Is anybody else tired of getting hit on by eXp Realty agents?

124 Replies

I always thought Keller Williams Realty recruiting tactics were cringeworthy and my opinion hasn't changed but, somehow, eXp Realty recruiting tactics are exponentially worse. A Realtor in my office was recently hit on at one of his open houses, I was just hit on via a LinkedIn private message. The recruiting is neither nuanced nor special but it is bullheaded and it is clumsy. Let's be honest, eXp Realty is just another terrible pyramid scheme. Do these agents specialize in selling real estate or recruiting agents? I've already had enough but I fear it's only going to get worse... Thoughts?

Lol. We dont have too many of their agents in my market, but my friend @Darren Sager does keep trying to recruit me.

Btw, you related to Jeff the king of Chelsea real estate? I hang my MA license at the same brokerage as him.

@Jonathan Bowen on behalf of all of the exp agents who DON'T stoop to those levels, I apologize! They are really trying to crack down on those type tactics and they aren't condoned from corporate or state brokers at all! There is new training on agent attraction and a pledge that must be signed before actively sponsoring, hoping to get the point across that used to be just fine print and honor system. The short of it is that we ARE NOT permitted to do the high pressure recruiting things that are annoying the rest of you. Those tactics are unprofessional, tacky, and in many cases unethical. There has been a significant effort recently to more thoroughly train and guide any recruiting efforts. I'm not up to speed on all of the guidelines since sponsoring isn't on my radar for now. However, I know that exp agents are not supposed to reach out to those they have no relationship with or otherwise mass market for sponsoring. That is really not the point of the sponsorship system at all. Those agents you mention are likely in violation of several exp policies whether they know it or not. If you want to PM me any names and what state they are in, I'll happily pass it along to their state broker or somebody in corporate so they can handle the violations and hopefully coach better practises. That kind of BS isn't what exp is supposed to be about and they'll be proactive about either getting them to cut it out or cutting them from the brokerage altogether. The real influencers in exp have massive businesses themselves and attract agents to them. Those guys you encountered likely have no sales volume and hope to "get rich quick". It is just a hard thing to police in a rapidly growing company and harder still when new recruits are then taught those methods. I'm a pretty small fish in the relative ocean of a company, but figured I'd speak up to say we aren't all that way and those of us who don't use those tactics wish the ones who did would knock it off.

I joined for the system, technology, training, and equity program. However I've also never understood how anyone could be so dense as to think EXP is better than everyone. For what they are, it's incredible, but many would be better off at a transaction broker, small independent broker, or brick and mortar depending on their goals and work style. My current schedule doesn't allow for me to plug into office based training, but it is pretty annoying how some of these agents trying to build an Amway style pyramid are giving the rest of us a bad name. I know the sponsoring is there and I may utilize down the road if I wanted to bring on agents to help in my own business without forming a binding team structure, but I don't understand those that seem to make sponsoring their largest effort. Again, you're right to be annoyed by them. Even though I'm with exp, reading your post made me cringe as much as if I were with remax or on my own.

@Russell Holmes I won't mention names privately or publicly but both are out of Massachusetts. Those agents who are trying to "get rich quick" through the pyramid scheme are sullying the reputations of eXp agents who just want to be agents. It's going to be a challenge for eXp Realty to stop that type of trafficking though. That horse is already out of the barn. Food for thought...

Never saw anyone get rich recruiting agents.. I suspect someone did.. but I have never seen it. too much turnover in the industry.

@Jonathan Bowen that is definitely a thought in the back of my mind. EXP is what works best for me now as I try to earn my freedom from my service business and learn the RE industry (by replacing the income through commission, not some far fetched immediate retirement). Once I've earned my ability to be full time I can look to see if a different brokerage or even getting my brokers license and going independent would be the best. I've been self employed almost 12 years, I don't have a strong loyalty to an outside entity beyond it's ability to be a means to an end. If this type recruiting gets bad enough to where I feel the reputation precedes my introduction, I'd strongly consider a switch. I don't think it's there yet and I hope they can rein it in, but it is hard to put the horse back in the barn! :-)

@Jay Hinrichs the thing is, nobody does! The revenue share from sponsorship is very small for each agent. It's designed to be a sort of passive income built through the years of active involvement. Some people may make $4000-10,000 a month on revenue share with huge organizations they built, but those are the few who also make many times more than that in their own transactions and have attracted like minded people who seek out their expertise. It's really no different from the rock star independent brokers who have built brokerages of several hundred producing agents. I guarantee they did not meet those agents by barging into open houses or waiting for them outside work! They put in the time and effort to build a business too large for them to handle solo. I'm hopeful that exp doesn't turn into the Amway of brokerages.... I did a short "sentence" with those folks right when I turned 18, naive early years when I bought the BS... and now won't even let an MLM recruiter from any company get three words out of their mouth before I let them know I'm the wrong guy to pitch. Had I been hard pitched by exp like some of you guys, I may have wrote them off entirely.

