There are traditional real estate firms, and then there's eXp Realty. The company was founded in 2009 and headquartered in Bellingham, Washington, and operates with a virtual brokerage model. It utilizes a cloud-based platform and has recently introduced a Revenue Share program, which offers a different approach to real estate practices and provides a supportive community for its agents.
If you’re an entrepreneur curious about diving into MLM real estate, the eXp Realty Revenue share plan might give you some fresh perspectives on how real estate and network marketing can come together.
This Article Contains:
What is the eXp Realty Revenue Share Model?
The eXp Realty revenue share model rewards agents for bringing in productive new agents. When you sponsor an agent who closes sales, you earn a percentage of the revenue from those transactions. The earnings are based on the adjusted gross commission income (AGCI) from the sales of personally sponsored active agents.
For Example:- Agent M just sponsored a new agent N. N closes a deal of $500,000 sale, earning a commission of $15,000. Because M sponsored N, M earns 3.5% on his commission, which is $525. M gets a percentage of the revenue from N’s sales as long as he is active.
The eXp Realty revenue share model is quite different from traditional commission plans that other real estate MLMs offer. An MLM commission software can be of great help in creating an effective commission plan that supports customizable compensations and provides accurate calculations.
How does the eXp Realty Revenue Share program work?
The eXp Realty Revenue Share Program is designed to be simple and rewarding. According to this program, you receive a percentage of the revenue from the sales activity of the agents in your MLM downline network. The program goes up to seven levels, so you can earn from the transactions of agents brought in by the people you directly recruit as well.
Here is how the eXp realty revenue share works. If you bring a real estate agent on board with eXp Realty, you get 3.5% of their gross commission. And this doesn’t change based on the company’s monthly or quarterly performance. You receive a percentage of the sales of your sponsored agent, whenever they close a deal until they hit their annual commission cap of $16,000.
Once they reach that cap, your earnings from that agent stop until the cap resets for the next year. So, you can earn up to $2,800 in revenue share per year from each directly sponsored agent!
For example:- Let’s say one of your directly sponsored agents closes a deal on a $200,000 home and earns a $6,000 commission. You would receive 3.5% of that commission, which equals $210. This continues with each deal they close, up until they reach their annual commission cap of $16,000. After that, your earnings pause until the cap resets the following year.
✪ eXp Realty Revenue Share Plan table
Here is a table showing the tier-wise breakdown of this plan.
The table may seem complicated at first glance, but we break it down for you, point by point. So read on-
The eXp Realty Revenue share plan has 7 tiers. So the agents in your tier-1 are your direct downlines, agents you have directly sponsored.
Similarly, the agents they sponsored form your Tier-2, and the agents sponsored by these agents are placed in Tier-3, and so it goes till Tier 7.
The next column is the eXpansion share % of AGCI (adjusted gross commissions income). This is the percentage of commissions you receive for every agent’s sale in that particular tier.
For example, if you have 0-4 active members in your tier-1, you will straightaway receive 3.5% of their commission, according to the eXp realty revenue share program.
Next, you will receive 0.2% of the commissions from each one of your tier-2 agents. This means you are entitled to receive this share, even if you have only 1 active agent in tier 2.
However, to unlock the 3.8% commission share in tier 2 of the eXp realty revenue share plan, you will have to reach the number of FLQAs specified in the table. In this case, it is 5-9 members. Once there are 5 members in your tier-2, you start receiving the 3.8% commission share on their commissions, instead of 0.2%.
Similarly, if you have even 1 agent in your tier 3, you will receive 0.1% commission on their commissions. However, as the number of active agents reaches 10, which is the minimum FLQAs required, you unlock the 2.4% commission share.
This pattern continues until your tier-7. The eXponential share percentage on each tier is unlocked as and when new FLQAs get added to your downline.
For Example
Let’s say Agent X joins eXp Realty and starts building his team. Here is how his revenue share might look-
Tier- 1- (Direct Recruits of Agent X)
Agent X personally recruits 4 agents, A, B, C, and D. For each of these agents, Agent X automatically earns 3.5% of their commission (the eXpansion share). If one of these agents closes a sale with a $10,000 Commission, Agent X receives $350, according to the eXP realty revenue share plan.
