eXp Realty Team Model – A Discussion on How To Structure Teams at eXp
Today's live Tuesday Mastermind covers a topic that gets asked very frequently here at eXp Realty. How do teams work at eXp?
Below you can either listen to the podcast or watch the full video.
Here is the podcast:
The word team alone can mean so many different things in the Real Estate industry. How does eXp define a team and more importantly, how do you explain teams to a potential recruit?
Fear no more, I'll share exactly how teams work and what areas to focus on when talking about teams here at eXp.
During this video, we'll cover the different team types, how a domestic partnership works, and some benefits and drawbacks of having a team at eXp Realty.
Different Team Types
Mega Icon Domestic Partnership
kvCORE Team Version = $399/month for UNLIMITED licenses vs. $750 for up to 5 agents.
Here is the full video:
Kyle Handy 2:55
Good morning, everybody. Welcome to the Tuesday mastermind Kyle here and I am coming to you guys live from Facebook and from YouTube. And I think I've got the stream figured out at this point. I've got my new studio behind me, I've got my solid internet connection. And it looks like we're back to business. So I'm excited. It looks like everything is going good. So if it is, please, you know, put a comment. It looks like I'm watching comments here on on Facebook and on YouTube. And so far so good. It looks like I've seen a few people joined YouTube. We got about three of you guys on YouTube and 14 people on Facebook team disruptor. So welcome and good morning. Today we're going to be talking all about teams at EXP Realty.
Kyle Handy 3:49
I think is a great topic to kind of talk about I think we've done it in the past and talk to you know a little bit about it. But it's been a while and I've had a lot of people bringing up questions and saying like, Oh man, I didn't know Know that and so I just thought it'd be maybe good to to re share this with people. And it actually even came from some notes that I took back at EXP con in Vegas when Glenn Sanford was talking and so that's going to be in LA it looks like everybody is already into the comments on Facebook. I love it guys good to see all and yeah, it came from this this little discussion that Glenn Sanford did in Vegas. And it was it was pretty cool. I would say you know he talked a lot about kind of his background and his his history before he XP Realty. And you know, he came up in the Keller Williams model. And so for any of you if you see if you've read the book, you know, millionaire real estate agent, Mr. EA the read book by Gary Keller put it in the chat here, put it in the comments that you've read it, I would imagine most of you have and if you haven't, it's definitely a good read. I highly recommend it. You go out, you know, buy the book, borrow it from somebody. And you know, and read through it, because there's a lot of good concepts in there I agree with, with a lot of what said, but in the book, if you're not, if you haven't read it, it talks about building a seventh level business. And basically a seventh level business is one where, you know, essentially, you've built your real estate business for so long, you've got so much kind of goodwill coming to you that you've got referrals and just your systems are in place, your team is in place, and essentially your business can kind of carry on without you or without very much of your input. And and that's what they call a seventh level business. And I think that is, you know, of course, something that we would all strive to be at right where we can kind of kick back and in still be earning the income from our real estate business. But the sad truth is that very few of us real estate agents, team leaders, you know, working entirely Career 20 3040 years and ever have the ability to do that. And, and one of the things Glenn brought up was that exact fact that, you know, he was there at Keller Williams and he had seen, you know, agents and team leaders working their butts off, you know, years and years and years. And, and he basically, the whole thought of why he started EXP was because he wanted to give the average agent or more agents that are in this profession, the ability to build what we would what we would call a seventh level business much easier. And so and that's really how EXP was kind of thought about and how it was started. And sure enough now as we look at it and what EXP is doing for many, many agents across the country, hundreds if not thousands of agents that are now earning passive residual income monthly, I would say that Glenn has has definitely taken leaps and bounds towards that goal. And so you know, I think that that's why as far as this conversation, I think it's so important because when you're talking to other team leaders, or when you're talking to other agents that want to grow a team or maybe they you know, they're already doing it or they have a desire to do that in the future. I think it's important not only to know the ins and outs about a team, how they work at EXP, but I also think it's important to know and to explain, kind of, you know, the differences of what a team can be at EXP that you don't have to go the traditional route, right like the NRA route, which maybe most Keller Williams agents are familiar with. There's so many different ways to structure teams at EXP. And I'm not even just talking about you know, the, the, what are