Gene Frederick eXp Realty Explained
Gene Frederick owned 6 Keller Williams franchises prior to joining eXp Realty in 2015. Gene explains what makes eXp Realty so disruptive and why he decided to make the switch.
"Making Real Estate Fun Again" - Gene Frederick
I want you all to try this out for sighs I've been with in real estate since 1984. I was with Remax in the 80s. I bought a realty executives franchise in the early 90s. I ran that I had a couple hundred agents. I sold that in 1994. I went to a small company called Keller Williams. My wife and I were two of the first 10 agents in Dallas, Texas, for kW. Alright.
Then in 1999, while we were selling, they want us to be managers. So we became managers and we ran Keller Williams offices. And I started opening up Keller Williams offices across the nation. I owned the Northern California region. I was just talking to Ralph over there. I owned six Keller Williams franchises now this is a true story and I got to tell you because it is my home. hit home with a lot of us that have been around the business a long time. I was retired. I own six offices. And I owned a region. And I had a lot of money coming in from those companies, right?
Does anybody have just enough money that they could maybe retire? I mean, just just passively coming in. Right? I did. And two of my agents from my old office that I had retired at in Austin, Texas said, Gene, could you check out this new company? Now again, being retired, I was kind of bored. Sure. The owner comes in his name is Glenn Sanford. I met with him for a couple days. It intrigued me had 350 agents. This is two and a half years ago. The last office I ran for KW had 641 agents in one location. And I would go in as the manager every day and nobody was there. For the last two years, I mean, literally, it was like a ghost town. So I knew the days of bricks and mortar were gone. So I met Glenn. He says we have a 3d dimensional world.
We go in his avatars that intrigued me. I knew that bricks and mortar were gone. I researched the company for five months now guys try this out for size. Anybody that's been married over 20 years. Me and my wife have been married 22 years I come in, in March of 2015. I said, Honey, guess what? She goes, What? And I said, if you knew Netflix existed, would you own a blockbuster? She goes, No. I said, We own six blockbuster. She goes, What do you mean? I said, I just found Netflix. She was You're kidding, I said, so I found it. It's a small little company called the XP Realty. It's got about 400 agents. And I think they're the future of real estate. She was You're kidding. Tell me about it. And I said they got a 3d dimensional I go into it.
She goes, now gene. Now I'm thinking I've got a cell six offers is in a region. I'm one of the 32 Regional owners of Keller Williams regions. I owned Northern California and Hawaii, a good region. Okay. I own the Carmel office, or pebble beaches. I own the Cupertino office where Apple is and I owned the Palo Alto office where Stanford is. I was the owner of those. Those were really good offices. I was making good money. And I had to say, well, Susan, we gotta sell everything.
Now, I don't know about you guys, do you guys ever have buyer's remorse? So here I am thinking I'm going to sell six offices in a region. I started to have buyer's remorse. I said, What am I thinking? Is it Susan, what am I thinking? I'm going to go to this company with 350 400 agents. I was running an office with 648. She goes well, it's the same size Keller Williams was when we joined in 1994. I married the right woman. Now, I'm back on In six weeks, I sold the six offices and the region for cash. And in May 1 2015, I joined the XP Realty. There's about what 500 agents Howard think right around that time, right around 500 agents.
What I'm going to show you today is the reason I sold everything. It's kind of fun. You guys ready to learn about it? Let's go have some fun. We're the agent. Oh, now I like this picture. And I'm going to tell you why. It's not a cool picture. You can do business from anywhere. This is the old fashioned real estate model I lived in my whole career. It's tops down.
Tell me if you don't work at one of these offices, where the brokers on top the broker brands themselves and owns everything he tells you don't worry about it. I'll do the marketing. I'll get the leads and I'll determine the splits. Now here's you guys down here. Just so you know, they call you an independent contractor. But who makes the big money? The owner right off the top.
Once you get really good at it, what do they do? They start to franchise the brand now what do they take off the top every time you do a transaction, they take a franchise fee. All right. By the way, I sold this model, I owned it. I own six of them. Just so you know if you own Palo Alto, you can only have realtors in Palo Alto. It's limiting when I hear franchises.
I owned a territory. Now watch this when I met Glenn. Just so you know. If you know me, I don't do anything. That's not a paradigm shift. Right I was with KW when KW was it cool. ask you a question. How long do you think in Dallas Fort Worth pretty big area, seven and a half million people. It took Keller Williams to Get to 100 agents. I was agent in the top 10. So we had 10 agents in 1994. How long did it get to be 105 years? So it took five years to go from 10 to 100. It's a long process, right?
Everybody just thinks it just pops up. But here's what I'm going to tell you. Where the new model friend of mine the other day says, Well, you guys are thinking outside the box. I said, No. We're a whole new box. Does that help? So probably if you're from another company don't think what do we doing like you guys because I got news for you. We're a whole new box and here's why we're new. Where around you. Instead of been focused around the broker, we're focused around the agent.
