Revenue Share is eXp's way of rewarding its agent for helping the company grow.
You will receive a % of the GCI produced by:
agents you directly bring into the company, and/or
agents that those agents bring into the company - up to 7 levels removed from you.
You don't receive anything for just "recruiting" agents into the company - the agents in your down-line must actually produce in order for you to receive any Revenue Share.
All Revenue Share paid to you comes out of the company dollar (i.e. commissions paid to the company), not out of the paychecks of the agents in your "down-line". Agents in your organization only pay their commissions to eXp, and then eXp divides a portion of the commissions received amongst the agents in your "up-line".
There are a lot of misconceptions about Revenue Share:
Revenue share is different from Profit sharing:
Profit sharing comes off the bottom. In a profit sharing program, agents get paid based on what's left after all expenses are paid. This is the model used by KW.
Revenue share comes off the top, and is not dependent on profitability. This results in significantly more money being distributed back to the agents.
Example of the difference: my sponsor was in KW's profit sharing system for over 16 years, and made a little over $30,000 in total profit share during that entire time period. Under eXp's Revenue Share program, he makes that same amount every 2 weeks!
eXp is NOT a "pyramid scheme", despite often being characterized as such by our disgruntled competitors.
Virtually every large brokerage in the industry (Coldwell Banker, Sotheby's, Century 21, Compass, etc.) has some type of "referral rewards" program for bringing other agents into the company. However due to their massive overhead and expenses, they are not able to provide anything even close to what eXp pays its agents in Revenue Share.
It should also be noted that referring to eXp as a "pyramid scheme" could potentially lead to a defamation lawsuit for falsely accusing a publicly traded company of engaging in criminal activity.
Before we get into how Revenue Share works, it's helpful to define certain terms that will be used throughout this discussion:
Sponsor: the person who directly brings a particular agent into eXp
Front Line Agent (FLA): also known as "Tier 1" agents, these are agents who you have directly sponsored into the company.
Front Line Qualifying Agent (FLQA): FLA's who have met a certain production requirement, and therefore count towards "unlocking" lower levels in your Revenue Share Organization. This is discussed in more detail below.
Down-line: also known as your "Revenue Share Organization", it includes all of the agents you have either directly or indirectly brought into the company (Levels 1-7)
Up-line: the agents who either directly or indirectly brought you into eXp - including your sponsor, and your sponsor's sponsor, etc. - up 7 levels above you.
Gross Commission Income (GCI): the total amount of commission income earned in a transaction, including both the agent's and the brokerage's split. For example: If a house sells for $1,000,000, and the % charged by the agent is 2.5%, the GCI on that transaction would be $25,000.
The agents in your Revenue Share Organization (i.e. Down-line) are organized into Tiers (1-7) depending on who sponsored them into the company:
Tier 1 = Agents you directly bring into the company (you are the Sponsor). Also known as "Front Line Agents (FLA's)"
Tier 2 = Agents brought in by agents on your Tier 1
Tier 3 = Agents brought in by agents on your Tier 2
Tier 4 = Agents brought in by agents on your Tier 3
Tier 5 = Agents brought in by agents on your Tier 4
Tier 6 = Agents brought in by agents on your Tier 5
Tier 7 = Agents brought in by agents on your Tier 6
** There is no limit as to the number of agents you can have on each tier (they can go infinitely wide); but you will only get paid on agents on Levels 1-7 of your organization.
The amount you will receive in Revenue Share from the production of the agents in your down-line depends on which Tier the agent is on in your organization:
For agents on your Tier 1 - you will receive 3.5% of their GCI.
For agents on your Tiers 2-7 - the % of GCI that you will receive in Revenue Share depends on 2 factors:
Which tier the agent is on; and
How many of your Tier 1 agents are FLQA's - see below for a detailed explanation ("eXponential Share")
eXpansion Share is the guaranteed base % you will receive for agents on your Tiers 2-7:
Tier 2 = 0.2%
Tier 3 = 0.1%
Tier 4 = 0.1%
Tier 5 = 0.1%
Tier 6 = 0.5%
Tier 7 = 0.5%
As the number of "qualifying" agents in your Tier 1 (FLQA) increases, you begin "unlocking" Tiers 2-7, which results in payment of a higher % of GCI on your agents' closed transactions. This higher % is known as "eXponential Share"
Explanation of "Qualifying"
All agents on your Tier 1 are known as "Front Line Agents" (FLA's). In order for an FLA to count towards unlocking Tiers 2-7 of your Revenue Share organization, they have to "qualify".
