eXp Realty explained the right way, breaking down the eXp Realty business model.
PLUS at the end I’ll show you what we’re doing at Invested Agents to help our agents grow their real estate business, build wealth, and create the lifestyle they deserve.
This video covers:
– Founder & history
– Core Values – Innovated business model
– Training Platform with over 50 hours of live training each week
– Mentorship Program and New Agent Training
– Marketing Center
– kvCORE Lead Generation & CRM Platform
– International Collaboration
– Support from over 600 employees, brokers, and staff – eXp World & Workplace
– eXp Realty Compensation: Commission, Equity Program, and Revenue Share
– eXp Realty Fees
– eXp Realty Healthcare
– ExpressOffers
Transcript:
Hey everyone. Today I’m going over the eXp business model the right way and show you why it’s the greatest opportunity that agents have to grow their business and build wealth. I got started in real estate back in 2005, when I flipped four houses while still in college. In 2011, I got married and my wife and I started buying rental properties to build wealth and passive income. I got my real estate license in 2014. Then in 2015, I finally went full time and haven’t looked back since.
All in all, I’ve been a part of over 300 transactions and use more than $17 million in private lending funds to flip houses and build our rental portfolio. And I spent a lot of time focused on a organization called Invested Agents where we teach agents how to build wealth, increase their income and create the lifestyle that they truly deserve. It was 2018 when a friend of mine introduced me to eXp Realty. He’s a very successful real estate agent and investor and entrepreneur and his company had previously been on the Inc Magazine’s top 5000 fastest growing companies in America and I knew if it caught his attention long enough to sit down and look at it, it was worth a few minutes of my time as well.
So many agents are missing out on the opportunity with eXp Realty because of lack of information or misinformation. But after this presentation, you’re going to have a complete understanding of the eXp’s history, disruptive business model, unmatched compensation plan, immersive training platform and all the tools and technology that you can use to grow your business. Plus at the end, I will show you how my team is teaching agents how to invest in real estate to increase their income, build wealth and create the lifestyle that they deserve. With any company you’re considering partnering with, it’s important to know the founder and the history of the company. Glen Sanford is a visionary leader.
It’s been an online lead generation pioneers since the “.com” era. He took his online lead generation experience to the real estate industry in the early 2000’s and grew a $60 million business within four years. $60 million dollar businesses huge today, but back in the early 2000s he’s one of the top agents in the country despite being a fairly new agent. Then in 2008, the financial crisis happened and he’s watching agents and brokers go out of business. That’s when he realized that the traditional brokerage model was outdated and needed to change. Knowing that agents and brokers work hard, he wanted to make sure that they benefited by becoming shareholders and they’re compensated based on the contribution to the company that they’re helping build. So in 2009 he founded eXp Realty.
Around two thirds of agents and brokers ended up going out of business during the financial crisis, but eXp actually expanded into 11 states in it’s first year. In 2003, it became a publicly traded company, it went international in 2014. In 2015, they launched two unprecedented programs that resulted in triple digit growth. In 2018, eXp was uplifted to the NASDAQ, which put a huge spotlight on how quickly we’re growing. eXp now has over 35,000 agents with more than 1000 joining every single month. This level of growth has never been seen before in the real estate brokerage industry. It’s a direct result to the overwhelming value that eXp is providing its agents.
Beliefs shaped companies, and these are eXp core values, a few of them that have stood out to me are they’re very agile, innovative. Real estate’s changing too rapidly and Glenn, he realizes how important it is to move quickly, with a market while, constantly adding to eXp’s value proposition. Sustainability is another important value because eXp was created during a recession and built to thrive in both up and down markets. Collaboration is another huge value that sets eXp apart from all other brokerages and we’ll show you more on that in a minute. Let’s take a look at eXp’s disruptive business model.
It’s no secret that cloud based businesses have changed the landscape of nearly every industry. But then a few short years, Netflix and Amazon overtook large traditional companies like Blockbuster and Circuit City. You remember those. Every year 1000s of brick and mortar businesses closed because of cloud based competition that can operate faster, lower costs, and higher profit. And, that’s exactly what eXp is doing to the brokerage industry. One huge difference though, is eXp is not a franchise. This is a huge difference between a lot of the big realty companies out there.
We are one international company that’s revolutionizing the industry. Unlike other brokerages, we don’t have expensive overhead costs. That savings is passed directly on to the agents. There’s no desk fees, or franchise fees, or royalty taxes or anything like that. eXp agents use the cloud and technology to work paperless from anywhere which agents are really doing anyway at other brokerages. They’re just having to pay for a lot of fees that they shouldn’t have to pay for. eXp training platform provides over 50 hours of live training every single week. 50 hours of live training from industry leading brokers, and agents, and team leaders on topics like lead generation, social media, sales and marketing, technology and tools and so much more.
