or $5,000 in gross commission income in the last six months. (This is the number that goes towards unlocking your different tiers.)
My New Agents – The total number of agents who’ve joined your revenue share organization (tiers 1-7) in the last 30 days.
My Revenue Share Group
My Revenue Share Group – The total number of agents sponsored all your tiers, 1-7. Broken down by how many agents are on each tier.
My Revenue Share
All Unpaid Revenue Share – All Revenue Share that you’ve yet to collect.
Revenue Share Expected in Next Check – All Revenue Share that you will earn on the next 22nd of the month.
Last Revenue Share Paid – The amount you most recently were paid on the preceding 22nd of the month.
The revenue share is paid out on the 22nd of the month following the month the Revenue Share was earned. If an agent in your Revenue Share line closed a deal between January 1 – January 31, you’d earn that Revenue Share on Feb. 22nd.
Revenue Share Group Report
One of the best things about the Revenue Share Dashboard is seeing all seven tiers of agents in one central location. This helps to reach out and provide support and motivation for those on your team.
You can see the agents’ locations and help inform them of events in the area.
Additionally, you can see how close each agent is towards capping and when their anniversary date is, so you know who’s contributing to revenue share and who might most need help and support.
Revenue Share Period Details
Here you can see your revenue share broken down by agent and how much each agent contributed to your revenue share that month. This is a great way to track team production, as you can see your team broken down by transactions, gross commission income, etc…
Common Revenue Share Misconceptions
One of the most common misconceptions I hear is that eXp Realty is a pyramid scheme. What I’ll say to that is that it couldn’t be further from the truth.
First of all, pyramid schemes are ILLEGAL. eXp Realty is a publicly-traded company on the NASDAQ. Our finances are audited by the SEC quarterly.
eXp Realty is, first and foremost, a real estate brokerage focused on selling real estate. The Revenue Share program is simply the compensation the company chooses to give back to the agents helping to grow the company. Rather than paying corporate recruiters or building a model based on selling franchises and regions, eXp Realty cuts out the “middle-man,” so to speak, and offers the overhead cost savings to the agents, brokers, and team leaders helping to grow the company.
eXp Realty has low startup costs, $149. This is a major difference from a pyramid scheme that charges extremely high startup costs as this is the money that funds the scheme. Selling real estate is what funds the Revenue Share program. No Revenue Share is distributed without homes being sold.
Lastly, the eXp Realty brand focuses on selling real estate. Even though Revenue Share plays a major role in the compensation of agents at eXp Realty, if you ever attend an eXp Realty event or talk to anyone in a leadership role, their focus is on helping agents sell more real estate.
In conclusion, eXp Realty Revenue Share is a unique opportunity to build an additional income stream while continuing to do what you are already doing, selling real estate.
The best part of this opportunity is that eXp Realty agents are having fun. It’s extremely rewarding to sell real estate and even more rewarding to build residual wealth.
Agents must join a real estate brokerage to sell real estate legally. Why not join a company with a compelling story, industry-leading systems and tools, and a one-of-a-kind income-generating opportunity?
Would You Like To Partner With Me?
I’ve helped hundreds of real estate agents, team leaders, & brokers all over the country increase their sales, online presence, and create scalable systems. I would love the opportunity to work with you. Together, we can make this year your best yet!
One of the best write ups I’ve seen but did you explain agci in the Rev share and the statement that exp now will keep 50% of company dollar? Struggling to understand adjusted gross commission incomr. Can you help? do be careful with representation.
Thanks, Reid. I will be going back and updating this post with that new information.
Hey I noticed that you mentioned the older revshare calculator and I just wanted to give you a heads up about a newer rev share calculator that includes the tier caps. It’s also a little more intuitive because it doesn’t provide exponential calculations. Instead it provides calculations based on the numbers you give it. This is the site: https://www.exprealtycalculator.com/
Thought it might be helpful to your awesome article.
Thanks for the breakdown!!
John – Thank you very much. I’ve updated the post to reflect the new calculator. The old one doesn’t work at all anymore. I appreciate you letting me know!
There was a recent presentation from HomeSmart discussing their new RevShare model. They made a point to indicate their RevShare does not have the ‘ghosting’ effect like other companies – implying eXp has ‘ghosting’. Are you familiar with that? If someone in your downline leaves eXp, then that slot is not honored or factored in….? They mention how in their model, the person below the person that left just moves up and fills in that slot – so no RevShare is lost….
Hey JR! Thanks for the comment. You are correct in saying that at eXp Realty, if an agent leaves, that spot remains empty. However, keep in mind any agents that might have come in under that agent are still honored so long as they are within your seven levels of revenue share. I’ve had agents leave and quite honestly it doesn’t affect my revenue share earned much at all (by not having agents below move up). Typically agents that leave either didn’t sell very many homes and/or attract many agents. If they had, they likely wouldn’t have left. Agents who sell a lot or build a good size group at eXp would leave a lot of stock and/or residual income (revenue share) on the table by leaving. Doesn’t happen often.