the different names of them, I got them listed out here. Let me find it here. So I don't misquote it. You've got self organized standard and mega icon. It's not even just that like yes, those are different. teams for sure. But even just the concepts of what you can do, because of the structure, and the way that we earn compensation at EXP, it opens up all sorts of doors. And so I was just talking to agents the other day, and, you know, kind of talking about this exact fact is that like, Hey, you know, there is not just one way to build a team at EXB. I mean, there's probably hundreds of ways that you could really, you know, financially structure your team at EXP and, and so it's pretty exciting when you think about that. And then also, you know, of course, there's all sorts of pros and cons with even going down the team route. And you know, like what, you know, if you were if you were somewhere other than EXP, you have a whole lot more risks involved in associated with building that team out, then you may here at the XP so so basically, what I want to do on the call today is I want to talk start off but just you know, explaining what the different types of teams are here at EXP and that way, we all have a baseline Wanting to start from, but then I want to kind of go over how I explain teams and how I kind of get the juices flowing in people's minds. So they can kind of start to see that you know, teams or something so different here at EXP, that it probably is in their best interest if they have a goal of creating team or if they're already a team leader to do that here at EXP so. So that being said, I'm going to jump right in. So there's a slide if none of you guys have seen this, let me share the screen with you here. kind of screwed that up. This is where it explains all of the different types of teams at EXP so this is where I took that self organized standard and mega icon team. And there are different requirements and whatnot for these different programs. But I'm just going to run through kind of the the details here real quick. So first off is self organized team. You know, realistically what I mean? This is almost just kind of like a referral partnership, you know, kind of thing where that's that's really All that it is, you are, you know, a team leader, there's no requirements of a minimum, you know, deals that you have to have done to be a team leader for a self organized team. So maybe you're a new agent and you just want to say like, Hey, you know, you're a team leader, or you have a team, maybe that's, you know, your prerogative if that's what you want to do. And I like I said, I don't even have any agents on my team, you know, it's me, a transaction manager, and then occasionally I use a showing assistant. So I mean, I am a self organized team. But really, you know, you could be a self organized team and just say you have a buddy that you know, because maybe you still have another job that maybe you know, you split deals with him or he helps you during the week because you're working and you know, you help him during the weekend because you know, he wants to take off with his family like and that's kind of your deal. Well, the way a self organized team works is essentially all that you have to do is just provide the XP a team roster, meaning anyone that you may be sharing deals with consistently. If it was like a one off referral. Like it's somebody in New Orleans or something in your in, you know, California, that's not a team that's not even a self organized team, that's just, you know, one off referral. But if this is something that like ongoing, you may, you know, be doing this over months or years, and kind of doing a few deals with one another, or with multiple people, then it is nice to be a self organized team and have that written out. Also for you to be able to use any kind of a team name on any of your marketing, whether it's, you know, like, for me, the Handy team or whatever it might be for you, the team or group in your name, then you do need to have it recognized by Trek, or while at least here in Texas we do I would imagine in most states, you probably have to file it with your real estate commission. And so that's a pretty easy form that we fill out here in Texas, to our broker, and then our broker actually files it with the state for us. It doesn't take very long at all, but just make sure if you are marketing under a team or a group or anything like that, that it is approved by your broker and by, you know, by your real estate commission if that's what's required. So but as far as that self organized team, it's a if you don't reduce the cap for any team members, so they're all on a $16,000 cap, still, there is no minimum referral percentage required to the team leader. So it's not like, Hey, you know, it's got to be a minimum of 25% or anything like that. I mean, you could take a 10% from a deal if you, you know, sent it out to one of your self organized team members, you do not need a team agreement in writing by EXP with the XB approval on it. So you know, again, it's just really just, you know, kind of word of mouth like, this is just the most basic form of a team. It's really almost just like a recurring referral partnership agreement that you may have with agents and and you're just letting the XP know that that's really all that it is. Now, the standard team, this is where it really gets into what most people think of as a team.