The agent does the marketing the agent gets all the leads and the agent we're going to cap what we take from you and I'm going to show you that this is a game changer. When I met Glenn Sanford, this was the game changer for me. Here's the big game to How many of you own stock in your corporation that you're in? How many of you raise your hand if you own stock in your company? These are the EXP agents. Just so you know, this is a big difference. ownership is everything. When we all own the company together, guess what happens? It changes, right? Because we're all partners together and we all help each other out.
So stock is a big thing. I'm going to go over the cloud office, we have 100 employees 100. I'm going to talk to you about revenue share, and I'm going to talk to you about conversion and sync. By the way, I worked at ReMax Realty executives, Keller Williams, they go How do you compare I said, We don't compare. We're a whole new box. Does that help? So let's look at the new box. You can personally brand yourself however you want. So this gal right here Elizabeth Riley, she's got the lucky Property Group.
She was the number one agent for EXP last year individually she got the award. She just likes the name. She has color and color. Do whatever color you want. This is the one I like because that's my wife. That's the one I like. My wife still sell she likes it. She's a great realtor. If you ever send her a referral Believe me She will take care of them. Now here's what I want you to know. It's your brand it's the first company I've ever been at that says it's really your brand. I don't know what it is in Miami but I know I'm in Florida.
Colors could be different here that are better than you right I go to Michigan they go No I don't like those paint. You know whatever colors you guys want to use use them. Now Timing is everything. Here's what I told I told you my blockbuster versus Netflix story. Why did Netflix. Go crazy? It wasn't when they did the DVDs. Right? It was when What happened? streaming video when streaming video came in. That's the game changer. Guess what? We have the game changer in the industry. It's a 3d dimensional world. We're the only ones using it. It's game changing. I'm going to show you. In other words, we're avatars.
I love being an avatar, because I'm really good looking as an avatar. It's really unbelievable. So when you talk about disruptive technologies, you guys ever watch shark shark tank? In that a cool show? They use this word all the time. disruptive technology. It's a huge word. What it means is streaming videos, that disruptive technology, it changed a whole industry, right? Amazon with the internet buying right? changed a whole industry. I don't know about you guys, but my wife goes into I know you guys do it.
I'm seeing a woman shake her head. We go into the bookstore and what do we do? She goes, this is the book I want and right where there she what she do. She orders it on Amazon. I said I feel guilty. Shouldn't we just Go up a buy and she was four bucks less it'll be there tomorrow. Is that not the way we're going to shop the rest of our life? Right Stitch Fix how many women in here get their clothes by Stitch Fix? My wife does this stitch the clothes just come. The clothes just come. Oh my god she opens up a box he tries a lot. I can't believe they know my size. Here's the thing. Timing is everything in life.
The good thing about us that have been in real estate for a long time, I can recognize it. I had the first cell phone at my REMAX in 1986 How big was it? It was $1,000 a month. It cost me 30 $500. My REMAX buddy said it would never work. True story. That'll never work. I was tired of putting quarters in at the Dairy Queen. You know. So here's my thing when a disruptive technology comes around one that displaces another You got to look at it when I met Glenn. And he showed me this I went disruptive technology.
I've watched Shark Tank enough. This is going to work. Okay. Everybody else is bricks and mortar based. Everybody that I know. We have no bricks and mortar. We're in 43 states and three provinces in Canada with no rent, no furniture. No phone systems. No Wi Fi. Do you think we're saving any money? Guys, I've ran two of the largest Keller Williams offices ever. I just tell you, this is breaking. If all of these people could get rid of all those expenses, do you think they would?
Yes. They don't have the technology. We got it. It's called the cloud. Okay, so these are the four disruptors I'm going to talk about, what's the cloud office, here's what it is who I first thought I didn't understand. We go in as avatars. Did you guys ever see that movie? And that cool. The coolest thing is you go in, you can do business from anywhere at any time. We have over 100 employees in there as avatars. So here's what it looks like. When you're doing business with Cloud.
We have a campus, there's my wife, she's standing there looking at the campus. We have conference rooms, meeting rooms, we have training your names above your head and you go in as an avatar. Now, here's what's kind of cool. you've walked in as an avatar, that's my son in law, Sean, there's a here's all the training for the day. You know, just so you know, the little kids love it. We have a soccer field. You can go in there and play soccer. Now, here's the coolest thing about avatars. It becomes you.
This is where we have our Texas meetings. And we now are so big in Texas. We have over 1200 agents in Texas in two years, 1200 agents and we meet every two weeks in the cloud in the auditorium and What's kind of cool, you know, we just meet. We have two agents in Texas. I started having meetings every Tuesday. We have five agents in Texas. I still have the meetings every Tuesday. So all of a sudden people, people will come to a meeting if they don't have to get dressed. My wife's not dressed. I know it's nine o'clock in the morning, we do it between nine and 930. No makeup, no, nothing didn't have to drive a car. We're saving the planet. Right? More attendance at these meetings and any other meeting you'll ever attend.
