To make more money from the same amount of work would seem to be only a dream. However, realtors at eXp Realty get paid a higher percentage rate than typical realtor splits and actually earn an equity piece of the company while building their businesses.
eXp World Holdings, Inc. (OTCQB: EXPI) is the publicly-traded holding company of eXp Realty, the agent owned cloud-based residential brokerage. The company’s increased payouts and perks helped eXp Realty nearly triple its agent count last year, with over 1,500 new real estate professionals joining in 2016. The company’s Q3 to Q3 trailing revenues were up 112 percent, coming in at $42.6 million.
The dramatic increase in agents and revenues reflects the environment built by the company’s unique business model. eXp Realty believes that the greatest asset of any real estate brokerage is the team of agents and brokers who create the revenues of the company.
Traditional agent-brokerage splits can range from 40 to 70 percent, depending on location and experience. Because of much lower operating costs, eXp Realty agents get paid 80 percent. Agents also get to own a part of the brokerage. They receive 100 shares with their first transaction and 500 shares once they generate about $80,000 in gross commission income. After exceeding that number and paying the brokerage its share, agents then go to a transaction-fee model for the remainder of the year, where they are paid 100 percent of their commission for each transaction minus $250 for the brokerage. To encourage recruitment, agents are further incentivized with 500 shares for each new agent recruited to the firm.
Real estate brokers and agents are sales driven people, and they’re the ones that drive revenues for the brokerage. Agents, like most everyone else, respond to incentives that benefit them and their families. Because it is cloud-based and more cost effective, eXp Realty can offer a commission structure that more greatly benefits its agents and ultimately drives more revenues for the company. Using shares as bonuses and incentives creates coherence between the agents and the company while at the same time enhancing agent retention. The bottom line is that eXp Realty knows how to incentivize and reward its agents, the real revenue drivers in any brokerage.
For more information, visit the company’s website at www.eXpWorldHoldings.com