Tier- 2- (Recruits of Agent X’s Recruits)
Now, the 4 agents in X’s tier 1 recruit one member each, P, Q, R, and S. These 4 new recruits will form Agent X’s tier 2. Since the FLQAs do not cross the threshold required, he will receive 0.2% of their commissions. So if they collectively make a commission of $10,000, Agent X will receive $20.
To unlock the 3.8%, Agent X will need to have 5-9 active FLQAs in tier 2.
Tier-3 and Beyond
If Agent P in Tier 2, recruits Agent T, he becomes X’s tier-3. With at least 1 active agent in tier-3, Agent X will earn 0.1% of their commission. As Agents Q, R, and S recruit more agents in this tier and the number of active FLQAs reaches 10, X can unlock higher percentages, like 2.4% of the eXp Realty revenue share.
This pattern continues through Tier 7, with each tier unlocking higher eXponential share percentages as X’s direct and indirect recruits add more new members to his downline. This revenue share plan is an example of a good MLM commission structure that motivates you and your team, along with providing multiple avenues for growth.
How is the eXp Realty Revenue Share Income Funded?
Now that you understand what the eXp Realty Revenue Share is all about, let's dive into how it is funded. eXp Realty operates on an 80/20 commission split with its agents, meaning that when an agent earns a commission, they keep 80%, and the remaining 20% goes to eXp Realty. From that 20%, eXp uses a portion to pay out the revenue share to sponsors.
This way, agents don’t lose any of their commission to fund the revenue share, eXp’s portion entirely covers it. Since the revenue share comes directly from the company's revenue, it's aptly named "Revenue Share.” In 2023, eXp Realty agents across the U.S. collectively earned more than $176 million in Revenue Share. This highlights just how much this model can benefit those involved.
Which Agents are Eligible to Earn the eXp Realty Revenue Share?
Any real estate agent with an active license is eligible to earn eXp Realty Revenue Share, regardless of experience level. Unlike traditional models where only brokers or specific leaders earn a share, eXp Realty allows every agent to start earning Revenue Share right away. Also, there are no production restrictions, which means agents can earn from their sales and from agents they bring into eXp, across all 50 states in the US and Canada.
Moreover, selling houses isn’t a requirement to earn revenue share income. Some agents focus solely on sponsoring other agents and helping them make sales. However, this would only work if you have been with eXp Realty for a long time and have a strong downline team with active members.
Benefits of eXp Realty Revenue Share Program
The eXp Realty revenue share program offers more than just financial rewards, it helps you create lasting benefits for you and your family. A company’s compensation structure is a key factor to consider before joining an MLM and eXp’s model stands out for several reasons. It is simple yet powerful and provides ample opportunities for growth and success. Here are a few benefits that the program offers you.
Provides Residual income
This is probably the most important and sought-after benefit of this program. Full-time real estate agents do not have a fixed cash flow. Their income checks hugely depend on the sales they make, which may vary on a monthly basis. This program provides them with an opportunity to continue earning revenue share income from their active sponsors, even after they retire, providing them with a perfect exit strategy or a retirement plan.
Provides Financial Stability
The eXp realty revenue share is willable. This means that your family can keep receiving your percentage of revenue share even after you, as long as your tier-7 members are active and making sales. This offers a lasting way to support your family financially.
Creates a supportive community
The tier-7 sponsorship model creates a tight-knit community where agents support and collaborate with each other. This camaraderie strengthens your success and the success of your team as well.
Creates Multiple Sources of Income
This is an added advantage for agents. The eXP Realty revenue share program provides an additional source of income, that adds to the regular commissions you earn through your personal sales. Moreover, eXp Realty also provides various other options like stock awards which can further enhance your monthly commission check.
Agents Receive Guaranteed Earnings
One key benefit of the eXp Realty revenue share model is that it pays out revenue, not profit. This means that you receive your share based solely on the company's revenue, not its expenses or profitability. As long as you have sponsored others who are making sales, you are guaranteed to receive your revenue share.
Major Enhancements in the eXp Realty Revenue Share Program
Originally, the eXp Realty revenue share program was announced in 2009. However, in May 2024, the company introduced some recent changes to it, in order to boost the earnings of the agents and streamline the payout process. Here is a quick overview of the key improvements-
✪ Faster Earnings
You can now unlock the first three tiers of revenue share more quickly and keep them unlocked regardless of the number of personally sponsored agents. This means you unlock the eXpotential share % for each tier, regardless of the number of agents in each tier.
