Are you a real estate agent who is curious about the differences between Fathom Realty vs eXp Realty?
If so, you’re in luck! In this blog post, we will compare and contrast these two companies. We will discuss their business models, commission structures, and more.
So, whether you are thinking about joining one of these companies or are just curious about them, read on!
To be fully transparent, let me start by saying both brokerages are amazing companies and have unique advantages over one another. I am personally with eXp Realty but will try to stay as unbiased while writing this article as possible while still pointing out potential opportunities and pitfalls of both companies.
If you would rather watch or listen to this content, check out the video or podcast below!
About Fathom Realty
Fathom Holdings Inc. is a real estate services company based in California, founded in 2010, that combines residential brokerage, mortgage, title, insurance, and software solutions for brokers and agents through its own cloud-based software called intelliAgent.
About eXp Realty
eXp Realty was founded in 2009 by founder Glenn Sanford. eXp is a rapidly expanding global real estate brokerage with operations in the United States and 15 other countries. eXp is unique because of its generous compensation, cloud-based business model, and unprecedented training and agent support.
How Does Fathom Realty Compare To eXp Realty?
The basic differences between the two cloud-based firms may appear to be little, but there are in fact significant distinctions between the two business models and services. I’ll list eight of the primary distinctions between Fathom Realty and eXp Realty below.
The Culture At Fathom Realty vs eXp Realty
Fathom Realty is a much smaller company, with around 7,500 agents compared to eXp Realty’s 70,000 agents. The benefit of a smaller company is that you are getting in earlier in the opportunity potentially if you believe the company is positioned to grow.
On the flip side, eXp Realty already has a proven track record of growth and there is no sign of stopping. eXp Realty also has a much larger community available to their agents, which can be helpful when looking to learn from the best.
Fathom And eXp Realty Compensation Compared
Fathom Realty offers a flat-fee business model, while eXp Realty charges agents a commission split.
Agents at Fathom Realty pay a $600 annual fee (charged on the first transaction of the year). Also, agents pay $500 per transaction on their first 12 sales for the year and $99 per transaction thereafter. There is no monthly fee at Fathom Realty
At eXp Realty, agents pay an $85 monthly fee and are charged an 80/20 commission split. This commission split caps at $16,000 for the year, at which time agents go to $250 per transaction. After 20 additional transactions at $250 per transaction, the transaction fee is reduced to $75 for any remaining transactions that close that year with eXp Realty.
While agents will generally pay less to Fathom Realty, keep reading to see if these savings are worth the features you may be losing compared to what you get at eXp Realty.
Fathom Realty And eXp Realty Tools For Agents
At Fathom Realty, agents receive itelliAgent which is an in-house CRM, transaction management, marketing resource, and agent website system.
eXp Realty offers more than fifteen customizable tools that are all accessible through their cloud-based platform. Some examples of eXp Realty tools include kvCORE, Skyslope, eXp Realty Marketing Center, eXp Enterprise, eXp World, Workplace by Facebook, and many more.
Revenue Share At Fathom And eXp Realty
One primary difference between these two brokerages is that Fathom does not offer agents revenue or profit-sharing options. Whereas at eXp Realty agents benefit financially when they help grow the company.
To some, this benefit may not seem that great. However, many agents at eXp Realty are earning hundreds and even thousands of dollars monthly in residual income from the program. This can easily offset the increased cost of commission split and fees you pay into the brokerage.
Also, if you wish to diversify your income streams and actively pursue building out your revenue share, this option is simply not available at Fathom Realty.
Stock Awards At Fathom And eXp Realty
Both Fathom Realty and eXp Realty are publicly traded on the NASDAQ. Fathom (FTHM) offers agents who’ve completed a minimum of 8 transactions in the last 12 months $200 in stock grants per closed transaction up to $6,000 annually.
At eXp Realty agents earn stock awards in multiple ways. Agents earn eXp Realty stock when they close their first transaction each year ($200 worth), reach their $16,000 cap ($400 worth), and sponsor an agent who closes their first deal with eXp Realty ($400 worth).
Additionally, agents can become ICON agents by capping and paying an additional $5000 in capped transaction fees. ICON agents receive up to $16,000 in eXp Realty stock and can achieve this milestone every year.
Finally, via the optional agent equity program, eXp agents can elect to contribute 5% of their commission to purchase eXp Realty stock monthly at a 10% discount from what it’s publicly offered.
Training At Fathom And eXp Realty
Fathom agents receive access to David Knox’s real estate training library. Ongoing, live training is much more limited compared to eXp Realty’s vast on-demand and live catalog of training. Fathom offers a free trial so you can get a sample of their training.
eXp Realty offers real estate agents over 80 hours of live training every week. Also, eXp agents receive access to a vast on-demand library of up-to-date training taught by top agents throughout the country. eXp Realty offers a 2-week guest pass into eXp World so you can participate in its live training.
How Does Support Work At Both Brokerages?
Both real estate brokerages offer a mentorship program for new agents as well as broker support for every state/location they operate in.
Where the two companies differ is in their overall support. Fathom has around 50 full-time employees whereas eXp Realty employs nearly 2,000 employees to support its agent base. This support ranges from accounting, marketing, transaction management, onboarding, technology, team services, HR, and more.
Additionally, connecting with support is made easy at eXp Realty through its use of Workplace by Facebook and eXp World. These are two services that are not available at Fathom.
Teams At Fathom Realty vs eXp Realty
Finally, when it comes to teams at both brokerages, both offer different options.
Fathom offers team leaders the same split as a solo agent would receive. The team leader will pay a $500 transaction fee on his or her first 12 transactions. These transactions can include the team leader’s own transactions and deals they are splitting with a team member.
However, team members reach their cap and move to a $99 transaction fee, rather than the standard $500, after 4 deals, rather than the standard 12.
However, eXp Realty offers three options for team leaders. Self-managed, standard, and mega teams. Like Fathom, team leaders carry the same split and cap as a solo agent, however, agents on their team receive a half cap on a standard team, and a quarter cap on a mega team.
Standard team leaders at eXp must have closed $6M in volume in the previous 12 months. Mega teams must have a minimum of 10 licensed agents on their team.
Both Fathom and eXp Realty have offerings for “spouses”. At both brokerages, agents can add their spouses at minimal additional cost.
It’s important to consider what your business needs are when deciding between Fathom and eXp Realty. While the price is lower with Fathom, does it still provide you the opportunity you’re looking for long-term in your business?
Need help making a decision based on these points? Head over to my eXp Realty Partner Page and fill out the form on there. I can provide information about both companies as well as answer any questions you might have about their differences.
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!