eXp Revenue Share Program Explained and Profit Share Model Comparison
EVERYTHING ABOUT THE EXP REALTY REVENUE SHARE PROGRAM EXPLAINED
Rarely does an opportunity this exciting come along in any industry. The eXp revenue share program is for real estate agents, team leaders and agencies worldwide to add an income stream to their businesses whilst still earning sales commissions from real estate.
eXp Realty is a cloud-based company and is the first of its kind in the real estate industry. It requires no physical offices. With no need for bricks and mortar, the company has significantly lower overheads than traditional real estate offices.
eXp Realty believes its agents should be rewarded for growing the company and doesn’t have any recruiters that work for the corporate brand.
For these reasons, the company can share the revenue it earns from each agent with the agent who referred or introduced them to the company. This eXp revenue share is calculated in percentages.
The eXp revenue share program allows for some exciting opportunities for real estate agents who want to generate additional income beyond commissions from selling properties and who want to build wealth and security.
Most agents experience the constant roller coaster income resulting from inconsistent cash flow. One of the best parts about the eXp revenue share program is it can supplement an agent's income. The 22nd of each month is eXp revenue share day, as it is the day that revenue share is paid every month.
What We'll Cover
You can also watch this content by checking out our eXp Revenue Share Explained video.
WHAT IS REVENUE SHARE?
So, what is revenue share? When a percentage of the commission revenue received by the company is shared with and paid to its agents who attract another agent that transacts in the business. Thereby generating revenue for eXp. This is called eXp revenue share.
eXp Realty believes in a fair go, so all agents are on a 75/25 split at eXp Australia up to $100,000 GCI, and they keep 100% of their commissions after this for the rest of the anniversary year.
A small percentage of the company’s 25% from a settled transaction is shared back with the agent who introduced the producing agent. Similar to a referral fee. This continues so long as the introduced agents are transacting and generating revenue for the company.
The percentage breakdowns can be seen in the eXp revenue share chart.
The main thing that’s important to remember is that eXp revenue share is paid from the company’s revenue, not from the agent’s 75% commission split. So, it’s taken from the company’s 25% split. This is referred to as “company dollars”.
So, when a transaction settles, the company shares its revenue with the introducing or referring agent until the “Cap” is reached each year, and there aren’t any more company dollars being earned.
What's a "Cap"? An eXp Realty Cap is the gross commission income or GCI earned by an agent that signifies they no longer need to give a split of their income with the company. This Cap is calculated in eXp Australia at 25% of $100,000 in settled commissions.
This means that no more than $25,000 is paid by an agent to the company within an anniversary year. $100,000 x 25% = $25,000. Once an agent Caps, i.e. reaches $100,000 GCI, they will be at 100% commissions for the remainder of their anniversary year.
An eXp agent's Cap will reset at the beginning of each anniversary year, and revenue share will also start again.
IS THE EXP REVENUE SHARE PROGRAM THE SAME AS A PROFIT SHARE MODEL?
The simple answer to whether the eXp revenue share program is the same as a profit share model is "No".
The major difference between the eXp revenue share program and a profit share model is that profit share money is paid off a company's bottom line AFTER expenses have been paid.
The problem with a profit share model is two-fold.
First, under a profit share model you're getting paid less per settlement because it's based on profit instead of revenue whenever you refer an agent.
Secondly, a profit share model is based on the company's overall operations, meaning that profit relies on many factors and is not even guaranteed.
So, under a profit share model, there are many circumstances where you may not earn any profit share for a referred agent if the company overall is unprofitable.
As you can see, the eXp revenue share program differs greatly from a profit share model, and is significantly better as agents are paid based on revenue, not profit.
IS EXP REVENUE SHARE IMPORTANT? AND WHY?
Know Your Exit Strategy and Real Estate Agent Retirement Plan
We can’t understate the importance for agents to get a portion of a company’s revenue. A real estate agent retirement plan can be sometimes non-existent. Many agents work for decades, and they spend all their earned commissions. They really haven’t got much, if anything, to show for all their hard work over the years.