Nothing replaces this in life. avatars number two, universities, University of Michigan did a study. The second best way to communicate is not by email, not by texting. It's by avatar. If any of your kids play video games, right. You know, I have a son that plays video games with people all over the world. Some of you probably play video games, so people all over the world. It's a different way to Communicate. All right. So when everybody goes, What's your office looks like I go, here you go. Here's what it looks like go into any room. We have an accounting room, if you want to, if you have a problem on one of your closings, you go into the accounting room and talk to the accountants. You have a problem with your tech you go into the tech room talk to the tech it's like the University of Texas flight tell people it's kind of go into campus you go all around. So that's what it is.
A lot of people go What do you do for training I said look at we have over 25 hours of live training every week. By the way, the class that I taught this morning 101 ways to lead generate, they've recorded me doing it in the cloud. I have people call me all the time go Gina. I just listened to it over and over again. So we record everything. We have a lot of sales training. You know, guys, most of the people that are attracted to EXP right now match or the business people or people that are doing this for a living. We got the number one team in Arizona REMAX team called the Williams team Jeff and Marci. They We do about 700 homes a year. No, they're with us now. She She asked a question. She said, are they still with Remax?
I said, No, they just were with Remax. They were three max for 12 years. He found out about us, he moved in one week. Now I've been attracting agents all my life from other companies. I've never had somebody that does 700 units a year. And number one in the whole state move in a week. You know what he did? He went Netflix. This is gonna work. Guys ever read the book blink. Good Book. It's Malcolm Gladwell, his book on blink, which is the emotional side of you. The innate side that you go it's going to work. There's a blink when you see something that you feel like it's going to work or not. When I saw this model two and half years ago, I had a blink when I met Glenn. This is Netflix and the blink is right because we're taking off like crazy.
Why would all these teams BE JOINING US number one in Arizona number one, the the number one Louisiana agent number 51 in the nation. Darren James top international luxury agent, South Texas Miguel Herrera. Last month he closed 28 million. He has 16 of the 22 builders he's lyst that are in luxury market. And I'm just giving you a few of them Brandt go. By the way, Brandt if you didn't know him, he was top five for REMAX. Seven years ago he joined KW he's number five in the world. We got him in a week. It's really weird. The big teams look at it and go Netflix. I don't want to miss it. I don't want to miss it. I want to be there. I mean, I can have stock early. Okay. These are just a few of the groups Hey, anybody have conversion or Commission's Inc.
These are lead generation tools. A lot of people do Boomtown a lot of people do a lot of other there's like three or four really Good lead generations to so if you don't have one at your company, I'm telling you, our founder Glen Sanford really wants we wanted to provide something that you have something for lead generation. It's either conversion or commissions. He could use either one. I started with conversion Commission's Inc just came on six months ago it would cost you $999 startup and 6000 a year about 500 a month. It's free with us with the $50 a month tech fee. It's free.
So I've literally got to this slide. And agents have stopped me and said excuse me and they've joined because they're either using conversion or Commission's Inc at their other company and they're paying thousands of dollars. What does it look like? A website hooked to ID X with a CRM you can pay per click if you want kind of looks like a Zillow site. Success Stories Jeff and Amanda White's fear Jeff and Amanda joined us in Houston not not a year ago. I think it was an August or September a year ago. And he was using some type of service that cost him about 2000 a month. They do about 175 transactions a year. He says Jean, we scrapped that product. We started doing conversion. We replaced all the leads we were getting before or more. He says it's saving me 24 grand a year. And he's got a little three year old and a one year old. He's got two little kiddos. It's kind of neat.
So it's a big savings. Now, company stock. This is what got me excited. I want anybody to raise their hand if they were in Microsoft in 1978. Anybody get Dell in 1983 was anybody with Michael Dell in the garage? The University of Texas. He was in his parents garage and he invented Dell, anybody. I'm still searching for someone in for lucky enough to be somewhere in the beginning. We got to be like when I met Glenn two and a half years ago. Anybody want to guess the stock price? Two and a half years ago, the stock price at EXPI was 15 cents a share. 15 cents a share. It's a penny stock. Anybody want to look it up right now?
How much $3 and 65 cents a share in two and a half years. I want to be somewhere in the beginning. So here's how you guys get shares on your first transaction every year. It's EXBI. Your warded, 75 shares, boom, first closing 75 shares all of our people have shares I love it. Okay. This is the one that agents really, really like. You can be an agent stock purchase program where you can take 5% of your commissions, it's up to you. We don't require you to you can take 5% of your commissions every single month and buy stock at a 20% discount. You've got to be kidding me. I've had people doing this two years as the stocks been going up, Mitch, guess what? I have people tell me all the time Gina, I've put in like $14,000 it's now worth $70,000. Thank you. Thank you. Thank you.