Similarly, you can unlock levels 4 to 6 by sponsoring 5, 10, or 15 productive agents. This certainly makes it easier to earn more revenue share.
✪ New Fast Start Attraction Bonus
When you bring new recruits on board, you could earn an incentive of up to $4,000 or 5% of GCI (Gross Commission Income) as a Fast Start Attraction Bonus during their first year at eXp. Using MLM accounting software makes it easier to implement and manage tailored incentives like this bonus, to help drive agent engagement and satisfaction effectively.
✪ Real-Time Revenue Access
The new feature in the company’s MLM Mobile app, My eXp, allows you to instantly withdraw accumulated revenue share earnings for a small fee.
How is the eXp Realty Revenue Share Model different?
The eXp Realty Revenue Share Model is certainly different from what other traditional real estate companies offer, in terms of its unique advantages and multi-tier benefits. Here is the comparison of this model versus other similar brokerage models in the real estate industry.
Keller Williams Profit Share
Keller Williams uses a profit-sharing model, which differs starkly from eXp Realty’s revenue-share approach. Their system operates on a 7-tier basis, but profit share is based on what's left after expenses. This means you get a smaller portion of the earnings. Plus, since each market center is independently run, there’s no guarantee of the % of profit share, which can vary depending on the center’s financial performance.
Exit Realty
Exit Realty operates on a franchise model where broker-owners invest in local territories and build offices. They offer commission shares to agents they sponsor, but this is limited to just one tier. This setup requires continuous recruitment to earn money and doesn’t provide the same multi-tier benefits as eXp Realty’s model.
Real Brokerage
Real Brokerage has a revenue share model like eXp Realty’s but with a twist. They only use 5 tiers, which can limit growth. While they pay more for agents you directly sponsor, they offer less for those in the lower tiers. eXp Realty’s 7-tier system, on the other hand, supports more exponential growth, letting you earn more as your network expands across all tiers.
Common Misconceptions about eXp Realty Revenue Share
The eXP Realty Revenue share program is often misunderstood as a pyramid scheme, due to its focus on recruiting new agents. Here are a few points that differentiate this program from an MLM scheme and make it legitimate-
eXp Realty is a reputed MLM company that is a registered real estate brokerage, publicly traded on NASDAQ, and regulated by the SEC (Securities and Exchange Commission).
Unlike pyramid schemes, eXp Realty's core business is selling real estate. The revenue share program is just a bonus for agents contributing to the company’s growth by bringing in new active agents.
eXp Realty's startup cost is just $149, unlike pyramid schemes that rely on high startup fees to sustain themselves.
Ultimately, Revenue Share is generated solely through actual real estate transactions and not from recruiting others.
The main goal at eXp Realty is to help agents succeed in selling real estate. The revenue share model only provides an added incentive.
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Conclusion
Today, eXp Realty is one of the top MLM companies in the USA. Its revenue-sharing model isn’t just changing the game, but it’s rewriting the way agents are paid. If you’re an MLM entrepreneur looking to carve out your own path, eXp’s innovative approach is worth exploring.
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FAQs
1. What is the revenue of eXp Realty 2024?
eXp Realty’s second-quarter revenue for 2024 stands at $ 1295 Million.
2. What is the eXp Commission split?
At eXp Realty, agents keep 80% of their commission, and the company takes 20%. This continues until the agent has paid $16,000 to eXp for the year. For example, if an agent earns $80,000 in commissions, 20% of that ($16,000) goes to eXp.
Once the agent reaches this $16,000 cap, they keep 100% of their commissions for the rest of the year, with only a few small fees deducted for things like transactions, risk management, and broker services.
3. What is the difference between eXpansion Share and eXponential Share?
The eXpansion Share is the basic percentage you earn from each level of recruits, while the eXponential Share offers higher percentages based on reaching specific recruitment milestones. The more agents you personally recruit, the higher the percentage you can earn from each level.
4. How often does eXp pay out revenue share to its agents?
The company pays out revenue share to its agents every month, ensuring a steady flow of income. Your eXp Realty revenue typically arrives within the first few days of each new month.
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