However, eXp Realty offers something different and better for its agents. You could say it's the best retirement plan for real estate agent salespeople. And it comes in the form of the eXp revenue share program. Because even if an agent chooses to retire or stop transacting real estate, they’ll still be able to participate in the eXp revenue share program and earn residual income.
Under the eXp revenue share program, just like with transacting real estate in most States and Countries and earning commissions from this, the only requirement is you need to hold a current real estate licence in eXp Realty. The agent’s revenue share is paid every month, and there aren’t any requirements for vesting.
So, like real estate commissions, you'll need an active real estate licence in most States and Countries to receive payment under the eXp revenue share program.
Diversify Your Income with the eXp Revenue Share Program
As any business savvy person knows, being able to diversify one's income is one of the smartest and most prudent ways to ensure your future wealth and stability.
The eXp revenue share program for real estate agents is imperative for this very reason. And it adds to the multiple income streams on offer at the company.
It’s not uncommon in the real estate industry for agents to occasionally experience bad months and sometimes even months with no settlements, resulting in zero income.
Through the income earned from the eXp revenue share program, this helps to even out the slow months and add to the great months, making them even better.
WHO CAN EARN INCOME FROM THE EXP REVENUE SHARE PROGRAM?
There is no minimum licensing requirement to earn income from the eXp revenue share program. So, regardless if you’ve been licenced for 30 years, five years or a month, the company allows you to earn eXp revenue share immediately.
So long as a real estate agent or agency hold an active or registered real estate licence with eXp Realty, they will be eligible to be paid revenue share.
Generally, a company's earnings split doesn’t go to its agents. Those who profit from a company’s earnings are usually in management or team leadership roles, ownership/franchisee and franchisor positions, or they could be internal or external recruiters. Even team leaders and regional managers make the cut in some models.
But eXp is an independent real estate agency, not a franchise. So there aren’t any territories or franchises for sale. eXp Realty is the largest independent real estate company globally and is also the fastest-growing real estate company in the world. It spans 21 countries, including the USA, in its 50 States, Australia, New Zealand, Canada, and the UK.
As an eXp agent, you are not limited to simply earning eXp revenue share from company dollars from the production of agents within your own country. You can earn revenue share from the production of agents worldwide.
There is also no minimum production requirement you need to reach to be eligible for eXp revenue share. Regardless if you sell no homes or 1,000 homes per year, your potential to earn revenue share is not affected.
COMPARING THE EXP REVENUE SHARE PROGRAM TO OTHER MODELS
For those looking for comparison models within the real estate industry that offer additional income opportunities, some other well-known and established models commonly get compared to that of the eXp revenue share program.
The eXp revenue share program regularly gets compared to the Keller Williams profit share model, independent agency models and Exit Realty's commission model.
First, let's take a closer look at Keller Williams profit share model, as it is the one that gets most compared to that of the eXp revenue share program.
Keller Williams Profit Share Model vs eXp Revenue Share Program
The most common comparisons are drawn between the profit share model at Keller Williams and the eXp revenue share program.
Like eXp Realty, the profit share model of Keller Williams has a percentage of the profit getting paid through a cascading system with 7-tiers. But the similarities stop there, as Keller Williams profit share model pays its agents from the bottom line, i.e. once expenses get paid for a market centre, for example, the remainder of the profits (if any) get shared. This is the foundation of a typical profit share model.
The basis of a profit share model poses two problems. First, you get paid on profit rather than revenue. This results in getting less per settled transaction for an agent you’ve introduced.
The second issue with a profit share model like Keller Williams is that every market centre is operated and owned independently. This means profit can’t be guaranteed, and there are numerous circumstances where you won't earn any portion of the profits for a referred agent in cases where the market centre is not profitable.
Owning an Independent Agency vs eXp Revenue Share Program
Many independent agency owners wonder why they would want to partner their agency with any other company, let alone eXp Realty. They already recruit agents and take a split from the agent’s commissions, thereby earning an income from those agents.
Whilst this may be true, there’s plenty of reasons why partnering with eXp Realty as an independent agency or as a franchise owner looking to leave their current franchise could be much more rewarding in the long run. Here are two main reasons you should consider partnering with eXp Realty in favour of a traditional independent agency model.