Kyle Handy 12:56
And what the standard team is, is it does it reduce this caps for each of your team members into half. So like instead of $16,000 cap, they're gonna have an $8,000 cap that they pay, there is a minimum referral percentage required to the team leader. And this is a 7525 split, meaning that as the team leader, the least amount you can take from a deal is 25%. On all deals, if they're in your team, you have to take a minimum of 25% on all deals, you can't say oh, well, this was your, you know, brother in law or your, you know, whatever, you know, only take 10% like it's a minimum of 25% on all deals. And that's again, because they're getting a half cap, okay, they're not having to pay the full $16,000 cap. They don't want you know, agents coming in bringing in a bunch of agents and giving them half caps, and then the team leader take 5% or 10% or something like that. And then you know, this team agent is just getting you know, a half cat basically for nothing for free. And so that's what they're Trying to avoid there. So there does have to be that minimum referral percentage of 25%. there does need to be a team agreement in writing with EXP approval. And this is you know, they've got blanket ones that you can get from EXP and I do recommend you reach out. If I can find it. I'll link it in the notes below once we're done with this, but I remember, you know, when I had my team about a year and a half ago, they had a pretty thorough document that you could just go in and kind of fill out the difference ins and outs. And you can even customize it a little bit but it at least gave you a good starting point for creating your team kind of agreement. Because there's a lot of teams out there that actually create teams and don't even have anything in writing they don't have agreements everything's just kind of like you know by by word of mouth, and that's it. And, and so but with EXP if you are going to be a standard team, you do have to have a team agreement in writing with EXB approval on file. Lastly, or will the last two things the team roster is required and The team roster is required to be provided to EXP, so you got to let them know who all is on your team. And then to even have a standard team, you need to have closed a minimum of $6 million in business and the previous year, or 30, closed transactions. And keep in mind, that's not a calendar year. So that's, you know, the previous 12 months. So if you joined in June, then it would be you know, May to May or June to June or whatever it might be. But you have to have done $6 million, or 30 closed transactions. Now, keep in and then you also have to keep that going ongoing when you're with EXP so like you can't become a team leader, and then all of a sudden, like, you know, not have any production. And so keep in mind that you know, as a minimum of 25% of each of the deals that should be coming to you, that all counts towards it, right. So let's just say an agent closes a $500,000 home and you get 50% of that. Well then 250,000 And goes towards that 6 million plus whatever deals you are still doing. So that's kind of how that works. And then as far as the closed transactions, if you ended up going that way, they do count deals as of like quarter and half transactions. So you know, if you ended up doing a deal for an agent, and you only got 25% of it, you got a quarter of a deal there. So they will count it like that. Now, lastly, and this is for big, big team leaders make sure you know this one, it probably doesn't come up that often. But if it does, you want to know that it exists. It's the mega icon team and it basically reduces all of that icon that mega team leaders, agents to quarter caps, meaning that they only pay $4,000 caps. There is a minimum of a $40 million closed transactions for the team, right so the team has to have closed 40 million or 175 closed transactions, and it has to 10 capping team members in the previous 12 months. That is to be a mega icon team, the way I understand it, and, you know, again, I can be corrected if I'm wrong, you know, go ahead and put it in the comments. But is the way that it works is the mega icon team leader will definitely have a $16,000 cap, no ifs, ands or buts, but then all of their agents are going to have $4,000 caps. The thing is, is if the team leader or if the team doesn't produce enough, like say you have a couple agents that don't cap and then you know,
Kyle Handy 17:31
at by the end of the year, basically that team is responsible for $56,000 in caps so that's kind of how that works there. So you know as a total so like if they're short then they have to come up with it is how I understand it doesn't say that on here. This doesn't actually have all of the details. But uh, but that is one thing that I've heard. So if I'm wrong, correct me, but otherwise, just keep that in mind as if it is a mega icon team. They are responsible for their 16 plus 40,000, which is 4000 for each of the 10. So, you know, they want to make sure that it is a team that's producing, and whatnot. So maybe it's somebody that's got 20 or 30 agents, right? I don't know, in that case, I think they're still just required the 56. But, you know, so in total, those 20 agents would have to come up with at least another $40,000 that gets paid into the cap between the 20 of them, but if it's 10, then basically all of them have to be capping agents. So that's kind of how that works there. And so just keep in mind, those are kind of the teams now what I really wanted to kind of get into and you know, I just wanted to get this out there kind of as the baseline is not even so much these right, like, you know, these are, these are the teams that EXP talks about but I think there's so many other ways that we can structure teams, and EXP that have been creative, you know, like the ways that you know, people are thinking about teams now are so different. Then just the traditional way, right, because we've got what's called revenue share. It's a beautiful thing. It's really, you know, truly changing this entire business and the business model here. And the reason why I think that the the revenue share is changing so much is, you know, for instance, I know agents that are starting teams now with agents on 9010 splits. And in a traditional way, nobody would ever do that. Like, if you were working at another brokerage and revenue share didn't exist, you would never offer it your agent, a 9010. Split to be on a team, but because at EXP, you know, there's different ways that you can think about it, not only are they getting the 9010, which you know, probably doesn't even cover their costs, but you're getting the revenue share, which you know, is probably you know, maybe it's another three and a half or 4% depending on what level they are on your your organization. But what's even more important is that they're there. indefinitely as long as they're with the XP. And so I really know that there's agents that will go out there and hire agents, you know, at a 9010, or some low split, maybe at 515, or at 20, something like that something that they would never do on a traditional team, they'll provide them leads, they'll provide coaching or whatever it is that that team leader offers. And but the actual goal of that team leader is to get that agent to be off the team within six months, or to get them off the team, you know, by a year or whatever it might be. And then still just earn the revenue share from them, right like and now you got that person to join your team. They're in your revenue share organization indefinitely, you provided them value for the time that they were in your team, they got trained up and taught up. And in traditionally, if you did that, in a different model, you don't want them to leave, right like you want them to stay on your team. You want them to need you for as long as possible because that's how you make your money as a team leader. And so, you know, I think that that opens up a whole other level of possibilities because of the revenue share. And it's something that most people don't even think about when you're thinking about teams. And so it's a really unique concept there. And, and
