EXP Realty - Do you like it?
Member since 2018 · 4 posts · 0 votes
EXP Realty - Do you like it?
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Insurance Agent · Phoenix, AZ · Member since 2014 · 148 posts · 66 votes
8yPersonally, I really enjoy being with EXP Realty. As a Realtor, I enjoy the 80/20 split and $16,000 cap. As an investor, I enjoy not paying any commission to EXP on 3 transactions a year. If your network of exceptional people is small/weak then you could have a rough time at EXP. Isn't that the case anywhere in life though? We have a group of 37 people in our local community and the network is great. There are endless opportunities for open houses, coaching if needed, etc.
Like in anything and everything, it is what you make it @Graham Andrew
I hope that helps,
Mike Bargetto
47 Replies
- Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes7y
Originally posted by @Will Barnard:
Originally posted by @Caleb Heimsoth:
Originally posted by @Marian Huish:
I understand your skepticism with this new business model @Graham Andrew and @Caleb Heimsoth- I would suggest you look at the eXp Worldholdings Transaction & Sales Volume reported results: http://expworldholdings.com As a publicly-traded company subject to SEC reporting & oversight, eXp is clearly focused on selling real estate! ; )
Yeah and AMway did about 8B in sales last year lol. Still very much a MLM company
Just a question for you - do you equate multilevel marketing to be some negative type business model? Based on your response, it appears that way and yet, you pointed out that Amway did $8B in sales last year. That speaks volumes to a positive business structure. Also, just because one or two others made some negative comments about eXp being more about recruiting does not make it so. Sure there are individuals who join and that is all they do, recruit and that is fine, but there are rules behind it and strictly enforced by eXp. I had one lady act inappropriately with another agent under me and I quickly resolved it by simply having an email sent to the broker in charge of her area, problem solved immediately. There are bad apples in every bunch, that does not make the entire barrel bad, just toss out the bad apple.
Yes I equate MLM as a bad business model for the people who join late in the game, which is most people. It’s great for the company owners or the people who join at the very beginning
- Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes7y
Originally posted by @Caleb Heimsoth:
Originally posted by @Will Barnard:
Originally posted by @Caleb Heimsoth:
Originally posted by @Marian Huish:
I understand your skepticism with this new business model @Graham Andrew and @Caleb Heimsoth- I would suggest you look at the eXp Worldholdings Transaction & Sales Volume reported results: http://expworldholdings.com As a publicly-traded company subject to SEC reporting & oversight, eXp is clearly focused on selling real estate! ; )
Yeah and AMway did about 8B in sales last year lol. Still very much a MLM company
Just a question for you - do you equate multilevel marketing to be some negative type business model? Based on your response, it appears that way and yet, you pointed out that Amway did $8B in sales last year. That speaks volumes to a positive business structure. Also, just because one or two others made some negative comments about eXp being more about recruiting does not make it so. Sure there are individuals who join and that is all they do, recruit and that is fine, but there are rules behind it and strictly enforced by eXp. I had one lady act inappropriately with another agent under me and I quickly resolved it by simply having an email sent to the broker in charge of her area, problem solved immediately. There are bad apples in every bunch, that does not make the entire barrel bad, just toss out the bad apple.
Yes I equate MLM as a bad business model for the people who join late in the game, which is most people. It’s great for the company owners or the people who join at the very beginning
Fair enough. Just so you know, getting into eXp now is very early in the game and secondly and more importantly, eXp is NOT a MLM company. The residual incomes from recruiting agents pays via a revenue share program (not a profit share program like KW where there is often no "profits" to share) and it is only an option for agents who join, you do not have to recruit nor is there any pressure to do so. In fact, they promote sales just as any other brokerage does, any revenue share stream from recruiting is gravy for agents who don't even have that option elsewhere.
- Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes7y
At what volume level does the cap start to be returned to you?
The MLM structure is obviously what attracts many people....do you feel that those who do not recruit agents have as big of an incentive at EXP? (Almost every brokerage these days offer recruiting incentives, just EXP promotes this more than others)
Knowing that roughly 50% of brokerages that are not profitable file bankruptcys during recessions....does it concern you that EXP is not yet profitable?
