Why are agents going to EXP and REAL, is there really that good of money?

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Why are agents going to EXP and REAL, is there really that good of money?

Logan M.
Investor · Provo, UT · Member since 2016 · 759 posts · 626 votes

Why are agents going to EXP and REAL, is there really that good of money?

I am pretty happy being with ReMax but I want to understand why so many agents are jumping over to MLMs in the real estate space???

What am I missing?

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Bruce Lynn
Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
3y

#1 What's missing is Profitability.....Pretty weird....I think both are either losing money or just barely hanging on to minimal profits.  If you couldn't make big money in 2021, the next few years are going to be even more difficult if not impossible.  I've been at companies early in my career that weren't making any money and some loosing money or facing bankruptcy.  It ain't no fun.  Plenty of other real estate companies struggling, they're not the only ones.

Listen to Jim Cramer on CNBC....don't invest in companies that lose money.

As I look back over the jobs I've had since I started working, I think you should pick very carefully who you follow and learn from.   I am not a ReMax and never have been, but Dave Liniger is a smart guy.  Learn everything you can from him.  Learn from people who know how to make money and be profitable.  Be a Kiyosaki, learn from your rich uncles, and don't take investing advice from the poor ones.

Watch earnings...

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  • Bill Rapp
    Real Estate Broker · Houston, TX · Member since 2016 · 35 posts · 15 votes
    3y

    I'm over at eXp Commercial, and with the size of the company it opens up a number of opportunities to collaborate with other brokers all over the US and the world. eXp and REAL both offer a revenue share component which incentives agents to form teams and bring on other agents, I think that is one of the drives for both

    2Reply
  • Lucia Rushton
    Realtor · Dallas - Fort Worth Metroplex, TX · Member since 2016 · 1k+ posts · 925 votes
    3y

    @Logan M. I can only speak for eXp. The company is growing, it’s got vibrancy, when you ICON the company gives you your cap back in stock, it is Agent owned so people care and it’s legacy wealth if you plan accordingly.

    Hope that helps

    2Reply
  • Bruce Lynn
    Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
    3y

    #1 What's missing is Profitability.....Pretty weird....I think both are either losing money or just barely hanging on to minimal profits.  If you couldn't make big money in 2021, the next few years are going to be even more difficult if not impossible.  I've been at companies early in my career that weren't making any money and some loosing money or facing bankruptcy.  It ain't no fun.  Plenty of other real estate companies struggling, they're not the only ones.

    Listen to Jim Cramer on CNBC....don't invest in companies that lose money.

    As I look back over the jobs I've had since I started working, I think you should pick very carefully who you follow and learn from.   I am not a ReMax and never have been, but Dave Liniger is a smart guy.  Learn everything you can from him.  Learn from people who know how to make money and be profitable.  Be a Kiyosaki, learn from your rich uncles, and don't take investing advice from the poor ones.

    Watch earnings...

    7Reply
  • Marian Huish
    Real Estate Broker · DC MD, VA & NV · Member since 2014 · 515 posts · 294 votes
    3y

    @Logan M. it’s because agents are owners receiving stock awards and passive income opportunities for life just for supporting agents who join the company. What do you receive from Re/Max if you bring agent into the company?  By having agents supporting agents in their success, it creates more collaboration and less competitiveness among agents.  Agents make more and so come from a position on abundance vs scarcity.  The company wins and the agents win.

    3Reply
  • Carlos Ptriawan
    Member since 2019 · 7k+ posts · 4k+ votes
    3y
    Quote from @Logan M.:

    Why are agents going to EXP and REAL, is there really that good of money?

    I am pretty happy being with ReMax but I want to understand why so many agents are jumping over to MLMs in the real estate space???

    What am I missing?


    From the buyer perspective like me, I saw Exp realtor team has more team work , dedicated , collaboration , inside training and these enthusiasm. Especially the one from the young guy realtor vibes.

    I also asked the same question to them, why do you join Exp with those split commision ?

    I think it's the vibes that clicked me more with eXP team.

    2Reply
  • Haley Dileva
    Real Estate Agent · Panama City Beach · Member since 2022 · 7 posts · 5 votes
    3y

    I'm happy to be with eXp Realty. Their benefits are incredible – 3 personal deals, rev share, agent attraction, cloud-based flexibility, and 24/7 support make it an ideal choice for me. If you want to know more on what they offer I'd be happy to connect!