Originally posted by @Russell Holmes :
@Jay Hinrichs the thing is, nobody does! The revenue share from sponsorship is very small for each agent. It's designed to be a sort of passive income built through the years of active involvement. Some people may make $4000-10,000 a month on revenue share with huge organizations they built, but those are the few who also make many times more than that in their own transactions and have attracted like minded people who seek out their expertise. It's really no different from the rock star independent brokers who have built brokerages of several hundred producing agents. I guarantee they did not meet those agents by barging into open houses or waiting for them outside work! They put in the time and effort to build a business too large for them to handle solo. I'm hopeful that exp doesn't turn into the Amway of brokerages.... I did a short "sentence" with those folks right when I turned 18, naive early years when I bought the BS... and now won't even let an MLM recruiter from any company get three words out of their mouth before I let them know I'm the wrong guy to pitch. Had I been hard pitched by exp like some of you guys, I may have wrote them off entirely.

in our area were its competitive for agents..  what we see is the better agents just want a flat fee.. they want to sell real estate not be recruiters and so like my wife its 10k a year and 100% commish.. if she happens to refer and agent she gets 1k off her annual fee.. ..  that's a better fit than going on  commission splits.. ( at least from the agents perspective.. ) Starting out though agencies with good training and tools is an advantage once you build your book.. you don't need the office or name recognition your clients follow you and once you have 10 years at the business 95% of your business will be or should be referral. 

@Jay Hinrichs

"Never saw anyone get rich recruiting agents.. I suspect someone did.. but I have never seen it. too much turnover in the industry."

I agree. I know a guy who ran an office (It was not EXP but another model where you got a piece of each persons sales and you build a retirement etc). At his top he had 412 agents working under him. He was going to be set for life, money would be pouring in hand over fist until the day he died. Last month he got a check $11.36. He was less than 8 years from the time he sold it (keeping the residual) from the time that check came in. 

Luckily he has a good sense of humor about it. Sounds like the new management came in, people started jumping ship and going onto other companies and careers. 

Originally posted by @Mike Cumbie :

@Jay Hinrichs

"Never saw anyone get rich recruiting agents.. I suspect someone did.. but I have never seen it. too much turnover in the industry."

I agree. I know a guy who ran an office (It was not EXP but another model where you got a piece of each persons sales and you build a retirement etc). At his top he had 412 agents working under him. He was going to be set for life, money would be pouring in hand over fist until the day he died. Last month he got a check $11.36. He was less than 8 years from the time he sold it (keeping the residual) from the time that check came in. 

Luckily he has a good sense of humor about it. Sounds like the new management came in, people started jumping ship and going onto other companies and careers. 

 ON the flip side I know the remax owner here in PDX he had his company up to 600 agents then sold out for 5 million to remax corporate so there is value in a lot of agents.. 

The California Department of Real Estate is taking action against eXp Realty and it's long overdue if you ask me. Just because you "disrupt" the brokerage model doesn't mean that your model is sustainable. This is exactly what happens when you create a brokerage model that doesn't include oversight of your agents. 72 Violations, and remember, those are just the instances in which they were caught.

This is the only article, so far, about this development. It's Inman so it's behind a pay wall.

https://www.inman.com/2019/05/03/exp-realty-accused-of-dozens-of-violations-in-california/

Here's the sub-headline "The California Department of Real Estate (CDRE) filed a complaint against the virtual brokerage documenting 72 state regulations violations"

Herds usually want to believe in the (power of a  group) and (easy money).

If you study anything syndication, marketing, whatever it is getting a group of people to take a certain action for maximum affect.

The true intent behind doing that maybe based on good intentions or not. This company among others you see all the time over the decades. It's just another wrinkle on an old marketing game to make it fresh and new again. Talking in generalities and not this specific company.

No company is going to do all the work and make the broker/agent highly successful and wealthy. If you take away each companies name it is the person or team behind it doing day to day tasks that makes them successful. You could take company  A and replace it with company C if they were closely equal.

@Account Closed eXp's model doesn't include oversight of agents?  That's 100% false.  If an agent acts inappropriately, that is not indicative of the lack of broker oversight.  In fact, agents can and do act inappropriately regardless of brokerage. 

Also, the title of the article, which you conveniently left out, is 

EXp Realty accused of dozens of violations in California

Notice the word "accused"?   

The company's unique model combined with rapid success and growth has presented unique challenges and has also caused other archaic brokerages, who realize the threat eXp poses, to put a target on it.  It reminds me of the time Blockbuster didn't buy Netflix.  

Having said all that, I wish all brokers and agents the best of luck regardless of whether or not they see the benefits eXp provides.  eXp is not for everyone and I'm sure there will always be other brokerages other than eXp.  I just wish people would base their opinions on facts rather than the disinformation that is unsurprisingly put out there.   If an eXp agent is asking if you're interested in joining, that is a compliment to you.  Remember if no one is selling real estate, there is no revenue to share.  

Originally posted by @David Bell :

@Account Closed eXp's model doesn't include oversight of agents?  That's 100% false.  If an agent acts inappropriately, that is not indicative of the lack of broker oversight.  In fact, agents can and do act inappropriately regardless of brokerage. 

Also, the title of the article, which you conveniently left out, is 

EXp Realty accused of dozens of violations in California

Notice the word "accused"?   

