Many real estate professionals have quantified the eXp Realty commission split as a groundbreaking model to remunerate real estate agents for their work. Agents have shared their experiences with the brokerage and one of the key reasons why they stay or would recommend other agents is eXp’s commission split structure. So, what makes the brokerage’s commission structure unique?
Today, we’ll look in-depth at eXp’s commission structure, how it works, and examples of how much real estate agents can make from a sale.
How eXp Commission Split Works
The commission split at eXp Realty operates on an 80/20 basis. This means that agents receive 80% of the commission from their sales, while eXp Realty receives the remaining 20%.
The split continues until the agent reaches a commission cap of $16,000 in a given year. Once an agent has paid $16,000 to eXp Realty, they keep 100% of their commissions for the rest of their anniversary year.
For example, if an agent earns $80,000 in gross commissions in a single year, they will have paid a total of $16,000 (20% of their earnings) to eXp Realty, thereby reaching their cap.
As an agent, you will only be charged a $250 transaction fee for the next 20 transactions and $75 after that.
Additionally, eXp Realty allows agents to conduct up to three personal transactions per year without the standard 20% commission split. Instead, agents will pay the $250 transaction fee, a $40 risk management fee, and a $25 broker review fee for these personal transactions.
eXp Stock Equity Plan
Apart from the 80/20 commission split, eXp has a stock equity plan designed to allow its agents and brokers to become shareholders in the company. The plan is meant to align the interests of the company with those of its agents.
eXp Stock Equity Plan offers several ways for agents to acquire shares of eXp World Holdings, Inc., the parent company of eXp Realty. Here are the main components of the stock equity plan:
1. Sustainable Equity Plan
The Sustainable Equity Plan is designed to reward agents for various achievements within the company. Here are the key milestones and the associated stock awards:
- First Transaction Each Year: Agents are awarded stock when they complete their first transaction in each anniversary year. This encourages consistent participation and investment in the marketplace.
- Reaching Commission Cap: When an agent reaches their annual commission cap ($16,000 paid to eXp), they receive a stock award. This milestone rewards high-performing agents and aligns their success with the company's growth.
- Sponsoring Agents: Agents who sponsor new agents into the company receive a stock award when their sponsored agent completes their first transaction. This incentive fosters a culture of mentorship and growth within the agent community.
2. Agent Equity Program
This program allows agents to directly invest in the company by allocating a portion of their commissions towards purchasing eXp World Holdings stock at a discounted rate:
- Opt-In Program: Agents can choose to participate in this program by opting to allocate 5% of their earned commissions to purchase company stock.
- Discounted Purchase: The stock is purchased at a 10% discount to the fair market value, offering agents a direct financial incentive to invest in the company's future.
3. ICON Agent Award
The ICON Agent Award recognizes and rewards the highest-performing agents who also embody the company's values. It offers substantial stock awards based on achieving specific performance and cultural criteria:
- Performance Criteria: Agents must meet certain production thresholds, such as a specific amount of gross commission income or a certain number of transactions within their anniversary year.
- Cultural Contribution: Candidates for the ICON Agent Award must also demonstrate a significant contribution to the eXp Realty culture. This might include participation in company events, mentorship activities, or contributions to training and development programs.
- Stock Award: Eligible agents can receive up to $16,000 in eXp World Holdings stock. The award is granted in restricted stock units (RSUs) that vest over a specified period, typically a couple of years, encouraging long-term commitment and engagement.
Comparing eXp Realty Commission Split with Other Real Estate Brokerages
Coldwell Banker
- Commission Split: Coldwell Banker's commission splits can vary significantly by office. Newer agents often start with a 50/50 split, while more experienced agents can negotiate higher splits, sometimes up to 85/15 in favor of the agent.
- Caps: Some offices have a cap system where after an agent has paid a certain amount in commissions to the brokerage, they can earn 100% of their commission for the remainder of the year.
Keller Williams
- Commission Split: Keller Williams typically offers a starting commission split of 70/30, with 70% going to the agent and 30% to the brokerage.
- Caps: Keller Williams features a cap on the amount of commission income that goes to the brokerage annually. Once an agent reaches this cap, they keep 100% of their commissions for the rest of their fiscal year. The cap amount can vary by market center due to differences in local real estate markets.
Compass
- Commission Split: Compass provides competitive commission splits that are often negotiated on an individual basis. Splits can range widely based on agent productivity, market dynamics, and other factors. Some reports suggest that splits can start around 80/20 in favor of the agent.
- Caps: Information about Compass' cap system is less publicly available, as deals with agents are often customized. However, like other brokerages, Compass may offer a cap after which agents can earn 100% of their commission.
Century 21 Real Estate
- Commission Split: Century 21's commission splits also vary by franchise. New agents might see splits similar to those at Coldwell Banker, starting around 50/50, while experienced agents can negotiate for more favorable splits.
- Caps: Century 21 may also have cap systems in place, though specifics can vary by franchise. The cap concept is similar to Keller Williams, where agents can earn 100% of their commission after paying a predetermined amount to the brokerage.
Would You Like to Know More About eXp Realty?
ICONS of Real Estate is your gateway to understanding the groundbreaking opportunities at eXp Realty. It's an institution of real estate agents that borrows much from eXp Realty’s adoption of technology. ICONS of Real Estate is for agents who are eager to elevate their careers to unprecedented heights.
Central to our discussion is the eXp Realty and how agents can take advantage of the brokerage’s numerous offers. We have created a regularly updated eXp ICON guide for our partner agents.
Learn about real estate marketing, branding, and networking with ICONS of Real Estate. Our agents who are in eXp Realty can also be your mentors if you are looking to get into the brokerage. For more information, schedule a consultation call with one of our representatives today.
Frequently Asked Questions about eXp Realty’s Commission Split
The eXp Realty commission split for agents is typically an 80/20 split, where agents keep 80% of the commission and 20% goes to the brokerage until the agent reaches their $16,000 cap.
eXp Realty sponsors can earn a revenue share from the sales of the agents they sponsor. The specific amount depends on the level of production of their sponsored agents and the revenue share structure of eXp Realty.
Yes, it's possible to join eXp Realty without a sponsor. If an agent does not have a sponsor upon joining, eXp may assign one or allow the agent to select one at a later time. However, new agents are encouraged to have a sponsor before getting into eXp Realty.
A sponsor will act as a monitor and act in your best interests because your success is tied to his commission. If you need a sponsor, contact ICONS of Real Estate.
Yes. eXp Realty provides its agents with a range of technology tools, including a personal website. This website is part of the technology and marketing package available to all agents.
If you need a sponsor, contact ICONS of Real Estate. Alternatively, network with existing eXp agents, participate in eXp events, or use social media platforms to connect with them.
Real estate agents find eXp Realty preferable due to its innovative cloud-based model, generous commission splits, cap system, and stock ownership opportunities. These features might offer a more flexible and potentially lucrative framework than traditional brokerages.
Capping at eXp Realty means an agent has reached the threshold where they have contributed $16,000 to the brokerage through their commission split. After reaching this cap, the agent retains 100% of their commissions for the remainder of their anniversary year.