Lies Being Told About & by eXp Realty
Okay, Not Quite Lies… But Misconceptions about eXp Realty
There are so many misconceptions about eXp Realty. On both sides. Competing brokerages harp on non or even partial truths while eXp agents are sure to make certain things better or easier then they really are. I know this was the way it was before eXp came into the picture (think RE/MAX vs. Keller Williams), but feel that it has really gotten out of hand… The eXp Realty complaints I find are generally from agents that never joined the company. Working for eXp isn’t for everyone… Just like KW isn’t for everyone either.
Everyone should keep their opinion about competing brokerages to themselves. Seriously, shut up. A bunch of keyboard warriors… Speak your opinion when spoken to (For the record, if you are reading this then you googled a term and clicked my blog so therefore are asking for my opinion/experiences)!
You Will Join and Everyone Else You Know Will Join Under You
Call 100 eXp agents and I feel like 99 of them will tell you how easy it is to recruit. They will say that when you join, they will teach you how to recruit and everyone you know that is an agent will want to talk to you and will sign up under you (Side bar, when RE/MAX sells you a franchise they make it sound like you will open your doors and people will flock to you and beat down your door).
This isn’t true. Recruiting is hard. Shit. It’s cut throat. Money is involved so therefore people’s feelings can get hurt. I believe most eXp Realty Complaints come from this. It doesn’t matter how great the company is… Recruiting is a process and if you want to be successful... Then you need to work at it REALLY hard. I know people who make six figures A MONTH. They have turned recruiting into a full-time job. They work REALLY REALLY hard at it and are enjoying the spoils.
Long story short, recruiting isn’t easy. If someone says it is… They are full of shit.
Everyone is Here to Help at All Times
It is very true that the people in your upline are financially motivated to help you. This is how the eXp Realty Model works. They want you to succeed! But fellow members in your sideline aren’t necessarily motivated in the same way. I do find there to be a LOT of collaboration in eXp. I am pretty bad at taking advantage of the eXp collaboration… And that one is on me!
I will say that every single time I reach out, I always get a response from those in my upline. Many of these people are very accomplished folks who have built a world class real estate team which I aspire to have. These relationships are extremely valuable.
But just because you are in someone’s downline doesn’t mean they will be calling you to check in. If you want help from your upline, then it is up to you to reach out. Introduce yourself and get down to business on what the problem is and what might be the solution. Other than my Broker, at RE/MAX there wasn’t any additional support where someone is extremely vested in my success. That is a nice feeling! It’s a shame the eXp Realty Reviews don’t talk more about that.
It’s Just a Multi-Level Marketing Company
I love people that say this. Because that just isn’t true. We are a real estate company first. eXp also owns a couple other companies including Verbella which has done really well in this post Covid world.
Yes, it is very true that eXp has a “pyramid” structure. Agents sign up underneath other agents and a portion of revenue is then passed back up through the 7 levels ahead of you. Keller Williams (who also has a Pyarmid like structure with their profit share that isn’t nearly as profitable for the agents) and other companies are constantly slamming this as a negative. It’s not like I don’t get any value from this. I have people that are VERY vested in my and my team’s success. They are there to support me and will do so if I should reach out to them. When talking abut eXp Realty Pros and Cons, I actually put the eXp Pyramid Structure as a pro. It incentivizes people to help you.
But here is the other reason that this really has turned into a genius model in our industry. eXp corporate does not need to recruit. They don’t need to spend one dollar in recruiting because they have an army of agents that are out there doing it for them. This allows them additional resources to invest in us agents. What type of resources you ask? Two great examples are the Relocation and REO departments that they have rolled out. RE/MAX never gave me this support. As a matter of fact, I have lost well over six figures in my lifetime being a RE/MAX Agent and not being able to work with relocation business. So is eXp Realty a good company? Is the eXp MLM Structure a benefit? I think so.
