Albuquerque Real Estate Buzz

Rich Cederberg eXp Realty

You are here: Home / eXp Realty Albuquerque / The Power of eXp Realty Revenue Share

The Power of eXp Realty Revenue Share

May 21, 2017 by Rich Cederberg

There are many things I love about my real estate brokerage, but eXp Realty Revenue Share has to be near the top of my list!

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:

eXp Realty Revenue Share Slide

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):

Revenue Share Example

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.

eXp Realty Revenue Share Example

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!

Revenue Share Example 5 by 4When 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 soon, please check back soon if the idea of earning shares in a publicly traded company that’s traded on the NASDAQ interests you.

Would you like to learn more about eXp Realty? Please visit my eXp Realty Careers site.

If you enjoyed this article, Get email updates (It’s Free)

  • Share on Facebook.
  • Share on Twitter.
  • Share on Google+
  • Share on LinkedIn

Related posts:

Default ThumbnaileXp Revenue Share eXplained exp real estate albuquerque80/20 Split and No Franchise Fee at eXp Realty Funny lady giving the thumbs upBullets? These are NOT the Day 20 Bullets. Exp Realty, Zillow, REMAX and More exp realty helping hand logoTraining Opportunities at eXp Realty Default ThumbnailAlbuquerque Property Management

Filed Under: eXp Realty Albuquerque

Brought to you by eXp Realty

exp realty

Search the Albuquerque MLS

Search Homes for Sale

Albuquerque Homes for Sale
Albuquerque Luxury Homes
Albuquerque MLS Search
Corrales Homes for Sale
Placitas Homes for Sale
Rio Rancho Homes for Sale

Learn About eXp Realty

exp realty careers

Find Your Home’s Value

USA Real Estate

Boise Idaho Real Estate
Charlotte Real Estate
Newport Beach Real Estate
Phoenix Homes for Sale
Scottsdale Homes for Sale
Tempe Homes for Sale
Portland Homes for Sale

Thanks for Visiting

Rich Cederberg eXp Realty
6565 Americas Parkway Suite 200
Albuquerque NM 87110
(505) 750-1846

New Mexico Real Estate Continuing Education

Me On the Interweb

Follow Us on FacebookFollow Us on Google+Follow Us on TwitterFollow Us on LinkedInFollow Us on YouTubeFollow Us on YelpFollow Us on SlideShareFollow Us on PinterestFollow Us on About.me

Reviews for Real Estate Agent Rich Cederberg

Albuquerque Real Estate Agent Rich Cederberg (505) 803-5012, eXp Realty

"Rich was extremely patient with me during the home buying process. Never felt any high-pressure tactics and he gave me very honest advice about particular properties. I was able to reach him easily by email, phone and text message. I'm very happy in my new home and I would definitely recommend him and use his services again."

"I tend to stress out, Rich kept me calm. I worry about details, Rich kept on top of the details before I had a chance to worry about them. He kept in touch with my lender, recommended the right inspections and inspectors, and explained to me how to avoid potential pitfalls during the process. Once I had found my dream home Rich kept my enthusiasm in check and prevented me from offering more than fair market value. I ended up getting my home for thousands less than I thought I would have to pay for it."

"That Rich is professional, knowledgeable, patient and honest goes without saying. A good agent SHOULD be all those things. What separates Rich from the rest is his compassion for the customer and what they are going through."

Read more testimonials here.

Rich Cederberg, Albuquerque Real Estate Agent

Copyright © 2019 · AgentPress Pro Theme on Genesis Framework · WordPress · Log in

All content by Albuquerque Real Estate Agent Rich Cederberg, 505.803.5012, unless otherwise noted. eXp Realty, (505) 750-1846.