Why we left Keller Williams to join eXp Realty
After 17 very successful and gratifying years with Keller Williams Realty (KW), Maria and I moved our top-producing team to eXp Realty in February of this year. Our only regret is that we didn't change brokerages sooner.
Don't get me wrong, we liked Keller Williams. We liked the Operating Principal at our Market Center (KW - The Woodlands & Magnolia) and we liked the offices and staff. In fact, when we were introduced to eXp, we weren't looking to make any changes. We had just come off two of our more successful years in real estate. Our team helped our clients buy and sell more than $30 million of real estate in 2016 and 2017 combined, and we were content...until we saw the eXp model. Once you see the exp model, you can't "unsee" it. Our minds had been eXpanded, and they would never resume their original dimensions.
As I stated previously, the only regret I have is that we didn't move when we first learned about this industry-disrupting, wealth-building vehicle called eXp Realty. We analyzed it for nearly eight months before moving, mostly because we didn't want to leave our comfort zone at KW, but partly because we weren't sure of the risks to our ability to continue to provide top-notch service to our clients or the costs of leaving our former brokerage. Turns out, the only major cost was the opportunity cost of not joining eXp sooner and foregoing higher levels of customer service, higher commission splits, stock awards and revenue share for that eight month period. Here's what I mean:
Customer Service: Because we're in a service industry, this aspect of our work is of utmost importance. Ultimately, the responsibility and privelege of providing top-notch customer service falls solely on our team of five professional, full-time licensed agents...period. However, the brokerage with which we partner can have an impact on our ability to deliver certain services by the support and resources it provides to its agents. Our former brokerage did provide good support and ample resources for us, but we weren't certain about what eXp could provide. After interviewing other eXp agents, we felt that the support avaialble at eXp would help us serve our clients well. We also spoke with many of our clients during our due diligence phase, and they confirmed that our brokerage affiliation would not have any impact on our business relationships. Our clients confirmed that they do business with us, The Moore Team, not with a brokerage brand.
Once we came on board at eXp and started experiencing the outstanding agent support system, the tools and technology, and the agent resources available, we were sold 100%. Since we started with eXp, we have been astonished at the level of support and responsiveness we receive, and we have been able to continue to deliver a high level of service to our clients.
Company CAP: Our commisson split with eXp is 80/20 where eXp receives 20% of the gross commission at each closing until we've paid $16,000 in company dollar (revenue to eXp - otherwise known as the CAP). After that point, we then pay a $250 transaction fee for the next 20 transactions. However, once we have paid in $5,000 in transaction fees (which is the next 20 transactions), the $250 transaction fee stops, we become ICON agents and the company grants us $16,000 back in publicly traded shares of stock! That's incredible! Of the $16,000 in stock awards, $4,000 vests immediately, and the remaining $12,000 vests over a three year period. But who cares, we're not leaving this amazing brokerage, and the stock we're granted this year will likely increase in value over the next three years (in our estimation). So, instead of paying our annual CAP to a brokerage which gave us NOTHING in return, each year we'll now receive $16,000 in eXp stock which is currently trading around $12.00 per share (NASDAQ: EXPI). The stock was trading around $8.00 per share when we joined, so the shares we received early have already increased in value. We're convinced that the stock we'll earn over the next 5-7 years will undoubtedly add a sizable amount to our retirement, especially if it continues to increase in value
At Avg Sales Price $275,000
Gross Commission At 3%
KW 70/30 Split
eXp 80/20 Split
KW Franchise Fee 6%
eXp Franchise Fee 0% (There Isn’t One)
eXp Broker Review Fee
E&O (No cap at KW, $500 cap at eXp)
Revenue Share vs Profit Share: There's a huge difference between Revenue Share and Profit Share. The KW Profit Sharing model requires each Market Center to pay roughly 45% of its monthly profits to the "quaifying" agents based on their proportionate share earned (calculated by a complex formula based on their recruiting efforts, but typically an average of $1,500 - $1,800 per year per Capping agent recruited in the first line, then the total PS dollar amount per Capping agent drops off significantly from levels 2-7). The problem is that the profitability of each Market Center (MC) can vary substantially from month to month and MC to MC. Profit Share is calculated after all overhead and expenses associated with a given MC are accounted for such as costs for the buildings (mortgages, maintenance, utilities, taxes, etc.), employees, marketing, legal fees, etc., etc..
