There are many reasons why agents join eXp Realty, including a generous commission plan and potential for stock awards, but one of the popular reasons is its revenue-share program, which is very different from a profit-sharing program.
In a brokerage, profit-sharing occurs when the company distributes a portion of its profits generated by the agents they sponsor back to those agents. While this may appear generous, it’s important to understand that profits are shared only after all expenses have been deducted from the revenue. These expenses include rent, insurance, utilities, staff salaries, and other significant overhead costs. In a profit-sharing model, even if the sponsored agents are highly productive, they will receive minimal or no profit share if the office or franchise is not profitable.
Agents Can Benefit From Sponsoring Productive Agents
eXp’s revenue-share program is different, because the company shares 50% of its revenue (Company Dollar) received from each transaction, before expenses are removed. This means that agents can financially benefit from “sponsoring” new agents into eXp every time that agent closes a sale that contributes revenue to eXp.
For example, when a new agent joins eXp, they name the eXp agent who “sponsored” or “referred” them to join eXp. Once the new agent begins closing on transactions, the sponsor will receive a percentage of the revenue from the sales activity of their sponsored agent. It is based on gross commission income (GCI), and is dynamically calculated and paid monthly. One important note is that eXp pays that share — not the new agent; it comes from the company split of the commission.
eXp Rolls Out the More Lucrative REVShare 2.0
In May 2024, eXp unveiled an enhancement to the REVShare 2.0 program, helping agents “make money faster, to earn it easier and to get paid on demand.” The changes, according to the press release, are in three areas:
- Agents will have the ability to earn revenue share money faster with the ability to immediately unlock the first three tiers of the model, both eXpansion and eXponential shares, and those tiers will now stay unlocked regardless of how many personally sponsored agents join eXp. This will help agents earn more revenue share, faster. In addition, levels 4 – 6 will be fully opened up when 5, 10, or 15 productive agents are sponsored into the company, respectively.
- A New Fast Start Attraction bonus, starting in July, will be paid on agents when they join the company. The Sponsoring agent can now earn up to $4,000 (in North America) or 5% of the GCI while capping, for an agent that they directly sponsor, for their first year at eXp.
- The new Real-Time Revenue feature inside of My eXp will allow agents to instantly withdraw accumulated revenue share earnings for a nominal transaction fee for any transactions that have closed.
eXp’s revenue-share program tracks and pays on transactions up to seven tiers, so participants can receive a portion of the revenue from transactions completed by agents they directly sponsor as well as the transactions of agents sponsored by those agents, and so on for seven tiers.