Okay. You can when you refer an agent and we call it a referral program, when you refer an agent, they name you as their sponsor, you get 175 shares. Thank you very much. When you cap you're awarded 175 shares. What is caffeine? Let me tell you real quick if you don't know it's at 20. We have no franchise fee, no royalty fee. We split everything at 20 until the 20% EXB equals $16,000. That's a cap you go to 100%. Your shares are vested in three years. EXPI is the corporation's name. We're on the over the counter exchange, which is the same one that Fannie Mae's on Freddie Mac's on, what's the brown company? What's that one?
Okay, you can buy the shares. It's a publicly traded. I always say that I just did this two weeks ago in Austin, Texas, and a mortgage guy outside the room bought shares. He's not with the XP, he says, Jean, I bought shares immediately. I think we're at about 330. Back then he goes, this is really exciting. What's the icon agent program? Once you pay in and you cap and you pay the 16,000, here's what's going to happen. You're going to start just at that time have a $250 transaction fee for the next 20 transactions. So 250 times 20 is what $5,000 so the icon agent would pay in another $5,000. Guess what happens on the 20th you're an icon and we award you $16,000 in stock. Now you know why all those top people are coming.
Because they go well shoot I do. I do that in a month. I do that in two weeks, some of them Right, they're doing so many units. So they pay us basically 16 plus another five for 21. And then they get $16,000 in stock. Let me give you an example on the 21st transaction just to complete that, we only do that to 50 for 20 transactions on the 21st. It goes to 75. We have to have a transaction fee because we're gonna have to make some money, because we got to pay some of the staff. Okay.
Now, let me give you an example a Sherry Elliot. love putting Sherry on this video. And thank you very much for taking this Sherry Elliot. She's been with us 16 months. She does 200 units a year in Dallas, Texas. And so she basically became an icon immediately. Well, the stock a year ago was not $3 and 65 cents. Was it like a buck 15 so she goes gene, make sure you tell them I got $16,000 worth of stock a year ago. It's now worth almost three times what it was. Any questions on the stock? The question was, if you leave, you have to sell the stock No, No, you don't. Now what I will tell you to do, you're vested in three years.
So if you're getting free shares, like for the 175 175 75 cents we're giving you shares for you can't sell those shares for three years. Right? They're just in there. And then after three years, you could sell them. The 5%. This program, after six months for the SEC, after six months, guess what you could cash. Right? It's about five or six months and you can catch them right away. I want to explain something to you. We all own common shares. It's all common shares, there's no preferred shares.
It's a dividend stock. What I mean by a dividend stock is when we start paying dividends, guess what? You know, if we pay out 10 cents a share, or five cents or whatever it is, you'll be getting stuff so a lot of people go, I can't Wait until the stock price goes up and I don't care what the stock price goes up because it's a dividend stock, and I'm waiting to get what? dividends? realtors do two things really well, you guys are experts at this. What are you guys experts at? Not paying your taxes and not saving money. You guys are pros. You guys are pros. Right? I is one. Guys. I'm on a mission. I'm on a mission to create equity for your family. I'm on a mission. You don't know Susan and I from Adam.
That's who we are. We're on a mission to help you. And let me give you some examples. If you even just did the 5% I could change your life. I'm telling you I have agents that go Gina I've been here two years I cannot believe in fact one Gal USG, she was my husband comes home over every night goes how's our stock doing? How's our stock doing? He He never even cared about my real estate business for 13 years. Now he's going houses talk to us. What would we do it? Because again, you're a Dell in the beginning, you're in the garage. This room right here is bigger than Michael Dell's garage, you're in it.
You got to be thankful whoever invited you here today, because this is very, very special to be here. So stock to me is the game changer for me because we're all partners. Now. Everybody thinks different a real estate company when your partners, okay, here's the I get this question. And nobody's asked it yet. But you're given all the stock away. You know, are you going to dilute the stock? And I said, No, we have a plan for this. This is our agent count. And right now we're at about 4000. How much is it? Howard 40 404,400 agents, we're between 4006 thousand. So there's the 75 175 and 175. When we go over 6000 agents, it's going to go to 5125 125. And eventually when we're over 16,000 agents, it'll be 2550 and 50. We still want to reward you all. But when we get to 16,000 agents with no rent, no phone systems, no furniture payments.
By the way, we have no debt, zero debt, check our finances, zero long term, zero short term debt. So we start making a lot of money do you think the sock box gonna be? What's the stock price going to be? I don't know, I can't tell you. But I think it's going to be pretty good. Because we don't have those expenses. Is that help? Okay, here's the big revenue share. Where this one over here. Here's what revenue share is. How much does an agent pay in? I mentioned it earlier, how much is it?
That's the most you can pay in every year. That's the most that's the cap. In other words, once you pay in the 16,000, you go to 100% the rest of that year, and when you come back to your anniversary year, you'll start paying a cap again, right. So the most an agent can pay in is 16,000. Here's what I want to share. share with you. We're growing this company through agents, not owners. So in other words, if I was selling it my old days, when I was with realty executives or Keller Williams, I would have said, I've got a franchise to sell you I sold franchises for a living.