The only thing I can equate this to, it’s like this training platforms like an immersive continuous paid boot camp that you go to anytime you want. You just hop in a cloud and its all free and you’re getting to learn from the top agents in the entire company. It’s truly amazing. No other brokerage can come close to this level of training. Speaking of no other brokerage can touch is the support the real time support that eXp is providing its agents. They have over 600 employees that are ready to support agents from tech support, accounting, broker support, and anything else agents need. Supports provided live in the cloud, on workplace, and also by phone and email.
You can call your broker, you can email your broker, text your broker, there’s just so much support that not any other company out there can provide this level of support. It’s truly phenomenal. And one of the most exciting parts about eXp’s model is the collaboration opportunity. Because we’re one large company and not a franchise, you can interact and learn from other leading agents and professionals as if they were in your backyard. Also, you can build teams and expand your personal brand across borders without increasing your expenses because we’re one company. You only have one set of fees with one national cap.
eXp is rapidly expanding internationally. We recently added South Africa and several other countries on the expansion list for 2020. It’s amazing as all that is, what I’m about to show you, is what’s dramatically changing lives for agents. Glenn understood that with traditional brokerages agents could work hard for years without gaining any equity in their business. Most agents don’t realize this, years of working 50 and 60 hours a week for something without earning any equity in their own business. But with the eXp, agents have three streams of income.
For the first time ever, agents can now build a retirement for themselves while growing their business. Agents earn equity in the company five different ways. eXp is a publicly traded company on NASDAQ. eXp is a symbol, and this Sustainable Equity Plan. When you complete your first transaction every single year, you’ll get awarded $200 of stock in a company. When you fully cap, you’ll get awarded $400 in stock. And when you sponsor another agent into the company, when they do their first transaction, you’ll get $400 in stock.
Then there’s an ICON Agent Award. eXp has a $16,000 cap, but for agents that hit a certain production, they’ll actually get their $16,000 refunded back to them as a stock bonus. This is an amazing game changing award program for a lot of agents, and they can do this every single year. Then there’s the Agent Equity Program. This is a optional program but agents can opt to have 5% of their commission and buy stock at a 10% discount. I like buying real estate at discount. So if I can buy a publicly traded company a discount, it seems like a no brainer.
With the stock awards, there’s a two to three year vesting period depending on the award. A portion of the ICON Agent Award is fully vested when you attend the annual events. The Agent Equity Program, this is your money after 60 days, it’s yours and once you’re vested you can do anything you want with it, you can keep it, you can sell it, it’s absolutely yours. I haven’t sold any stock at least as of recording this video, but it’s your money once you’re vested. The next stream of income available agents is through the Revenue Share Plan. Without having to pay for brick and mortar and other redundant costs, eXp is able to run the company off 50% of the income it receives. The other 50% is given back to agents through revenue sharing.
Essentially it’s like Amazon sales for real estate. Here’s how it works, any agent that you personally refer to eXp would be on your tier one. When that agent earns commission eXp will pay you 3.5% of the gross commission amount. That money does not come out of the agent’s pocket, comes out of eXp’s pocket. Any agents that, that agent refers to eXp would be on your Tier 2 where you can earn up to 4% commission. That will continue on down seven levels. You know your earn a smaller percentage all the way down seven levels regardless.
But, once you have a certain number of FLQA or frontline qualifying agents, these are agents that actually sell things, we all make money when homes are sold, that will open you up to the higher percentage, the exponential share percentage, all the way down seven levels. As an example to open up all seven levels you would need 40 FLQA’s to get all seven levels. If you had 10 FLQA’s you would have the higher percentage or at least your first three levels and then the smaller percentage down tiers four through seven. This is the greatest affiliate sales program ever, is dealing with real estate, not with small ticket items.
It’s truly amazing and this is changing lives, changing agents lives. Just as an example of how this is changing agents lives, saying next five years you were to refer 10 capping agents. You can earn up to $2,800 a year for each capping agent. So 10 capping agents as $28,000 of passive income every single year, not bad. Now over time, if those agents were to refer one additional capping agent who also referred one additional capping agent, the revenue share income starts to grow exponentially.
Now there’s no recruiting requirement, obligation, pressure to recruit anyone at anytime. However, even casually introducing friends and colleagues over time, it can build a very rewarding passive income stream for your family. Now you may have heard of eXp World, is what eXp agents call our virtual office. It was created by a company called virBELA and that company has since been bought by eXp. In this virtual campus is where over 600 employees are ready to assist you from tech support, accounting, brokers and more.