Scale Your Business using the eXp Revenue Share Program
The first is your business scalability. Using eXp Realty's model, you'll be able to easily scale your business Australia-wide. You can build a team across Queensland, New South Wales, Victoria, South Australia and Western Australia without having to hold licences for each state. You'll only need the relevant licencing in your home State.
In addition to this, you're not limited by country borders. You can even choose to scale your business internationally to any of the other 20 countries eXp is in, with more coming soon. This includes the whole of the USA with its 50 US states, plus Canada, New Zealand and the UK.
The greatest benefit of this is that you can personally introduce agents you know or meet, regardless of where those agents are geographically located. Even better is that the agents in your revenue share team can also use their local and international networks. This can help grow your organisation much more rapidly than if you were doing it independently.
Use the eXp Revenue Share Program to Leverage Recruitment
The second is leverage. When it comes to most independent agency models, the agency owner carries all of the risks and is also responsible for wearing so many hats and doing many different jobs. From recruitment, retention and creation of systems and tools to accounting, transaction management, training, operations, etc.
At eXp Realty, there are over 1,000 support staff working in the virtual office that you can leverage. The support staff handle most of these tasks for you. So you get to focus on working on your business rather than spending more time working in it.
Also, you'll be able to leverage your business's recruitment side, which can result in significant increases for your business. In many independent agencies, the responsibility for at least 90% of the agents who are paying splits to the business falls onto the office. That’s a lot of responsibility in addition to the other elements of running a business.
Unlimited Earning Potential of the eXp Revenue Share Program
With eXp Realty, you may only attract or refer a relatively small number of agents personally to your team within the company. Still, it's not uncommon to then have an organisation that grows organically into a significant number.
Sometimes hundreds or potentially thousands of agents can join your organisation without you being responsible for them. Unlike a profit share model or independent agency model, the eXp revenue share program is the definition of scalability.
eXp Realty makes this possible by paying up to 7 tiers of revenue sharing. By introducing an agent to eXp Realty, your earning potential doesn’t stop there. Just as the company’s earning potential doesn’t stop there.
Naturally, the agent you introduced into eXp will likely love the company and tell their agent friends. So they’ll refer someone else, and as that agent transacts, you will earn revenue share from settled transactions up to the Cap when the company no longer takes revenue from the agent. This will continue to happen as happy agents refer other agents. The eXp revenue share program allows for cascading revenue share to run 7 tiers or levels deep.
Exit Realty Commission Share vs eXp Revenue Share Program
The names may be similar, but the two business models of eXp Realty and Exit Realty are very, very different.
The first difference is that Exit Realty is a real estate franchise model where territories are sold to agency owners. They grow their office locally.
In addition, their agents get offered a small percentage of the commission that sponsored agents generate, but it only applies to 1 tier. So, it differs from the Keller Williams profit share model as well, because it offers a share in commissions to its agents.
However, the way the Exit Realty model is set up, you only earn income from the agents you personally introduce to the company. And this removes the significant leverage mentioned earlier, which you get through the 7 levels in the cascading eXp revenue share program.
Therefore, it basically forces its agents to be constantly recruiting other agents to make any money from its opportunity. This shifts the focus from being a transacting agent to being a recruitment specialist.
This is vastly different from the eXp Realty Revenue Share model.
HOW THE EXP REVENUE SHARE CHART WORKS IN AUSTRALIA
Okay, let's look closer at the eXp revenue share program and how it works in Australia for its real estate agents by applying the eXp revenue share chart percentages.
eXp Revenue Share Payout Up To Seven Tiers
You've already seen tiers mentioned many times already in the previous information. So let's look at the different levels on the eXp revenue share chart and how it all works for real estate agents in Australia.
So, agents you personally introduce to eXp will be in your First Tier. You can't, and you wouldn't want to, put agents into Tier 2-7, only your Tier 1.
When one of the agents you personally introduce to the company attracts or refers another agent, then the referred agent will be in your Second Tier. It will continue like this through all the tiers up to your Seventh Tier on the eXp revenue share chart.
eXp Revenue Share Chart
So now you understand the tiers and know the agents you introduce to your eXp revenue share organisation will be in your Tier 1. You probably want to know how much you can earn from each of the different tiers. This is shown in the eXp revenue share chart below.
