Latest / The Real Estate Agent Playbook / EXP Hybrid model is the best of all worlds

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EXP Hybrid model is the best of all worlds · The Real Estate Agent Playbook

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Is giving up less of your commission to your broker actually a model
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to build wealth appropriately?
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Probably not, because if you don't pay in, they don't provide any value.
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Next, if you do not have a cap and you're paying in constantly.
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What is the cap on that value?
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Could you be purchasing that value and doing whatever they
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are offering at a much less cost?
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We're gonna dive into all that and more, and we're gonna explain why a
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hybrid cap split model is absolutely the best bet and the best of both
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worlds in the real estate industry.
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What's up guys?
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Jeremy Kane, real Estate Agent Playbook and exp Realty.
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I want to ask you a question.
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Is your family and your income and your future important
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enough to run the numbers?
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A lot of times we make brokerage decisions based on all kinds of emotions.
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I like my broker, I need an office.
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All the things that I hear day in, day out, I get to keep my commission.
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Well, I'm here to tell you.
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That the hybrid model is absolutely the best of both worlds.
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And if you care enough about your family and your business to run the
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numbers, let's put some math to it.
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Eliminate the emotions and make decisions based on math for you, your
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business, your family, and your future.
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Book a call re agent wolfpack.com and would be happy to tell you
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what we're doing differently.
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But let's move on.
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Let's talk about these brokerage models.
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Let's talk about the differences and why this hybrid model is absolutely the key.
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Let's dive in.
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Okay, so first let's talk about the no split, transaction fee model.
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That's where I came from, a very lucrative model.
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When you're thinking shortsighted and you're not looking at the future, a
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lot of times I see hear agents tell me, well, I don't have enough business.
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At this model in order to, you know, come to a cap split model
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and give away so much of my money.
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Well, the problem is, is that those agents are on an island and doing the a la
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carte thing and trying to build business.
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The ones that are hungry are trying to build business and they're
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invent, reinventing the wheel.
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They're not getting the group discount on, you know, the CRMs and things
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like that, so their costs add up.
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So technically they're keeping their money, but they're paying more to
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build their business for the tools that their brokerage doesn't provide because
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of, you know, the, the income model, you just can't provide a ton of value
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if you don't have a ton coming in.
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You're, you're busy enough covering your overhead and your expenses, and so sure.
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Sometimes, you know, you have to make a little adjustment to
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the CRM that's offered, right?
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There's, there's that piece too.
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However, it comes at a cost, you know, when you're trying to
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do it as an individual agent.
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So the next thing I hear is, well, I don't have enough transactions
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to, to make that make sense.
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And so when we're thinking about that, people that come to our group, that
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obviously provides a ton of value.
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We talk about the value stack all the time on this channel, on this podcast, right?
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Agents are coming over and they're averaging.
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Three Xing their income just by being a part of the group, right?
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You are the average of the five people you surround yourself with, and so if
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you're, you know, getting a ton of value, you're getting a ton of social media
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training, a ton of real estate investment training, a ton of, you know, tools and
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resources to help you build your business.
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That makes a difference.
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And so if you can take your income at this, you know, cheaper shop
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and you can three exit, does it matter what the split is?
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Because you've far succeeded any savings that you had, you know, down here trying
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to generate your own business with lack of training and lack of leadership.
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So that is absolutely the key when thinking about these
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transactions fee models, because they can't give you anything and.
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Therefore they, you can't build your business appropriately.
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And so the others who are having access to all of that, having access to next
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level training, having the camaraderie of a group that's always continuing to level
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up, those people are surpassing you and taking your transactions right out of your
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pocket because they're doing the things that are changing the industry forever.
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So in short, the hybrid model exp is one of them.
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18 80 20 split with $16,000 cap capping what you're paying into the company, but
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still requiring every agent to pay in.
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Provides the company with the ability to provide you resources, access to KV core,
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which gives you a website and X level CRM access to a file transaction management,
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you know, account so that you're.
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Very organized and everything's there.
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You also get access to the cloud-based brokerage, which saves you so much time
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and so much money and so much energy.
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And so all of these things as you move forward, health insurance, you know,
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pay-per-click, making it rain software, all of these things that are provided
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because the brokerage can, you know, get mass membership into that and therefore
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it's covered with your monthly fee.
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Provides value.
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And so if you have that as exp, you have the Wolfpack training, free
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access to the Social Agent Academy.
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Mike Shard, free access to Louis Galt's amazing systems and processes.
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Training free access to my foundation building.
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As you can see, when you start to stack up the value for absolutely free
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because the way the revenue share works.
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It makes a huge difference.
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We'll talk about revenue sharing a little bit, but now let's
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transition a little bit here.
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Let's transition to the opposite end of the spectrum.
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These luxury brands are these, you know, longer tenured, real
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estate companies, so to speak.
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They're in the split model with no cap.
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Now that you know is a little bit different, and I'm gonna challenge
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you right now, if you are at one of these companies and you do not have
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a cap, think about this right now.
