Mapping Your Financial Future: Building a Passive Income Stream
This training system is designed for eXp agents to create a 6 figure “passive” income through the unique revenue share model.
It’s designed in such a way that agents focus 95% of their time on the core business of “selling real estate” with 5% devoted to “referring agents” to eXp.
Before we get into the details of the 95/5 System, I would like to explain how and why this training was developed.
I started my real estate journey in 1984, at the age of 20. The majority of my career was with Re/max and I eventually became a commercial agent. I was long retired from selling real estate when my son Matt was licensed in 2014.
Rob Flick and Gene Frederick introduced me to eXp in 2015. It was impressive on paper, however there were only 600 agents , and the stock was trading at 50 cents. The Agent Equity and ICON Program were just launched, so it was the very early days.
I live in Ontario, Canada and It was too soon for eXp to launch, so I quietly monitored the progress.
By mid 2017 eXp was ready to open Ontario, so my son Matt and I, along with my good friend Steve Gabellini helped pioneer Ontario and Canada.
Our first 6 months building eXp was depressing. After countless presentations, we hardly had any traction, although several agents seemed intrigued with the idea.
In Jan 2018 I attended an “agent attraction” event in Mexico hosted by Gene and Rob who were the #1 and #2 Rev Share earners in eXp.
Rob Flick is our personal sponsor and Gene Frederick sponsored Rob. I showed up early every day and sat in the front row. I recorded many of the speakers, took pictures with the leaders and learned so much.
During a golf outing with Gene and Rob, I was expressing my concern that we only had 4 personals and a team of 8, after 6 months. That’s when I got the “talk” from Gene. He assured me that everything we were experiencing was normal.
He explained that the success stories with Revenue Share Teams of 100, 300, 500 and even some over 1,000 agents didn’t happen overnight. Most of these agents had been working the business for two to three years and we were only in month six.
The analogy he gave me was this:
“In Texas we sometimes sell homes out of a trailer. There are no streets, just a plan. Only certain types of buyers are willing to buy at the trailer stage. These are the early adapters, and they’re rare. Then the streets go in and a model home goes up. Now there is another group of buyers willing to buy at the model home stage. Once the subdivision is complete the masses arrive.”
We were clearly at the trailer stage in Canada in 2017 and 2018!
When we began this journey Matt had only been an agent for 2 years. We agreed that it would be a mistake for him to focus on agent attraction.
“The Connector / Presenter Concept”
Matt and I created a partnership and a business plan we called 95/5. Matt would spend 95% of his time devoted to building the transactional side of his business through the training platform and lead generation tools like KVCore.
5% of his time he would learn how to “connect” agents to me. I spent 95% of my time learning the model and how to “present” the opportunity and run a “cost analysis”.
The graphic below shows our journey.
The Power of Exponential Growth
It all began July 1, 2017, and if you had asked us back then, we assumed we would have a large team by the end of the year. We were way off!
After 6 months Matt personally had 4 agents on tier 1, a team of 8 and a grand total of $2500 rev share in 6 months.
By the end of 2018, the team had grown to 100 agents and rev share was a respectable $61000.
2019 was very interesting. While he only brought in 4 new agents our team grew from 100 to 400. We were implementing the 95/5 concept with our team and it was working!
The majority of my time was spent helping agents on our team by becoming their presenter and running cost analysis reports for their prospects.
By 2019, we had many success stories of agents earning monthly Revenue Share. In many cases this paid for their entire cap and all business expenses. We had others earning substantially more. On top of this, agents were earning stock every year and getting more and more excited about sharing this with colleagues.
Once these success stories happen, the excitement and confidence in the model spreads and exponential growth begins.
2020 the same growth took place. He only added 4 new agents and the team doubled to 800. Now the revenue share was exceeding Matt’s production income, so we changed our plan. He created a team and his younger brother Michael started working on the transactional side so Matt could devote more time to building revenue share.
2021 the momentum continued, growing to over 1400 agents in 8 countries and the “passive income” surpassed $600,000.
Matt currently has over 1700 agents in 12 countries and grows by approx. 50 agents per month.
It should be noted that the company only counts agents within the first 7 tiers in the revenue share dashboard. We have hundreds of agents on the tiers below the 7th tier that are not counted in the total.
With rev share, there is no paperwork and the company globally tracks every single sale in real time. You can see the numbers change daily, Monday through Friday, as our corporate transaction teams are processing trade records and paying out agents.