Kyle Handy 21:16
then again, you know, that person, that agent is worth more than just the three and a half percent you're making or that 4%. Because over the lifetime that that person is with the XP, let's just go say they attract a couple agents, and they attract a couple agents. I mean, there's, you know, there's agents that if you attract one agent, that agent could be worth a million dollars to you, depending on how well they go out and start attracting agents in the next five to 10 years. So you just never know. So really, I know that there's team leaders that are losing money on the front end, so to speak, like maybe they don't really make money on their team, right, like, like the traditional sense of the team, but they know that they're going to make it up long run because of the model at EXP and because of the red When you share and I think that's a, it's a great thing to note, it's a great thing that you can talk to team leaders about. And, and just share with them to say, hey, look, you know, there's all sorts of ways you can slice and dice this, that are going to be to your advantage, not just the way that you may think about it. Right? So I think that's important. The other thing that you can, you know, explain to people is that the, the overhead and the risk associated with having a team outside of the XP is substantial. I mean, compared to what your costs are at the XP it's, it's, it's, you know, night and day, really, I'll just say, you know, I mean, I know at EXP like, I'll give you one example, to have your CRM system, right, like if you were anywhere else, and you wanted to get a, you know, realistic a good CRM system for a team, you're probably spending anywhere from $750 to 1500 dollars a month for a good team CRM where you can track Your agents, you kind of hold them accountable. And you can see what they're doing. And that's usually for like three to five agents, right? So if they're having if they're a team and they want to 10 agents, 15 2030 agents, something crazy like that UXP even get sweeter. Because for many of you, you may not know this, but KV core offers a team platform. We all know that KB core is included as as an individual license for all of us. And it only runs you know, as part of our $85 a month that we pay in, we don't pay anything extra for it. But as a team leader, let's say you do have other agents, you can upgrade your license the individual license you get with the XP to a team license, and it's only $399 per month. So now you basically get the entire KV core platform, but you get the additional benefit of being able to track your your agents, see what they're doing. Swap leads in between accounts very, very easily, and get all the other benefits that we get as individually Users of KB core for 399 a month. So you're already saving because if you were going to go get the KB core team platform on your own outside of EXP it would cost you $750 per month. Plus, I don't know exactly, I think the the signup fee is between 500 to $1,000 for a one time kind of setup fee, and it usually ranges because they have different promotions going on. So you'd be paying 750 a month plus that 500 to $1,000 startup. Whereas with the XP, you just pay 399, no startup fee, so it's a pretty amazing deal. And then the best thing about the XP one is that it's unlimited users with KV core, when you sign up for the team platform outside of the XP. After you go past five agents on your team, you're paying $80 per month for each additional user. That's crazy. So I mean, just think of that you had 10 agents, you know you're paying 750 plus another $400 for five more years. past that five. So you're at 1100 and $50, it starts to add up really, really quickly. And you know, and again, I mean, that's, you know, especially if the team has like an inside sales agent, typically you want them to have an account, you want this person to have an account, you want that person to have an account. You know, I remember when I had my team, I think the most agents we ever had, was like, eight agents. But we had, you know, 12 accounts and as because I had a, you know, a team manager, and I had a inside sales agent, I had my assistant that wouldn't get in there. And so account start to rack up pretty quickly. And so that bill can start to get pretty expensive. So but Eddie XP, again, all the team leader would pay is basically 399 a month. That's it. Right? And that's, that's gonna include all of the licenses, they need to run their team. So that's one expense that
Kyle Handy 25:43
saved the other expenses are, you know, of course, all the low overhead as far as the training, you know, like, I remember when I had my team, and when I had my brokerage, I had to sign up for a lot of other training platforms because I didn't have all the time in the day, you know, to train my agents and train my team members. And so I would sign up for, for training all the time, right? Like, you know, oh, this person offers a training, Pat havens doing training, I'll pay $750. For that training, I'll pay, you know, $400 for this training, and then I'll use that to train my team. And in NEXP, that's something you don't have to do anymore. I mean, you can essentially just set up a checklist of all the different trainings that your team agents need to go to based on the trains you find most valuable at EXP, and then make your agents go to that. Now, whatever gaps are there, you might fill those gaps in yourself. But truly, there's so much training that's going on at the XP that you don't need to sign up for additional training for those agents as long as you're organized and you can share with your team where they need to be spending their time and intention so so as far as your overhead your risk again, that's the other thing is as a team leader and all that kind of stuff, you know, your risk goes down a lot because again, these agents are on your team, but They're going to be writing all these deals in their names. And then again, because of the the relationship that you have with the XP, where you're getting either 25% or 50% of the deal, or whatever the deal still gets written in that agents name. But you are getting that commission, and other brokerages and other places. I remember, you know, my previous brokerage, all the deals were written in my name. And so essentially, if