The agent count has obviously hit very high numbers, but when dividing the volume by agents, comes up with a production of somewhere around $330,000 per agent which is obviously not that impressive. Is the structure then sustainable if EXP agents just hang their licenses and dont actually sell?
How do you feel about the lack of a physical office space? EXP touts this as a plus, to charge less to the agent, but there are obviously agents, like myself that feel we need physical office space.
Do you feel that EXP has a hindrance at certain price points because of brand recognition?
District Invest Group545 Reviews - Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes7y
Also Will, how does the cap work with teams?
District Invest Group545 Reviews - Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes7y
Originally posted by @Russell Brazil:
At what volume level does the cap start to be returned to you?
The MLM structure is obviously what attracts many people....do you feel that those who do not recruit agents have as big of an incentive at EXP? (Almost every brokerage these days offer recruiting incentives, just EXP promotes this more than others)
Knowing that roughly 50% of brokerages that are not profitable file bankruptcys during recessions....does it concern you that EXP is not yet profitable?
The agent count has obviously hit very high numbers, but when dividing the volume by agents, comes up with a production of somewhere around $330,000 per agent which is obviously not that impressive. Is the structure then sustainable if EXP agents just hang their licenses and dont actually sell?
How do you feel about the lack of a physical office space? EXP touts this as a plus, to charge less to the agent, but there are obviously agents, like myself that feel we need physical office space.
Do you feel that EXP has a hindrance at certain price points because of brand recognition?
Once you have paid $16k in commision split to the broker, you have capped and now keep 100% of your commission less a small transaction fee. I can't speak for others but the "MLM" structure as you out it is NOT what attracted me, like I said, I consider it just gravy. So yes, those who do not recruit still have large financial and other benefits by joining in my opinion.
I am not aware of the 50% BK filings you spoke of so I can't offer an opinion on something I have not confirmed. That said, while others may go away in recessions, the strong survive and I believe this company has the ability and will to do just that.
I would have to check on the volume numbers you mentioned and then get same numbers from other companies to compare before I could comment on that.
I think the lack of a physical office is the smart way to go and if you follow many other brick and mortars who have been taken out by the tech/online/cloud companies, you will find this to be true. Any individual or team can certainly lease office space as they deem it necessary.
Lastly, I think many of the other brokerages have been touting this branding of their business when in fact, the name of the brokerage has less to do with the customer choosing one agent over another and more to do with the individual agent. The have nots always get weeded out eventually.
Great questions Russell, thanks for asking.
- Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes7y
Originally posted by @Russell Brazil:
Also Will, how does the cap work with teams?
If you join eXp as a team under another, you cap at $8k instead of $16k.
- Member since 2019 · 3 posts · 1 vote6y
As far as wanting to have an office space under exp is it legal to have an office if you are not running the brokerage at that location?
- 6yCharlie CameronBusiness MemberInvestor · Niceville, FL · Member since 2017 · 450 posts · 366 votes
@Brian Murphy yes. You’d simply be “brokered by eXp.” eXp is also partnered with Regus, where you can use shared office space to meet with clients as needed.
- Member since 2019 · 3 posts · 1 vote6y
So I’d essentially have an office with a managing broker that never came to work? Does Exp assign local managing brokers for these offices?
What about signage?
- Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes6y
Originally posted by @Brian Murphy:
So I’d essentially have an office with a managing broker that never came to work? Does Exp assign local managing brokers for these offices?
What about signage?
No, you are misunderstanding. Your managing broker from eXp is in the eXp world which is in the cloud, you do not report to a physical location for your broker. If you as an agent personally want to have an office, you may rent an office space anywhere you choose, your managing broker does not go there, you go to him or her via the cloud (which is simple and easy and done from any computer anywhere in the world with an internet connection and the eXp world downloaded on that device.
- China, ME · Member since 2014 · 3k+ posts · 4k+ votes6y
I'll add that I was one of the biggest naysayers about the MLM-esque feel that I got from being pitched by eXp agents who were trying to recruit me. I had some pretty strong negative opinions and unreservedly expressed them here on BP.
I'm relocating to Maine from Mass (where I'm C21). I signed on with Keller Williams in Maine 6 months ago in preparation for the move. The support there was absolutely abysmal.