    3Reply
  • RodTra SmithPro Member
    Rental Property Investor · Red Oak, TX · Member since 2018 · 20 posts · 15 votes
    3y
    Quote from @Marian Huish:

    @Logan M. it’s because agents are owners receiving stock awards and passive income opportunities for life just for supporting agents who join the company. What do you receive from Re/Max if you bring agent into the company?  By having agents supporting agents in their success, it creates more collaboration and less competitiveness among agents.  Agents make more and so come from a position on abundance vs scarcity.  The company wins and the agents win.

     I couldn't have said it better Mirian! I was with Keller Williams and it was a no brainer for me!  @Logan M.  The Rev Share from agent attraction is an OPTION that we have to make additional passive income on top of our commissions!  SMH

    1Reply
  • Logan M.
    OP
    Investor · Provo, UT · Member since 2016 · 759 posts · 626 votes
    3y

    What do agents do about being an MLM? 

    Personally, I don't like anything that pay money that is no connected to an agent doing deals but I can see the appeal.

    2Reply
  • Logan M.
    OP
    Investor · Provo, UT · Member since 2016 · 759 posts · 626 votes
    3y
    Quote from @Bruce Lynn:

    #1 What's missing is Profitability.....Pretty weird....I think both are either losing money or just barely hanging on to minimal profits.  If you couldn't make big money in 2021, the next few years are going to be even more difficult if not impossible.  I've been at companies early in my career that weren't making any money and some loosing money or facing bankruptcy.  It ain't no fun.  Plenty of other real estate companies struggling, they're not the only ones.

    Listen to Jim Cramer on CNBC....don't invest in companies that lose money.

    As I look back over the jobs I've had since I started working, I think you should pick very carefully who you follow and learn from.   I am not a ReMax and never have been, but Dave Liniger is a smart guy.  Learn everything you can from him.  Learn from people who know how to make money and be profitable.  Be a Kiyosaki, learn from your rich uncles, and don't take investing advice from the poor ones.

    Watch earnings...


     Thanks Bruce, this is great insight

    1Reply
  • Kyle Tusing
    Real Estate Agent · Northern Virginia · Member since 2019 · 79 posts · 33 votes
    3y

    I can only echo all the great things that have been said about eXp!

    And to the point of companies losing money, I know this is a real estate forum but as someone who started with stocks before going into real estate, I am not sure I can agree with Bruce. EXP as a brokerage is held within eXp holdings which has a ton of different entities under that umbrella, that is what the agents get a share of from working with eXp. So it is more than just a brokerage. That increases its profitability and in my opinion its upside. You can do a quick search yourself on EXPI as a stock and see what the experts say and forecast for it, also you can see it is profitable unlike a lot of real estate companies recently. Also regarding Jim Cramer, anyone who is interested in stocks can take a look at the historical returns on the Inverse Jim Cramer Strategy...

    1Reply
  • Marian Huish
    Real Estate Broker · DC MD, VA & NV · Member since 2014 · 515 posts · 294 votes
    3y
    Quote from @Logan M.:

    What do agents do about being an MLM? 

    Personally, I don't like anything that pay money that is no connected to an agent doing deals but I can see the appeal. 

    I always find this interesting when agents respond with this… they’d rather work for a company that keeps all the revenue at the top…. Traditional brokerages are also ‘Pyramid’s’, however, the agents are at the bottom!  And to @Bruce Lynn’s point, you apparently haven’t watched Mike Delprete’s  latest Inman keynote presentation!  (Pandamonium!?) Here’s just a couple of slides from it…  we’ll worth a watch!  

    1Reply
  • Carlos Ptriawan
    Member since 2019 · 7k+ posts · 4k+ votes
    3y
    Quote from @Marian Huish:
    Quote from @Logan M.:

    What do agents do about being an MLM? 

    Personally, I don't like anything that pay money that is no connected to an agent doing deals but I can see the appeal. 

    I always find this interesting when agents respond with this… they’d rather work for a company that keeps all the revenue at the top…. Traditional brokerages are also ‘Pyramid’s’, however, the agents are at the bottom!  And to @Bruce Lynn’s point, you apparently haven’t watched Mike Delprete’s  latest Inman keynote presentation!  (Pandamonium!?) Here’s just a couple of slides from it…  we’ll worth a watch!  


    - Problem with compass is I believe they're too much investing into tech while it doesn't necessarily translate to bigger productivity and sales
    - The EXP model is actually significant changes where it tries to democratize the revenue by sharing it among team and leads
    - I would like to say the Exp is offering new business model in RE agency, while other agency is more like traditional where individualism performance is the key ; Same concept in used car you have regular used car dealership and you have car max which offer no haggle price. You have cable tv but youtube offering streaming the same thing over IP, so on and so on. Or you have Toyota reseller dealership and also Tesla which doesnot have reseller concept.
    - I think by the time, its new business model would be tested by market and new winner would be elected.

