The truth hurts. The brokerage you pick can make or break you. I’ve had the advantage of starting my career at Century 21, where I was a leader of the top C21 team in the nation for many years. Then went on to KW, where I was recruiter of the year globally and the top luxury listing agent in my office. Then eXp found me. So I’m in a unique position to discuss the differences. For a more detailed analysis, give me a call and I’m happy to cover any specific questions. So, I have decided to explore two of the hottest brokerages in the real estate industry today to see which one is best and why. Let’s explore eXp vs Keller Williams and their different business models.
Who is EXP Realty?
EXP Realty is an industry-leading, cloud brokerage model. It is considered one of the largest real estate companies by geography in North America. Founded in 2009 by Glenn Sanford, EXP Realty is one of the fastest-growing firms worldwide. EXP Realty is now in 21 countries with an agent count of over 82,000.
What Makes eXp Realty So Successful?
EXP Realty was founded with a unique business model vs. most traditional brokerages. eXp Realty does not have brick-and-mortar offices. Instead, eXp Realty agents manage their real estate careers via a cloud-based brokerage model. This cloud-based brokerage allows flexibility to eXp agents while changing the world of real estate.
At eXp Realty, agents are the core of the business model. Agents can become shareholders who can grow their brand remotely while utilizing the cutting-edge technology, tools, and training they need to control their careers, financial freedom, and futures. With no franchise fees and an unparalleled compensation structure, it is clear to see why it is easy for eXp to retain agents while also enticing new agents to join eXp Realty.
Why Join eXp Realty?
When building a successful career, agents want to join a brokerage that exemplifies growth and success. At eXp, one of the fastest-growing brokerages in the world, agents are handsomely compensated with a long list of benefits from day one.
If you want to explore eXp Realty to discover how to grow your brand, gain more flexibility in your work, and explode your career, get in touch with Traci Gagnon today!
When you join eXp Realty, you immediately receive an 80/20 commission split. This means that you, as an agent, keep 80% of the commission while eXp, as the brokerage, receives the remaining 20%. Additionally, when you reach your annual sales cap of $16,000, you then keep 100% of your sales commission.
Rookie agents and agents who have been on a hiatus have the benefit of a mentor, so they pay an extra 20% on their first 3 transactions and it all counts toward your cap. Call Traci for more details. 210.465.5275
When starting a career with a new real estate company, this high commission split is typically unheard of. That’s what makes it one of the most enticing benefits that eXp offers its agents.
Another lucrative benefit offered by eXp is revenue sharing. Revenue share gets paid to any agent or broker holding an active real estate license with eXp Realty. It doesn’t matter if you have been licensed for 20 years or two hours. You can still begin to earn revenue share right away.
HOW TO EARN REVENUE SHARE
eXp’s revenue share program has seven tiers. Let’s look at what that means for you as an agent.
Revenue share gets earned by every new agent that you sponsor to join eXp Realty. So if you attract a friend or business associate to join eXp Realty, this will be your personally sponsored agent on Tier #1.
Whenever an agent you personally sponsor attracts one of their friends or business associates to join eXp, that agent will be on your Tier #2. This continues in this manner until you have agents on your Tier #7.
Each tier earns you a different percentage of revenue. All of your Tier 1 agents (agents that you personally sponsor) are worth up to 3.5%, up to $2,800 annually.
Tier #2 agents (agents invited to join eXp by the agent that you personally sponsor) are worth more money than the agents that are on Tier #1. On Tier #2, you will earn up to 4% for all transactions, up to $3,200 annually per agent.
Using the chart above, you can easily see how much each tier can earn you, which could easily be tens of thousands of dollars. This business model is breaking the mold when it comes to revenue sharing, as most real estate brokerages only offer revenue share to their brokers, team leaders, and top producing agents.
eXp Realty’s parent company is EXP World Holdings, Inc. EXP World Holdings, Inc. became publicly traded in 2013. Today, eXp World is publicly traded on the Nasdaq stock exchange. One of the unique benefits of joining eXp Realty is that you have the option to earn stock in the company, essentially acquiring a percentage of ownership as you simultaneously grow your real estate career.
At eXp Realty, you can earn stock in multiple different ways. Some of it has a vesting period. Reach out to Traci for all the details.
- when you close your first transaction with eXp Realty, you automatically earn $200 worth of eXp stock.
- when you meet your full sales volume cap, you earn $400 worth of eXp stock.
- when an agent you personally sponsor closes their first transaction, you earn $400 worth of eXp stock.
- when you become an icon agent at exp realty, through high volume sales and additional cultural requirements, you earn up to $16,000 worth of eXp stock.
- by utilizing the “agent equity program”, you can elect to use 5%of your commission split to purchase eXp stock at a 10% discount.
No Desk, No Royalty Fees, and No Franchise Fees
Unlike other real estate business models, eXp Realty does not charge franchise, royalty, or desk fees.