I was looking for Mitch, I'm really not looking for Mitch anymore. I'm looking for agents, because agents are going to attract what other agents and that's how we're growing this company so fast. So, Lisa, let me give an example. Let's say I sponsor you, okay. And you join the company and you cap the most money I will make on you in a year, by the way, like a referral fee. I call it a referral fee of the 16,000. We're going to give 2800 to me as a thank you 20 802,800 it's paid out monthly as you close property. Right. So the truth I just like to give the total number the most you could make on a capper, right. I don't do percentages, we got the percentages over here but I like to do number Because people go, you mean I can get 20 $800? Every year you cap? Yes.
The first year, the second year, the third year, you're a capper. Once you go over 2.6 million with us, really it'd be about 3 million this market because you're at two and a half percent, right? Okay. Everybody does over 3 million. They're a capper. Now, Lisa. I sponsor you, right. You sponsor Carol. Right over here. You bring in Carol, I get 2800 from you. And guess how much I get from Carol when she kept more. Lisa screamed more. This is when Glenn Sanford became a genius to me.
Literally, when he showed me this, I went Why are you paying more on the second level than the first he goes Jane, I wanted to be the very, very best referral program ever invented in the business. I want agents to refer agents and he said something that didn't sink in and I told David This all the time it didn't sink into me in the beginning it was I want to organically grow through agents. He was correct. Agents share things better than owners ever did. They really do. In other words before the first real estate company nationally to grow through agents, not franchise sales. Okay, so I sponsor you, Lisa. I don't even know Carol.
But Carol sister is an agent in Illinois. For century 21 in Chicago. She joins right. So now you're getting 3200 per month. Carol's sister if she cats, and I'm getting 2000 this is not cool. Are you kind of getting it? It goes seven levels. Let me give you an example. How can you create 3000 a month in residuals. On the first level, you get six cappers. Now you don't have to have campers, I always say this in my presentation. A lot of people go What do they have to cap? I go, No, no, no, I'm just giving you the most you'll ever make. So if you get six cappers on the first level times 20 816,800. The reason I use six is why that pays for your cap. If you did nothing but gets six people three this year and three next year, you're 16,800 every year.
In other words, go get six and you make more money here. Those six will bring six you know why it's life. You can't stop it. Just so you know. That's the minimum. I've been doing this forever. Actually, the six will bring more than that, but I'm very conservative. If they bring six cappers times 32. That's 36,000 a year 3000 a month. Can somebody do this with a calculator? How much money can you make in a savings account? What's the interest rate in Florida in a savings account? 1% it's 1%. looked it up before I came. So take 36,000 divided by point oh one. Does anybody know what it is? It's three, it's 3.6 million. It's 3.6 million. You've got a choice as an agent. You can either save 3.6 million Oh, go refer six agents. It's your choice. So okay with me.
You know, I tell agents all the time they go, but I don't know how to refer. I don't know how to attract people. I said, I got I got news for you. This is August, let's say September next month. Is it easy or next month to get two listings? Get two buyers under contract or text two agents. What's going to be the easiest activity, text to agents. It's not hard. You've got to scrape about two minutes out. So What I'm going to say is every other real estate company I've ever been at all they've talked about is making more money in sales. Now we're talking about getting residuals. Why not? It's just another bucket. It's not just a bucket. It's a big bucket 3000 a month. Does that change somebody's life? Raise your hand at 3000 a month would change your life.
Come on. Let me read you a text. Philip Baird sent me this yesterday. He got, by the way, I'm going to be real with you. Philip does about two and a half million a year. He has two part time jobs. He's got a 14 year old kid trying to put him through. He's working. He's doing Uber. He's doing Uber and one other part time job selling real estate. I don't know if this sounds familiar to any of you guys, but he kind of struggles.
He texted me. Gene just paid my mortgage and my car payment with rev share, you've changed my life. He got a check for $2,000. That's why I did this. It's exciting to me. My buddy. Guys, you don't have to do it at a big level. If you just do this, by the way, are there more than two levels? There's seven. I just do this because I'm very, very conservative plus, you'd have 1050 and shares, right? Hey, let's do this. 110 who get 10? This is how I got my daughter, Nicole.
I said, Honey, why don't we do a three year plan? You guys have a three year plan? Are you guys going to plan and lead generation say yes. You got plans and lead generation now we got a plan for passive income. I'm going to go get three people a year, the next three years. Basically I'm going to get 10 people I said can you do that?
She goes yes I can. I said I want you to go get 10 cappers in three years. And I want you to teach those 10 rappers To do what? Go get their 10 so that's all I want you to do while you're selling real estate while you're giving birth to the fifth grandchild while you're doing everything, by the way, she's into it, right? Yes What she was, you're kidding. I said if those 10 get 10 that's only $348,000 a year. She looks at me this true story two years ago, she goes, they all won't be cappers and I said so let's make them all half cappers. She goes, Well, that's 175,000 a year 15,000 a month. She looks at me just like wolf on Wall Street.
