Maybe you’ve heard some good things about eXp Realty, and you’re thinking of joining.
Perhaps you’ve read some not-so-favorable (bad) eXp Realty reviews and are on the fence.
Either way, I’ll give you a list of eXp Realty’s pros and cons that can help you make a decision.
Before entering any venture selling real estate, it’s good practice to figure out what you’re in for.
So, you’re on the right track!
Will it benefit you in the long run or ultimately be a waste of time?
Well, let’s weigh out the pros and cons, shall we?
A Brief Background On eXp Realty
eXp Realty is not your traditional real estate brokerage.
eXp is a cloud-based real estate brokerage.
Glenn Sanford, a man with a passion for both online businesses and real estate, founded eXp in 2009.
Starting in the US, he established the first virtual real estate agency to attract agents and buyers alike.
The real estate industry is a grueling one, and Glenn decided to build a company that would provide agents and brokers with better perks and lower costs.
Just five years later, in 2017, eXp had 10,000 agents all over the world and had even made its way to Canada.
The recent years have been phenomenal for eXp’s development.
eXp Realty currently boasts more than 80,000 agents worldwide.
This brokerage also has remote offices for agents in South Africa, France, Portugal, India, the UK, Australia, Hong Kong, and Mexico.
Working At eXp Realty: The Pros and Cons
Now let’s get to the gold of this article: the pros and cons of joining eXp Realty!
Every business decision will impact you in some way, so it’s best to anticipate what’s in store for a would-be eXp Realty agent.
Nice Split and Cap
At eXp Realty, the commission is shared 80/20 between the agent and the brokerage.
This split is capped at a total gross commission paid into the company of $16,000.
Let’s assume a real estate agent has a single year in which they earn a total of $80,000 in gross commissions.
They will then be required to pay eXp Realty 20% of that amount.
After an eXp agent has reached their commission cap, they will get 100% of their commission for the remainder of the year.
However, they still have to pay a capped real estate transaction charge, a risk management fee, and a broker review fee.
This is a pretty solid split.
[Splits are just one of approximately 7 ways you can make $$$ at eXp — watch this video I recorded about them while my license was at eXp]
Pretty impressive the ways you can make money, like mentioned in the video, right??
After all, Glenn Sanford’s dream was to build a real estate company that would reward its agents fairly for the hard work they put in.
But eXp has an ICON program, and you can actually get back the $16,000 that you paid to the company.
The remaining $16,000 of your earnings will then be converted into the stock that is held exclusively for you.
The platform’s monthly cost of $85 is more than covered by the income generated here.
Tech and Resources
Every agent at eXp Realty has access to the following resources:
- eXp World – This lets you connect and collaborate with other agents.
- kvCORE CRM – This helps you manage your customers and create single-property sites. You can build as many landing pages as you wish!
- SkySlope – This helps you handle transactions and manage documents relevant to your real estate business.
Additionally, eXp has formed a partnership with Regus, a company that can locate and provides office spaces in any location on the planet!
eXp offers choices for those who need more than the standard work-from-home lifestyle.
At eXp, you can earn equity in five ways:
- When your sponsored agent makes their first transaction
- When you become an ICON agent
- When you make your own first transaction
- When you reach your cap
Agents may also buy discounted stocks with their commissions!
Agents will have access to hundreds of hours of on-demand teaching from industry experts if they go with eXp to sell real estate.
Whether you’re looking for instruction in marketing, sales, or negotiation, you’ll have it all.
[All of the above were some reasons I moved my license a few years ago over to eXp. Watch the video below to learn the rest of them!]
What did you think about my reasons for wanting to join eXp Realty?
Were they good ones?
Ok, let’s keep on…
You are eligible for a revenue share from the 20% of an agent’s commission that is retained by eXp if the agent you recruit chooses to work under your sponsorship.
This was one of my main motivators!
I imagined having folks from around the world on my team.
A global real estate team!
However, this is optional.
You don’t have to do this if recruiting isn’t your thing.
In fact, the recruitment aspect is one of the cons we’ll talk about shortly.
