The SECRET is out, at Exp Realty you can build your own brokerage under the Exp Realty banner. If you didn’t know, well now you know. Why would you want to do this? There are a number of advantages to doing this such as you don’t need a broker’s license, immediately expand the reach of your brokerage to all 50 states and 20+ countries and you’re free of the duties, risks, and liabilities of a broker.
Sounds fantastic! What’s the cost? See for yourself below!
| COST OF OPENING YOUR BROKERAGE AT EXP REALTY | ||
| DESCRIPTION | MONTHLY COST | YEARLY COST |
| Broker Start-up Fee (One Time) | $150 | $150 |
| Monthly Brokerage Fee | $85 | $1,020 |
| E&O Insurance (Only paid if you make transactions, $40/transaction caps at $500/yr) | $0 | $0 |
| Broker Transaction Review Fee ($25/per every transaction) | $0 | $0 |
| Local Realtor Fees* | $100 | $1,200 |
| Office Overhead (Virtual Office) | $0 | $0 |
| KvCore CRM for your agents (Included with eXp Brokerage fee) | $0 | $0 |
| Website for your agents (Included with eXp Brokerage fee) | $0 | $0 |
| Agent Training Courses (Provided by eXp Brokerage fee) | $0 | $0 |
| Managing Broker Duties, Accounting, IT, etc (Covered by eXp Realty) | $0 | $0 |
| TOTAL COST | $335 | $2,370 |
*Estimate, your actual market cost may vary
So as you can see for a mere $2,370 you could open up your own brokerage underneath eXp Realty. If you have agents already or as you build up your partnership of agents, they will simply join eXp Realty and name you as their sponsor. This allows them to partner with you and now every time they make a sale, you are rewarded a commission award from eXp Realty’s 20% commission split that they pay to eXp Realty. Now this is capped, so once they pay a total dollar value split of $16,000 to eXp Realty, they receive 100% commission going forward, and your revenue share award stops. However, as you partner with more and more agents, you will continue to receive revenue share from those agents who have not capped yet. And when you help your partnered agents create their own brokerage aka sponsor their own agents, you will receive revenue share from those agents as well. The revenue share program goes SEVEN layers deep!
Ok, that’s great, but what does that mean? How much will I get paid as a “broker” of my own brokerage at eXp Realty? Great question! Below is a table illustrating a hypothetical earning for you as a “broker” of your own brokerage at eXp Realty. In this example we start at Level 1, these are your direct sponsored agents, meaning they have named you as their sponsor. So you are directly partnered with these agents. Let’s assume you’ve partnered with 10 of these agents and they all cap, meaning they’ve earned 100% of their commission. eXp Realty has set the revenue share award for Level 1 agents at $2,800 per agent. This would mean that those 10 agents would bring you a total revenue share payout of $28,000 in that year. All of your Level 2 agents also have the ability to create their own brokerage at eXp Realty. So let’s assume that these 10 agents are able to sponsor 2 agents of their own. This means you will have 20 agents on your Level 2 revenue share program. eXp Realty pays Level 2 agents a max payout $3,200/agent, assuming all the agents’ cap as well, you will receive $64,000 in revenue share from your Level 2 agents. Now the Level 2 agents will create their own brokerage, and all of them each partner with 2 agents each. This gives you 40 agents on your Level 3 revenue share program. And now when these agents cap, you will earn $2,000 per agent or a total payout of $80,000. Now if you add up all the payout from Levels 1 through 3, this will be an annual earning of $172,000 or $14,333/month! That’s a six-figure income with none of the busy work and risk as a managing broker! Would that be life-changing money for you? And keep in mind this is all from passive revenue share awards that you earn from the sales that your agents you’re partnered with make.
| BROKER INCOME FROM REVENUE SHARE | |||
| MAX PAY/ AGENT | AGENT COUNT | PAYOUT | |
| LEVEL 1 – DIRECT SPONSORED AGENTS | $2,800 | 10 | $28,000 |
| LEVEL 2 – SPONSORED AGENT’S’ AGENTS | $3,200 | 20 | $64,000 |
| LEVEL 3 – SPONSORED AGENT’S’ AGENTS | $2,000 | 40 | $80,000 |
| LEVEL 4 – SPONSORED AGENT’S’ AGENTS | $1,200 | 0 | $0 |
| LEVEL 5 – SPONSORED AGENT’S’ AGENTS | $800 | 0 | $0 |
| LEVEL 6 – SPONSORED AGENT’S’ AGENTS | $2,000 | 0 | $0 |
| LEVEL 7 – SPONSORED AGENT’S’ AGENTS | $4,000 | 0 | $0 |
| TOTAL REV SHARE PAYOUT/YEAR | $172,000 | ||
| TOTAL REV SHARE PAYOUT/MONTH | $14,333 | ||
| NOTE: | |||
| REV SHARE PAYS OUT FROM EXP REALTY’S 20% COMMISSION SPLIT | |||
| REV SHARE PAYOUT CAPS AT $16,000 | |||
Of course, this is just an example and it is not easily created overnight. It may take you months or years to build up. However, as you are working on this, you can also continue to be an active agent and produce active agent income. Now you have the ability to create multiple sources of income adding both the active agent income and passive revenue share income. This is absolutely amazing! No other brokerage offers a unique program such as this. Creating a revenue share program such as this allows you as the broker of your own brokerage to build relationships and have aligned interests with the agents under your brokerage. Your sponsored agents’ success on all levels is a reflection of your success. So helping agents on all levels, will in turn come back to reward you. If the agents are unsuccessful and they end up leaving eXp Realty, then you will lose out on revenue share awards. And so it is to your benefit that you help agents partnered with you!
In conclusion, this is how you can build your own brokerage at eXp Realty and have something that you have created. By helping other agents that you’ve partnered with be successful and also helping them build their brokerage, you in turn are being rewarded. If you have any questions for me on this topic or any other topics, please let me know. I’d be happy to discuss this with you.