This eXp revenue share chart gives you the percentages and the maximum amount in revenue share you can earn from each agent within each tier in any anniversary year.
The maximum amount is paid when an agent Caps, and the specified percentage on the eXp revenue share chart is paid on all commissions up to the maximum or when the Cap is achieved. At this point, the company no longer receives commissions from the agent for that anniversary year. Naturally, no more can be paid from company dollars either.
Something you may notice is that every tier on the eXp revenue share chart has a different percentage value. The agents you personally bring into your eXp revenue share organisation, Tier 1 agents, have a value of 3.5% or a maximum of $3,500 per year. This percentage and value apply to your personally introduced or Tier 1 agents.
Let’s say an agent you personally sponsored to the company settles a $500,000 transaction at a 2% commission. The agent earns $10,000 in commission. Their split to the company is 25%, or $2,500. Your revenue share will get paid on the 22nd of the month following the transaction settlement. It gets paid from the company’s split (not the agent) and would be $350 ($10,000 x 3.5%), as shown by the rate on the eXp revenue share chart.
So, then there’s the Tier 2 or the Second Tier in your organisation. As outlined earlier, this tier refers to agents who are introduced or referred by an agent you directly sponsored or referred to eXp. It's interesting to note the amount of revenue share you receive on your Second Tier is MORE than what you receive from your First Tier. As indicated on the eXp revenue share chart, Tier 2 is calculated at 4% up to $4,000 of settled transactions per agent per year. Naturally, this encourages all eXp agents to take the focus off themselves and assist other agents within the organisation.
So, to use the same figures as the previous example. An agent in your Tier 2 settles a $500,000 home and has charged a 2% commission, and they receive $10,000 in commissions. eXp will pay you $400 in revenue share on the 22nd of the month following settlement. That’s $400 for one deal you had nothing to do with! Even better, the agent you sponsored that introduced the agent to eXp in your Second Tier will earn $350 as well. The best part? This is all from Company Dollars, not the Agent’s Dollars.
Front-Line Qualifying Active Agents Required
Did you notice a column labelled "FLQA" in the above eXp revenue share chart? This abbreviation refers to Front-Line Qualifying Active Agents.
FLQA means that you'll require a certain minimum number of transacting agents in your personally sponsored or First Tier of agents to be able to "unlock" the rest of your Tiers 2 to 7.
For example, as indicated in the eXp revenue share chart, you will need at least 5 FLQA agents who you have personally introduced to the company in your First Tier to unlock your Second Tier.
To unlock your Third Tier, you will need at least 10 FLQA agents who you personally introduced. This continues all the way until you personally attract 40 agents to eXp that are FLQA’s. At which point, you unlock all seven tiers of the eXp revenue share.
This also brings up a good point that should be noted. Even if you don’t have enough FLQA agents to unlock a level, you will still earn the amounts from all the other unlocked tiers on the eXp revenue share chart.
What is a Front-Line Qualifying Active Agent (FLQA)
What is an FLQA? And how does an agent become an FLQA?
As eXp Realty is first and foremost a real estate company sharing its revenue with its agents, it can’t very well pay revenue on agents that are not transacting. As a company, it encourages its agents to refer other transacting agents to continue growing the company.
To ensure this is done in a fair and equitable manner, only agents who transact or produce can be counted as FLQA’s. It’s really simple. Once an agent settles their first transaction, they will be counted automatically as an FLQA for the next 6 months. After this time, an agent will need to close or settle at least two transactions every 6 months or generate a minimum total of $5,000 GCI every 6 months to be counted as an FLQA.
These are very achievable production goals. If an agent in your First Tier does not reach these minimum production goals to be counted as an FLQA, they will be counted as an FLA only as per the eXp revenue share chart.
EXAMPLES OF HOW EXP REVENUE SHARE WORKS
The eXp revenue share chart provides a good idea of how the program works in Australia, and hopefully, it makes a bit more sense.
So let's apply it to some real-life scenarios to show you how you can start to bring another income stream into your business through revenue sharing.
eXp Revenue Share for 5 x 5 Agents
Take, for example, an agent who attracts five agents to eXp, and let's assume it took them five years. Therefore, they successfully attract one agent on average per year to the company.
