eXp Realty offers several ways to structure your team and position yourself in a way that can help your business grow exponentially.
The unique eXp model strives to give more agents the means and opportunity to build what is called a seventh level business. The company has seen this come to life over the past few years with hundreds if not thousands of agents now earning passive residual income every month.
What We’ll Cover In Today’s Article:
- What Is A Seventh Level Business?
- What Does a Team Look Like at eXp Realty?
- What is Revenue Share?
- Benefits of Having a Team at eXp Realty
What is a Seventh Level Business?
A “seventh level business” occurs when you’ve built your real estate business in such a way that your business can carry on with little to no input from you. This happens when you’ve invested your time in implementing effective systems, building out your team, and maintaining a client base that guarantees referrals and repeat clients.
I think it is safe to say that is a level of success we would all yearn to be at, where we can remove ourselves from the grind and still be earning a substantial income from our real estate business. But the sad truth is that many of us real estate agents and team leaders will spend our entire 20, 30, or even 40 year career chasing the carrot, and never catch it.
That is where the vision behind eXp was born, as a way to harness the motto “work smarter, not harder”.
Let’s take a look at how building a team at eXp can help you get there.
What does a Team Look Like at eXp?
There are several ways you can structure your team at eXp.
First, I want to take a moment to note that any team name you establish under these models needs to be filed with your state commission before using it for marketing or branding purposes.
1. Self-organized team. This eXp Realty team structure is almost like a referral partnership. I, myself, operate my business as a self-organized team. This is the most common way that team leaders start their career at eXp.
- Under this model, you are the team leader and there is no minimum amount of deals you have to do to sustain your team.
- The cap is not reduced for any team members, so everyone is on a $16,000 cap and there is no minimum referral percentage required to the team leader.
- There is no formal team agreement required by eXp, but you will want to submit a team roster. This basically provides eXp with a list of agents that you are sharing deals with on a consistent basis (one-off deals do not have to be on the roster).
- An agent may want to start a self-organized team to allow other agents to be able to use the team leader’s marketing and branding.
2. Standard team. This model is probably what most people think of when they think of a real estate team, with team splits and formal leadership from the team leader.
- Each team member has a half cap of $8,000, with the exception of the team leader, who remains at a $16,000 cap.
- Each agent pays a referral percentage to the team leader with a minimum required split of 75:25 on all deals. Remember, agents on your team are only paying a half-cap, so there has to be some sort of balance here to make sure the system can continue to work for everyone.
- A written team agreement must be submitted to eXp and approved. eXp provides standard team forms that are customizable to fit your specific team needs. A team roster is also required to be submitted, so that it is clear which agents are working under your team name.
- Qualifications: To qualify as a standard team, you need to have closed 30 transactions the previous year, or have done a minimum of $6 million in business. Keep in mind, this number refers to a consecutive 12-month period, not a calendar year. Once your team is in place, you will be expected to maintain this level of production as a team leader. Personal production and team splits all count toward your numbers here.
3. Mega icon team. This is the eXp Realty team structure you would look at if you were looking to bring on a substantial team of 10 or more. The mega icon team provides a way to help your agents lower their costs while enhancing the value proposition for you as the team leader.
- Each agent (with the exception of the team leader) has a quarter cap of $4,000. The cap for the team leader remains at $16,000.
- This team is similar to the standard team in that it requires a written team agreement as well as a team roster.
- The mega icon team also mimics the standard team with a required referral percentage to the team leader of 25%.
- Qualifications: A mega icon team requires a minimum of $40 million in closed transactions for the team, or 175 closed transactions. It also has to have 10 capping team members in the previous 12 months.
- The team is responsible for $56,000 in caps regardless of how many agents reach their individual cap. This helps ensure that the team is producing, and is a bigger concern for a team of 10 agents, versus one that has 25 agents working toward that $56,000 cap.
4. Domestic Partnership. This is an option for spouses who are legally married and want to come in to eXp as a team. A domestic partnership can be dissolved or established at any time by contacting eXp support.
