eXp Explained The eXp Realty Business Model
THE CLOUD BASED REAL ESTATE BROKERAGE OF EXP REALTY EXPLAINED
As the world's leading Cloud Based Real Estate Brokerage, eXp Realty has taken the United States by storm. Attracting real estate agents at a greater rate than any other brokerage ever before. What's more, it's completely Agent-Owned.
We joined as eXp agents back in 2020. And it's not only streamlined our real estate business. It's given us more freedom and wealth and significantly improved our work-life balance. Check out more about our background and why we joined eXp Realty.
So, how does the cloud based real estate brokerage eXp Realty business model work? Let’s explore how eXp Realty real estate works in detail and how the model can work for you and your future. Also, if you'd prefer to watch the content, please see the eXp Explained video presented by Brent Gove.
What We'll Cover On The eXp Realty Business Model
ABOUT EXP REALTY EXPLAINED
The Story Behind eXp Explained
Glenn Sanford established and founded eXp Realty, the leading cloud based real estate brokerage, back in 2009.
Before this, Glenn led a real estate team at Keller Williams, transacting around $60 million annually in sales.
The property market crash hit in 2008, and Glenn, like many other real estate agents, experienced significant losses and was left with huge overheads.
At this time, Glenn thought there had to be a more innovative and better way. Agents should be able to build and grow their businesses with much less risk involved. So, with this in mind, Glenn came up with the eXp Realty business model in 2009. A cloud based real estate brokerage - the first of its kind.
It didn't take long before the company expanded into 11 states by 2010. And Glenn decided to take the company public in 2013.
That decision is what enabled eXp agents to be able to become owners of the company through earning stock. Just for doing what they already do, closing real estate sales.
Then, in 2015, the ICON agent award was introduced by the company. This quickly resulted in the growth of over 300% in agents in the following year.
The company was operational in all 50 states, as well as Canada, by 2018. Fast forward to today, and eXp is the world's leading cloud based real estate brokerage with 80,000+ agents across 21 countries. Including the United States, Canada, Australia, the United Kingdom, India, South Africa and many more. See our Global Page and discover how many countries eXp is in right now.
How is eXp Realty Sustainable?
When agents are first shown the eXp Realty business model, one of the big questions we get asked a lot by agents is about the company's sustainability. How is eXp Realty sustainable when it offers such a great real estate model to its agents?
From lead generation tools, revenue share, stock awards and cost savings in everything it offers. eXp Realty gives its agents so much.
So it's no wonder that agents question whether the eXp Realty business model is profitable. And more importantly, is eXp Realty sustainable moving forward.
The answer we have to this question is yes. The eXp Realty business model is incredibly sustainable. Let's look more into why this is the case.
eXp Realty's parent company, eXp World Holdings, has very little if any debt. And since Q4 of 2019, it's also reported a profit for every quarter.
This revenue sharing model is so sustainable that the company can pay up to 50% back from the company's revenue dollars to its agents. This allows the remaining 50% to be put towards its operating costs and profit.
Also, since the company doesn't have any physical offices, its overheads are significantly less than comparable brokerages.
eXp's Company Earnings and Profitability
Looking at the company's financial earnings for each quarter, you'll see that its fixed operating costs only account for about 30% of the company's revenue. Leaving around 20% to report as a solid profit margin. Much higher than most real estate brokerages.
In addition, most brokerages make most of their profits from their related services such as mortgage, insurance, property or rental management, title, and partnerships with other businesses. They generally only break even from their real estate sales division.
With this in mind, for eXp World Holdings, there are even more significant benefits to be gained, as the company is only just beginning to look at business opportunities such as these in addition to its real estate operations.
Finally, now that eXp's operations span globally, the company no longer relies on the performance of just the United States real estate market for its sustainability. Its diversification is what's making eXp Realty sustainable into the future.
By expanding its operations into more countries and different areas of business, the eXp Realty company operations are becoming increasingly diversified, increasing its sustainability.
EXP REALTY AGENT RESOURCES AND TOOLS
Does eXp Realty Provide Leads to its Agents?
eXp Realty does provide a handful of leads to its agents. However, they’re generally not enough to be able to carry on and solely maintain a business.
Through its corporate website, eXp Realty generates leads. Then they’re filtered through, in a round-robin system, to agents within their markets.
Leads like this are allocated via the eXp Realty kvCORE platform. And how many leads you get assigned to you will depend on both the number of eXp Realty agents and buyer and seller demand in your area.
Overall, agents should consider these types of leads as a bonus. Agents shouldn't rely on them as their primary source of business.
Instead, the genuine opportunity concerning lead generation comes from the company providing its agents with access to kvCORE to implement into their business.
eXp Realty kvCORE
All eXp Realty agents get access to kVCORE, a revolutionary real estate platform for lead generation.
Giving agents their own lead-generating website and CRM database in the back-end, kvCORE (previously Kunversion) is an all-in-one solution for lead generation.
Together, this integrated lead generation system assists agents in generating leads from different sources, using both traditional and online methods.
The personalized website at the front-end not only looks impressive, but it's also a valuable source of information for any potential leads or clients.
Users of the site can create their own accounts, allowing them to save property searches and properties so that they can be notified of any changes.
You'll also get great insight into user behaviours by seeing which properties they're viewing, saving and what searc