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Think about, okay, the last 12 months, I want you to write every single one of your
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deals that you did down, write their name.
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Right how you came across them.
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Okay.
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Next I want to see, okay, how much was your gross commission?
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How much was the commission offered off the top before
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everybody got their hands in there?
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What's that number now?
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Put your net commission what you actually took home from that closing there.
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Obviously before taxes, cuz we all know we have that.
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We can't change that unfortunately.
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So if you make that list, Then we're gonna look at it, step back and take a look.
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Okay.
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How many, how many of those relationships came as a result of your brokerage, of
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the sexy branding, of the, you know, great tech they offer of having an office?
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How many of those agents came as a result of your company and how many came as a
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result of your personal relationships?
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Okay.
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So now that you have that, Take a step back and say, okay, well you know who,
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who's generating the business, right?
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Most likely it's going to be you.
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Okay?
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And all of those models, whatever it is, it's probably you.
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Now look at your, your difference between your net and your gross.
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If that number was shrink down and your net was only $16,000 less than your
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gross, would that change your life?
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Could you afford to pay for any of those leads that you
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just listed, that you closed?
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Could you afford to pay for that portion of why they came,
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if they came from the company?
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Okay, so if say you got.
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You know, a lead from your website that your company offers
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that has really sexy branding.
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Okay, sure.
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That's, that's probably a company, you know, company deal.
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All right, so how many of those were company generated?
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How many of them were you generated?
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I'm gonna tell you right now, most of them are gonna be you generated
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unless you're in some sort of, you know, lead flow or something like that.
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But then your net income versus your gross income absolutely goes out the water.
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And so if you have more questions about leads and and broker provided
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leads, check out this video right here.
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We don't have to go down that rabbit hole as you know how I feel about paid leads.
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So that's the, the problem when we kind of get to that next level and
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we're, we're producing, you know, I've looked at agents that have given
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away a hundred thousand dollars a year just because they didn't have a cap.
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And then when they really step back and look at it, they're like, oh,
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well I'm generating all the business.
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I can probably, you know, if I'm have a hundred thousand dollars a
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year to spend in excess, maybe I can provide, you know, that video.
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I can pay that videographer for that listing, or maybe I can pay the extra
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money for that sexy, you know, trifold flyer or whatever the, the thing is
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that got that person over the hump.
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I'm sure that your, your net net at the end will be absolutely completely
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different because those brands.
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Pay a lot, and they want you to feel like their company is the brand.
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The truth is, is that you are the brand as we talk about
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all the time on this channel.
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So that is the difference.
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So now we transition to the hybrid model and to do this as referenced
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before, let's check your numbers.
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Okay, let's look at your numbers.
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Let's see if it's worth a conversation.
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Right?
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50,000, $25,000 more a year when that, when that difference
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between net and gross.
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If that's worth a conversation and you care about math and you care
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about your, your finances over the brokerage, you care about your
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family's future over the broker's, you know, family's future, let's talk.
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It's, I promise you that running the numbers will absolutely
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give you a perspective.
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I don't care what the brokerage is, I don't care who tried to
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get you to join the brokerage.
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Let's look at the math and let's talk about the value that you're
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missing, you know, on one side or the other, and develop a plan.
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And if it's the best plan for you to stay where you're at, absolutely.
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Let's collaborate.
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Let's hang out, let's do deals together, but.
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The truth is, and I know that when we run the numbers and we remove emotion from
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it, then it's a whole different story.
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Okay?
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You're looking at somebody that left his dad's brokerage because
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the numbers made more sense, okay?
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And that's, that's where you need to understand that, you know,
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his dad's transaction brokerage.
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So if we're talking easy, easy money, when there's no cap, Right.
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Easy, easy comparison.
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A hundred thousand dollars a year for top producers.
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Big time deal.
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Okay.
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When you're talking transaction model and I can make the numbers
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work, is it worth a conversation for you to level up your business?
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We'll talk then.
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Okay.
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So why is the, why is the hybrid model so powerful?
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Well, you're able to provide all of that value.
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You're able to get those group discounts on KV core and.
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Stanley Morgan Shareworks and all these tools that we use in our business, and
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you're able to plug into those and help manage your money and, and level up
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your business and all of those things.
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And so that's why, because we are, we still have to pay a
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$16,000 cap into the company.
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However, X exp utilizes that $16,000 cap in ways that no other brokerage
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could, even the other cap split models, and there's so many cap
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split models that were out there.
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EXPs not the first, it's just the best in my opinion.
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And now there's a bunch coming in that are trying to copy the
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EXP model, make little tweaks.
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The funny part is they always make the tweaks on the front
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end, on the production end.
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Okay.
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And they, they then make tweaks that are negatively affecting you
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on the revenue share end, which we'll talk about in a second.
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But they're making the tweaks, oh, we're gonna offer you free listing marketing.
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Okay.
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Well, most new agents are open to this cloud-based brokerage thing,
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aren't gonna have a ton of listings.
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So that free listing package is absolutely not.
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Valuable to anyone.