She goes, I quit my job. I come work for you. Do you guys remember that saying if I'm hungry, I quit my job. I come work for you. She literally said that to me. She was running for 12 years, a national company and tanning salons. She quit her job. She's making about four to 5000 a month right now in rev share. She's pregnant about ready to give birth. What a what a gift. By the way, a year and a half ago, she took $20,000 for from her 401k and bites bought stock at about 60 cents this year. Have we changed her life? Guys, this is real. You're in on the beginning.
We're in the garage. We're in Michael Dell's garage. Okay, now here's the cool thing. Here's what's going to happen in real life. 10 don't get 10 I'm just telling you this. One of the 10 goes gets 40 another one of the 10 gets 40 and then another one gets 24 for 100. And the other seven don't do anything. They stay with us. They love our stock. They do the 5% they don't go anywhere. I'm trying to give you real life. Three of the 10 that you attract, go crazy. Okay, but this is actually what will happen. Eventually won't a day. Now here's the cool thing. These levels will fill in. I only do two examples.
We have a revenue share calculator, you can play with the numbers you can do 40 4040 4040 it's really fun. I, when I first saw this, I said, You guys gotta calc I can just, I can guess, I can guess where it's going to be 27 months, you know, I can guess what it's going to be five years from now. And it was fun. So you can play with the numbers. Here's what I want to ask you. Who else is at a company that's given you? passive income opportunities. It's a game changer.
We're just giving you the opportunity. Everybody has the same opportunity, right? So you either come with us, or you go back to your other company and say I want stock and I want rev share. And they're going to be going oh my god, you've talked to EXP. The question was, why don't you share with me what you've done gene since you've been here. I started in Texas and in Austin. Again, I'm an agent. I didn't buy anything. They didn't hire me. I don't have a, you know, I'm like you guys, I'm every single one of you. And I said, well shoot, I'll just start talking to people. Within a year, I started in May. So my first 12 months, I had 15 people I had attracted in 12 months to my first level, and I had a total of 183. You guys write that down? 50. So 15 on my first and a total of 183. Guess what it went to in the next 12 months? Now, I'll tell you this, I went 15 to 22.
So I got worse. You know, in other words, I only attracted seven more people in 12 months, so in 15 to 22. So now I'm, I've been the company 24 months, and instead of 183 guess how many people I heard Dave say 1000 1500 1300 and 82 in my seven in my seven levels, so I only have 22 and my first but I have another thousand in my 1200 and some, you know, thousand 300 if you would have told me that I said you're kooky guys, I'm a bean counter man, I am conservative. I'm naturally conservative. If I could go from one at three and double, I'm excited in a year. But guess what happened? seven levels. I got a really good person on my third level, they go crazy. I got a person, good person on my fourth level, they go crazy. And it just went, it went bonkers on me. Now that was I've only been at the company 28 months now it's four months later. Four months later, I have 1300.
Guess how much I'll have at the end of this month. It's going to be about 2100 Is that not bonkers to you? Dave likes it Dave smiling. The last two months, I've added 229 people in 219 people, I haven't added anybody to my first level. Yeah, the question is, is do you have to have a license? The answer is yes. You have to have a real estate license. We per the SEC, when we pay out part of the 20%. It has to be like a referral fee. As you know, we can't pay referral fees to non licensed people, right. You have to have an active license correct. Now, you said what if it's a title person that has an active license, it just has to be somebody with an active license. The question was, do you have to have a broker in every state? it here's the answer that question. We have brokers in every state we have brokers in 43 states. By the end of the year will be in 46 states. We have brokers in every state So if you want to have somebody in another state, just let us know if they're in an area that we're already in, we're in over 200 MLS is I know that you know, but but if they're in an MLS that we're not in yet, if we've got good agents will just go into that MLS The question was who reviews the contracts?
The answer is our broker in that state. Right eXp is doing all the accounting at the national level. We're doing all the brokerage on the local level. See in Texas right now, guys, it's expanded like a crazy. I mean, it took us a year in Texas to get to 200 agents. Within a year we went from 200 to 1000. Now we're at 1200. And what's funny is we're in 16 MLS is in 24 boards, because I didn't have to sell franchises. agent said, Boy, I know somebody in Corpus Christi, I said Really? Are they good? Yeah, they're really good. Well, let's go to Corpus Christi. Let's join the board. That's how easy it was. We can expand all over Florida, guys, but we want to go with good agents and I want to share this with you write this down quality over quantity. Quality over quantity. This is not Oh, just get licenses. Guys, we're going for quality. You saw the people were coming.
I mean we're getting top top people. I just got a call today. This morning before we started five minutes I just talked to the gentleman does 100 units a year in McLean, Virginia. Anybody know where McLean Virginia is?
