I'm going to help answer the question that a lot of you realtors and soon-to-be realtors have asked me. And that is what's going on with EXP Realty.
Since the pandemic began, we've seen the real estate market boom, he's also seen a lot of people stuck at home looking for things to do. And we've seen a bigger number than ever joining the real estate courses to get their license. A lot of you guys have been have been reaching out to me wondering what's going on with EXP, a lot of you fellow realtors that already licensed they're also starting to see our signs everywhere seeing people leave from your brokerage and wondering what's going on with EXP.
So this is a blog that's going to answer some of your questions.
3 Main Reasons Why You Should Join EXP
1. Actual selling, and the innovation and technology that's making that easier.
2. Stock incentives, where the majority of us agents are actually making a big portion of our money.
3. Revenue share program that I'll go through at the end.
So one of the first things that people ask about EXP is what exactly does a cloud based brokerage mean? And what it means is innovation, we take a look at the old brick and mortar style of different industries, and EXP is doing the same. So take a look at Blockbuster and what happened to that company after the introduction of Netflix, or take a look at countless other stores and what happened to them after Amazon started taking over. Also take a look at Uber and the cab industry. And so you can see where I'm going with this on what's going to happen to the traditional real estate brokerage and the brick and mortar model now that EXP has come to market.
The second thing that you want to consider when you're comparing EXP to traditional brokerage is that the traditional brokers are actually franchise models that are owned by an owner. So when you're selling real estate and paying fees that brokerage you're actually making money for that owner. Whereas EXP is all agent owned. Everyone in the company is a shareholder of the company. So when we want to take a look at how EXP plans to do this, we take a look at the old traditional style of real estate brokerage, all these companies actually franchises that have a broker owner that owns that exact location. And as you sell real estate, you're paying fees to that owner lining their pockets. Now what EXP has done is now made it where everyone in the company is an owner and a shareholder. So essentially, when you're selling homes at EXP, you're actually getting shares with the company and growing with the company. This is the main reason that we see a lot of these big teams switching over from where they are to EXP so a typical brick and mortar franchise are going to be known for a couple of things like cost, the overhead and high desk fees, you can be locally confined to their office, you're going to have inconsistent growth incentives, and you're going to have limited technology and support. So EXP is done as taking the brokerage and made it everywhere, you have one online campus in the cloud that everyone in the world can now access. And you can collaborate with different agents from around the world. So we have over 50 hours every week put on the top agents from different areas.
So another issue that I had with other brokerages was the training they put on was actually what kept you busy, not what actually made you successful, because the people in your area are actually still your competition even when they're at your own brokerage. Whereas EXP we can get training from the top agents around the world who have no other reason but to support us and see the company grow.
A big thing for me and a lot of other high producing agents is actually the icon program. So with any brokerage, you're going to have money that you pay into that brokerage every year, but with EXP and the icon program to get you all that money you given to the brokerage back in shares, and that's actually going to lead us into the second reason to join EXP, which would be the stock incentives.
So talking about stocks, we take a look at people like Bill Gates and Elon Musk and Steve Jobs, how they made the fortune is the stock options that they had in the companies that they own. So there's going to be three ways that you actually get to stock when you join EXP one is going to be $200 on your first transaction, the other is going to be $200 when you fully cap the other is going to be $400 when any agent you introduced to the company closes their first transaction so the second way to get stocks to the company is the icon program which I talked about. So once you fully cap, you can do 20 more transactions over have a total GCI of 500,000 in which case you'll become an icon and EXP can give you the money you paid the brokers or $60,000 in cap back in stocks.
The last way to get stocks in the company is the agent equity program. In which case you can opt to have 5% of your Commission's convert the stock at a 10% discount. So the stocks become one of the main reasons that I joined EXP and one of the huge success things that I've seen when I started the stock was trading at about $3 a share today it's around 50. So all the commission checks that I had only 5% discounted buying stock at a 10% discount. I know I only got a deal there but the stock has increased significantly and expanded my portfolio. Today EXP is the fastest growing brokerage in the world and we're only in eight countries. The last quarter EXP reported over a billion dollars in revenue and started paying dividends to the shareholders by all predictions, we're going to see the stock go a lot higher. So anyone who's familiar with Keller Williams know that they started the revenue share model and that's what made them the fastest growing brokerage in North America. But EXP is taking that and made it more of a 2.0 version, we're Keller Williams is based on profit share. So that's going to be the revenue after expenses. EXP is based on the gross commission total, many agents at EXP are growing their business exponentially through the revenue share program, where a lot of them started off selling tons of homes every year, they're now making even more money without selling a single home. So as we discussed, every agent is going to be on an 80/20 split until they fully cap out at a $16,000 and how it works, is other $16,000 paid to the brokerage, $8,000 are reserved to pay directly into the revenue share program. This is another way that EXP agents are collectively working together because it's beneficial for anyone that you bring to the company to see themselves as it's beneficial for you. But what they've done with this model that makes it very interesting is you can bring people to the company. But if they end up bringing people to the company and they end up bringing people to the company, they'll all get put in your revenue share stream. I see it happen all the time where an agent recruits a couple agents next thing you know they have 300 agents their down line and they're making residual income enough to retire.
Now this is not why joined EXP. But this is something that I see huge potential. I plan to be in real estate for long term so any additional income that I can add it can grow with me is a huge benefit. When I was at other real estate brokerages all I had to look forward to was my commission check I would have to do investing with that if I wanted to see income in the future. Whereas here at EXP we have tons of different ways where you can make money as you're selling homes.
There's so many other reasons why EXP is such a great broker to be a part of. But if you have any questions you can always give me a call directly.