The iBuyer Program
Your customer has the option of getting an instant cash offer online from one of the iBuyers who are competing for their property.
This way, you won’t need to manage offers that come your way.
It’s a nice perk to be able to offer your real estate clients.
Because of eXp’s scale, access to healthcare services is an option.
Ok, you’re probably wondering what the cons of eXp Realty are.
Here they come…
Persistent Eager Beaver Agents
The revenue share program has the potential to be profitable.
That’s why a lot of agents put all their efforts into “agent attraction” to get more out of it.
Sadly, not all agents grasp how to communicate in a natural and open manner.
They tend to come off as overly sales-oriented, which can be pretty annoying.
These agents get overly excited, inciting more negative perceptions of eXp as a whole.
Worst of all, they join eXp without having a solid strategy for creating sponsorship relationships.
Some real estate agents get anxious about the unclear financial future presented by online brokerages.
This is especially the case in light of the recent shift toward revenue-sharing arrangements.
It is still a relatively new concept.
eXp Realty will have to navigate this as they continue to grow.
People have the impression that real estate brokers are only “recruiters” for a multi-level marketing scheme (MLM).
Some think eXp has very little to do with actually selling properties.
Ha, how dare they?!?
Fortunately, as eXp sales have surged in the past few years, this view is progressively fading.
Related Reading: eXp Realty Vs. Keller Williams – Read The Full Comparison Here.
Learning Curve For A Cloud-based Platform
Most eXp agents work virtually, and this seems to work out for them (I love remote work).
For others, they’d much prefer to work at brick-and-mortar offices.
Maybe they need a workspace outside their homes to focus.
Perhaps an office helps them to stay accountable for their work life.
There’s also a learning curve for the eXp Realty tech stack.
Stay flexible and be willing to learn.
Working in a cloud-based brokerage can be intimidating.
There’s a lot of cutting edge technology at this brokerage, but you’ll have to learn a lot.
This includes everything from:
- The CRM system
- Transaction management
- Your website
- Lead generation tools
- eXp World
And you’re supposed to figure all this out without coworkers in nearby cubicles.
Of course, all the resources you need to make sense of this are available to you online.
It doesn’t hurt to have a reliable sponsor who can assist you with all the tools of the business.
This help will be invaluable as you get your business off the ground.
Tips For Succeeding At eXp Realty
As you weigh the pros and cons above, here are some pointers should you decide to join eXp Realty:
Get Ready To Put The Work In
Where you are brokered matters very little if you don’t have the right work ethic.
Agents are in charge of their own enterprises.
It will be difficult to succeed if you aren’t willing to work hard, hustle, and obtain the necessary skills and education.
You’re also going to have to establish a social media presence and follow up on the leads that come your way.
Obtaining a license is only the start.
It is your personal work ethic that will determine whether you are successful after joining eXp Realty as a new agent.
Anywhere they wind up, real estate agents with hustle are immensely successful.
And if you work hard, becoming a new agent at eXp Realty will be totally doable.
Arm Yourself With Knowledge
Excellent training is only useful if you are eager to attend them and are making an effort to maximize every session.
Even the best class is useless if the student is uninterested in learning anything.
You are well on your way to being a prosperous real estate entrepreneur when you combine a passion for studying with first-rate instruction at eXp.
Choose The Right Mentor
As a rookie agent, it doesn’t matter how hard you work if you don’t have anybody to ask for guidance.
There is a sponsor available to help set you on the right path at eXp Realty.
You have complete control over who your sponsor is that helps get you going signed up and going with eXp.
When you sign up with eXp Realty as a new agent, you’ll be assigned a local certified mentor.
Your mentor can provide the one-on-one attention you need to reach your goals.
The mentor will serve as your primary source of training and support throughout your career.
There you go; I’ve outlined the pros and cons of working with eXp Realty.
eXp truly is a cutting-edge online brokerage that offers multiple revenue streams.
But the new technology, the emphasis on the internet, and some extremely “sales-y” agents all make it more challenging to get acclimated to how things are run there.
There’s no perfect solution when it comes to finding the right brokerage, but I hope you find this article helpful in forming an opinion about eXp.