I've been full time in real estate sales for over 5 years - certainly not the world's foremost expert, but I have a lot more than the "10,000 hours to achieve mastery" as conventional wisdom has it.
KW assigned me a "guide". A kid about half my age who got his real estate license a few months ago. He is constantly speaking at KW events, giving all the rah-rah that he can muster - while breaking virtually every single commitment that he made to me, to the point that when writing an offer on what I hope will be our new home, I could not even get a phone call or email returned to get help with the Maine-specific terminology, customs and forms.
I had enough. I had seen this coming, so I had already researched several brokerages. I took a sample pre-cap transaction and did the math. eXp simply paid me more. The next nearest was at 93% of eXp and the others were in the mid-high 80% range.
I signed on with eXp last Wednesday and within 24 hours, had two long conversations with the Designated Broker, who not only helped me to get going, but also walked me through submitting my *successful* offer on our new home in China, Maine.
I've spent a lot of the last couple of days learning about the tools and technology and it's really impressive. I wish I had made the move 5 years ago.
I'm all about real estate sales. If I manage to bring on an agent or 10, so be it. It's not my focus.
And for the record, I'm completely convinced that MLM schemes are fundamentally unethical, but eXp isn't one of them.
- Member since 2019 · 3 posts · 1 vote6y
I’m still a bit confused as far as the office space goes. In order to conduct Real Estate business you need to have an office ID and a brokerage license. If I have my own office store front and wanted to convert it into an Exp office that people could enter into to conduct Real Estate business I do not think legally a virtual designated agent that is not listed at that location is possible? I’m not talking about just renting an office in a building but having an actual exp physical location with signs etc.., In addition, who pays the brokerage office fees to the State?
- 6yMike CumbieBusiness MemberREALTOR® · Brockport, NY · Member since 2015 · 3k+ posts · 4k+ votes
The questions you are asking are going to be state specific. For instance if you joined EXP in NY. EXP has a NY broker they do business under (I am guessing the person who is paid the Broker review fee). They will have a physical address that is registered with the state. It could simply be a small office that no agents can even go to. As far as you taking your store front and turning it into a EXP office (or C21 or RE/MAX or KW) you would have to have a registered broker and register that place with the state. It's more complicated than just opening up a secondhand store in that location due to licensing. You also need to have acceptance from the company and the DOS. If I wanted to open a new RE/MAX location I would need to pay any franchise fees and get approval before the DOS will give me the license. At EXP you are working under one broker for the state (at least to my understanding).
Now if you open a store front someone has to pay the rent, electric, upkeep etc. It sort of defeats the purpose for joining a cloud brokerage. If I had a storefront and was looking to join EXP. I would create a shared meeting space that anyone can rent for meetings. It would not be real estate specific, sales reps from tool manufacturers could meet clients there, online car sale people etc. It might be called "Mikes Meeting room" Rent as needed. If you did put a EXP sign on a physical building here, you may find yourself in violation of state as well as EXP practices (but that is the same for KW/RE/MAX etc)
Good Luck in your business!
- Real Estate Agent · Parkland, FL · Member since 2019 · 1 post · 1 vote6y
@Graham Andrew I joined EXP in August. I’ve been a full time realtor since 2006. By far the best company I’ve been with and it’s not even close.
I’m a part of a big group of EXP agents in South Florida. We all help each other and share info to help each other build better businesses. I’ve never had access to this many tools, resources, training, and access to multiple top producing agents to learn from.
- Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes6y
Originally posted by @Will Barnard:
Originally posted by @Brian Murphy:
So I’d essentially have an office with a managing broker that never came to work? Does Exp assign local managing brokers for these offices?
What about signage?
No, you are misunderstanding. Your managing broker from eXp is in the eXp world which is in the cloud, you do not report to a physical location for your broker. If you as an agent personally want to have an office, you may rent an office space anywhere you choose, your managing broker does not go there, you go to him or her via the cloud (which is simple and easy and done from any computer anywhere in the world with an internet connection and the eXp world downloaded on that device.
