Business Graphs
Business Graphs

Revenue Share

eXp Realty has revolutionized the Real Estate industry with its business model and resources that cannot be found at any other brokerage. Dedicated to facilitating the success of each and every agent, eXp has a revenue share system that stands in contrast to the profit share systems used by almost every other brokerage. Here's how it works:

eXp's Revenue Share Chart

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Definitions

excerpts from Your Million Dollar Month in Real Estate, by Jim Lowenstern

 

eXpansion Share: "a small percentage of a commission and there is no minimum amount of sales needed per six months for that amount to be paid" (91).

eXponential Share: derived "from the amount of qualified agents you have recruited on your first tier" (91).

The Breakdown

excerpts from "The eXponential Files" and Your Million Dollar Month in Real Estate

 

Tier One

When you are chosen as a sponsor, or you recruit an agent to mentor, you obtain percentages of their commission under the eXp Revenue Share system. The first tier details the amounts acquired from your first four recruits (whether you have one recruit or four, the percentage is the same). On any sale or rental brought in by your recruit, you obtain 3.5% of their gross commission (Ep. 2). In order to obtain this, your "agent needs to have sold at least one property or leased properties that would have paid you at least $5,000 in the last six-month period" (Lowenstern 91). Those "agents on your front line (a.k.a. first tier or level) determine what percentage you are paid on every tier)" (Lowenstern 91). 

Tier Two

Let's say that the agents who have chosen you as a sponsor have now recruited their own agents. With eXp, you can obtain a percentage of those new recruits' commissions as well, detailed in tier two. Your eXpansion share starts at 0.2%. However, "if you recruit five or more agents on the first level who close $5,000 worth of commissions every six months, that 0.2%" increases to 4.0% (Ep. 2). Noted in Your Million Dollar Month in Real Estate, if the agents that you have recruited become sponsors, themselves, you will "earn an extra .5%" of the commission (Lowenstern 93). However, this "will delay how fast you will open up the next level to its maximum payout" (Lowenstern 93). In short, pay attention to and "be careful" of "how you structure your down-line" (Lowenstern 93). 

Tier Three, tier four, and tier five

It is in these tiers that we can see a decrease in all percentages from the previous percentages of tier two. 

Tier Six

It is in tier six when we can see an increase in the percentage offered in the previous three tiers. 

Tier Seven

Finally, tier seven consists of the highest percentages. You can obtain 5% of your recruits' commissions, and "have opened up every level at the maximum" (Ep. 3).  While these seem to be small percentages, they add up to be about 20% in total, offering you quite the deal (Ep. 3). 

Jim's Advice

excerpts from Your Million Dollar Month in Real Estate

"I'd suggest that you only add agents under your first tier if it was based on a promise that you made when you recruited that agent, and I would suggest that you only make those promises to agents that will in some way help you recruit additional agents. Otherwise, just add agents to your front line and let those agents recruit the next level and so on for you" (Lowenstern 93).

 

"The sooner you have the maximum number of front-line qualifying agents FLQA, the sooner that the entire grid pays off for you" (Lowenstern 93).

"I will suggest that you talk to the best agents about eXp as you look for sponsorships. The better the agent the better the program works, and in my opinion, eXp is a great organization for the best agents because it creates income streams that are not available anywhere else in the industry" (Lowenstern 94).