The only required fees at eXp are:
start up fee – $149
Cloud brokerage fee – $85 a month
broker review fee – $25 per transaction
risk management fee – $40 per transaction – caps at $500
Support & Training
eXp Realty is one of the most prominent education and training providers in the industry for budding real estate agents. Each entrant can select from their choice of collective cloud-based learning, corporate and local support, and personalized coaching to get them integrated into the system. Throughout an agent’s career, they will require different educational focal points, and eXp seamlessly caters to these needs with the eXp University. Let’s take a deeper look at the support mechanisms available to agents.
Sponsor and Mentor Training
Each new agent joining eXp Realty is assigned a sponsor to help them get set up. A sponsor’s job is not strictly to offer training, though most of them will provide you with the tools and resources to start performing your job and act as an ongoing guide in the early days.
eXp also offers the eXpand mentorship program, providing new entrants access to a high-performing and experienced eXp agent dedicated to supporting their success. Mentors assist agents through at least their first three transactions, and many invite you to accompany them to client meetings for first-hand experience. It’s common for the mentorship program to provide one-on-one agent meetings or small group training online and in person.
eXp understands that its agents lead bustling lives attending client meetings, showing homes, and assisting with closes, so they can’t always be present for a fixed class schedule. Accordingly, eXp has designed an on-demand library of courses available at the eXp University to cater to agents’ busy schedules.
eXp University’s Fast Start series arms new agents with the fundamental knowledge and skills they need to fast-track success. Additionally, with a series of ‘how to’ videos available in real-time, agents have the opportunity to engage in learning relevant to their daily tasks. For example, if you need to spruce up your online marketing, you can learn about it in real-time as you’re doing it.
In-Person training Available
As eXp is one of the frontier online brokerages, most agents joining will know this as their first fully remote working experience. The shift to self-management and digital office space can be an overwhelming change at first. For this reason, eXp strives to offer the comforts of collective in-person training in addition to their digital expanse of learning available in the online space.
Many areas offer in-person quarterly or monthly meetings, educational opportunities, or lunch and learn dates to provide a personal touch to the virtual working space.
The training tools designed to support agents are not only available as new incumbents but are easily accessible to help seasoned agents develop and grow as professionals too.
eXp Realty offers agents over 50 hours of cloud-based live training in its virtual offices, with the aforementioned options for on-demand learning. Agents are provided with first-class websites and CRM assistance through cutting-edge kvCORE technology. If it wasn’t offered, agents would be paying thousands annually for the use of this third-party platform.
In the absence of brick-and-mortar settlements, eXp Realty offers an entirely virtual space called eXp World, where a real estate agent can attend training events, interact with other agents, hold meetings, and create their virtual office space. By carving somewhat of a futuristic technological approach to a cloud-based brokerage, agents are provided with the same resources as traditional brokerages, only at a higher convenience.
EXP Realty Wrap Up
Many variables prove eXp Realty is an innovative brokerage with successful, rapid growth. That’s why new agents, team leaders, and partners are joining eXp Realty every day.
As one of the fastest-growing modern brokerages in the world, eXp is introducing a game-changing metamorphosis into the industry. Agents can develop their brands and grow their businesses faster than ever in a fully supported and ultra-flexible environment.
The cost may come in losing a regular 9-5 workday routine and immobile office to turn up to every day. However, the kind of agents eXp Realty attracts generally veer away from age-old traditions and are ready to carve their name into the future of real estate.
When you consider the differences between eXp Realty vs Keller Williams, one of the primary factors to consider is their histories. Understanding these differences helps contextualize where both brokerage models come from and where they currently stand as they go head to head in the industry today.
Structurally and organizationally, Keller Williams offers a more traditional approach to the brokerage model than eXp. Yet, the company is still recognized for decades of innovation in the industry. Let’s take a deeper look at the unique factors that make up the Keller Williams brokerage.
Keller Williams is a real estate brokerage established in 1983 by Gary Keller and Joe Williams. It originated as a modest single office located in Austin, Texas. Within a few years, it became known as one of the largest realtors in the area, boasting 72 agents.
After 1985, a nationwide bubble became evident in the housing market, and Keller Williams started offering a profit share model to support and retain agents through the financial hardship. In the ’90s the company started offering franchise opportunities, and by 2010 had expanded into the commercial and luxury markets with over 77,000 agents operating under the Keller Williams banner.
Today the brokerage has more than 160,000 agents and is responsible for around 10% of homes sold in the United States.
Keller Williams splits vary greatly and each office can adjust splits as they see fit. This is very different that eXp’s consistent split all over the country.
Agents are also expected to pay a 6% royalty fee per transaction, which goes directly to Keller Williams corporate and caps annually at $3,000.
Profit Share Opportunities
Keller Williams offers profit share, meaning that each agent recruiting a new agent into the team receives a percentage of the new agent’s profit. Like eXp, the profit share model comprises seven unique tiers based on an agent’s recruitment and sales performance, which dictates the percentage of commission they are entitled to.
A key difference between eXp vs Keller Williams in this area is that the latter split commissions after accounting for overhead expenses of the franchise or market center in question. This means a higher portion of the money goes to the franchise before either agent benefits from the transaction.