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Okay, so the tenured agent can have a free listing package.
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I don't know.
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Do you want your branding to look exactly like every other
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agent at your company's branding?
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You're not set setting yourself apart.
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You're, you're paying into the machine.
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You're building their brand.
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Right.
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And so if you can get a listing package put together, super easy, a VA can do it.
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You can do it on Canva, that's your brand, and you, then that
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doesn't really make sense.
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So they're, you know, or they lower the split on the front end.
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Okay?
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If you lower the split, you lower the cap.
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Then the backend revenue share goes out the window, which that's the
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brilliant piece of the exp model, is that exit strategy, right?
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And so if you're saying, okay, well this is that and this is that, whatever.
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And conversely, these other capsulate models and even some of the no
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cap models are incentivizing team leads and brokers to come over.
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Well, that's great for the broker.
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But the people that are influenced to come over underneath them are
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absolutely not getting that value.
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And now the broker's stuck here and the agents below them are
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struggling and they're wondering why?
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Why does this really make sense?
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Well, here's this listing package.
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Well, I don't have a listing.
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I have 10 buyers.
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Okay, well here's.
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Whatever they're offering.
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And so it's really shortsighted in the fact that you're paying less and the
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company's able to give less back is huge.
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So the difference lies with the hybrid cap split model.
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In the exit strategy.
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Exp is using that $16,000 cap, giving 50% of the revenue that the company.
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Retains off the top back to the agents for growing the company.
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Okay.
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The seven tier system hasn't changed in two years.
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It hasn't changed since it became, you know, a solid business model.
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And so once you're doing that, you're obviously.
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Building and building and building the nuances of the revenue share model that
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other companies have tried to exploit by changing the percentages as top heavy
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and things like that are absolutely not creating a downward spiral, and
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they're not helping you in the long run.
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They're helping you for the now.
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Also exp throws in, Hey, we have this retirement model where you can park
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your license in the commercial division.
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You don't have to be producing in order to continue building this revenue share.
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Well, by the time you go to retire, Absolutely right now
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you're gonna start with bringing on your peers and doing that.
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Well, you guys are all gonna be aging.
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However, if you're bringing on new people and they're younger and and
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more hungry, then some of those bigger tiers at the bottom will
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build out and continue to build out throughout your tenure of life, right?
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So, so that's the biggest thing is a lot of the models have flipped
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EXPs model on its head so that you get compensated more for.
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The top half of your, your revenue share.
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And you know, some of them don't even have seven tiers, but once
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you get down to the seventh tier, you're not as fairly compensated.
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So you as an individual have more of a, you know, a idea to
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build your top tiers, right?
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Instead of building your partner's tiers out.
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So at exp you build out your want, first tier, second tier, third tier.
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But then you're continued to be invested because those tiers, as you move down
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the seventh tier is the most compensated tier, then you're able to, okay, well
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I'm gonna help somebody on my sixth tier get, get a killer agent on the
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seventh tier and, and go from there.
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And so there are nuances to it, but the true biggest piece is you
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don't have to be producing anymore.
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So all these other models that are, you know, flashing the pan, looking
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like exp lowering the upfront cost, you know, leveraging your.
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Your top two to three tiers, they are very shortsighted because that's
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while you're in production, that's while you're doing the things.
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While you have people on your fifth tier, maybe you get a brand new
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agent on your fifth tier and they become the next top producing agent.
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Well, you don't really have any, you know, incentive to build them up.
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And so that exit strateg is absolutely something to consider.
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And so here's the deal.
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Facts only numbers for me, they will be different for you.
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Absolutely.
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$45,000 paid into exp.
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Over seven figures in net Commission income to me over six figures in
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stock account currently as we sit right now in my stock account.
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Okay, and a three to $4,000 residual income that will only increase
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as I build out my organization.
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So if you're worried about a little bit of split on front and $16,000,
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the little piddly numbers, you're talking massive growth in 25 months.
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I have built those exact numbers that I'm telling you about.
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Because of the model, cuz the people I surrounded myself with and
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what I'm doing differently for my organization and building it out.
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I have an exit strategy.
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I have developed passive income, I have developed, you know, a very good
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stock account, based on the company policy and stock awards and all of that.
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And I also have.
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Absolutely crushed it in G C I as a result of this model and taking a
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chance, again, removing emotion, saying goodbye to my dad's brokerage, saying
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goodbye to my dad as a managing broker.
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Coming over here, building my own thing, and absolutely crushing it.
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So if those numbers, turn some heads there, I would love to talk
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to you re agent wolfpack.com.
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It'll tell you what we're doing differently.
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It'll allow you to book a call and we can chat, but the hybrid model is
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absolutely something that you cannot, you know, overlook because it is the best
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of both worlds and it is changing lives.
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For the better.
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Thanks so much for tuning in, real Estate Agent Playbook, Jeremy Kane exp Realty.
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Please like, comment, subscribe, and if you're listening on the podcast, share
16:51
this with your favorite real estate agent.
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I would be happy to help.
16:54
Bye-bye.