It’s also where training and collaboration takes place. On the right, is one of the auditoriums where large meetings and trainings are conducted. And just like in real life, when you’re walking around the world, you can talk and interact with anyone around you or the presenters. You can view presentations and zoom in on slideshows and so much more. Fun is also part of eXp’s core values and they took it to the world. There’s a soccer field and I’ve even been told that there’s games that happen during the week and there’s a boat and what’s even more amazing is the world hasn’t only transformed how eXp operates.
Since COVID is grown over 360% with clients now including organizations like Microsoft, Dell and governments and universities. Now let’s take a look at the tools, resources and services that eXp provides. Up to a third of real estate agents are uninsured, with that in mind eXp launched a health care program for all agents. This may not be anything that you need currently, but having an option to get quality health care at a good price is always a good thing. And for some it’s a huge benefit, my friend saved his family like $700 a month whenever he switched over to eXp’s coverage.
eXp is providing agents with industry leading tools and services so they can stay competitive and grow their business. Enterprise is your back office where you can track your production performance, equity awards, and quickly access all the other resources that eXp provides. Skyslope allows agents to manage their transactions completely paperless it uses a simple color coded system for the broker team to review documents and transactions quickly so you can get paid at closing. Workplace by Facebook is a lot like regular Facebook except for it’s built only for work, it doesn’t have all the distractions like regular Facebook.
eXp was one of Facebook’s first clients to test this platform. It allows you to communicate and collaborate with the entire company of agents without getting distracted by cat videos, announcements, file sharing, video broadcast, training and so much more done within workplace. And then there’s kvCORE. We can go into so much about kvCORE. It’s a third party platform that any agent can get access to for about $500 a month. But for eXp agents, it’s completely free. This is a cutting edge Rolls Royce full scale CRM and lead generation platform. It’s designed to capture leads and stay in communication with leads so they don’t get lost and fall out of your database.
There’s marketing campaigns, analytics, behavioral automation, follow up systems, squeeze pages, and so much more that make this platform a complete game changer. In the Marketing and Branding Center, eXp has over a hundred marketing materials available for customization, including flyers, brochures, social media, graphics, listing presentations, and so much more. And as long as you comply with state laws, you’re free to use your own branding and your own colors and logos on any of this.
There are so many other services eXp offers but this video would be hour long. What I would like to highlight is ExpressOffers. The iBuyer market is growing and eXp wanted to make sure that we had a solution provide clients while keeping agents in the transaction. ExpressOffers is a platform agents can submit their clients homes to get offers from potentially multiple iBuyers and if the seller chooses an iBuyer, agents earn commission. Plus, if the iBuyer flips the house, the agent gets the opportunity to list it when it’s ready to sell again. This is a highly, highly effective lead magnet, to help real estate agents convert more listings.
Now, can you understand why eXp has been growing so quickly and why everyone’s so excited and you’ve probably had multiple people talking to you about eXp.,We’re a disruptive real estate company for all the right reasons that’s been called the Amazon of Real Estate, but more importantly, we’re changing agents lives. These are just a few of the accolades that we’ve received. Here’s what the commission breakdown looks like when you join the eXp. Commission is on an 80 / 20 split with a $16,000 cap. Once you cap, which is about $2.6 million based on a 3% commission. You switch to a $250 flat fee per transaction.
When your flat fee totals to 5000 are basically another 20 transactions, you’ve hit ICON status. That’s when you’re eligible to get your cap refunded back to you as a stock award. Plus your flat fee drops again to $75 for the remainder of your capping year. To get started with the eXp, it’s $149. That covers your first month and 1,000 business cards. After that it’s $85 a month. That covers everything from kvCORE, Skyslope, the World, the traing platform and everything else we’ve talked about. There’s a $25 broker review fee on every transaction.
This is the broker going through doing an audit and check to make sure everything looks good and nothing’s missing that might cause an issue. And then on every transaction there’s a $40 risk management fee, but this one caps at $500. So once you’ve paid a total of $500 of risk management fees or E&O fees, you don’t have to pay this fee anymore for the rest of your calendar year.
I know this is like drinking water from a firehose, it is a lot. And that’s why it’s such an amazing opportunity for agents. If you can take a couple extra minutes almost show you some of the amazing things that we are doing for our team to help them build their business, increase their income, and create a lifestyle that they deserve.
First, I’d like to go over a couple myths. You don’t have to recruit anyone, anytime, anywhere, there’s no obligation or pressure. Focus on your business and if you have someone that might be interested in joining eXp, just make an introduction to me by phone, or text, or email, and then me or someone, our team will connect with them and when they’re ready to join, they’ll join under you.