2 ways that your FLA's can qualify (become an FLQA):
Complete 2 transactions; or
Generate $5,000 in GCI
** Once an FLA qualifies and becomes an FLQA, they keep that status for 6 months. The 6 month period renews every time the FLA qualifies again by hitting the above criteria.
You "unlock" Tiers 2-7 of your Revenue Share Organization based on your number of FLQA's as follows:
5+ FLQA's to unlock Tier 2
10+ FLQA's to unlock Tier 3
15+ FLQA's to unlock Tier 4
20+ FLQA's to unlock Tier 5
25+ FLQA's to unlock Tier 6
30+ FLQA's to unlock Tier 7
When a level in your Revenue Share organization is "unlocked" you receive an additional % of GCI generated by the agents on that level ("eXponential Share") as follows:
When Tier 2 is unlocked (5+ FLQA's) - you receive an additional 3.8% - total of 4% (20x increase)
When Tier 3 is unlocked (10+ FLQA's) - you receive an additional 2.4% - total of 2.5% (25x increase)
When Tier 4 is unlocked (15+ FLQA's) - you receive an additional 1.4% - total of 1.5% (15x increase)
When Tier 5 is unlocked (20+ FLQA's) - you receive an additional 0.9% - total of 1% (10x increase)
When Tier 6 is unlocked (25+ FLQA's) - you receive an additional 2.0% - total of 2.5% (5x increase)
When Tier 7 is unlocked (30+ FLQA's) - you receive an additional 4.5% - total of 5% (10x increase)
As part of eXp's Accelerate Incentive program, the company will automatically open (unlock) Revenue Share tiers 2 and 3 for new agents for their first 12 months with eXp Realty.
Through the Revenue Share program, you are sharing in the commission revenue paid to the company by the agents in your down-line. When an agent hits their annual cap, they are no longer paying commissions to the company, so at that point there is no more revenue to share - i.e. - your revenue share earned from particular agents caps when they reach their annual cap on commission splits.
The maximum amount of Revenue Share you can earn per agent, per year is as follows:
Tier 1 = $2,800
Tier 2 = $3,200
Tier 3 = $2,000
Tier 4 = $1,200
Tier 5 = $800
Tier 6 = $2,000
Tier 7 = $4,000
** NOTE - these amounts may be adjusted each month pursuant to eXp's 50/50 initiative - see below for a detailed explanation.
This cap on the amount of Revenue Share you can earn from each agent resets each year on the agent's anniversary date. When the agent resets to 80/20 and 0% towards their cap, you will once again begin to receive Revenue Share on that agent's transactions.
The following table provides a complete summary of eXp's Revenue Share program and how it pays out:
In order to preserve the sustainability of eXp's Revenue Share program, eXp instituted what's known as the 50/50 Initiative. This initiative is a calculation that "overlaps" (i.e. adjusts) the calculations set forth above.
Each month, 50% of all company revenue gets paid back to the agents through Revenue Share.
If 50% of the company revenue is more than the amount of revenue share owed - revenue share is adjusted up so that agents get more money
If 50% of the company revenue is less than the amount of revenue share owed - revenue share is adjusted down so that agents get less money
** this refers to 50% of the revenue earned by eXp World Holdings (the parent company) and includes revenue received from its affiliated ancillary services (mortgage, title, escrow, etc.).
At eXp, transparency is paramount. As such, you can track / monitor your Revenue Share through your Revenue Share Dashboard.
This dashboard is linked to SkySlope (eXp's transaction management system) and automatically updates when agents join your organization, and when agents in your down-line close transactions.
Through your Revenue Share dashboard, you can see:
The total number of agents in your organization, broken down by the number of agents on each Tier
Detailed information about the production of each agent in your organization
The number of FLA's in your organization
The number of FLQA's in your organization
The number of agents that have joined your organization in the last 30 days
The amount of Revenue Share you are due to receive
updated in real-time as transaction files are closed out
broken down by agent and by transaction
Past Revenue Share payments received
And more!
Revenue Share is calculated and paid out on a monthly basis.
Each month, Revenue Share accrues for all closings done by agents in your organization from the 1st day of the month through the last day of the month.