That's where the Kennedys Lyft that's right below the Potomac, it's where everybody in DC lives. There isn't a dog on shed for under a million in McLean, Virginia. Right. The average sales price has got to be two to 3 million. He sells 100 units a year in McLean, Virginia. He's telling his manager today His team is fired up to come over to Netflix. It's called the XP Realty. I talked to the guy two weeks ago, I've never met him. Everything's done by phone. The more you scope us out and more you go to our websites and look at it and look at it and look at it, you're gonna be like me. Here's the coolest thing about it.
About the rev share. It's real. I'm getting texts now from people that go thank you for sharing this with me a year ago. In a month, it's changed my life. It doesn't have to be a lot of money. Right? I don't want to share with you my numbers because you'll go Oh, geez, you just, you know, it's 4400 agents in the whole country and you have 2200 of them. Yes, yes. I have about almost half the company in my seven levels. Did I make a good decision? But here let me explain something to you.
That could be Mitch and it could be you. It could be anybody in here. Seriously, because a lot of people go on Oh, you just got in early. I go, No, no, no, I have people underneath me that are going to have more than I am. It's real. But here's one thing I did. I took a risk. We're still so early 4400 agents, right? 2 million agents, the United States. Here's the key. I'm going to do a fact for you bed so you've got it on tape. I've got all the numbers.
This is being counter. I've all the numbers from REMAX from 1973. I have all the Keller Williams numbers from 1983. I got them all. Keller Williams never grew by more than 52% in a year ever. We're growing at 180% two years in a row. onboarding costs I'll show you in just a second. The question was, what's the onboarding? I'll get right to that. But what I'm saying here's the here's what I had to wrap myself around. This is what I had to wrap myself around.
This isn't the old model. This isn't the old box. We're going to grow by 52% a year. No, it's not that box. Netflix bankrupted blockbuster. How soon? A couple years. Uber bankrupted yellow cab. Two years. When you have a new technology, guess what happens? massive growth. I told Dave, I said I can't believe we're growing at 180% a year, two years in a row. And then I come back and I go, is it going to continue?
Yes, we got a new model. Because we're working through the agents, not owners. And here's what's exciting to me. Run out 180% on 4400 agents, three years in a row. Just Drop that on the killer in three years will be over 100,000 agents I believe it now you know I didn't know in the beginning but now I'm going wait what how did we get the number one agent in Arizona?
How do we get the number? They're coming to us? I think we're going to do it with quality over quantity. I think our other just so you know in Texas of the 1200 agents I know those numbers 80% of them are almost all cappers Is that a good company or what Mitch Tell me we're producing real estate right we're going after cappers because you go after cappers because why the rev shares more right. It's they'll stay when the market dips cappers do what they don't leave. Okay. So go after good agents. Great, great questions. I will share these numbers with you. brand. There's brand go brand.
This is two months he joined us Last November, in two months he had 24 on his first 53 and a second 29. He had 121 people. That's in two months. He was Jeannie still selling real estate. He says every Friday I just get on the phone and start texting people. Now guess how many people he has now? He has 40 on his first and over 500 he's been with us nine months. See, I gave you my numbers. It took me a year to get 283 the dudes are killing me. They're doing a much better than I did because our systems are better. And now we're we're going. Here's what I'm going to tell you, Sheila, here's what I want you to understand.
Sheila went to a seminar that Brent was talking about talking at he was up on stage. She calls him afterwards and says, I want you to check out our new model. Brian goes okay, he joins us. So all of Brent's people are underneath what her heard those 24 and are there, those 53 or underneath there? You said?
I'm getting at I think Sheila likes Brent. Guess what Brandt did a talk. I was at a talk with him. And he stood up in front of every in Tucson the other day he started to cry when he mentioned Sheila. He says, my sponsor is awesome. If she hadn't called me and stairs, dark tears, it goes she's special. She's thanking him for doing what? Making the phone call. Don't be scared. By the way, Sheila does nowhere near the business. Brent does big myth. I got to tell you about Wilco. Wilco is a soccer coach. He coaches soccer. If you coach soccer for 16 years he he's gone every night. He's gone every weekend to tournaments. And Wilco calls me two months ago, sends me a picture of him and his wife and his his two boys eating dinner. He says Jane, I gave up being a soccer coach. I'm making $7,000 a month in rev share, I can quit. This is the first meal I've had with my kids.
Changing lives by the way last month. He made 20,000. The month before 16,000. He's changing people's lives. The coolest thing is all right. And my buddy Scott and Tracy Lewis from San Antonio. I love them to death. These guys have over 600 people now he just told me show me his numbers he made 45,000 last month and rev share in a month.
That By the way, a year and a half ago, they made the leap. They complained to me the first four months without you, Jean, this is hard. I said of course it's hard. We're starting and they Boom, boom, boom. And after about five months, they started making 5000 a month than 10,000 a month now it's 50,000. They don't complain anymore. Guess what they do? They go expand DXP they spent three weeks in Canada. You probably saw him on Facebook. They're they're spreading the word. We're not paying that EXP is not they're not. They're not employees. They're free agent. And what guess what they're doing.