The next myth is, “I won’t have any support” and that’s just completely not true. They have over 600 employees ready to assist you pretty much all hours of the day. There’s over 50 hours of live training every single week, you got your local brokers support and then for new agents, you’ll actually get paired with a mentor to work with you on your first three transactions. So eXp has you completely covered with support. The next myth is “It sounds great, I just need to wait.” I like the quote by Sheryl Sandberg, COO of Facebook when she said, when you’re offered a seat on a rocket ship you don’t ask what seat, you just get on.
There are no contracts binding you to eXp for any length of time. You can come and go anytime. Agents that do need a little time to transition their business can submit a letter of intent to make the transition happen whenever they’re ready like flipping a switch. Our team, okay, here’s what we’re doing. A mentor of mine mentioned this story, an agent came at a conference and said “Hey, I’m in real estate” and Jim said “wonderful how many properties do you own?” Agent said “no, I sell real estate” Jim said, “yeah, but how many properties do you own?” And that mentor is Jim Rohn not a personal mentor, but someone I’ve learned a lot from over the years and he went on to tell this agent that “you sell real estate to make a living, but you buy real estate to make a fortune.” And then there’s Warren Buffett, if you don’t find a way to make money while you sleep, you will work until you die. The world’s greatest investor.
eXp not only helps agents build their businesses, but it also provides them with the ability to build wealth through the equity program and passive income through the revenue share program. You can build a retirement all within eXp, but you should still learn how to invest in real estate. Here are a couple agents on the team that will be able to help you. Connor Steinbrook up in the Dallas, Texas area will be your upline support. He got started with real estate back in 2014. And in 2015, he started a YouTube channel called Investor Army that has since grown to one of the top 15 channels for real estate on YouTube across America and he has over 1.8 million views on this YouTube channel.
He is now an eXp top 100 influencer with a revenue share team of over 500 agents across 30 plus states and Canada. In 2020 alone, his team sold over 1000 houses. Brant Phillips is a friend of mine and he will also be a part of your upline support. He’s in the Houston, Texas area. He got started in real estate in 2007 when he was buying rental properties. Then in 2009, got his real estate license, went full time, started of flipping houses 2010, joined the eXp 2018. He is now a two time ICON agent who’s flipped over 300 houses, used more than $40 million and private financing to fund his deals, he’s buying mobile home parks all across the country now.
He has 120 agents or more across 14 states, on his revenue share team and he’s accumulated over 5,800 shares of eXp stock. You know Invested Agents has nothing to do with the eXp, it’s just what I’m doing as a real estate investor to teach other agents how to increase their income, build wealth and create the lifestyle that you deserve through real estate investing. Now I’ve collaborated with other successful investors like Brant and Connor to put together a mastermind for agents on the team to take advantage of.
I’m going to switch screens and show you a little bit more about Invested Agents and what it has to offer. REI Fundamentals is the cornerstone of Invested Agents, have over 150 training videos that Brant Phillips put together over the years of teaching and mentoring hundreds of other agents and investors on how to build a sustainable, successful real estate investing business. He teaches you everything from the mindset needed to succeed, to how to find deals ,and analyze deals, how to raise money in private lenders to fund your deals, how to analyze deals for a flip or for a rental and how to estimate rehab costs and manage contractors and so much more. There’s recorded coaching calls and weekend bootcamps.
There’s a ton of value just in this course along in. And Connor Steinbrooke has his YouTube Mastery course on how he built his YouTube channel so quickly and how to do it the right way. We have a weekly investor mastermind call, a weekly team building mastermind call, ongoing agent training, a private Facebook group and then I’ve got a Slow Flip Playbook that breaks down how to build wealth and passive income through rental properties with real estate investing. That is a lot, so just to recap as an eXp agen you will receive three income streams Commission, Equity and Revenue Share.
There’s no desk fees, no franchise fees, no royalty fees. Over 50 hours of live training every single week and tons more. Recorded and archives. kvCORE, the Rolls Royce lead generation and CRM platform. The ICON Agent Award, health care, ExpressOffers iBuyer platform, the Marketing and Branding center, Workplace by Facebook and then what we’re doing with our team Invested Agents and all the training for how to be a real estate investor and increase your income and build wealth and passive income and create the lifestyle you deserve.
I hope you have a greater understanding of eXp Realty’s business model and its compensation plan and all the tools and everything they’re offering agents. If you’d like to join the eXp, click the link below or you can go to www.InvestedAgents.com/Team. Feel free to send me an email at chris.bounds@eprealty.com. So if you liked this video, click the like button below. Share your thoughts in the comments and don’t forget to subscribe.