    It's all interesting and good for customer LOL

    1Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    3y

    The reason seems pretty obvious to me

    [email protected]301-893-4635Podcast Guest on Show #192
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    4Reply
  • Melissa HaworthBusiness Member
    Real Estate Agent · The Panhandle | The Emerald Coast | Panama City Beach | Destin · Member since 2017 · 295 posts · 110 votes
    3y

    Agree with my girl@Haley Dileva-I love eXp.  I cap early in the year and end up paying 0 to eXp except for small transaction fee in commissions and then earn back the $16K I did pay in stocks when I become ICON. Of course the Rev Share is fantastic too!  As an investor eXp is the best brokerage for my business!

    [email protected]469-658-2869
    2Reply
  • James Hamling
    Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes
    3y

    @Logan M. as a NON eXp person, I'd like to chime in. 

    I get why any would view it as a MLM, heck I did, because in a lot of ways it resembles one. But I truly believe, after expansive research, insight, connections and facts, that it's not in any way shape or form an MLM but instead exactly as it has broadcast itself as a completely new reengineered envisioning of what a Real Estate brokerage should, and needs to be, for this age and the future. 

    I myself have personally ran a brokerage before, one with a big corporate name, my insight isn't 2nd hand or guess work, it's 1st hand hands-on insight. And I've been offered ownership in brokerages that are in the top handful of names nationally, I have walked behind the curtain. 

    In general, the "standard" brokerage model is, yes, a pyramid. It is. See, the agents focus is on doing transactions, and being a team leader. Team leaders focus is on "rain-making" creating leads for their agents. A brokerage's focus, is on the revolving door, putting butt's in seat's and milking the averages because we know 80% will immediately wash-out, of the remained 80% will do little for next few years before also washing out and make us some $, and what's left is our pay-checks. 

    The prevailing brokerage model is to identify your 10% that may be "pay-checks", ignore the other 90%, and milk-milk-milk. Yes, dedicate resources as need be to feed that "milker" to stay healthy, of course, how else do you get the milk right. 

    But notice what's missing? 

    The prevailing brokerage model doesn't give a squat about that agent's business past their "milk" production. Actually, you nerf it if anything. You want they to stay dependent to a certain degree. So we sell them on how they "need" the brokerage. And the brokerage shares as little as humanly possible to keep the dairy farm going. 

    eXp really has changed the fundamentals. They changed how agent recruitment works, eliminating the brokerage recruiter and that salary, but not just eliminating but transferring who get's it. And I guess that's the biggest thing, all the bloated over-head they executed BUT same time, transferred who get's the "reward". 

    Every prevailing brokerage does recruitment, and thus there is recruiters, and those who get paid for recruiting. eXp simply changed who does that, and the pay structure for such. They out-sourced it, to the agents themselves. 

    As for production, eXp agents have to produce to reap the full benefits because not producing, just recruiting alone, it has massive impact, it does. I struggled with comprehension of this for some time. That's where it really differentiates from a MLM. And why those just recruiting, for anyone, and not helping recruits to produce, make little to nothing for the venture. 

    Those who recruit, for producers, and help them to best produce, wow I have 1st hand seen epic rewards for both the recruited person and the recruiter. Because it's a incentivized win-win, they reap the rewards when produce and the loss when don't. 

    Now in a "standard" brokerage, when a recruited agent doesn't produce, nobody cares, or cares little to nothing. Ask any agent who's been in those shoes how many people cared. It's all on them alone to sort it out, again, the brokerage's focus is on producers not making producers. eXp, that coin flips. 

    In eXp , yeah one can look at the "pyramid" and say look how your feeding on the 7 layers below. But that also means an agent has 7 layers of people above directly incentivized by their best success, at least 7 people who it directly hit's their pocket book if this agent does or does not produce. Think on that. 

    The eXp model completely changes what it means to be a team leader, and how to build a team. At a standard brokerage, we have to design how were eating their lunch and what's left. eXp put's out there they will give away the lion's share of brokerage comm split's, making it available to those "up-chain" of that agent. That's less one has to take from agent's comm's, less one has to charge a client. 

    Again, I am not with eXp. So why do I say all this in this light, because it's simply the fact's and truth of it. 

