Why eXp Realty
Whether you’re already an agent or considering becoming one, this insider’s view will help you make informed decisions about eXp Realty commission and fees – a must-know guide for your real estate journey. Ready to uncover the ins and outs of eXp Realty commission splits and fees?
Before we jump into this information note that the numbers can vary a little in different countries. This is based information is based on the United States. And here’s your handy index to see what’s coming up:
1. Competitive Commission and Fees Edge
2. eXp Realty’s Agent Fairness
3. Commission Splits at eXp Realty
4. Understanding eXp Realty Fees
5. More Earnings Potential at eXp Realty
6. Other eXp Realty Financial Advantages
7. Team Leader Options
8. eXp Realty is Profitable for a Reason
9. Learn more about eXp Realty & our FREE Sponsorship Team
Competitive Commission and Fees Edge
When comparing eXp Realty’s commission structure with traditional brokerages, you’ll notice a significant difference. Here you have the potential to earn much higher commission – even up to more than 100% due to its unique business model.
The brokerage not only offers extremely favorable terms that allow you to keep a higher portion of your hard-earned money, but there are no desk fees or royalty fees. That is a HUGE difference from other brokerages.
Additionally, beyond commission, the company provides opportunities for diversifying income streams. Through eXp Realty revenue share and stock awards programs, eXp agents have access to more sources of income that go beyond just closing deals. This allows for maximum flexibility in building wealth and achieving long-term financial security as a real estate agent.
eXp Realty’s Agent Fairness
Welcome to the realm of eXp Realty, where the playing field is leveled! Here, every agent, whether a newbie or a seasoned pro, enjoys the same commission splits. This uniform approach is a breath of fresh air in the real estate business setting eXp Realty apart from its peers.
Yes, that’s right! No exclusive deals, no preferential treatment, no declaring how much one agent is potentially worth to the brokerage. At eXp Realty commission splits and fees are structured out of just pure, unadulterated fairness. Every agent has an equal shot at success.
Commission Splits at eXp Realty
Alright, let’s dive into commission splits at eXp Realty. So, here’s the deal: when you close a real estate transaction, you earn a commission. At eXp Realty, you start your calendar year keeping 80% of your commission and eXp Realty earns 20%. That’s a high split to begin with!
Earn More Commission When You Cap
But it gets better! Once you’ve earned $80,000 in yearly commission (and eXp Realty has earned $16,000 from your production), you “cap”. Capping means you get 100% of your earned commissions from that point to your calendar year’s end. You will want to cap!
Earn Even More When You Meet ICON Status
And there’s more! You can earn the $16,000 you paid to eXp Realty back in company stock! That’s right! Meet the criteria for an ICON agent and the brokerage will give you back the money you paid to them putting you at a 100% split for the entire year!
How an Agent Gains ICON Status & Earns $16,000 in Stock Awards
There are two ways to meet it and then one final set of qualifying conditions. Here are the two ways:
1. After capping, the agent closes an additional 20 transactions that agent’s calendar year or
2. After capping, the agent earns $500,000 or more in GCI with a minimum of 10 closed transactions.
Qualifying conditions currently include teaching in eXp University and attending eXp Realty’s annual events. Last year’s events included the shareholder’s event in Florida and EXPCON in Las Vegas.
More Ways to Go Beyond 100% Commissions at eXp Realty
And there’s even more! I know this is crazy but you can earn even more than 100% by earning stock awards and by earning revenue share income. More on those below.
Understanding eXp Realty Fees
Now that you have the lay of the land on eXp Realty’s advantageous commission structure, let’s look at the fees side of things.
No Desk, Royalty, or Franchise Fees like other Brokerages
That’s right, there are no desk or franchise fees like most other brokerages have. That means you won’t be paying the brokerage something that generally adds up to being an extra split. And that’s a big deal! When I interviewed at Sotheby’s International Realty they offered me a 70%/30% split. Ok, that’s not a horrible commission, but then the Sotheby’s manager said “There is a 6% per transaction franchise fee.”
What? So the commission split wasn’t really 70%/30%, it was 64%/36%. Ugh! That not-so-great split also never caps! Joining eXp Realty was an easy decision!
Monthly fees are super low at eXp Realty & there’s value too
So, when you join eXp Realty, you won’t have to worry about any sneaky extra fees. Instead, you’ll just pay a simple monthly fee of $85 (plus $64 for your very first onboarding month). And here’s the cool part – that $85 a month gives you access to a bunch of awesome tools and support.
Tools & Resources included in the $85 fee:
We’re talking access to top-notch stuff like kvCORE which includes your IDX website (non-eXp agents pay up to $5000 a year just for kvCORE), Skyslope (for super easy transaction organization), eXp University (loads of free training), eXp Marketing Center (ready-made marketing resources), access to 4000 Regus office spaces, and much more!
These tools are like your secret weapons. They help you manage your business, handle transactions smoothly, and make your life way easier. So yeah, while there are some fees involved, you’re getting a whole lot of value in return. It’s like paying a little to get a whole lot back!