something blew up on that file, I was always held liable for which, you know, there were some deals that I didn't even know the client and you know, and I was getting in trouble or, you know, I had to, you know, respond to something and so, it's kind of crazy. I think it EXP that's been solved a little bit easier, right? And maybe other brokerages do that too. So it's not as big of a thing, but it's just something to keep in mind about so there's just a lot less risk a lot less overhead, that you have to kind of think about at EXP and so those are just you know, a few of the different reasons why I think that you know, having teams at EXP makes so much sense. The other cool thing too that you know, I guess it deserves to be mentioned, is as far as like bringing branding and marketing and all that kind of stuff. UXP is way better than the majority of the brokerages out there as far as what they require from a branding standpoint. So as long as you comply to your state requirements EXEXP is pretty much allowing you to do you know, whatever it is you want to do, to market and brand yourself or to brand your team, as long as you're, you know, complying. And so it's very, very open to doing that. So you're not like branding, the brokerage that you're with. And I think that's a very important differentiation when it comes to being a team because I think, you know, teams, again, most of the teams that I know, you know, eventually, you know, if they stick with it long enough, they can make some money. But especially in the first few years, it's very tough to make money as a team leader, and you kind of build that up over time and you build that up because of the brand in the marketing that you build. That's really the only thing and so all you have is your brand. And I mean even if you're an individual agent watching this, you just want to get a little bit value out of this. We've always said that that, you know, you got to start building your brand yourself branding you from day one that's so important whether you're a team, whether you're an individual agent doesn't matter, you need to brand you. That's why Hey, put them on your side, put your headshot on your side, put your headshot on your business card, maybe you're not comfortable with it, but I promise you it will go leaps and bounds for your business because especially with real estate, it's a relationship business. And this is getting more and more you know, cut away from us as we go through the years. There's all these I buyers and people I think there was just an article on Inman the other day
Kyle Handy 29:37
about how you know, these buyers and these internet companies that are buying homes are taking a bigger and bigger percentage of the market share. But the ones that aren't, are when you keep a brand for yourself and people respect the relationship and they desire to have somebody knowledgeable and when you can brand yourself as that. You it's going to take a lot longer or a lot It's gonna be a lot harder for an internet company or an FBI or something like that to come in and take the business away from you. So just be be aware of that. If you're just a no name thing, you know, just a commodity as far as real estate agents are concerned, then it's really hard for you to build any kind of traction, especially long term. But when you start building that brand, and I remember when I first started, you know, in this business, building that brand, I was like, Man, you know, I'm not going to be Apple, like, why why do I need to build a brand, right? Like, I'm not Coca Cola. But the sooner that I realized, like, Hey, I don't need to be those guys. But I'm going to take my little piece from what I can, by building my brand, you know, as much as I can now, that's when the recurring business started to come. You know, all the time and so, so anyways, you know, that's kind of a little tangent. I went on there as far as you know, what I think that the branding importance is of EXP, but it's something that you definitely should make sure that people understand, especially team leaders, when they come over to EXP have some good Examples of you know, team stuff like I just use mine obviously I have my business cards, I show them go to my Facebook page, I show them what that looks like, you know, wow, you know, it doesn't look like anything EXP necessarily right? Like I don't have big orange and blue, you know, signs up on my Facebook page. It's my logo, my colors on my business card on my Facebook page. All this stuff is cohesive across all my marketing, right? I'm using my headshot everywhere. And so I'm branding myself and I think that a lot of people they see that are like oh my gosh, because when you work for REMAX or Keller Williams I mean this stuff all starts to look the same, right? It's all the same kind of Keller Williams all the same kind of REMAX Coldwell Banker even has kind of their thing. And so when you come to EXP It's a lot different feel. And I don't think people are expecting that. So I think it's something worth noting, especially when you're talking to team so anyways, that's kind of what I got here. As far as my notes go on. Teams are about a half hour in I'm going to jump over to the comments. I want to see what you guys what you guys think what questions you guys have here? See? All right. All right. What questions you guys have Carlos. You're welcome, man. Glad to see you on here. Hey, what's going on mark, welcome. All right, Tammy. Good to see you. Hope you're having a good one. Hope the meeting yesterday won't. Well. You got some exciting stuff going on here in San Antonio. That's for sure, guys. All right, Angela. Good morning to you. Tom Tobin. What's up, bud? Good to see you. Hello. Thanks for sharing. Rob. Good to see you. Alright, guys, well, we're looking at looks like we don't have any really questions in the chat. If you got any team questions EXB team questions now is the time to ask them guys. And I'm going to go switch over to YouTube here and see if I've missed anything. All right. Oh, and just as a quick update, guys, I know that I mean, it's been crazy for me the last two weeks, you know, we were in Vegas. And then now we've been moving into a new home. Finally, we got settled in. But the one thing I don't want you to think that I forgot about is, you know, I am in the middle of making that course. So there's going to be a full agent attraction course that I'm coming out with. And I will be opening that up here pretty soon. And it's pretty exciting. It was based off of just the videos that we had created, I think over about two months, time talks, anything from you know, creating your story with ESP, overcoming objections, you know, how to prospect you know, via social media, how to prospect via three way phone calls, how to host a lunch and learn. So all of that is going to be coming out here pretty soon in a really nice kind of concise course. So that was kind of the hardest part is I didn't want to just put, you know, 45 minute long videos into the course and so I've kind of broken them up into shorter 1015 minute segments that are a little bit more bite size. for everybody. And so I think everyone's going to like that once that comes out. Alright, cool. Here we go.
