eXp Realty Model eXplained - Why eXp is the Brokerage Model of the Future
April 18, 2018 |
One of the things that excited me the most was being part of a company that I actually have ownership in. When you join eXp Realty, you get shares in the company, and when you attract other agents to eXp Realty, you also get shares in the company.
So not a lot of companies are offering something like that. In fact, I don't know of any in real estate that are offering that. So with the agent ownership program, I get to take 5 percent of my commission and reinvest that into the company at a 20
percent discount, which is amazing. It's like a 401(k) for realtors.
Now if you talk to most realtors, you will quickly realize they don't have an exit plan. You build up a database and some agents will maybe sell the database, but you're limited on what you can do there. With eXp Realty, when you build a great downline
full of agents all throughout the country, that's going to provide a passive income for you year after year after year. If something happens to you, you can will that to your family, and they will get those benefits after you're gone. That's a pretty
Currently, the major brokerages, they have offices all over the world, and you have broker owners in each of those offices. Those people have to pay huge franchise fees to get into that business. With eXp, there are no franchise fees. There are no
desk fees. Quite honestly, the fees are just so low, it's just unbelievable. So you're getting a lot more value, and you have a lot more opportunity to grow your business nationwide through this model. So one of the greatest things about technology
is it allows you to eliminate waste. And this technology that eXp has is doing that across the country because we can eliminate brick and mortar. We can eliminate franchise fees, and we can eliminate so much more. There's no need to have a physical
office anymore, as everyone is walking around with their phone and everyone wants to be mobile.
Cloud Environment & Technology
One of the most exciting things about eXp is eXp World. This is a 3-D virtual world that is your office. You go online, you pop into the world, you have an avatar that basically walks around the office. You can transport from building to building,
depending on who you need to talk to. Right through your computer with a microphone, you can talk to whoever you need at agents services, the transaction team, your broker. Even the founder has an office that you can walk right into and talk to him
at any time. It's really something that is changing the face of real estate. The traditional brick and mortar companies are really going to suffer because this company is eliminating waste for the agents, which allow us to be a lot more competitive
with commissions, with marketing. There's so much more that we can do. Here's the best part. They are giving us a Kunversion website, a CINC website. The CINC websites are normally $1,600 a month. We're getting all of this for $50 a month and an additional
Wordpress site as well. So three websites for $50 a month. I would say that's a pretty darn good deal.
One of the things that excited me the most about eXp Realty is the ability to build a team across state lines. I have a team here locally, and unfortunately if I wanted to grow that team, I would need more space. I would also need to be in the office
all the time. That was not something that I really wanted to be a part of. I felt like I hit a kind of a ceiling within the traditional brokerages. I didn't want to be a broker owner, and I didn't want to be a team leader because you're basically
stuck in the office all the time. As a broker owner, you have to basically ... All of the expenses are just crazy. It's a huge investment to do that. When I found eXp, there was a huge light bulb that went off in my head that I can build a brokerage
or build a team throughout the country, provide them with leads, and I can coach them on a week to week basis. Instead of me just kind of wash, rinse, repeat looking for listings every single day, I could be doing something that is going to impact
my family's future for years and years to come, even after I pass.
Groundbreaking Revenue Share Model
So what is revenue share compared to profit share? See, profit share, you have to pay all your expenses and then whatever profit is left, it's shared between the agents that are in the offices that are producing. So there is ability to make money
there. However, you're very limited, especially in an environment where prices for everything are going up, which means profits are getting squeezed out. There is a chance that very soon, most of these Keller Williams offices will not be profitable
so thus getting rid of any profit share. With revenue share, I know exactly what I'm going to get every single year for every person that I recruit. Knowing that makes me super excited to go out there and talk to agents and attract them to our company,
eXp is a world of abundance compared to the traditional brokerage models is a world of scarcity. If you look at it right now, there's very few listings that are available or very few sales that can be made because there's only 5,800 homes on the market
right now. That only gives you 5,800 opportunities to make a sale. Nationwide, there was 560,000 sales, and there are 2 million-plus realtors out there. So every single day, I have leads coming everywhere from all kinds of different people. I'm getting
leads from title reps. I'm getting leads from lenders. Just people I'm talking to, they're giving me realtor referrals. So now I'm living in this world of abundance, where there's really opportunity everywhere to make money and grow my business.
Better Deal for Buyers and Sellers
So what does eXp provide to the consumer? Basically, this is a battle of the business models. With the traditional brick and mortar offices, they are training agents to be these mega-agents and then with smaller agents underneath them. What that
means is the mega-agent is in the office most of the time. Even on listing appointments and buyer appointments, those are all being sent out to newer agents that are either salaried or on lower commission splits. So that means the consumer is
dealing with an agent that is maybe not as professional or experienced, and that's not very good for the consumer. With eXp, I can build a business that is different. I can do the same model that the big brokerages are pushing, but instead of
doing that, I can have better agents on my team, give them better splits because I'm saving a lot more money in overhead. This move saved me over $50,000 a year just in expenses. That alone, what can I do with that $50,000? Can I put that back
in my business as far as marketing? Can I go out and hire more agents? There's so many more things that I can do. It gives me more flexibility, and that's one of the things I love about eXp Realty.
Push Your Own Brand
One of the major fundamental differences of eXp Realty is that they encourage me to push my brand, which is Bobby Martins Realty Group. The big brokerages, they're always pushing their brand. With this company, it's very refreshing that I can
actually push my brand. eXp Realty is really about value. With all of the things that they do for us, it's just incredible that they can do it at such a low cost. I'm getting everything that I had before at a major brokerage paying a lot of fees
but way more services.
I hope you found this helpful. I want you to reach out to me as a resource, and I'd love to be your sponsor. My number is 858-204-7259. We have lead generation systems already in place and we're providing leads to agents in our downline to help
you build your downline. So I'm 100 percent committed to you to help you build your team out. I've got all the resources covered. We're going to be here for you, so give us a call.