Latest / The Real Estate Agent Playbook / New EXP Revenue Share Model: How Much Money Will You Lose?

Transcript

New EXP Revenue Share Model: How Much Money Will You Lose? · The Real Estate Agent Playbook

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  eXp just launched a new revenue share model and there are a lot of effects
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  that I want to talk about with this.
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  Are you going to lose money?
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  What's this mean for you?
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  Is it a good thing?
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  Is it a bad thing?
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  We're going to discuss all of those.
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  We're going to talk about the groups that are most affected.
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  We're going to do it all next.
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  What's
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  playbook and proud member of the eXp Wolfpack.
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  Please reach out in the event you watch this video and you have any questions
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  You can put them in the comments.
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  Some people don't like to talk about all this stuff and their personal finances
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  Exit strategies that is involved, especially with EXP with the three
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  streams of income that were created when Glenn Sanford created this model.
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  And now things are changing.
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  So you might have further questions.
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  There isn't another person that would be happier to talk to you about what
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  all this looks like and if it's a good thing or a bad thing for you.
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  And the truth is there are groups that were losers and there
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  are groups that were winners.
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  So Like, comment, subscribe on this video.
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  I do talk a ton about, building a real estate business.
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  That's lucrative based on selling homes without buying leads.
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  But I also do talk a little bit about EXPs model and what to look for and what to
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  expect in the model that changed my life.
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  So let's talk about revenue share.
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  Let's talk about what it means.
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  Certainly a revenue share for me meant coming to a brokerage that allowed
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  me to do the things I love to do to coach the agents to help them build a
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  sustainable business and being rewarded for it fairly But now everything changed.
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  So let's first and foremost start with the people That lost in this change.
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  First and foremost, the other brokerages, cloud based models that
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  provide revenue share, have been following along in eXp's footsteps.
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  EXp adds a buffer several years later, the next, you know, at that growth
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  step, the next company adds a buffer, FLQAs, frontline qualifying agents, you
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  have to personally sponsor agents and certain models at high levels so that
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  you can unlock the tiers and unlock.
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  The amazing resources of revenue share.
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  Well, the EXP you used to have to, they just absolutely dialed back their FLQA
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  requirements in order to make this happen.
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  So if you're at a brokerage with one of the models that EXP just went away
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  from, EXP did some things in this model that will make it extremely hard for
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  those other brokerages to duplicate.
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  Right?
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  We have seven tiers.
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  We have a little bit more flexibility than some of those other models.
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  FLQAs are important because it incentivizes agents to sell homes and
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  have sponsors help agents sell homes.
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  EXP has passed that, they've moved past that, they've made it possible to, you
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  know, absolutely do absolutely what you can do at the highest level, but they
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  were able to limit some of the FLQA requirements because of the seven tiers.
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  And so, if you're at one of those other brokerages, you went over there for an
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  early adopter, you know, experience, and hopefully you're ready to go.
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  Well that, this may put a kink in your armor because EXP just made
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  this sustainable and transparent.
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  Next, we'll talk about the people that were at EXP and struggled to open FLQA
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  tiers as EXP was 5, 10, 15, so on.
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  And they, they just decided that there was this better model, the grass was greener,
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  there was something else there for them.
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  Absolutely okay, totally understand, but when eXp drops the FLQA requirements
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  for most of the tiers, except for tier 7, which they actually dropped
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  that last year, so eXp in the last, you know, 18 months has dropped the
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  FLQA requirements for every single tier along the way, making it easier
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  for you to stay in the revenue share game and earn that income long term.
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  And so if you left eXp because you never thought it would happen, Well, it just
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  happened, and you may have vacated 100 agents that were still here, some might
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  have stayed, they might have left, but for you to come right back into that position
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  is probably unlikely depending on, you know, maybe some agents left, and maybe
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  maybe You know, EXP won't let you slide right back in that position, but that's,
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  you know, that's above my pay grade.
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  So those are also the losers because if you were to calculate the amount
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  of money that is now being left on the table based on those tiers now being
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  opened, I would imagine for some people it would be a shock to the system.
