eXp Realty Commission Split
eXp Realty Commission Split
Today we’re going to talk about the eXp Realty commission split. The first thing to note about eXp Realty is that all agent’s commission splits are the same across the board. No special deals are given to some agents and not others. All agents at eXp Realty pay the same split and fees regardless of tenure, transaction volume, etc… This embodies eXp Realty’s core value of transparency and ensures that all agents are treated fairly with regard to their commissions.
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 $250 transaction fee
- Transactions 36-60 would be on 100/0 split with $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 state but in most states is $30 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.
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
- $1500 – 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 have the ability to earn our entire $16,000 cap back each year in the form of eXp World Holdings common 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 that you sell 35 transactions at an average commission income of $6,000 per transaction. You would cap at 14 transactions. You would pay $250 per transaction for transactions 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” equal to $5,000 less capped transaction fees paid during the same anniversary year.
An example of this would be that you sold 10 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 8 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 to becoming an ICON agent is to “Demonstrate company culture through 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 $12,000 in publicly traded eXp World Holdings common stock. This stock vests after 3 years. Also, an additional $2,000 is issued after each company event (The eXp Shareholder Summit and EXPCON) with no vest period, for a possible total of $4,000. As a result, this is a total of $16,000 in EXPI publicly traded common stock.
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 truly unique. Combine this with all the tools and training that eXp Realty provides to real estate agents and you get a great opportunity to grow your career in real estate.
For more information regarding eXp Realty, check out my eXp Realty careers page.
If you’d like to get a little information about who I am and how I got started with eXp Realty, check out my story here.
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