Physical Office Space
Keller Williams runs a network of brick-and-mortar offices with more than 800 franchises across the globe, each with its local support staff. While this provides agents with a physical space to meet or receive support and resources, it detracts from the flexibility and freedom an agent may otherwise achieve from a cloud-based brokerage.
Franchised brokerages can offer services like mutual listing agreements for buyers and sellers, detailing any contractual compensation between listing agents (for buyers) and exclusive agents (for sellers).
Keller Williams agents can participate in Ignite training, a course that runs at set times throughout the year, designed to launch new agents into the first 90 days with the brokerage. MAPS coaching is another training source agents can access at an additional cost. There are multiple types of coaching on offer, including Mastery, Group, On-Demand, and BOLD, which helps new and seasoned agents improve prospecting throughout their careers. Many of the training classes cost money, unlike most of eXp’s training which is free.
The company is gearing up to become a technology company, though the tech demands of the Keller Williams model by no means surpass those of a cloud-based brokerage. Agents are offered programs like Command for CRM and can utilize Kelle, an AI personal assistant activated by voice.
Keller Williams Wrap Up
Keller Williams emerged in the ’80s as a fast-growing and cutting-edge real estate firm with innovative profit share programs to rival the success of any other brokerage model of the time. Even in modern times, the company offers employees a higher standard of education, tech, and benefits than many others. Having grown substantially over the past 50 years, the firm still claims a high portion of the real estate market in the United States.
A Keller Williams agent today is offered a relatively traditional and stable lifestyle as a real estate professional – depending on the local market center they are based in – though financially may have received better compensation than agents belonging to a customary brokerage.
Comparing eXp Realty vs Keller Williams
It should be evident by now that despite the two real estate brokerages hitting a competitive and innovative edge within the industry, some core differences set them apart as far as agent lifestyle and company structure are concerned.
Let’s break down some of these fundamental differences to determine how they compare for an agent looking to launch a new real estate career.
eXp is a borderless independent brokerage with no territories, regions, or franchise locations. This creates opportunities for agents and brokers to expand their business and recruit agents regardless of location. Agents can utilize their virtual office space from anywhere with an internet connection
On the other hand, Keller Williams uptakes the franchise scheme, meaning those interested in opening a new office can purchase location-dependent franchises or market centers.
Profit Share vs Revenue Share
On a fundamental level, profit share and revenue share operate by rewarding sponsoring agents (those who recruit new agents to each respective brokerage) continuously with a percentage of the new agents’ sales commission.
Keller Williams bases this commission split on profit made after accounting for overheads from the market center or franchise where the agent works. Because eXp Realty operates in a borderless virtual space (and therefore has significantly fewer overheads) the revenue share is a commission split derived from revenue before expenses. The split is a fixed percentage calculated by multiplying the gross income by the sponsoring agents’ tier level allowance.
Both eXp Realty and Keller Williams offer a seven-tier model, meaning agents get a percentage commission of the agents they sponsor, as well as the new recruits by their sponsored agents seven levels down. Once agents are stable and independent with their business, this effect manifests as passive income for those recruiting.
Keller Williams and eXp realty both offer a range of team options. eXp offers four unique types of teams, depending on the commission split, lead generation, and overall make-up of the team. Here is a breakdown:
- Self-Organized Team: In this model, splits between the team leader and agents are predetermined before the eXp commission split. For example, say leaders and agents agree to a 50/50 split on $10,000. Each team leader and agent would receive $5,000. $4,000 would be the total takeaway after the remaining 80/20 split with eXp Realty.
- Standard Team: Here, the team leader must have closed a minimum of $6 million or a total of 30 transactions in the past 12 months. Each team agent is on half cap ($8,000), and a minimum of 25% of team agent deals must be split with the team leader. Agents are not contenders for ICON awards, though they can earn eXp Realty stock and revenue share.
- Mega ICON Team: Team leaders must have closed $40 million or 175 transactions over the past 12 months. The team operates similarly to the standard team, except agents are on quarter caps of $4,000.
- Domestic Team: Domestic teams are each comprised of a married couple who share fees, caps, and eligibility to win a combined ICON award.
Fees, Commissions & Benefits
Given that eXp is cloud-based and doesn’t have the brick-and-mortar expenses to cover, agents are typically able to save a significant amount of their earnings on what would otherwise be traditional brokerage overheads.
In addition, eXp Realty offers stock, giving agents the chance to own shares in the company as they grow it. Keller Williams does not grant this opportunity to agents since it’s a privately held company.
In conclusion, eXp vs Keller Williams are exceptional brokerages experiencing unprecedented success in today’s market.
If you are an agent seeking to launch your new real estate career or transition from an existing one, you may find it helpful to consider whether you prefer the flexibility, freedom, and financial benefits of owning a virtual office, or whether you prefer to pay additional fees for an office space.
Additionally, the significant difference in cost of doing business and commission splits you’ll earn from each is an essential element to contemplate. With eXp, many agents will earn a higher percentage commission for your work, as well as pay fewer expenses. If you are looking at launching a career with eXp Realty, get in touch with Traci Gagnon to get started. She is one of the company’s most successful agents and her coaching is dedicated to helping you grow your real estate business and explode your career with eXp.