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  And finally, for those agents that are at EXP with their four, five, six,
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  and seven tiers open, So 30 qualifying agents or more, and they have a
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  large sum of agents on those tiers.
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  Those are the people that probably lost the most, right?
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  I will tell you that number as of April was 54 agents that
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  had seven plus tiers open.
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  Now, I don't have any way to measure if those agents had tiers on their
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  tier seven, but for the whole company, seven people had Based on the FLQA
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  counts in April of this year, 2024.
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  And so those people certainly did take an initial loss as
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  this, you know, change happened.
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  What they do see is that the opportunity for others to grow.
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  Which for long term will be more growth for them versus a loss.
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  But if we're picking out the losers, that is one group at the
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  company that was vastly affected.
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  Okay, so as you know, Real Estate Agent Playbook, I'm all about winning.
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  So we're going to talk about the winners.
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  Okay, first, first group of winners.
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  Teams and broker owners considering making a move to EXP.
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  This just changed the game.
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  If you're looking at the cloud based brokerage models, you're, you like the
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  idea of having some of the liabilities and some of the day to day Handed off to
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  the brokerage, still have the ability to attract and grow, but now you don't have,
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  you know, your, your town or your state as your border, you can now grow globally.
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  That is still offered at some of the other cloud based brokerages, although
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  not in 23 different countries and so on.
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  But.
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  As a broker owner you now have a lot of flexibility within the model Remember
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  from the last video tiers one two and three are bonused and unlocked
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  immediately So you don't need any flqas to get paid full revenue share on tiers
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  one two or three And you get bonused at the end of the month Based on how many
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  units are sold in those tiers and the revenue share that was not paid out.
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  If you want more, you know, information on that, the
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  previous video has a ton of that.
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  So you can go back and watch that.
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  However, as a broker owner or a team lead, you can now come in and place
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  your top, you know, five agents.
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  Let's 50.
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  Place your top five agents on your tier one and then place.
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  You know, two of those, you know, the next tier agents on those people's tier two.
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  So your tier two, their tier one, so that they're incentivized.
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  And then you have, okay.
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  25 other agents to divide, to divide out over, you know, 10 different groups there.
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  So you now have created a structure where the leaders, the top agents are
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  already got to jumpstart on revenue share.
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  And they can be a resource to those agents below them.
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  And then you have the second tier agents that also will be incentivized
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  to, you know, have the, the newer agents or the agents that are
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  lower producing kind of get going.
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  And so you've created a delegation cycle and you've also created
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  three tiers of business.
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  So every time somebody on your tier 3 closes, your agent on tier 2 gets paid,
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  your agent on tier 1 gets paid, and you get paid the full revenue share plus
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  the bonus for each of those levels.
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  So, that is the true winner.
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  Brokers and team leads considering.
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  That just isn't an option at other brokerages.
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  Okay, certainly there's other brokerages with zero FLQAs, but
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  their revenue share shrinks, right?
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  Or there's brokerages that offer a ton that seem to be great places to be, the
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  culture's good, but they don't allow for these tiers to be opened right away.
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  Add the Thrive and Boost program that incentivizes teams and broker owners to
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  come to eXp based on their production and what they've done in the past.
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  This is an absolute no brainer, at least, to have a look and have a meeting.
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  with somebody who can put this all together for you.
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  If you're a broker or team lead interested, you can definitely DM me
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  private, you know, message all day long.
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  We'll keep it under wraps.
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  We'll get you connected to the people that you need to talk to,
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  to see if it's a viable opportunity and a true exit strategy for you.
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  Because ultimately that's the game of Revshare is this exit strategy that
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  honestly isn't replicated or duplicated by any of the other options out there.
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  The next winner is newer agents, right?
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  Agents.
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  That are at EXP already and you know, just felt like it was so high.
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  It was so hard to reach and get that income generated because you had
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  to, you know, have agents and you had to have your top, you know, 10
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  agents to produce on your tier one and then they could grow after that.
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  And so on, like it just takes a lot of the convoluted starting pieces out of
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  this because tiers 1, 2, and 3 are open.
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  So not only are you incentivized to bring agents to EXP for their first
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  year with that 4, 000, you know, top line for those first year agents.