With the eXp Revenue Share model, we get paid each month after an agent we attract closes a transaction, and we can earn up to $4,000 per year per Capping agent in our organization (please refer to table above)! Revenue Share is not based on whether a particular office is profitable. What a game changer! You might ask, "How can a company pay Revenue Share based on it's gross revenues instead of the net profits? Great question, and here's the answer: NO BRICKS AND MORTAR! As a cloud-based brokerage, there are no office buildings to buy and maintain, there are no local marketing expenses, there are no local employee costs (although there is that amazing agent support system funded partially by the company's revenues and partially by very nominal transaction fees). I personally know many agents at eXp earning $10,000 to $100,000+ in MONTHLY REVENUE SHARE! The person who sponsored (attracted) my sponsor's sponsor earned over $85,000 last month. He started focusing on attracting agents to eXp about three years ago. He has around 32 direct agents in his "downline," but more than 1,300 agents in his organization. That's the power of eXponential attraction! The most brilliant part of the eXp Revenue Share model based on attracting agent partners to the company is the fact that I can actually earn more Revenue Share from a second-level agent partner (up to $3,200 vs $2,800) which gives me a lucrative incentive to help the agents I attract go out and attract agent partners for their own downlines. How brilliant is that model?!
Retirement Plan & Stock Purchase Program: There are several ways to accumulate stock and equity awards as an agent at eXp. First, the company gives free stock to agents for reaching certain milestones such as closing their first transaction with the company, after an agent we sponsor closes their first transaction and after we reach ICON status. We can also buy discounted stock in the company as eXp allows us, the agent-owners, to reserve up to 5% of each commission check and purchase eXp stock at a 20% discount off the closing price on the last day of the month. So, if the stock closes at $18.00 per share on the last day of this month, then my discounted purchase price will be $14.40! I can sell the stock I purchase with my stock compensation at any time, or I can hold it indefinitely. Can you imagine accumulating stock at 20% discount for the next 5-10 years? Which other brokerage offers such an incredible benefit to its agents? What a great compliment to our retirement plan!
Cloud Campus: This is one of my favorite aspects of the company. As an agent-owned, cloud-based brokerage, eXp provides tremendous training and resources within its cloud campus which is called eXp World. When you join eXp, you create your own Avatar to enter the various online meeting rooms within the eXp World. So, agents can literally work from anywhere wearing anything! I sometimes attend online classes from home in shorts and a T-shirt! Fact is, more than 70% of agents nationwide work from home anyway, and only around 10% of agents use an office on a regular basis, so why is the traditional real estate franchise model so dependent on bricks and mortar? Well, we're now seeing a shift away from that traditional model and I'm not sure it will continue to exist for much longer.
In the eXp World, there are four or five classes and various state broker meeting each day. Many of the classes are taught by top producers from all over the country while other classes are instructed by vendors and other professionals. You can literally walk your Avatar into an online classroom or auditorium and sit down to listen to the presenter. If you have a question, you can raise your hand and the presenter will call on you to speak. You can speak with support personnel in agent services, accounting and even our state broker through eXp World and it's even more efficient than when we had to schedule time with those folks at our former brokerage. There's also a tech center where you can get assistance for websites and landing pages. The online campus is staffed virtually for 16 hours a day to serve agents and answer questions. It's awesome! The cost for the cloud University is $420 a year and it's billed at $35 per month.
Education: With over 15 hours a week of live training each week on topics ranging from lead generation to social media best practices to contracts and more, the training and educational support is amaxing. Many of the classes are taught by top agents from around the country. With the recent and continued influx of mega agents and mega teams, the quality of the training and instructors will continue to be excellent at eXp Realty.
Technology: As an eXp agent, you receive two industry-leading CRM websites: kvCORE (Kunversion) and Commissions Inc. (CINC) for your monthly technology fee of $50. If you were to go purchase these websites individually, you would literally pay over $2,000 per month. But it doesn't end there. You also get Skyslope, an online transaction management system along with an e-signature platform built in. Here are all of the benefits and goodies you'll receive when you join eXp Realty:
FREE Business Cards 1,000 to be exact
FREE Commission Inc website
FREE Kunversion IDX Website
FREE eXp Agent Attraction Website for recruiting
FREE Fax Number
FREE 800 Number
FREE eXp branded Google Apps for work , email, storage, Youtube, and Hangout
eXp World cloud campus
Regus Worldwide Membership
Skyslope Transaction Management Platform
FREE Contact Management System KvCore
Culture & Community: The one thing I liked most about KW was the culture. No question, KW has done a good job of maintaining a winning culture of agent collaboration and "Do The Right Thing." So, when we joined eXp, we were told that the culture was good, but had not yet experienced it first hand. Well, after seven months, I'm here to tell you that the eXp culture may actually be better than the culture from where we came. Not only is the agent collaboration second to none, but the support we receive is actually better than the support we received at KW. Additionally, the broker support and accessibility is actually better, and the brokers aren't even in our office! The culture is far better than I could have ever imagined, and now that many more top agents and mega teams from every state have joined eXp, we can all benefit from some of the best and brightest, most creative minds in the industry! Because we are all agent-owners with a vested interest in growing a massive and profitable company, we all want every agent to succeed regardless of whether or not they're in our personal downlines. The agent count has doubled in size in the last seven months since we joined, and eXp is the fastest growing brokerage on the planet right now.