Transaction fees are low and decrease with production at eXp Realty
There are two low transaction fees at eXp Realty. The transaction/broker review fee is $25 per transaction and the Risk Management/E&O Insurance fee is $40 per transaction, but caps at $500.
Ok, here’s the second huge fee difference at eXp Realty. All real estate agents must be covered by errors and omissions insurance, a risk management fee. At eXp Realty, that risk management fee is $40 per transaction and it caps at $500 paid annually.
Risk management fees can be much higher at other brokerages and a lump sum payment is often due upfront before the agent closes any transactions. That’s the way it is done at my local Sotheby’s office. They told me $2200 annually for risk management and it’s due at the beginning of the agent’s year.
So, an agent that does one transaction for the year owes $40 in risk management fees and an eXp agent that does 1000 transactions owes $500. But at Sotheby’s, even an agent that does zero transactions owes $2200. That’s a big difference!
Different Transaction Fees After Capping
Once you hit your commission cap, eXp Realty rewards you by letting you keep 100% of your commission, asking only for a $250 transaction fee per deal. And if you’re on a transaction spree, surpassing $5,000 in fees post-cap, the transaction fee graciously drops to $75.
Mentorship Program
Only brand-new agents pay these fees. They are fees for the additional support new agents need. If you’ve completed less than three transactions, you must be paired with a seasoned mentor. This mentor is your guide, your Yoda in the complex world of real estate. Mentors assist you through your first three transactions, ensuring you learn the ropes the right way. In this phase, you contribute an additional 20% split – 10% going to your mentor and 10% going to the mentorship program.
Think of this fee as an investment in your education. Once you’ve successfully closed three transactions (and meet any other needs like watching or attending some training courses), you graduate from the mentorship program. At that point, you step into the market with confidence, experience, and a higher commission split!
More Earnings Potential at eXp Realty
How eXp Realty Agents Earn Stock Awards
Besides the $16,000 stock award that ICON agents can earn, all agents currently earn these awards (subject to vesting):
$200 for closing their first transaction each year
$400 for capping each year
$400 for directly sponsoring another agent after the agent closed their first transaction
Additionally, all agents can elect to receive 5% of their commission in stock at a 10% discount! What a deal!
Earning More with eXp Realty’s Revenue Share Program
So, there’s another awesome way to earn money called the revenue share program! It’s like getting a bonus just for bringing more friends to the eXp Realty party.
Here’s how it works: for every new agent you recruit to eXp Realty, you get a slice of the company’s 20% commission share that the new agent pays when they do transactions. Now, here’s the sweet part – you get this bonus every single month, and the best part is that it doesn’t cost you anything extra.
Revenue share income has amazing benefits because it can grow exponentially, and keep on paying when you retire or even die (it’s willable). Don’t miss our blog on Revenue Sharing to learn all the ins and outs.
Other eXp Realty Financial Advantages
I know, there are even more financial advantages to eXp Realty agents. That’s what you get when you’re with the only profitable independent brokerage in 2023 and the largest independent brokerage in the world. So here’s more…
Personal Deals are Nearly Free
Yep, at eXp Realty, agents can complete up to three real estate transactions per year without paying the standard 20% commission split to eXp Realty. Agents do still need to pay the minimal fees:
$250 transaction fee.
$40 risk management fee
A broker review fee, which amounts to $25 per transaction in the U.S. (and $29 in Canada).
This structure allows agents to engage in personal real estate transactions while enjoying financial benefits – no paying eXp Realty 20% and no paying taxes on commission you could earn. What makes a transaction your own deal? Your name is on the contract. This eXp Realty policy recognizes the importance of personal investment in the field.
World-Wide Referral Business Opportunities
eXp offers to opportunity to make an entire real estate career out of just referrals. Referrals are when agents direct a client to work with another agent. In return, the referring agent generally negotiates a commission anywhere from 20% to 50% of the closed transaction.
Because eXp Realty is worldwide, agents can provide referrals over much of the globe. Additionally, the brokerage has launched an agent referral tool that makes referrals fast and secure. Learn more here.
Healthcare is an Option at eXp Realty
While most brokerages do not offer any health insurance, eXp has a healthcare option that provides agents and their families with high-quality care at a likely lower price point than they would otherwise pay. For example, I’ve heard of savings from $100s to even $10,000 per year over the agent’s prior health insurance costs. This is the kind of opportunity that comes from a large profitable company that truly cares about its agents. Learn more here.
Sponsorship Support
There’s no doubt that your chosen sponsor may also provide value that saves you loads of money. For example, the Team Legacy, our team, provides 6 video calls of support and information per week, free social media training and investing training that agents outside our team pay thousands to get, and much more!
Bottom line: pick your sponsor wisely at eXp Realty. Sponsors are not required to provide value to those who name them as sponsor. However, many individuals and groups (for the very organized sponsorship teams) do offer value to those they sponsor.
Check out the Team Legacy's value to see if it’s what you need.
Team Leader Options
As a team leader at eXp Realty, you’re presented with several options to structure your team, each with its unique benefits and requirements. A team at eXp Realty consists of one lead agent or team leader and one or more agents working as team members under a team agreement.