We want to use this example as it is incredibly passive, and without even trying, almost anyone could achieve this just by going about their everyday business. This example can also apply to agents who may be new to the industry or working part-time.
Let's further assume over the next 5 years we help those agents do the same thing, and they attract 5 agents each over 5 years.
The result from this would be five agents in your First Tier and a further 25 agents in your Second Tier.
From the previous eXp revenue share chart, you can see that for each Capping agent in your First Tier you earn $3,500. Then for each Capping agent in your Second Tier, you earn an additional $4,000.
Doing the math, this equals $17,500 from your First Tier agents annually and $100,000 from your Second Tier. Add those numbers together, which comes to an annual total of $117,500.
Now, we get asked a lot, what happens if not every agent Caps? In all likelihood, not every agent will Cap. And in our experience, we can conservatively say that most agents, on average, are half-Cappers as a collective.
This means, in this scenario, if all agents are high-producing agents, the maximum amount would be $117,500. But in reality, you’re more likely to earn around $58,750 in revenue share per year.
Even if the agents you introduce average as half-Cappers, that’s nearly $60,000 a year or almost $5,000 per month. Just for referring 5 agents to the company in 5 years and helping each of the agents you referred to do the same and refer 5 agents each.
eXp Revenue Share for 10 x 10 Agents
So, let's go up a level and consider you may have bigger ambitions or know a number of agents. Perhaps you have an agency or a real estate team of 10 or more agents.
You’ll see, in this example, that revenue sharing compounds and can start to really add up quickly.
So, if you’re an attraction King or Queen, and in 2 years you attract ten agents, which averages at only 5 agents a year, which is very doable. It should be noted that there are agents who have, within their first six months, attracted 40+ other agents to eXp.
So, let's say that we help the 10 agents to attract 10 agents each over the next 4 years.
But hang on! You probably think that some won’t attract 10 agents despite the help they will receive? And you're completely correct!
However, what we’ve seen happen repeatedly is the following: 1 or maybe 2 of those agents attract no agents, then either 2 or 3 of them attract around five, you’ll likely have 2 or 3 attract around ten each, and then 2 of those agents will be attraction Kings or Queens and attract 25 agents each, possibly more, to eXp.
Overall, if you average these numbers, it works out at ten agents for each of the ten agents you introduced. We've seen it happen repeatedly throughout the years, with the company growing exponentially to over 80,000 agents in less than 13 years. After all, would you stay where you were if you knew an agent who loved eXp and reaped all the multi-faceted rewards that eXp offers its agents?
So, this would be ten agents in your First Tier, which adds up to $35,000 annually, and in your Second Tier, a further 100 agents equal $400,000 a year. Provided all agents are Cappers, add this together, and the total yearly income would be $435,000.
Working off averages and assuming the agents achieve a half-Cap, in this scenario, you would produce $217,500 in revenue share annually.
THE VALUE OF A RESIDUAL INCOME
For those who currently invest or are looking to create your retirement plan, let's put the value of residual income earned from revenue sharing into perspective.
Ask any financial advisor. The safe withdrawal rate on funds for retirement is around 4%. The well-known Trinity Study documents this.
Considering the annual income to be received through revenue sharing and using the 4% from the Trinity Study, you can see how lucrative it can be over the long term to just attract a few agents to your eXp organisation.
If we take the 5 x 5 example from above and say you were to attract five agents within five years, so one each year, your annual residual income from revenue sharing is $58,750.
Now, suppose you are withdrawing at 4% per year. In that case, you'd need $1,468,750 in after-tax savings to provide that same $58,750 annually in retirement—a relatively modest level of retirement income given the rising cost of living.
This opportunity gives you a choice. You can personally attract five agents to eXp, then help your 5 First Tier agents to duplicate the results you’ve already achieved. Or, you can earn at least $3 million pre-tax dollars and save every bit of it to have almost $1.5 million in savings. Say you had 20 years before you planned on retiring. You’d need to save more than $73,000 a year AFTER living expenses and after taxes.
So, what would you say is harder to achieve?