They got a lead up in Canada. They go up there. Then they spent a week in Detroit. We're going through agents. It's awesome. Is that help you? Now mine I will tell you in the last three months, the last three months because I do it by quarter the last three months I've made $200,000 in rev share. That's it. By the way, I don't sell real estate. I haven't sold real estate in 18 years. So I make it so I told Susan I said that's 200,000 a quarter times four is enough. I love you.
She says enough. Can you live on 800,000 passive. It's the beginning. And I only tell you those numbers because they're real and I don't Wanna I just want to inspire you, please don't take it. You know, you know. And Robin, I do that all the time. We want to tell the numbers because Robin I sit around and go, we can't believe it. Right? But when you when you share money off the top it's awesome. It's real. All the other companies share money off the top and who do they give it to? It's called a franchise fee, and they give it to the owners. And we take money off the top of the 20% and give it to the agents that help us grow the company. I like this model. Like I could go back to my first slide when I said it's all about the agent. It's all about the agent here.
At the other companies, they can say it's all about the agent but who makes the majority of the money. The broker, Mitch What's that? I mean, me personally signed personally signed up, I've signed up 2727 27 personals, and I have over 2000 I think I signed up to more this month. I might be 29 I'm Uh, I'm, uh, I'm in a slump. So I've been here 28 months, I've averaged one a month. I don't know about you guys, are you going to live another 28 months? Please say yes. If you're going to live another 28 months, you have a choice. Go have fun with us. By the way, I'm having fun.
My byline when you text me, you'll see having fun again. I'm having fun. This is too much fun. I got news for you. I'm done. But you know, it's not a drudgery. here's, here's the questions you were asking. And thank you for asking. It's a $99 startup fee. For that $99 startup fee, you get 1000 cards, folders, lead generation, all this stuff in in the $99 is your first $50 a month technology fee. So it's really $49 to start up $50 monthly Technology Package and includes Of course, the cloud office and the use of conversion or sink. You know, it's really funny when I said people how much does it cost is 50 bucks a month they go
Excuse me? That's all Your first closing every year. I've got a lot of people that go How do you pay for all the training because we have tons of training. I said once a while on your first closing, we take out $420 you know all the other trainings free, but you're going to be paid for 20 out of your first closing for university fee and that pays for Brad Anderson all the classes. commission split at 20. Right, no royalty circle that puppy. Now I did 2.66 million, but in my area we do 3% I'm sorry about the two and a half. Sorry about that, guys. But not your fault that if you have a team, we have lots of teams coming.
The team members pay a half a cap. That's really good and they pay it. So if they pay an $8,000 your team members, you're going to make 1400 on every single one of them just in rev share instead of 28 right. It's half of the 2800 per transaction fees. The question was asked how to brokers in Texas right now we have three brokers, we have three people checking all the contracts when we get bigger and bigger and Florida will have more than one person, right?
We fast boom, it's on Sky slope, it's boom, boom, it's just automatic. We're, we've been, you know, what's funny is I always tell people, it's just as you know, it's no different than what you have now, if you if you're functioning well. But that $25 broker view per contract is how we pay them. Okay? We take out $30, you know, kept it a 500 per year, that's a biggie. It's a biggie. And a lot of my areas, they pay 85 $75 no fees on every transaction and some of my top agents go Jean, I do 100 transactions a year that's going to save me tons of money. I mentioned the 250 on the first 20 after you cap and the $75 transaction fee, and that's basically it. So here's the key will all help each other because guess what?
The more we help each other, and we more that we all help grow. The company is growing at 180% How's that? we all own stock? It's brilliant. The question was, how do I get paid? We do it electronically. We get paid at the table, you get paid here on the table, you get your checkout at closing. Okay. That was a great question.
Please contact your sponsor after this and make sure to tell them thank you that you got to see Jean, Jean, the real estate machine, the real estate doctor, the legend, Gino, the legend. And I will tell you this, and I'll end with this. I really do think that every once in a while you get lucky. My brother Home Depot, who would have known Who would have known I mean he could have worked at any other place, right? But he works at Home Depot and all of a sudden he's worth millions.
You just get lucky to be in the right place at the right time. To me. When I met Mitch even, I could tell he was looking for places for his agents to be able to retire, or to have an exit strategy. And that concerned him more than him making money. I liked that when I met him. So it's not a fluke that I'm here today. It's to me, it's always a God thing. I mean, I love Mother Teresa's, all her all her prayers. If you guys have ever seen a lot of Mother Teresa prayers, you know, I love that one where it goes in
Be kind to everybody. Right? Some people might take advantage of you, you know, and all that kind of stuff. And at the end, it says what? Because it's not between you and them anyway, right? I mean, I could redo the whole quote, but I didn't want to get religious on you. But my big thing is this. There's a reason I'm here today. There's a reason I'm here. I don't know where
Why, but I'm hoping it's to touch your lives a little bit, have some fun, and enjoy real estate and let's go change the world. Why do you want to stay somewhere else and not change the world?
Okay, thank you guys very much. Appreciate you