Kyle Handy 34:08
When when you form a team, can you reconfigure people already in EXB? Absolutely. Amy great question. So yes, you definitely can, they do not need to be in your revenue share organization, to have them be on your team, they can be somebody else's revenue organization, and be on your team. However, keep in mind that if they join your team, that does not mean that they will now be in your revenue share organization, they stay where they're at. So just you know, keep that in mind. Let's see great info on teams and breaking it down into manageable bites love it. Great video, Hector doesn't have to be new, doesn't know doesn't have to be newly attracted agent. So yeah, I mean, as far as like agents on your team, you know, if you want, say you decide you want to start a team and then you know, have an agent in your market or maybe in another market, maybe you Want to do an expansion team? Then I think, you know, absolutely you can, you know, have that person join regardless if they're new to XP or not, whether they're in your revenue organization or not, it does not matter. They can join your team. As long as you sign them up, put them on your roster. And again, you meet the requirements to be on one of those standard teams, mega icon teams, or if you're just doing a self organized team then absolutely. Alright, cool. Let's see, Kyle, two agents that want to come in as a team, they are under a 5050 split with their broker, and they want to come in together. What or where is the best first step to help them understand teams under EXP? Of course, I'll share this video to There you go. Alright, so they're on it. So let me make sure I understand it fully. So they're under a 5050 split with their broker, and they want to come in together. So right now I assume they're there to agent agents on a team. I don't know Tom. Are they two agents on a team right now? Or they just two individual agents at their brokerage, both on 5050 splits and wanting to start a team at EXB. Is that is that the right? Make sure here, make sure wait for your comment here to tell me if that's what it is. If they are, in fact, just two individual agents on 5050 s and they want to come to XP, well then, you know, they can come into XP, if one of them meets the requirement as far as you know, having $6 million or 30 million or 30 close transactions, then that person can be the team leader. Right? And, and, you know, do like a like a be the be the actual team leader and get you know, a 5050 from the other agent. I don't know if that's what you're talking about. Or if you're saying they want to truly be partners at EXP and just split everything amongst themselves. 5050 go out and you know, recruit agents or attract you know, agents to their team and and get you know, 5050 from that then absolutely, I would say they need to be a self organized team. That case, that way, what they could do
Kyle Handy 37:04
is there is not really one team leader in the sense there, they would both, you know, just be agents with both $16,000 caps, they can both be icon. But then you know, when one person does a deal, say it's a six, you know, $6,000 Commission, the other one does a $7,000 commission over here, they can just do 5050 with each other as self organized teams and split their their money that way. That way, again, when tax time comes, you know, it's all squared away. It's you know, there's nothing weird about it, or you know, anything that has to go on, you know, behind the scenes, that would probably if you're, if that's what you're saying they want to be partners at EXP that would be the best route is to have them be a self organized team. If they are like if one of them is a team leader at the other brokerage and he has the agent as a 5050. I would say just you know, that team leader comes over here as a standard team puts that agent that's on a 5050 as you know, a 5050 under a standard team, so at least they get the 8000 Dollar lower cap in that sense, and do it that way. RO they aren't a team now but want to be they want, they work together and share all revenue. Okay, so yeah, so that would be the first scenario where they're self organized team. So yep. So they share all the revenue, regardless of who sells. So they have a pseudo team together. Yeah, just make them be self organized team, Tom. And then if they do decide to go out and get agents, again, they can just put those agents under their self organized team and create whatever split they want with them. And so like say they put those agents on a 5050 split, you know, that they end up going out and getting then you know, 25% could go to one of the partners 25% go to the other partner and 50% go to the to the actual agent that sold the deal. Under a self organized team, they could do that. The only thing they wouldn't get in that case is the half cap for the team members. But again, depending on how they speak about that, like hey, it's almost to your benefit because you know, you're going to be able to get you know, icon. If you know if you do enough deals you do. yada yada, it's probably a win win for everybody that way. So, alright, cool. Let's see here. We got more comments coming in. Adam tapped outside of just the branding, when they are setting up a team, would you recommend any other items to help setting up the team for success? Things like having a list of recommended items for anyone new to the business or EXP in general is set them up for success. Things like recommended apps camps can? Oh, absolutely. Yeah, absolutely. Adam, great