There are many things I love about my real estate brokerage, but near the top of the list has to be the eXp Realty Revenue Share Program!
Through the revenue share program, agents are rewarded by introducing other real estate agents to eXp Realty. When those agents come aboard, the agent who introduced them to the company is rewarded by receiving a small portion of the company dollar that is paid.
Before I get too in-depth with the details, here’s a quick video where I give an overview of the program:
Before I show you the numbers, you need to know that all agents start at a 80/20 split that caps and goes to 100% once an agent has paid $16,000 in company dollar. There is no franchise fee, so it’s a true 80/20 split.
Now that you know the basics, here’s a chart that explains revenue share:
If you introduce 1 agent to eXp Realty, when they close a transaction, you will receive 3.5% of the gross commission that they earn. Agents in your second level pay you 4%, agents on your third level pay 2.5%, etc.
For example:
Agent A closes a $200,000 sale and earns a 3% commission. That’s $6,000 in gross commission. Agent A keeps $4,800 and the company receives $1,200. You, as their sponsor would earn $210 which comes out of the company portion of the split. That may not sound like a large number, but it can add up quickly.
Here’s the math on a $200,000 sale: $200,000 X .03 commission = $6,000, and then $6,000 X .035 = $210.
eXp Realty Revenue Share Example #1
In this example, you’ve attracted 4 agents into your revenue share group, each of whom earns $80,000 in gross commission income (they would be cappers):
As you can see, with just four cappers in your first level, you could earn $11,200 in annual revenue share.
But let’s not stop there, let’s look at an example where the four agents in your first line each bring on an agent too.
eXp Realty Revenue Share Example #2
In this example, you’ve attracted 4 agents into your revenue share group, each of whom earns $80,000 in gross commission income, and those 4 agents have attracted one each for a total of four in your second level. That’s 8 total agents in your revenue share group.
Look at the level one income. It hasn’t changed.
Look a the level two income – you’ll see that there is no exponential income, there’s only expansion income. Why is that? Because to get eXponential income on your second level you need to have 5 agents in your first level. Watch what happens when you add one more agent to your first level for a total of 5:
eXp Realty Revenue Share Example #3
In this example, you’ve attracted 5 agents into the first level of your revenue share group, and those 5 agents have attracted four agents in your second level. That’s 9 total agents. Notice what a huge difference adding a 5th agent on your first level makes!
When you go 5 wide on your first level, you earn both eXponential income and eXpansion income!
See the (*5) next to level on agents in the blue box in the example above? That is the number of agents it takes to unlock level two income. To get eXponential income on agents in your third line, you need to have 10 recruits (*10), to get eXponential income on agents in your fourth level you need to have 15 recruits (*15), etc.
$26,000 in eXponential income is a nice bonus to receive for helping the company grow, isn’t it?
Of course the potential here is unlimited. Let’s go a little deeper and see what your eXponential income could look like in 3 or 4 years if you’re successful introducing and attracting other real estate agents to eXp. Let’s say you are 10 wide, and everyone in your first level has brought on one agent (your second level), and everyone in your second level has brought on one agent (your third level).
example #5
Now that is some serious eXponential income to help you even out the ups and downs of the real estate roller coaster!
Now I know not everyone is going to attract that many real estate agents to their revenue share groups, but some agents will. Those that take this opportunity seriously and work hard to get the word out to their agents friends can be building something that can make a real difference in their life!
Revenue Share versus Profit Share
What’s the difference between revenue and profit share? It’s simple – revenue share is before company expenses, profit share is after company expenses. Since revenue share is paid out prior to expenses being subtracted, it is more predictable. It’s based on an easy to calculate equation. In a profit share model, if the costs to run the brokerage are increased, the profit share is decreased. It’s less predictable. With the Revenue share model, if you track the closings on your revenue share group, you will know exactly how much money to expect that month.
Revenue share is only one appealing aspect that eXp Realty has to offer. Agent ownership is another. I’ll be writing about agent ownership in my nest post, please check back soon if the idea of earning shares in a publicly traded company interests you.
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