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 searches they're interested in.
Then there's the CRM. This powerful system gives agents the means to manage their leads without compromising client communication through a huge database.
Features that set apart the eXp Realty kvCORE CRM include automated trails and drip campaigns for email, direct texting from the CRM, and the creation of lead-generating squeeze and landing pages. And all this can be done even if you're not a tech-savvy agent.
eXp Realty Skyslope
Skyslope is a highly functional transaction management platform. eXp Realty agents use Skyslope to organize their transactions, get forms signed and further upload documents to the company's transaction and broker team.
Skyslope gives agents the confidence of knowing that their file is complete and has also been checked by the company's transaction coordinators and the state broker.
So, whenever you have a new file, Skyslope can populate a checklist from the details you input based on requirements in your market for the type of file you're working with.
All of the required documents will have a red mark next to them. Then once they're submitted, the red light turns to yellow, and the document gets reviewed by the company transaction team.
The status will be approved if the document is complete and correct. And you'll get a green mark put next to the document.
You can easily see what hasn't been satisfied for a file to be completed. Then once all the documents have been submitted, eXp Realty's transaction coordinators will issue you with a "Disbursement Authorization".
Providing the "Disbursement Authorization" to the title company ensures that you receive a separate check from eXp Realty. This means you'll get paid at the closing table.
eXp World - Your Virtual Office
eXp World, which is powered by the technology of Virbela, is a virtual environment that agents log into and receive support and training and is the platform for the cloud-based real estate brokerage model.
After you download the software to your computer, you create your own avatar (virtual person) and can explore the campus and visit an array of departments and training rooms. It's very simple to use.
You'll also be able to access your broker state room and receive live and on-demand support from your state broker and transaction coordinators, all within eXp World.
Some of the additional support departments you'll find within the World include onboarding, tech support, accounting and team services.
In addition, there are several auditoriums and classrooms which you can join for live training, which is held throughout the day.
Every Sunday evening, a training calendar gets posted that displays all of the upcoming training for the week and lets you know where inside eXp World you can access it. You just show up when and where the scheduled training is taking place, and you'll get access.
Click here to request your free 2-week guest pass to eXp World, where you'll have the ability to be able to explore the entire campus, attend training and interact with other agents and staff inside the World.
eXp Realty Enterprise Platform
All eXp Realty agents get access to the eXp Enterprise platform. Its dashboard displays the details of all closed and current transactions, the fees and cap paid so far, and company stock earned and revenue share balances.
This means that you'll be able to track your cap, the earned income for a selected period and the number of agents in your revenue sharing organization at any given time.
You no longer have to manually track and update your goals, commissions and transactions in a spreadsheet. Simply log in to eXp Enterprise, and you'll be able to view all your transaction details back to when you first started with the company.
Enterprise ensures efficiency and accuracy in recording and displaying some of an agent's most important information.
eXp Realty Marketing and Branding Center
With the comprehensive eXp Realty marketing and branding center, agents joining eXp Realty will be able to access a complete library of marketing materials and templates.
From day one, agents can access these eXp Realty marketing and branding materials and modify them to make them their own.
So long as compliance with state advertising laws is met, the company fully supports its agents in branding themselves how they see fit.
Among the popular resources which can be found inside the eXp Realty marketing center are listing presentations, buyer presentations, listing and open home flyers, social media resources, and buying and selling guides, just to name a few.
Workplace By Meta (Facebook)
Being the leading cloud based real estate brokerage in the world, one of the most used tools in eXp Realty is Workplace By Meta. The Workplace platform is indistinguishable from the standard Facebook we're all so used to.
The difference is that it's an isolated platform only accessible by eXp Realty agents and staff. Like Facebook, there are versions available for both desktop and mobile.
Taking a look into eXp's Workplace, you'll see a news feed full of valuable posts by agents, recorded training, referrals and important announcements.
Just like Facebook, you're able to join groups. Group examples include real estate training, referral networks, your state group, kvCORE, lead generation discussions, etc.
Finally, built into Workplace is Messenger, which works and looks exactly like it does on regular Facebook.
This means you're able to message anyone who works in the company, from any country, from anywhere in the world. And you can get quick responses on what you need from staff, other eXp Realty agents, and your state broker.
Communicating, collaborating and meeting new agents within the company worldwide has never been easier.
Regus eXp Realty Partnership
As eXp Realty is a cloud-based real estate brokerage, with no physical brick and mortar offices, agents often ask what they do if they need an office space for some reason.
This is where the Regus eXp Realty partnership steps in.
Regus provides coworking spaces within its offices and are available in over 13,000 locations across the United States and has offices worldwide.
The Regus eXp Realty partnership means free membership to Regus shared workspaces is given to all agents upon joining eXp.
You can drop into a Regus office, use their wifi, enjoy a tea or coffee and get your work done.
You can even book an office space or conference room by the hour if you'd like to meet a client. It's an extra fee to do so, but at a very affordable price (usually about $30/hour). Regus also has receptionists who will greet your client at the front and direct them to the office you're in.
And for those agents wishing to upgrade to fully reserved office space, you receive a discount and can book it on a monthly basis.
This means you can get the best of both worlds with all the advantages of a cloud based real estate brokerage and the availability of physical brick and mortar offices through Regus if needed.
EXP REAL ESTATE AGENT SUPPORT AND TRAINING
Unrivalled Training and Support at eXp Realty
Training is something that you’ll have a lot of access to when you join eXp Realty.
You’ll never be short of training and always be able to find information and training on what you’re after.
The company hosts over 50 hours of live training weekly.
For the most part, this training is recorded and then uploaded to the ever-expanding library of eXp on-demand training.
Most of eXp Realty's training is also hosted by top real estate agents in the industry nationwide and around the world.
They share their strategies and resources, which they are using to win business in the current market and also hold training on other aspects such as personal growth, development and mindset.
Think real estate conference. But it's free. And it's available to you every week and on-demand.
Trainers cover a variety of topics every week. And there's an array of different perspectives from agents who share what is working within their specific marketplace.
Weekly eXp Realty Live Training
As mentioned earlier, eXp Realty plays host to over 50 hours of live training weekly. Agents can pull up this training via the company's cloud campus wherever you have internet access.
Topics for training range from real estate dialogues and scripts, lead generation strategies, state contract training, social media strategies and management, blogging, videos and lots more.
Training is done by eXp Realty ICON agents nationwide and around the world. As the company's most productive agents, team leaders and associate brokers, ICON agents have reached a specific production requirement.
For this reason, eXp Realty sets itself apart in terms of providing quality training to agents within the company. There's nothing else out there like it!
eXp Realty Video Library of On-Demand Training
Let's say you happen to miss one of the many company training sessions. Or maybe you'd