question. So as far as you almost talking, like an onboarding checklist is kind of what I would recommend that you create for people that join your team. I've got a an agent that just joined my team probably three or four months ago, my revenue share team, not my team team, but but you know, and His name's Greg Foster, and he actually is already in Google Drive, been creating, you know, the things that he feels the agent that sign up with him need to know about right away and he's already attracted so many people Just in the three months that he's been here, but But yeah, I would absolutely recommend you decide what's important for people to know about when they join your team and when they join EXP. I don't have anything I guess that you would say that's like, like a checklist yet. I do have that's why I'm building out that course for agent attraction. I do want to start you know, building out a course for agent sales. So those would be like my two courses of course then I can just give those two people whenever they come on. As of right now, all I usually do to to the agents that joined my organization is I do just a short like 30 minute to 60 minute phone call with them, or will zoom call where I can you know, share my screen and I say hey, you need to subscribe to my channel. You know, watch you know back my YouTube videos, because you'll start to really learn you know, both on the sales side and the agent attraction side. What's important, specifically, I've got a video that says these are the first 10 things you need to do when You join EXP, that's the one that gets the most views, I share that with everybody. And and then they start from there. And then I just, you know, share with them, hey, make sure that you're signed up in, you know,
Kyle Handy 41:10
workplace, you know, and you're monitoring the workplace. So you can see like new updates and things that are coming out, and you'll hear other people's questions and see what other people are asking about. That's really what I do. And then I just check on him. You know, I mean, every month, every couple months, you know, I'm reaching out, I'm texting people, I'm sharing stuff with them, saying like, Hey, did you hear about this? How's things going? Do you have any questions? That kind of just been my Mo, and it works for me. Now, if you're actually creating a team, you know, you got to be more structured than that. I would say, you know, a revenue share organization. You know, it's still I want to be more structured, but you kind of get away with it a little bit easier if you're not, but if you're a team, I think the expectations are pretty high, that you're supporting that agent. I mean, you really are taking on a whole lot more responsibility. And so yes, having something that's very strong I think would be helpful. I just don't have one. So Good, good. Good stuff there, Adam, let's see. No, no worries. Let's see Roger there, I do that. So if we're going to sound like the route, you know, Tammy prize, Greg fosters a beast with creating value in providing support. Guys that mean, that's really all that it is, I mean, the more stuff that you can build as a system, and, and you can provide it, you know, strategically to all the people that join your organization, it's just going to be that much better for you. Because now in an organized fashion, you can get all your information out to multiple people, like you know, maybe in the beginning, when you only have one or two people joining your whole entire revenue organization, it's, you know, you can do more of that. But, like at this point, you know, I've got about 15 to 20 agents joining my organization every month, I can already see the writing on the wall, that if I'm not organized, it's going to hurt me because I won't be able to, you know, do what I'm doing today. Once that gets bigger, right like, I can't Continue to do zoom calls. You know, once I hit 50 agents a month or 100 agents a month, it's just not going to be possible. And so yes, having systems in place having you know, things that you've thought about early on, it's going to help you long term for sure. All right, here we go. So what would the commission percentage be for the team leader with the mandatory 20% 25% to the team leader? Like 5060 60%? Amy Good question. Man. You're is almost like it's like a math quiz for me today. But I love it. So I guess I assume I don't really understand your full question if you're talking about if you're adding back in the revenue share. So let's say for instance, there on a 5050 artsy her notes as a team mentor on the mandatory 25% of the team leader, give me a little bit more details. Amy. What do you What are you saying? Like, why would it be any different than 25%? You're saying it's like 56 to 60% So for instance, like let's say you have one a 25% split, and they're in your revenue share organization. So you're getting, you know, three and a half percent of the gross commission income. In that case, you would just add that three and a half percent to the 25%. So it's really like getting, you know, 28.5%, if that's what you're saying, I don't know how you get to 56 to 60%. Not exactly. Sure there. Sorry, Amy. All right, what else we got all wait till I'm sure she probably going to type out something that'll explain it a little bit more. But what else we got other questions, guys about teams, teams, teams, expansion teams, that's something that should be spoken about, too. I mean, I think that right now the buzz is all about expansion