    Now some absolutely treat eXp like a MLM, joined for such, and I can say with certainty it's not working out for them. Because it's not designed to. The eXp model is designed to empower agents, to be like brokerages themselves. When you start to see it in that light, that Glenn sat around and said "how can I make owning and running their own brokerage available and accessibly to literally any and every agent" things start to make a whole lot more sense. The puzzle pieces fall into place. 

    The problem is viewing the eXp model, through the lens of a conventional brokerage model, it will never make sense, because by it's very design it set to complexly change that paradigm. 

    As time goes, as it has, we will see more and more brokerages adopt more and more of the eXp model, because it works, it does. The resistance is those territory owners of the "old guard" who have literally everything to loose. They run a brokerage, they don't want to have to do all this big inputs to help agents, ALL agents, to become producers, no. They LET agents work there and what they make they make, and those who produce get feed, that's what they've always done and that's what they want to do.     I can tell you, from 1st hand insight, that is EXACTLY what's going through their minds. They are dinosaur's arguing their extinction. 

    The conventional brokerage model is a pre-internet, pre-online tech enabled world. They are Kodak asking how do we get these cameras out of everyones hands and force them to use our disposables. Pandora's box is open, there is no closing it. 

    I am a producer, I help people because I can, no joke. I get paid nothing for it, the brokerage get's their split from the agent I helped and I get diddly-squat. I don't even get a thank you most times. And I still help people, maybe because I'm old now or who knows but it's just who I am. Would I rather get some compensation for that, some credit, heck yeah. And yes, i deserve it. Is it MLM to say such? Is it MLM to want the brokerage who is doing thousands of transactions daily to share that with those who made it possible? 

    eXp is using a form of the Walmart principle in Real Estate Agency. The found a way that buy charging less, they make more. Tapping volume vs per transaction fee's. And in doing such, have just like Walmart reshaped the industry itself. 

    I applaud them, even though I am not currently with them, for my own reasons. So, yeah it's still got improvement but there going a dang good direction. 

    4Reply
  • Logan M.
    OP
    Investor · Provo, UT · Member since 2016 · 759 posts · 626 votes
    3y
    Quote from @Marian Huish:
    Quote from @Logan M.:

    What do agents do about being an MLM? 

    Personally, I don't like anything that pay money that is no connected to an agent doing deals but I can see the appeal. 

    I always find this interesting when agents respond with this… they’d rather work for a company that keeps all the revenue at the top…. Traditional brokerages are also ‘Pyramid’s’, however, the agents are at the bottom!  And to @Bruce Lynn’s point, you apparently haven’t watched Mike Delprete’s  latest Inman keynote presentation!  (Pandamonium!?) Here’s just a couple of slides from it…  we’ll worth a watch!  


     Thanks for sharing this, very interesting information

    1Reply
  • Kyle Lee
    Real Estate Broker · Seattle · Member since 2023 · 3 posts · 2 votes
    3y

    I was at eXp and now at REAL. The collaboration and the learning are the main reasons why I went to eXp and also why I'm now at REAL. If you can help different agents succeed, and best of all be financially aligned with their goals, why not? I was at a 70/30 with no rev share model, it was actually amazing don't get me wrong, I believe though personally that the rev share/cloud model is something I prefer, but it is not for everyone.

    1Reply
  • Josh Carter
    Real Estate Agent · Brooklyn, NY · Member since 2015 · 58 posts · 11 votes
    2y
    Quote from @Bruce Lynn:

    #1 What's missing is Profitability.....Pretty weird....I think both are either losing money or just barely hanging on to minimal profits.  If you couldn't make big money in 2021, the next few years are going to be even more difficult if not impossible.  I've been at companies early in my career that weren't making any money and some loosing money or facing bankruptcy.  It ain't no fun.  Plenty of other real estate companies struggling, they're not the only ones.

    Listen to Jim Cramer on CNBC....don't invest in companies that lose money.

    As I look back over the jobs I've had since I started working, I think you should pick very carefully who you follow and learn from.   I am not a ReMax and never have been, but Dave Liniger is a smart guy.  Learn everything you can from him.  Learn from people who know how to make money and be profitable.  Be a Kiyosaki, learn from your rich uncles, and don't take investing advice from the poor ones.

    Watch earnings...