A big key to the recruiting game at eXp is that if an agent doesn’t produce (i.e they aren’t selling), then they do not get counted as a ‘Front Line Qualifying Agent’. Only FLQA agents count towards a person’s Revenue Share. In other words, an agent that is recruiting isn’t looking for just anyone with a heartbeat. Because if wasting oxygen is all that they are good for, then they won’t help that sponsoring agent in anyway. Unlike some other company that literally had dead agents on their rosters (sorry, Judges call… that was a low blow)…
You Are on an Island All By Yourself
I won’t lie. I like my island. I don’t want anyone on my island unless I invite them to it. In other words, I don’t want people in my business unless I ask for help. I don’t want people breathing down my back. That is me.
What I have noticed at eXp is that you can turn that island into a deserted island in the middle of a vast ocean… Or you could turn that island into Manhattan. You really can have your cake and eat it too at eXp. I get the support when I want it/need it. But don’t get it unsolicited.
That is the way that I personally like it. I have never been a fan of unsolicited “advice”.
And when I need the eXp Realty Massachusetts Broker, she has always been there for me.
You Will Be a Millionaire Tomorrow
Nope. If you are thinking this is a magic millionaire pill that will make you an overnight millionaire, then I have a couple bridges to sell you in Brooklyn.
Like anything of any value in life… If you want to become filthy rich off of this opportunity, you can! It just takes a lot of work. The opportunity is there. It’s just a question of how hard you will work.
You Will Be Showered in Stock
It is awesome that you get shares of stock for milestones like your first sale. It really creates the mentality that this is an agent owned company. You also get shares when you recruit someone and they sell their first property. There are a ton of ways that you can get eXp stock.
But when most people talk about eXp stock, they are talking about the ICON Award and the stock benefit that comes with it. Out of the nearly 50,000 agents, I believe it is only 700 or so agents that are ICONs. You can do the math. It takes a lot of hard work to hit those production milestones. But when you do, you are rewarded. No other company rewards their top producers like that… It’s an extra bonus that really adds up. It is also a great motivation tool.
ICON Status is Easy
Ya… No. In order to become ICON you must first hit your cap of $16,000. At that point you must then pay eXp $5,000 in transaction fees. Once you cap, it is a $250 transaction fee (To say this another way, you are 100% minus the $250… It’s not an awful deal! P.S, there are some other minor fees like a $25 broker review fee and E&O fee that caps at $500… But I just don’t want to get too far in the weeds).
So, let’s break this down. Lets say the average sale is $500,000 and the average commission is 2% (I appreciate you making this one easy for me). eXp would take $2,000 per transaction with the average commission being $10,000 and an 80/20 split until you have capped. In this case it would take you 8 transactions to cap for a total volume of $4m. Now we need to pay the $5,000 in transaction fees. At $250 per transaction, that makes us needing to sell an additional 20 houses.
So for this scenario, an agent would need to sell 28 houses in order to cap. It’s not easy.
eXp isn’t a Viable Business Model and Will Never be Profitable
I wish I could go back and screenshot all the people that were saying this a couple years ago. This misconception has really quieted down recently. If I was a betting man, I would bet that it is because eXp is a profitable company and has become one of the largest brokerages in the country.
From my understanding it is the fastest growing brokerage in history. Haters gonna hate, but this company isn’t going anywhere.
If you are curious to know more about eXp Realty and are looking to have an honest conversation talking about eXp Realty Prose and Cons, then it would be a pleasure to do so. Obviously, our conversation is 100% confidential. eXp is not an opportunity for everyone and I think within a 15-minute conversation we could figure out if doing a cost benefit analysis of your current brokerage and eXp makes sense. You can reach me by email at [email protected] or go to BookChubb.com. Our office number is 617-480-2600.
If you fell on this site and were really looking for an application, then Click here to go to the eXp Realty Application. And if you are interested in eXp Realty and don’t have a sponsor, then it would be a pleasure to chat with you!
Other Articles on eXp Realty that May Interest You:
- eXp Realty Bad Review – What I Don’t Like About eXp
- Is eXp Realty Really Worth It? Why I Decided to Stay
- Why Join eXp Realty - What Pushed Me Over the Cliff