Just to tack on to what Will is saying here, check the laws in the state in which you are. In Maryland an agent can only rent office space and operate out of it if there is a sales manager on site. Teams or agents who operate out of a space independent of where the broker of record is located must hire an on site sales manager.
District Invest Group545 Reviews - Member since 2020 · 5 posts · 3 votes6y
I posted this question to another eXp agent's website but curious on hearing thoughts from the folks on this thread.
a quick sidebar: Thank you to everyone on this thread who has helped me weigh my decision even if it's 6 months after the last post! Goes to show how valuable forums like this really are. Okay...so here's the question.
If you're thinking about joining eXp do you have to join a team? I'm seeing the following numbers if you join someone's team...
If not, do you just pay the higher split for the first three deals then remain at 80/20 as an independent agent?
I’m not sure I see the value in joining a team. Does everyone you recruit automatically become a member of your standard team?
Let’s look at this at little closer pre-cap:
SELF-ORGANIZED TEAM
$10,000 Commision
50/50 split with Team Leader
= $5,000 for the agent before
20% to eXp
= $4,000 TOTAL40% of the total commission to the agent. Yikes
STANDARD TEAM / MEGA TEAM
$10,000 commission
75/25 split with team leader
= $7,500 to the agent before
20% to eXp
= $6,000 total60% of total commission to the agent. A little better and closer to standard brokerage but begs the question as to why an agent would join a Team Leader under a self-organized model instead of the Standard / Mega team model? I'd prefer to join and not be paying an additional anything to anyone.
I’d love to hear your thoughts on this. I’m considering eXp but if it’s not actually an 80/20 split and you have to give up an additional 25% to a “team leader” then I may prefer to go with a 70/30 split being offered a more traditional brokerage with comparable fees.
The extra 10%, the virtual network and the possibility of recruiting are appealing but not if I will not actually see 80/20 and also not if the folks I recruit will never see it either. - Member since 2020 · 5 posts · 3 votes6y
Originally posted by @Kalil Jones:
I’m a part of a big group of EXP agents in South Florida. We all help each other and share info to help each other build better businesses. I’ve never had access to this many tools, resources, training, and access to multiple top producing agents to learn from.
Kalil, are you paying an additional 25-50% to a "Team Leader" on a self-organized team, standard or mega team on top of your split to eXp?
If not, is this big group your mentioning just a forum that work with?
- Real Estate Agent · Houston, TX · Member since 2019 · 240 posts · 155 votes6y
@Joesph McGillis You do not have to join a team if you onboard with eXp. You can join as an individual agent and have a 80/20 split with a 16k cap. Revenue share is a completely separate entity from teams at eXp and the extra income you would get would be coming directly from the company, not the agents you recruit. What are some of your other concerns, I would love to shed some more light on eXp for you so you can make a clear and informed decision!
- 6yCharlie CameronBusiness MemberInvestor · Niceville, FL · Member since 2017 · 450 posts · 366 votes
@Joesph McGillis To add on to what @Kobe Xin said, no you are not automatically part of a team upon joining eXp Realty. You'd automatically be an independent agent with a 80/20 split.
However, I joined a team. Here's how mine works:
- If I bring my own clients/leads, I keep my 80% split but pay the team $500 per transaction. That $500 gives me local signage, team social media marketing of properties, transaction coordination, team support, team lock boxes, etc.
- If I need clients, I can work team-provided leads. In that case, I split commission 50/50. So until I cap I'd keep 40%. After I cap I'd keep 50%. I find this a decent deal because the team leader is providing something I didn't have at the time: a client. 40% of a commission is better than 100% of nothing!
You sponsor is different from mentorship or teams. All three provide support, with teams being optional and mentorship only required for new agents. Hope that helps.
- Member since 2020 · 5 posts · 3 votes6y
@Charlie Cameron Thank you for those additional details Charlie!
- Real Estate Agent · Dallas, TX · Member since 2021 · 8 posts · 0 votes5y
Would eXp be a helpful place to work as a brand new agent, hot off the press? I feel like I'll need a lot of hand holding, so I don't screw anything up in the beginning. With everything being online I wonder if I'll be able to really learn this way? What's the level of difficulty on a transaction? I had a job where I worked 100% online. Support was offered, but I really prefer the presence of a mentor.
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