    I just switched from compass to exp because it’s actually the most profitable publicly traded brokerage in the country, only other profitable publicly traded brokerage is Berkshire Hathaway. Even in 2023 when everyone in real estate suffered major losses, exp returned a profit. Standalone brick and mortars like compass are the ones that are burning through money and taking it from the agent and customer

    2Reply
  • Carlos Ptriawan
    Member since 2019 · 7k+ posts · 4k+ votes
    2y
    Quote from @Josh Carter:
    Quote from @Bruce Lynn:

    #1 What's missing is Profitability.....Pretty weird....I think both are either losing money or just barely hanging on to minimal profits.  If you couldn't make big money in 2021, the next few years are going to be even more difficult if not impossible.  I've been at companies early in my career that weren't making any money and some loosing money or facing bankruptcy.  It ain't no fun.  Plenty of other real estate companies struggling, they're not the only ones.

    Listen to Jim Cramer on CNBC....don't invest in companies that lose money.

    As I look back over the jobs I've had since I started working, I think you should pick very carefully who you follow and learn from.   I am not a ReMax and never have been, but Dave Liniger is a smart guy.  Learn everything you can from him.  Learn from people who know how to make money and be profitable.  Be a Kiyosaki, learn from your rich uncles, and don't take investing advice from the poor ones.

    Watch earnings...

    I just switched from compass to exp because it’s actually the most profitable publicly traded brokerage in the country, only other profitable publicly traded brokerage is Berkshire Hathaway. Even in 2023 when everyone in real estate suffered major losses, exp returned a profit. Standalone brick and mortars like compass are the ones that are burning through money and taking it from the agent and customer


     it is very hard for compass to survive in those environment, as company like as big as amazon or apple move to hybrid work environment, the compass failed to grasp the spirit hence their transaction cost is so high.

    1Reply
  • Marian Huish
    Real Estate Broker · DC MD, VA & NV · Member since 2014 · 515 posts · 294 votes
    2y

    …just curious @Logan M., are you still ‘missing it’?  These are tough times for agents & brokerages and exp Realty is still leading the way.  Profitable. Proven Business Model.  Publicly Traded. How much monthly passive income have you made from Re/Max outside of commissions?  How much stock has Re/Max awarded you for selling real estate?   Just curious what your current brokerage is offering…. Genuinely interested in what am “I missing “? 

    0Reply
  • Bill Rapp
    Real Estate Broker · Houston, TX · Member since 2016 · 35 posts · 15 votes
    2y
    I ran independent boutique brokerage from 2013 - 2022, and I made the decision in November of that year to join eXp Commercial. For me, the main motivations for making the moves were to: 1. Remove the management headaches and have a back office support those functions, 2.The ability to co-broker and refer deals nationwide within the platform. 3. The simple economies of scale for joing their commercial division is unreal. the technology pages runs $266.50 because of the collaborative purchasing power of eXp Holdings, as an independent the same platforms could run easily $4-5,000 a month. 4. Revshare component and the ability to build a downline was just the icing on the cake. 

    My humble $.02.

    Bill

    Quote from @Logan M.:

    Why are agents going to EXP and REAL, is there really that good of money?

    I am pretty happy being with ReMax but I want to understand why so many agents are jumping over to MLMs in the real estate space???

    What am I missing?


    0Reply
  • Logan M.
    OP
    Investor · Provo, UT · Member since 2016 · 759 posts · 626 votes
    2y
    Quote from @Marian Huish:

    …just curious @Logan M., are you still ‘missing it’?  These are tough times for agents & brokerages and exp Realty is still leading the way.  Profitable. Proven Business Model.  Publicly Traded. How much monthly passive income have you made from Re/Max outside of commissions?  How much stock has Re/Max awarded you for selling real estate?   Just curious what your current brokerage is offering…. Genuinely interested in what am “I missing “? 


     Our brokerage setup is a little different than most others. We own a title company, lending, and insurance so we get paid dividends on all of the auxiliary companies. We have to buy the stock similar to EXP but we are paid about 20% per year on our money invested.

    So I am making about 20-30k per year just doing my normal business. 

    One of my close friends built his downline to over 3000 agents with EXP and has done incredibly well.

    1Reply
  • Logan M.
    OP
    Investor · Provo, UT · Member since 2016 · 759 posts · 626 votes
    2y
    Quote from @Russell Brazil:

    The reason seems pretty obvious to me


     This is my favorite office GIF

    1Reply
  • Logan M.
    OP
    Investor · Provo, UT · Member since 2016 · 759 posts · 626 votes
    2y

    A lot of teams in Utah have been switching from EXP to Real any idea why???

    1Reply
  • Marian Huish
    Real Estate Broker · DC MD, VA & NV · Member since 2014 · 515 posts · 294 votes
    2y

    Great…. Sounds like it’s working for you!

    0Reply
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