HOW TO TRACK YOUR EXP REVENUE SHARE
eXp Realty is known for its transparency, and the revenue sharing program is no different. It’s one of the things we love about this company. The purpose-built Revenue Share Dashboards show you, in real-time, the exact amount of revenue share you’ve earned throughout any given month that will be payable.
You can also use the platform to check the number of agents in each Tier of your sales organisation, including how many agents you have personally attracted and their status as either FLA’s or FLQA’s. eXp Realty lets you quickly see the complete overview of your sales organisation and its growth. It'll show you your agents' production and your entire sales organisation down all seven tiers. It can even show you how many more agents you need to attract to unlock more tiers of revenue sharing.
eXp Revenue Share Dashboard
(*eXp Realty has a strict policy regarding sharing the Revenue Share Dashboard. In compliance with this policy, all actual figures have been removed)
Each section of the dashboard is explained below:
Agents Sponsored – This is the number of agents you have personally sponsored agents in your First Tier. This includes husband/wife or couple teams, which count as one.
MY FLQA Agents – This shows the number of personally sponsored ACTIVE agents in your First Tier. An agent will be classified as active for six months from the settlement of their first transaction. After this, to remain classified as an active agent, they will need to be involved in a minimum of 2 transactions or have earned at least $5,000 in GCI within the previous six months (FLQA numbers are what unlock different tiers within your cascading revenue share).
MY FLA Agents – This term covers all agents who you have personally sponsored into your First Tier. Any husband and wife teams are counted together as a single spot. All FLQA’s are also FLA’s. Not all FLA’s are FLQA’s.
My Revenue Share Group – This gives you the number of agents in your entire sales organisation, i.e. agents sponsored in all your tiers, 1-7.
New – Agents who have joined your sales organisation within the last month.
All Unpaid Revenue Share – Indicates any amount you're yet to receive.
Revenue Share Expected in Next Cheque – Indicates the amount you will receive on the 22nd day of the next month.
Last Revenue Share Paid – This shows the amount you most recently received on the 22nd day of the month before.
Revenue Share gets paid to agents on the 22nd day of the month after it's earned from the settled transaction. If, for example, one of the agents in your Revenue Share group settles a transaction between 1st March and 31st March, then the Revenue Share that you have earned will be paid out to you on 22nd April.
In the first part of each month, from the 1st to the 22nd, you'll generally notice that the "All Unpaid Revenue Share" section and the "Revenue Share Expected in Next Cheque" are different amounts. That’s because "All Unpaid Revenue Share" equals "Revenue Share Expected In Next Cheque" plus any other revenue share settled in the current month paid in the next month.
eXp Revenue Share Group Report
eXp’s Revenue Share Dashboard lets you see your revenue share group in its entirety. This means you get an overview of all seven tiers of agents within your sales organisation in one place. Giving you the ability to see if anyone needs motivation or support and taking the guesswork out of who within the group you need to reach out to that may need help.
You can also see the anniversary date of every agent within your group and how close they are to Capping or if they haven’t done any transactions and are at risk of losing their FLQA status. This is really helpful to let you know who might need some support or help to reach their goals.
eXp Revenue Share Period Details
This is where you can see how much was contributed to your revenue share for the month. It clearly outlines agent by agent (or couple team) the month's production level and who contributed how much to that month’s revenue share, showing your team’s production, transactions and GCI etc.
COMMON MISCONCEPTIONS ABOUT THE EXP REVENUE SHARE PROGRAM
Is eXp Realty a Pyramid Scheme?
eXp Realty is very new to Australia, and its Revenue Share program is something the Australian real estate industry has never seen before.
Therefore, as with most new or different things, people make assumptions and have misconceptions. Most of these misconceptions are developed by people who don’t fully understand the model and offer. Or they’re simply scared that the way they have been operating for years, in a traditional model, is no longer viable or not the best way to do business.
They may even be worried their staff may leave them for a better offer. Many people are averse to change, and sometimes false stories find their way into circulation. One such incorrect story is of eXp Realty being a pyramid scheme. What we’ll say to this is that anyone who thinks this could not be more wrong.