At the end of the day, even if I were to start my own brokerage, I just couldn't match everything eXp Realty has to offer, and I certainly couldn't provide this wealth-building vehicle to other agents I might recruit. It would literally cost millions of dollars to try to reinvent the eXp wheel. As an agent-owner at eXp Realty, I now have a tremendous value proposition to offer other like-minded agents who share our love of real estate and our common entrepreneurial interests. Needless to say, eXp has envigorated our team and given us an opportunity to share this incredible experience with other agents around the country so that their lives may be better and their futures may be more secure.
FAQ for agents considering joining eXp realty
What is eXp Realty?
eXp Realty is the nations first “Agent-Owned, Cloud Brokerage”.
Who started eXp?
eXp Realty was founded by Glenn Sanford who was a former Keller Williams agent who realized that a cloud based brokerage that offered revenue share was the future of real estate.
When was it started?
eXp Realty was incorporated in 2009.
What does “Agent Owned” mean?
eXp Realty is agent owned meaning that agents can acquire stock in the company and have a vested ownership in the brokerage. There are 6 ways that agents can acquire stock, from simply purchasing it to achieving certain performance benchmarks.
What is a cloud brokerage?
A cloud brokerage is a brokerage that does not have physical offices and conducts business entirely on the Internet. Think of Amazon. They are a cloud company. They have no physical storefronts yet they sell a heck of a lot of merchandise!
Are there really no brick and mortar offices?
It depends on the state. Recently, some big teams who already have office space have flocked to exp Realty. So, there are some agent-controlled offices from state to state. It's possible you might be able to use their space or work something out with them for a nominal fee. For example, here in The Woodlands, TX, we lease office space with another large team, and we welcome other eXp agents to use our office space. Otherwise, most agents simply work from home and meet clients at title company or mortgage company offices when needed. With no expensive corporate offices, eXp is able to share more of the commissions and revenues share with its agent partners.
What if I need to occasionally need a physical office?
We have that covered. eXp Realty has an agreement with Regus Business Lounges Worldwide to provide free access to their facilities. Also, as mentioned above, most title companies and mortgage companies welcome agents to meet clients at their offices.
Where does eXp Realty operate?
We are currently operating in 49 states in Canada and growing. We will eventually be in all 50 states and international.
Are there different divisions at eXp Realty?
Yes, we currently have residential, commercial, REO, and a luxury division.
Who is the broker for eXp Realty?
Each state has one state broker. Some larger states also have compliance brokers to help with reviewing files.
How many agents does eXp Realty have?
We are constantly growing, but as of this post we have over 14,000 agents. We have doubled in size in just the last seven months. We are the fastest growing brokerage in the world right now.
What is revenue share?
For every agent that you attract to join eXp Realty, you will receive a portion of the annual company dollar (eXp revenue) they pay to eXp. You will also receive Revenue Share from agent partners they attract up to 7 levels deep. The Revenue Share component of eXp Realty is the vehicle which allows us to generate long-term, passive income that won't end when we decide to retire and stop selling real estate one of these days. Revenue Share is one of the most compelling reasons agents join eXp Realty.
How does an agent build Revenue Share?
Simple. Introduce eXp Realty to other agents that you know. When they join, you become their sponsor and you will receive up to $2,800 annually from Capping agents in your first direct line. You will also receive Revenue Share when agents that you sponsor attract other agents through 7 levels.
Do I have to attract agents?
No. It’s up to you. However, there is a tremendous opportunity to build passive income if you do attract agents to eXp Realty. Ask your sponsor for help.
What is the split?
Everyone at eXp Realty has a split of 80/20 until the cap of $16,000 is met.
What is the cap?
eXp agents cap when they pay $16k to the company. That equates to generating $80K in gross commission.
What is the stock ticker symbol?
The ticker symbol is EXPI.
What is the start up cost?
When you start at eXp Realty you pay a $149 fee. There is also a $50 monthly technology fee for kvCORE and CINC and a $35 monthly University fee for all of the resources and services in the cloud.
Does eXp Realty charge an annual “Royalty Fee” like some companies?
No, they don’t, and of course there are no desk fees either.
What is the eXp cloud campus?
The cloud campus, also known as “eXp World” is our virtual world where agents and staff meet on the web for training, collaboration, meetings, and support. You can join and tour our campus for free. Go here to download the app and get your avatar.
Is there training?
eXp Realty offers a full array of training offered ever week. Currently over 15 hours a week.
Where are meetings held?
All of our meetings are held in the eXp Cloud Campus. We have everything from a large auditorium to small intimate spaces to meet clients.
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Author: Todd and Maria Moore
September 16th 2018
About Todd and Maria: ...