On/about the 16th of the following month, your total accrued Revenue Share (as adjusted pursuant to the 50/50 initiative) is paid via direct deposit to your checking account.
The reason for the delayed payment until on/about the 16th of the following month is because Revenue Share does not accrue to your balance until the file is closed out in eXp's internal system (SkySlope). For closings that occur at/near the end of the applicable month, it may take a few days before eXp receives the money from the closing and the file is closed out.
eXp will provide you with a statement of your Revenue Share payment each month, and they can also be viewed in your Revenue Share dashboard.
To remain eligible to receive Revenue Share, you must meet the following requirements:
Be in Good Standing
Be current on any of the fees due, and not be past due on other outstanding invoices from eXp
Be current in all association fees, MLS dues and or mandatory market-based fees, if applicable
Revenue Share is purely voluntary.
You have no obligation to recruit other agents to eXp.
On average, only about 12% of the agents at eXp have recruited other agents and are receiving Revenue Share
There are no production quotas to be eligible to receive Revenue Share - i.e. you don't have to sell any houses to be eligible to receive Revenue Share. You just need to have your license affiliated with eXp.
You can recruit agents into either eXp Realty OR eXp Commercial, regardless of which brokerage you're a member of.
You can recruit agents in any state or country where eXp is operating, not just in your location, and even if you're not licensed there.
Accrual of Revenue Share starts from your agents' 1st transaction - not when they cap.
As described above, you actually stop receiving Revenue Share from individual agents when said agents reach their cap each year.
If someone in your down-line leaves eXp, it doesn't "cut off" everyone below them - they remain in your down-line
Furthermore, the agents under the agent who left do not "move up" - they remain on the same Tier as if the agent above them hadn't left (no compression). The empty space resulting from the agent who left gets "plugged" as a "company spot"
To qualify for vesting in eXp's Revenue Share Plan, you must meet the following conditions:
hold a current real estate license and be authorized to receive commissions,
be affiliated with eXp as an agent for at least 36 months, and
meet all requirements for Revenue Share eligibility (see above) for at least 36 consecutive months.
Effect of Vesting:
eXpansion Share: you will continue to receive eXpansion share even if you leave eXp
eXponential Share: you will continue to receive eXponential share as long as you remain with eXp and do not affiliate your license with. a competitor of eXp
In the event you are unable to continue working as an agent due to permanent incapacitation or death, you will automatically be considered Vested in the Revenue Share plan, and you can name any heir, legal representative or guardian as your successor.
Your successor will be substituted into your spot in the Revenue Share plan, and receive your Revenue Share payments going forward.
Any such substitution must be approved by eXp, and is subject to certain requirements, including that your successor must be licensed and the license must be affiliated with eXp within 12 months of your permanent incapacitation or death - if your successor does not have a real estate license, he/she will have 12 months to get licensed and join eXp.
To get an idea of just how impactful Revenue Share can be on your annual income, check out the following eXamples:
You bring in 5 agents directly, and each of them brings in 1 agent:
5 agents on your Tier 1 - $2,800 per agent per year - total of $14,000/year
5 agents on your Tier 2 - $3,200 per agent per year - total of $16,000/year
Total = $30,000/year
eXample assumes:
that Level 2 is unlocked, the agents have capped, and 50% of Revenue Share owed = 50% of company revenue.
that there are no agents on levels 3-7. If there were also agents on those levels, the total amount of Revenue Share could be significantly higher
You bring in 5 agents directly, and each of them brings in 2 agents:
5 agents on your Tier 1 - $2,800 per agent per year - total of $14,000/year
10 agents on your Tier 2 - $3,200 per agent per year - total of $32,000/year
Total = $46,000/year
eXample assumes:
that Level 2 is unlocked, the agents have capped, and 50% of Revenue Share owed = 50% of company revenue.
that there are no agents on levels 3-7. If there were also agents on those levels, the total amount of Revenue Share could be significantly higher
You bring in 5 agents directly, and each of them brings in 5 agents:
5 agents on your Tier 1 - $2,800 per agent per year - total of $14,000/year
25 agents on your Tier 2 - $3,200 per agent per year - total of $80,000/year
Total = $94,000/year
eXample assumes:
that Level 2 is unlocked, the agents have capped, and 50% of Revenue Share owed = 50% of company revenue.
that there are no agents on levels 3-7. If there were also agents on those levels, the total amount of Revenue Share could be significantly higher