Debunking the eXp Realty is a Pyramid Scheme Statement
Here's four definitive reasons why eXp Realty cannot be a Pyramid Scheme:
(1) First and most importantly, they’re ILLEGAL! Pyramid schemes are against the law. As eXp Realty is on the New York Stock Exchange (NASDAQ: EXPI), being a publicly listed company, the Securities and Exchange Committee audits eXp’s finances quarterly and makes them available to the public. This alone should be reason enough to debunk the eXp pyramid scheme label.
How many other real estate agencies do you see publicly traded on the NASDAQ or even ASX and have to adhere to such strict regulations?
(2) Also, eXp Realty is primarily focused on transacting real estate through its agents listing and selling property. This means, first and foremost, it is a real estate company.
eXp chooses to give back to the agents helping to grow the company. As many companies pay recruiters or have corporate paid recruitment specialists, eXp chooses to compensate its agents for growing the company via its revenue share program. Other real estate agencies and franchises might pay you a small referral fee for bringing other agents into their business. It could be a $500 referral payment, a gift voucher or a free coffee.
Instead, eXp chooses to reward its agents that bring in producing agents who will increase its revenue through transactions, thus growing the company and paying revenue share for as long as that agent is part of the company.
As previously stated, eXp would rather pay or compensate its agents for growing the company than expensive corporate recruitment salaries. While a traditional real estate model makes a large part of its revenue when it sells regions or franchises, eXp can remove the many “middle-men” of the traditional and franchise models. It then offers its cost savings in fewer overheads to benefit its agents, team leaders and agencies who are building and growing the company. It does this by way of revenue sharing.
(3) The start-up cost at eXp Realty is extremely low at $199 + GST. Included in this fee, you get set up onto your CRM, all the real estate and tech platforms, and receive $400 in Stationery items. In contrast, pyramid schemes essentially fund the scheme through many avenues, one of which is charging very high start-up costs and fees.
So, what actually funds eXp and the revenue share program you may wonder? A small percentage is paid from the company’s side of the split from the commission agents earn in transacting real estate until they reach their Cap. This means that revenue share isn’t payable without agents actually doing their day-to-day job, i.e. selling properties.
(4) Finally, eXp Australia and the company brand focus on selling and transacting real estate, not revenue share. While revenue sharing can play a significant role in how eXp Realty agents are compensated, it is not the driving force. It cannot be earned without the core aspect of eXp Realty’s business taking place – the transacting of real estate.
Conclusion to the Question - Is eXp Realty a Pyramid Scheme?
If you attend an event held by eXp Realty or speak with a leadership team member, you will notice the same similarity emerge repeatedly. Their primary focus and goals are around the betterment of agents and helping them grow their businesses, sell more homes and achieve their goals.
Less than 5% of the company's agents have a focus on revenue sharing, with the remaining majority focused on listing and selling real estate.
We've also looked at four major reasons above why eXp Realty cannot be a pyramid scheme.
So, in answer to the question, is eXp Realty a pyramid scheme, it should be clearly seen by readers that this is a definitive no, eXp Realty is NOT a pyramid scheme.
In fact, eXp Realty is so far from being a pyramid scheme, that it's actually helping real estate agents from around the globe to improve their own lives as well as provide a better service to their clients. It's revolutionising the real estate industry.
EXP REVENUE SHARE PROGRAM SUMMARY
In summary, through the eXp revenue share program, eXp Realty provides its agents with an undoubtedly unique opportunity to add another income stream to their business and to grow a team without the hassle of employing staff.
They can do this without compromising their core business, all while doing what they already do daily – transacting real estate.
One of the best things about the opportunity that the eXp revenue share program presents, quite surprisingly, is the element of fun that has been re-introduced to eXp agents’ lives. As we all know, selling homes and providing exceptional service to happy clients, even changing their financial future and helping them build wealth, is extremely rewarding.
What magnifies these rewards is creating your own wealth through residual income doing the job you do every day and interacting with agents as part of what you do.
To be able to transact real estate, all real estate agents legally must be licenced. So, why not be a part of a company that inspires the industry with its journey and provides industry-leading technology, tools and systems and a unique opportunity for agents to generate additional income.
They are increasing their earning potential, reducing their stress, and introducing a higher level of stability to the lives of its agents, which Australia has never seen before in real estate.