teams. You know, that's what Keller Williams is pitching a lot to their agents like, Hey, you need to, you know, branch out build expansion teams. And seriously, it cannot be any easier to build an expansion team here in it EXP because again, you know, the same thing you know, when you have agents that are in other markets. gets, let's just say you attract somebody in Alabama and you are in California. Well, now that person again, you don't even have to have your license out there. And you can earn, you know, 25% or 50%, or whatever it is, from each of their deals, that goes towards your $16,000 cap, they can be on a half cap and $8,000 cap, and it goes towards your icon, all that kind of stuff. And maybe you just put in place some of the lead generation systems that you have going on in your market, and you just duplicate it for their market, right. And now you've got a expansion team. You don't have to join another market center, you don't have multiple caps. It's just you know, so much easier and simpler, easier to explain even with EXP and so I mean, really, you could have expansion markets all over the country pretty quickly and easily just as soon as you can find a leader in that market to start that expansion team for you. Alright, so Amy said you're a 100 $100 Commission. Split at 20 then take off another 25%
Kyle Handy 46:08
Yeah, so okay so the way that it works and just to explain how the team splits work is the 8020 comes after whatever your split with that agent is. So for instance, let me give you an example. Let's say it's a $10,000. commission, right you have them on a 7525. And so in that case, you are going to get 20 $500 the agent is going to get 70 $500. Now EXP is going to take the at 20% of that right? So then from at 20 of let's say the 70 $500. Not 20% of that is 1500. dollars, right so the agent is going to get $6,000 and EXP is going to get 1500 dollars that goes toward that agents $8,000 cap and So that means in that case that they are getting 60% of their original deal. So if they were on an 8020, or I mean, if they were on a 7525 with you, and then you know, of course splitting that out at 22 EXP. So it's truly like 60%. Now, once they cap, and they don't have to pay the 20% into XP, again, like in that scenario, they would have put 1500 dollars towards that $8,000 cap, once they cap then they're truly on a 7525 or whatever that split is with you as their team leader. So that's kind of how that works there. And then yeah, so yeah, the team members splitting with EXP and then the team leader, so so ya know, the way that it works is they split with the team leader, then they split with the XP just like you so like, for instance, in that scenario out of the 20 $500 that you say are the team leader would be keeping, you'll then split that 20 $500 at 20 with EXP right so now you're giving 500 dollars TXP, you're keeping 2000 of it 500 goes towards your $16,000 cap, along with any deals that you're doing that you're splitting with EXP at 20. And the reason why that it's done like that is you may have a situation where maybe the team leaders kept, but the agent is not kept yet. And so, you know, the team split goes first, right? So say it's 7525, whatever it is, if it's 7525, that goes first, if it's 5050, that goes first. So on that $10,000 deals, if it was 50 55,000 gets split to the agent 5000 goes towards the team leader, and then the 8020 comes out and splits with EXP based on who's kept who's not kept whatever it looks like at that point. So I hope that makes sense. All right, perfect. We got to the answer. They're good. I'm glad. Awesome. Well, guys, I hope this is helpful. It's the 945 so we'll go ahead and shut it down. But if you've got any questions, don't hesitate to put it in through the comments, I always check these comments afterwards. And I try and respond to any of the comments people post questions or anything like that I'll still get to them. If I missed anything, feel free to share that if I said anything wrong, feel free to share that. Remember that tonight is the Tuesday executive overview at five o'clock Central Standard Time. Just go to Tuesday executive overview com to register and again, it's a live webinar me and Curtis Dixon hosted and we do about a 30 minute demo. We haven't done the demo in a while so I think maybe if if nothing else, this is a good you know, kind of plug for why you need to be on it tonight. And bring somebody invite agents to this executive overview tonight because we will be about a 30 minute demo where I actually go through the backend Office of EXPUI show EXP world I show KV Core i show workplace by Facebook. I even kind of show the the dashboard course that we know we can't go into like revenue, share and stuff And to go into the numbers there. But you know, we do kind of show how the dashboard works generically. So that is something where they can see how it all physically works. And then also, it's about a 30 minutes explaining the business model, you know, explaining how it works. And so that's kind of how the presentation goes. I'm excited to be back tonight, the normal way that my new studio setup it's going to be all good. Last week, we had a little issue because we had thunderstorms out here where I'm at and so my power shut off. Luckily, at the very end, so it wasn't a big deal. But this week, again, bring bring a guest bring yourself and we'll see you at five o'clock Central Standard Time, go to Tuesday, executive overview.com to register. So we'll see you then guys have a good one.