eXp Realty provides numerous options for structuring your team and positioning yourself to help your company develop rapidly.
The unique eXp model aims to provide more agents with the resources and opportunities to establish a seventh-level firm. Over the last three years, the organization has seen this come to reality, with dozens, if not thousands, of agents now receiving passive residual revenue every month.
What Is A Business At The Seventh Level?
When you've constructed your real estate firm to the point where it can run on its own with little to no involvement from you, you've created a "seventh level business." This occurs when you've put in the effort to put in place effective methods, grow out your team, and maintain a client base that ensures referrals and repeat business.
I believe it is reasonable to say that this is a level of success that we all aspire to, where we can take a break from the grind while still earning a sizable income from our real estate business. But, unfortunately, many real estate agents and team leaders will spend their entire 20, 30, or even 40-year careers chasing the carrot and never catching it.
That's where the idea for eXp arose, as a means to put the maxim "work smarter, not harder" into practice.
Let's look at how eXp can help you get there by forming a team.
What Does An EXp Team Look Like?
At eXp, you can organize your team in a variety of ways.
First and foremost, any team name you create using these models must be registered with your state commission before being used for marketing or branding purposes.
- A Self-Contained Group
This eXp Realty team structure resembles a referral partnership in certain ways. My company is run by a self-organized group of people. This is the most typical approach for team leaders to begin their eXp career.
- You are the team captain in this paradigm, and there is no minimum number of deals you must complete to keep your team afloat.
- The cap is not reduced for any team members, thus everyone is limited to $16,000, and the team leader is not forced to suggest a certain number of people.
- Although eXp does not require a formal team agreement, you will need to submit a team roster. This basically gives eXp a list of agents with whom you're sharing deals on a regular basis (one-off deals do not have to be on the roster).
- To allow other agents to use the team leader's marketing and branding, an agent may choose to form a self-organized team.
- A Typical Team
With team divides and formal leadership from the team leader, this model is probably what most people think of when they think of how to construct a real estate team.
- With the exception of the team leader, who has a $16,000 cap, each team member has a $8,000 half cap.
- On all deals, each agent pays the team leader a referral portion, with a minimum needed split of 75:25. Remember that your team's agents only pay a half-cap, so there must be some type of balance here to ensure that the system continues to function properly for everyone.
- An authorized written team agreement must be provided to eXp. Standard team forms from eXp can be customized to meet your team's specific needs. It is also necessary to provide a team roster so that it is obvious who agents are operating under your team name.
- Qualifications: To be considered a standard team, you must have completed 30 transactions or done at least $6 million in business the preceding year. Keep in mind that this figure represents a 12-month period, not a calendar year. As a team leader, you'll be expected to maintain this level of output once your team is in place. Personal output and team splits are also factored into your totals.
- Mega-Icon Group
If you're wanting to hire a large team of 10 or more people, this is the eXp Realty team structure to look at. The mega icon team allows you to help your agents save money while while improving your value proposition as a team leader.
- With the exception of the team leader, each agent has a $4000 quarter cap. The squad leader's cap stays at $16,000.
- This team, like the ordinary team, requires both a written team agreement and a team roster.
- The mega icon team is similar to the ordinary team in that it requires a 25% referral percentage to the team leader.
- Qualifications: A mega icon team must have a total of at least $40 million in closed transactions, or 175 closed transactions. It must also have had 10 members of the capping team in the past 12 months.
- Regardless of how many agents hit their individual cap, the team is accountable for $56,000 in caps. This ensures that the team is generating, which is more of a problem for a team of ten agents than for a team of twenty-five agents working toward the $56,000 cap.
- Domestic Cooperation
This is an option for lawfully married couples who want to attend eXp together. By contacting eXp support, a domestic partnership can be terminated or formed at any moment.
- Domestic Partnerships are all subject to the same $16,000 restriction.
- Agents that arrange their businesses in this way save money on eXp's monthly fees. Instead of paying two $85/mo fees to eXp, you'll only have to pay one $85/mo fee, with the second reduced to $50/mo.
- There is no requirement for a written team agreement. Domestic partnerships have their own area on the eXp agent registration forms, where all relevant information is entered. Keep in mind that if you choose this arrangement, you will need to provide proof of marriage.
- These are the more traditional eXp team structure options. eXp Realty revenue share is another method that agents and team leaders are using eXp to establish teams.
What Is Revenue Share And How Does It Work?
The revenue share program is eXp's approach of rewarding agents who help the firm develop. The revenue share model was created by the corporation to encourage teamwork and a culture of agents supporting one another succeed in their businesses.
A sponsorship-style scheme is used to distribute revenue sharing. Agents that sponsor another agent get a portion of their gross commission revenue for the duration of their employment with the company.
This percentage is deducted from eXp's split; it is not a separate fee paid by the agency. And it doesn't stop there: as the agents you work with advance in their careers and begin to build their own teams, so will your revenue share team.
The money producing potential of this type of team is unusual since it rises exponentially rather than linearly, which means slowly over time.
The eXp model's effectiveness is due in part to revenue sharing. There are, however, even more advantages to forming a team with eXp Realty.
At eXp, the advantages of having a team are numerous.
Let's look at the advantages of having a team at eXp Realty now that we've gone over the eXp Realty team structure.
Team Platforms From KvCORE
The CRM system utilized by eXp Realty agents is kvCORE. eXp includes access to kvCORE, but only as an individual license within the system. For $399 per month, as a team leader, you may change your individual kvCORE license to a team license and manage an infinite number of agent accounts.
The cost savings are enormous. You should expect to pay between $750 and $2000 per month for a comparable setup. This significantly lowers your overhead, which equals more money in your pocket to spend on things like lead acquisition.
Another way that eXp helps agents save money is by offering a sophisticated training system that can quickly bring your team members up to speed. You can recommend trainings within eXp World that teach the principles you want your agents to learn as a team leader.
Taking weeks or months to personally train each of my agents, as I did when I owned my brokerage, consumed a lot of time and resources that I could have spent on marketing or production. By pointing my agents to a list of top trainings I've compiled for getting started in their business, I can streamline the training process using eXp.
Eligibility For ICON
Each year, the ICON award is given to agents and team leaders who meet the production and cultural criteria. While an individual agent can absolutely earn ICON status, team leaders have an advantage. Both your personal productivity and the splits you earn from your team's agents will contribute toward the ICON criteria as a team leader.
ICON agents get their $16,000 cap back in the form of publicly listed eXp stock, and their ICON award eligibility is renewed every year. This one-of-a-kind award scheme is, in my opinion, the best compensation for productive agents and team leaders.
In any business, branding is critical, but especially in a relationship-based industry like real estate. It is critical during the early phases of your company's development and, most importantly, for its long-term viability. eXp recognizes this and allows agents to name themselves how they feel right for their firm, as long as they follow state regulations.
You may sell yourself in a way that highlights YOU as the agent by allowing you to control your own branding. The emphasis on branding is not on the brokerage, as it is at RE/MAX and Keller Williams, resulting in a variety of styles on eXp business cards and online.
If you look at my website, Instagram, or Facebook business page, you'll see that my own business logo is prominent. The colors you see are mine, not eXp's famous orange and blue.
Conclusion Of The EXp Realty Team Structure
As you can see, there are numerous approaches to running a business at eXp. With eXp, you may form a traditional team or continue with your present team while adding the exponential value that revenue share brings.
The eXp Realty team structure allows you to scale and grow your business in new ways, giving even the most inexperienced agent the potential to build the seventh-level firm we all desire.