Note that teams with team agreements are not the same as sponsorship teams. Those with team agreements function like traditional brokerage teams and have an agreement about commission splits. Sponsorship teams, like Team Legacy, do not have a team agreement and they do not take any commission split.
Team Legacy’s goal is to support agents to better their production business and to attract new agents into the sponsorship team. There is no cost to agents who join Team Legacy…ever!
Here’s a bit more on the traditional teams at eXp Realty. These include the self-organized team, the standard team, and the Mega ICON team.
Self-Organized Team: This is the most flexible team structure. You provide a team roster, and every team member, including yourself, markets under the team banner. Each agent maintains their $16,000 commission cap and pays the individual $85 monthly fee. You’re free to share commissions on deals as you see fit, offering a great blend of independence and teamwork.
Standard Team: This structure requires a formal team agreement and is a step up from the self-organized team. The team leader must have achieved a certain level of production ($6,000,000 in GCI or 30 closed transactions in the prior year).
In this setup, team agents enjoy a reduced cap of $8,000, but they also share 25% of each closed transaction with the team leader. It’s a structured approach that fosters growth and shared success. Note that individual members can still choose to pay a $16,000 cap so that they can seek ICON status.
Mega ICON Team: The Mega ICON team is designed for larger teams, with a minimum of ten agents, each benefiting from a reduced cap of $4,000. The team leader is tasked with ensuring a minimum company contribution, cementing their role as a pivotal figure in the team’s success.
This structure is ideal for those who thrive on leading and nurturing a substantial group of professionals. Again, individual members can still choose to pay a $16,000 cap so that they can seek ICON status.
eXp Realty is Profitable for a Reason
eXp Realty offers a commission split that’s incredibly generous compared to most brokerages. When you factor in the ICON Agent Program, the mentor program, the sponsorship program, the referral program, the flexibility in handling personal client transactions, and all the cutting-edge tools and resources that eXp offers, it becomes clear why eXp Realty stands out in the real estate world.
eXp Realty’s success will soon be known to everyone in the real estate business. How could it not? It’s already the fastest-growing and the largest independent brokerage in the world. eXp Realty’s model has allowed it to profit when other brokerages are struggling. Profits have allowed eXp Realty to continually innovate and bring new resources and opportunities to their agents while never changing the advantageous eXp Realty commission and fee structure.
On top of all of that, eXp Realty is more than just a brokerage; it’s a community that fosters growth, learning, and success. eXp Realty provides a brokerage model that allows agents to thrive while celebrating and rewarding their successes.
Learn more about eXp Realty & our FREE Sponsorship Team
Congratulations! You’ve now learned all about commission splits and fees at eXp Realty.
Consider joining our sponsorship team. By partnering with us, you’ll be joining one of the fastest-growing teams because of our team’s value-packed proposition.
You don’t have to do it alone. Team Legacy is ready to support you! Discover top-tier resources and benefits with our free Team Legacy program.
Seize this incredible opportunity to enhance your earnings and grow a successful real estate business. Join eXp Realty today and list Miguel 'Mickey' Cavazos as your sponsor to become part of Team Legacy.
Still unsure? That’s okay! Email us to request a personal link to a live webinar for comprehensive information about the company, or reach out directly to get all your questions answered through email, phone call, or video call.
Team Legacy Events!
The Team Legacy Organization has HUGE wealth-building retreats throughout the year!
Please click here to see our next upcoming retreat!
Our Training Calendar
Team Legacy offers their real estate agents free training throughout the week all via Zoom!
Click here for the online training schedule!
eXp CON 2024!
EXPCON 2024 is our premier event of the year. Connect with an amazing community of eXp industry leaders and like-minded professionals. Learn from top producers and team leaders.
Frequently Asked Questions
How does eXp Realty’s Revenue Share Program work?
eXp Realty offers a Revenue Share Program where agents can earn passive income by attracting new agents to the brokerage. This program provides an opportunity for agents to build long-term wealth through revenue sharing. Check out our blog devoted just to eXp Realty revenue share.
How does mentorship work at eXp Realty Work?
eXp Realty fosters a collaborative environment where experienced mentors provide guidance and support to new or growing teams. This mentorship dynamic aims to nurture professional development while leveraging collective expertise. Mentorship is not the same as sponsorship. Mentors help guide agents through their first 3 transactions. Sponsorship support varies by the sponsor.
What is a commission cap?
A commission cap is a limit set by a real estate brokerage regarding the amount of commissions an agent is required to pay to the brokerage each year. Commission caps do not exist at most traditional brokerage companies.
What are eXp’s commission splits?
eXp Realty’s split is 80% to the agent and 20% to eXp until the agent has earned $80,000 (and eXp has earned $16,000). Thereafter, the agent keeps 100% of their earned commissions until their calendar year’s end.
What is an ICON agent at eXp Realty?
An ICON agent is an agent that caps and then does either 20 more transactions for the year or $500,000 gross commission income and 10 more transactions.