How would you like to get paid more to do the same stuff you do already?
Realtors® often ask me why thousands of real estate agents join eXp Realty every year when the brokerage brand name is still relatively new, and the company has no central office space in most of the major markets in which it operates.
In other words,
It’s a good question and, ultimately, one of value. Let’s look closer at what makes the eXp value proposition unique and why I finally decided to join despite some hesitancy.
eXp’s Value Proposition
While there are several facets to eXp’s model (see more on my website), I want to talk about revenue share.
Unlike traditional brokerage models, when an eXp agent successfully recruits another agent to the brokerage, the sponsoring agent receives a portion of that agent's revenue, called revenue share.
This is passive or residual income you’re awarded for contributing to company growth. Essentially, the money that normally goes into the pockets of brokerage and franchise owners.
In addition to receiving a share of the revenue for the agents they sponsor, eXp agents can also unlock additional revenue share levels, which allow them to earn portions of revenue from agents who signed up through the agents they recruited.
Here is where the value gets truly exponential.
eXp agents can create substantial residual income simply by helping to grow the brokerage — income that is not dependent on them selling more homes.
So, why was I resistant to moving to eXp?
I was initially resistant to eXp for two reasons: 1) I was worried about losing clients if I switched, and 2) I didn’t like the idea of doing multi-level marketing.
I’m going to start with #2 as it kind of relates to #1.
For a long time, I felt averse to revenue sharing because I was skeptical about my ability to inspire other agents to join eXp. After all, I wasn’t a multi-level marketer, and truthfully, I didn’t want to be.
How much impact could I possibly have on another agent's decision to join one brokerage or another?
More importantly, even if I could recruit agents to the brokerage, I feared that any gains I made in earnings through revenue share would be offset by potential losses in revenue I’d incur due to losing clients in the switch between brokerages.
So, I sat on it for a while.
What finally convinced me to make the move?
A critical realization came one day during lunch with a real estate mentor, who flipped the script on how I was making sense of the situation.
“How many agents do you think you’ve helped join RE/MAX in the past three years?” He asked.
I was silent for a long time. Not because I couldn’t think of the number but because I realized I had helped many agents join RE/MAX brokerage since I’d been there.
Not only that, I also helped onboard them, showed them the ropes, and took a genuine interest in their success.
That’s when it hit me: I was bringing a whole bunch of value to the brokerage — in addition to selling a ton of homes — that I wasn’t being compensated for.
At eXp, I could get paid more for everything I was already doing at RE/MAX to help grow the brokerage.
So, despite my fear of losing clients, I decided to switch.
Did I end up losing clients?
The short answer is no.
My business and team grew, my database expanded, and my lead generation increased.
Taking the leap taught me something else about value. My clients didn’t value brand recognition as much as I thought they did or as much as traditional brokerages would have you believe.
I’m not saying the brand is redundant. But what clients care about most are things like industry knowledge and expertise, personal reputation, quality relationships, negotiation skills, Google reviews and word of mouth.
In addition to revenue share, eXp has provided me with tools to develop these skills further, and tap into a network of like-minded peers willing to share their knowledge and what they’ve learned on their real estate journeys.
In summary, when assessing brokerage options, try not to contextualize comparisons between brokerages exclusively in terms of sales and old-school ideas about value.
Selling homes isn’t the only value you bring to your brokerage, so it shouldn’t be the only way you’re compensated or rewarded for your time, hard work and energy.
Also, don’t underestimate your value to your clients as a Realtor®.
If you provide quality service and build strong relationships, chances are your clients care more about your professionalism and expertise than they do the company logo on the real estate sign in their yard.
Ready to take the leap?