- Domestic Partnerships share one $16,000 cap.
- Agents who structure in this way receive a discount on eXp’s monthly fees. Instead of paying two $85/mo fees to eXp, there is one $85/mo fee, while the second is reduced to $50/mo.
- There is no written team agreement required. eXp’s agent registration forms contain a dedicated section pertaining to domestic partnerships, where all pertinent information is entered. Keep in mind that proof of marriage will be required to elect this structure.
Those are the more traditional ways to structure your team with eXp. An additional way that agents and team leaders are building teams with eXp is through revenue share.
What is Revenue Share?
Revenue share is eXp’s way of rewarding agents who are helping to grow the company. The company designed the revenue share model as a way to encourage teamwork and a culture of agents helping one another find success in their business.
The way that revenue share works is through a sponsorship type program. Agents who sponsor another agent will earn a percentage of that agent’s gross commission income for the entire time they are with the company.
That percentage comes out of eXp’s share of the split; it is not an additional fee paid by the agent. And it doesn’t stop there, as the agents you work with evolve in their business and start growing their own team, your revenue share team will grow as well.
The income earning opportunity from this type of a team is unique because it grows exponentially versus the traditional team which typically grows linearly, meaning slowly over a long period of time.
Revenue share is a key reason why the eXp model is so effective. However, there are even more benefits of building a team at eXp Realty.
Benefits of Having a Team at eXp
Now that we have gone over the eXp Realty team structure, let’s dive into the benefits of having a team at eXp.
kvCORE Team Platforms
kvCORE is the CRM system used by eXp Realty agents. Access to kvCORE is included with eXp, but only as an individual license within the system. As a team leader, you can upgrade your individual license with kvCORE to a team license and manage an unlimited number of agent accounts for a mere $399 per month.
The savings here are monumental. For a comparable system, you would be looking at spending between $750 to $2000 a month. This greatly reduces your overhead which means money back in your pocket that can be allotted for things such as lead generation.
Another way that eXp lightens the financial burden on agents is by providing a robust training system that can get your team members up to speed quickly. As a team leader, you can recommend trainings within eXp World that teach the lessons you want your agents to learn.
Speaking from my own experience when I had my brokerage, taking weeks or months to personally train every one of my agents took a lot of time and resources that I could have spent on marketing or production. With eXp, I can streamline the training process by directing my agents to a list of top trainings I’ve compiled for getting started in their business.
The ICON award is granted to agents and team leaders who meet production and cultural requirements each year. While you can certainly achieve ICON status as an individual agent, team leaders do have an advantage here. As a team leader, both your personal production and the splits you receive from agents on your team will count toward the ICON requirements.
ICON agents receive their $16,000 cap back in the form of eXp publicly traded stock, and eligibility for the ICON award renews every year. This unique award program is the best compensation for productive agents and team leaders that I know of.
Branding is so important in any business, especially a relationship-based business like real estate. It is important in the development stages of your business, and certainly for the sustainability of your business over time. eXp knows that and grants agents the freedom to brand themselves how they see fit for their business, within state requirements.
By allowing you to take charge of your own branding, you can market yourself in a way that spotlights YOU as the agent. The branding focus is not on the brokerage, like at RE/MAX or keller williams, resulting in a lot of different styles amongst eXp business cards and online.
If you take a look at my website, Instagram, or my Facebook business page, you will notice it is my personal business logo that stands out. The colors displayed are my colors, not eXp’s iconic orange and blue. My marketing is cohesive and my headshot is everywhere I can fit it to remind clients that I am the same Kyle Handy they have come to know and trust.
eXp Realty Team Structure Conclusion
As you can see, there are many different ways to go about running your business at eXp. With eXp, you have the ability to build a traditional team, or carry on your current team, while adding in the exponential value that revenue share provides.
The eXp Realty team structure gives you the flexibility to scale and grow your business in a way that is unprecedented and offers the average agent the opportunity to create the seventh level business we all crave.