The company's unique model combined with rapid success and growth has presented unique challenges and has also caused other archaic brokerages, who realize the threat eXp poses, to put a target on it.  It reminds me of the time Blockbuster didn't buy Netflix.  

Having said all that, I wish all brokers and agents the best of luck regardless of whether or not they see the benefits eXp provides.  eXp is not for everyone and I'm sure there will always be other brokerages other than eXp.  I just wish people would base their opinions on facts rather than the disinformation that is unsurprisingly put out there.   If an eXp agent is asking if you're interested in joining, that is a compliment to you.  Remember if no one is selling real estate, there is no revenue to share.  

Not an agent and dont have a dog in this fight, and never heard of eXp before, but I am curious what the "threat" is that eXp poses to the existing brokerages? Looked at the exp website but nothing about new models jumped out at me...

@Account Closed eXp is a cloud based international model with no brick and mortar expense, franchise fees, or royalties.  This allows the agents to benefit from the growth and success of the company rather than the top like other brokerages.  

Huge agent count (along with consolidation of other brokerages into larger brokerages) has propelled EXP to the 5th largest brokerage in America. However, the average sales volume of an EXP agent is only about $1.2 million, which puts them outside the top 20 in that metric.

Everything I've said has to do with my own professional experience and my business partner's experience working with Brokers who have went over to eXp.

I was drawn to this thread because both of us experienced this sales pitch in several different cases and in ALL of those cases, it appeared that the agent was more concerned with selling us on eXp than they were with properly discharging their duties in the transaction.

Brokers behaving like agents who didn't have a broker would be the quick way to put it.

@David Bell , of course that isn't everyone at eXp, nor did I say it was. You're an honest person so you're doing honest business. But I'm not dismissing this as some kind of witch hunt.

When any business creates a disruption, of any size, it can also create unexpected avenues for fraud within that new space. Doesn't necessarily mean the whole pie is rotten but it is a direct result of doing business differently. Whether that's because there are too many agents just trying to quick sell others into joining, or because of other internal flaws within a rapidly growing organization, or whatever the root cause may be, the problem exists. Considering the number of accusations, eXp either doesn't care about those problems or isn't responding fast enough.

Yes, it is incorrect to say that there is "no oversight." I appreciate your defense of your brand and I honestly believe that you run your brokerage the right way. It is unfortunate when bad actors make life more difficult for hardworking business owners.

And I did NOT "conveniently" leave out the title of the article because it's in the link. I generally read a link before I click on it and I assumed anyone else would do the same.  So, just to be clear, the title of the article, says "dozens of accusations" and the body of the article says, specifically, "...CDRE filed a complaint against the virtual brokerage documenting 72 state regulations violations."

@Nicky Reader, it's a dividend system that could really pay off if you're able to recruit a large number of high performing agents. And they're virtual. Speaking to the "new model"-ness.

In some cases it offers an opportunity for agents to cash in on having been in the business for a long time by successfully bringing a large collection of earners into the fold and collecting dividends as they close business.

While @Matt Millard is describing what it ends up looking like, @Joel Owens accurately captures the essence of the situation in general. I agree with both assessments.

Good luck out there! 

Originally posted by @John LaRosa:

@Nicky Reader, it's a dividend system that could really pay off if you're able to recruit a large number of high performing agents. And they're virtual. Speaking to the "new model"-ness.

In some cases it offers an opportunity for agents to cash in on having been in the business for a long time by successfully bringing a large collection of earners into the fold and collecting dividends as they close business.

While @Matt Millard is describing what it ends up looking like, @Joel Owens accurately captures the essence of the situation in general. I agree with both assessments.

Good luck out there! 

 however easier said than done high producing agents do not change brokers very often.. many will stay for decades .. they will change when they go from a split to a flat fee and save a lot of money. .but high producing agents will rarely more just to save 10 to 20k a year.. 

so you rely on rookies and the turn over burn out factor keeps your residuals from really doing any thing. 

@Account Closed keep in mind when a company is experiencing huge growth in agent count, you are dividing the year end number of agents by the volume generated over the course of that year which does skew that average volume per agent number.  

IMO, if you are killing it wherever you are now, you would kill it with eXp while also amassing stocks and, if you so chose, revenue share which would cover life after real estate sales.  

Originally posted by @Joel Owens :

Herds usually want to believe in the (power of a  group) and (easy money).

If you study anything syndication, marketing, whatever it is getting a group of people to take a certain action for maximum affect.

The true intent behind doing that maybe based on good intentions or not. This company among others you see all the time over the decades. It's just another wrinkle on an old marketing game to make it fresh and new again. Talking in generalities and not this specific company.

No company is going to do all the work and make the broker/agent highly successful and wealthy. If you take away each companies name it is the person or team behind it doing day to day tasks that makes them successful. You could take company  A and replace it with company C if they were closely equal.

in the owner occ resi world brokerage name recognition will sway buyers and sellers.. end of the day though real estate is pretty simple 

Qualify present and CLOSE  most agents can do the first two but lack the skills to do the last one..