I love the ability to travel to new places and connect with agents. Now that eXp is in 24 countries, my wife and I have an entire new bucket list of travel plans. The nice part is that a portion of the trip is tax deductible because it’s a working trip!
Over the last two winters we have spent our time in Mexico, California, Hawaii and I’m currently writing this article from Costa Rica. I spend a few hours each morning on Zoom calls doing meetings for agents on our team.
It’s now been nearly 6 years since we joined eXp and began the process of building a revenue share team. We have learned so much about what works, what doesn’t work, as well as the cultural differences between the various countries.
The major thing we learned was that working as a team is the key to success. Agents are busy and consumed with their transactional business, making it a challenge to learn everything about rev share and the stock program.
Over the last few years, we have been training agents how to duplicate our system and it’s working. Our data shows that agents who do part-time agent attraction on a slow and steady plan, ultimately begin to see growth take place. For many, it’s like having a guaranteed sale every month with no paperwork!
As our revenue share team grew, it became necessary to create a step-by-step training on everything we have learned. We decided to document our business plan and called it “The 95/5 Rev Share Training System.” It is the culmination of several years of trial and error that is boiled down into a step-by-step action plan for your success.
One of the keys to our growth is our 3 Step eXp Business Evaluation. It begins with an 8 minute “Intro Video”. If the prospect is intrigued they move to Step 2 which is “eXp Model eXplained Video” Step 3 is a cost analysis and rev share projections based on an agent following the 95/5 system.
The entire system is explained in the 80 page manual which includes scripts, video links and samples of how I do the cost analysis.
We are sharing this with everyone in eXp as our culture is about helping our fellow shareholders.
The manual can be ordered at amazon.com or amazon.ca for a nominal price.
Prior to the manual being published, we wrote a book titled “The Wealthy Agent” The wealth is not about money…… It's about lifestyle! It’s also available on Amazon.
The book explains the evolution of brokerages, the historical disruptors and why eXp is revolutionizing the industry. This book is written as a prospecting tool. It’s designed for you to share it with your colleagues by lending them a book.
With the eXp revenue share platform, you can create financial freedom and generational wealth for your family. Take ownership and realize you are building “your” personal real estate company within a real estate company. With an incredibly low investment you can build an international business with hundreds or even thousands of agents on your team.
“Can You Attract Realtors to eXp?”
The answer is 100% YES ……… BUT YOU MUST UNDERSTAND how this works, so you don’t become frustrated.
Your results will not be immediate because there is a process for an agent to understand our model. Most people will require multiple exposures before making a final decision. You may not fully understand their mindset so just be patient. Perhaps they feel a loyalty to their current broker or perhaps they are nervous about a virtual office. Bottom line is we really don’t know their personal situation.
Typically, eXp Agents take between 2 and 6 months from the first exposure to finally make the switch. Of course, there is always the exception, and some will make the move right away. There are many factors that come into play such as pending deals, overall market conditions, partnership agreements etc.
Some have huge egos and assume they know everything there is to know and won’t even look at our model.
Armed with this understanding of how agents think and act, you can develop a business plan and strategy that will work.
With eXp, we are all shareholders and proud of the dynasty being created with quality agents. We are shifting the mindset of agents to think “outside the box” and build a “passive income” through the revenue share model.
The 95/5 Revenue Share System is based on a “working smart” philosophy by utilizing technology and leveraging your business partners. If you have any questions on the system please feel free to reach out on workplace chat or text me at 613-614-4229.
Patrick Ashby, CCIM
Meet Patrick Ashby
Patrick began his real estate career in 1984 with Canada Permanent Trust. Within 7 months he moved to the up-and-coming Re/max organization. In 1986, he earned his Broker license and in 1987, at the age of 23, he became the youngest person in Canada to earn the prestigious Certified Commercial Investment Member (CCIM) designation for Commercial Real Estate. In 1991 he was the #1 Re/max Commercial Agent in Ottawa and gradually shifted his focus to real estate investments and re-developments.
Matt Ashby, Patrick’s eldest son, was following in his father’s footsteps, and was licensed in 2014. In 2015, Patrick met Rob Flick and Gene Frederick, which led to the Ashby’s pioneering eXp in Ontario, Canada. Patrick’s youngest son Michael was licensed in 2018 and has joined the team.
Matt and Michael have become very successful real estate agents in the London, Ontario market serving both residential and commercial clients. Matt has also co-founded an eXp real estate team in Playa del Carmen, Mexico.