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  You know, in your tier one, but also so are the other people.
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  And then those agents, although it's not 4, 000 for that first year
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  on your tier two and tier three, you also get bonuses for that.
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  So the ability to get rolling and really, incentivize and inspire others
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  to start makes a lot more sense because you can make a lot more money with
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  revenue share a lot quicker based on tiers one, two, and three being open.
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  And then the next winner is that agent that's been at eXp a while.
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  Maybe.
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  You know, there's agents that brought two or three agents in and one of
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  those three agents took off and built a hundred, two hundred, three hundred
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  person organization and continue to grow.
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  Well, as that agent grows on your tier two, and if you didn't have the FLQAs
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  to open your tier two or tier three, you know, not to mention tier four and beyond.
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  Then you are losing out on a large substantial piece of money, right?
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  You still have the expansion share that has not changed but the exponential share
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  is where the real money's made So if you had somebody that you brought into the
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  company that brought a hundred agents Now you have a hundred agents on your tier
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  two, but you don't have the five fl qas before Well, that was a problem, right?
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  You are making pennies now overnight.
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  You just unlocked here's one, two, and three and your income.
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  Some people's income went up 20, a year based on this one change right there.
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  So that is an absolute massive winner.
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  And hopefully what that does is inspire you to come back to the focus and,
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  and build out the organization, be a resource and do what you need to do, but
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  absolutely game changing for some people.
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  Cool.
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  That had, you know, a great agent that they brought on, that they were friends
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  with, or just had somebody really take hold of this revenue share idea.
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  And they weren't getting paid the full revenue share on it because they
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  did not have the qualifying agents.
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  That's all gone.
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  Okay, and lastly we have everyone is the winner This is an opportunity for
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  people at EXP to change the way that are attracting agents to change the way
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  that they're doing things and this is a viable exit strategy for many years to
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  come because Part of the problem with the previous model where you had to have, you
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  know, 30 agents for tier 7 That's the same but 20 25 agents for those higher tiers
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  Was that they felt like as they, you know, kind of scaled back and they quit, you
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  know, attracting agent after agent after agent that they could, they were having
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  a hard time keeping those tiers open.
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  Well, for the long term, now we've suppressed, you know, all the tiers.
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  Every single tier has been minimized for the FLQA
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  requirement in the last 18 months.
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  From revenue share 1.
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  0 to 2.
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  0, level 7 did not change, but that changed from 40 to 30.
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  You know, last year sometimes.
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  So every single tier has been minimized for FLQA requirements.
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  And so when that happened, everyone wins, right?
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  So you have the people that are newer to the company that have the opportunity to
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  build a true income stream right away.
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  You have the people that were here that now have bonuses on
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  tiers one, two, and three and opportunities to really be flexible.
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  And you have agents that are just looking at this as an opportunity
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  that absolutely can come into this.
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  And when immediately with revenue share and start building that exit
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  strategy, no matter what their age is.
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  And so with everyone winning and the company on fire and the growth
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  opportunities that do exist, those stock awards that come into play
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  could be very lucrative at some point.
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  Don't know which way the stock's going to go, but certainly if the company
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  is selling more houses and growing, you know, it could be in good things
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  for you, for those stock awards, for whatever comes into play there.
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  So.
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  As we kind of wind this down, I want you to understand that RevenueShare
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  is an absolute opportunity for everyone that's involved.
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  Certainly, there's a small group of people that lost a little bit but stand
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  to make a lot more in terms of growth of their organization over the long term.
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  So, ultimately, if you liked what I said, or you have no idea what I said,
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  but you're considering making a move to eXp, please book a call, reagentwolfpack.
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  com, that will get you in.
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  I can discuss all of this.
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  We can make a game plan for you, whether it's about revenue share or
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  just scaling your real estate business.
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  I love coaching agents to build wealth through real estate.
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  And at eXp, I'm able to talk a lot of different options, because we
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  have the equity ownership, we have the revenue share, and obviously
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  we have the production side.
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  So I hope this helps.
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  Like, comment, subscribe, and I can't wait to chat with you
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  about partnering in the future.