Business Model and Earning Opportunities
Information About Teams
U.S. Domestic Teams (married couples)
eXp Realty provide legally married couples in the U.S. the option of a Domestic Team structure. It includes:
ICON eligibility with one award to the team
One capped transaction fee of $5,000
One Risk Management fee of $40 per transaction, capped at $500 per year
One shared commission cap of $16,000
One join fee of $149
Self-Organized Teams, Standard Teams, and Mega Teams
These teams are defined as:
One lead agent or team leader
One or more licensed agent working as a team member with a team agreement
Team agreements are mutually agreed upon terms between the team leader and team members. These agreements are in writing and carefully considered to ensure compliance with all federal, state and local laws as well as company policy. eXp Realty will not intervene in any disputes between team members and team leaders.
How commissions are calculated - SEE EXAMPLES BELOW
The first deductions are for any outside referrals owed to other brokers.
Next, gross commissions (or remaining commissions after outside referrals) are divided between team leader and team member.
Then all eXp Realty company dollar and fees are deducted from each agent individually.
Transaction fees such as broker review fee, capped transaction fee and risk management fee are per transaction, not per agent.
Self-organized Team
This team structure is almost like a referral partnership or a co-op. This is the most common way that team leaders start.
Under this model, you are the team leader and there is no minimum amount of deals you have to do to sustain your team.
The cap is not reduced for any team members, so everyone is on a $16,000 cap and there is no minimum referral percentage required to the team leader.
There is no formal team agreement required by eXp, but you will want to submit a team roster. This basically provides eXp with a list of agents that you are sharing deals with on a consistent basis (one-off deals do not have to be on the roster).
An agent may want to start a self-organized team to allow other agents to be able to use the team leader’s marketing and branding.
Standard Team
This model is probably what most people think of when they think of a real estate team, with team splits and formal leadership from the team leader.
Each team member has a half cap of $8,000, with the exception of the team leader, who remains at a $16,000 cap.
Each agent pays a referral percentage to the team leader with a minimum required split of 75:25 on all deals. Remember, agents on your team are only paying a half-cap, so there has to be some sort of balance here to make sure the system can continue to work for everyone.
A written team agreement must be submitted to eXp and approved. eXp provides standard team forms that are customizable to fit your specific team needs. A team roster is also required to be submitted, so that it is clear which agents are working under your team name.
Qualifications: To qualify as a standard team, you need to have closed 30 transactions the previous year, or have done a minimum of $6 million in business. Keep in mind, this number refers to a consecutive 12-month period, not a calendar year. Once your team is in place, you will be expected to maintain this level of production as a team leader. Personal production and team splits all count toward your numbers here.
Mega Team
This is the team structure you would look at if you were looking to be a substantial team of 10 or more. The Mega Team provides a way to help your agents lower their costs while enhancing the value proposition for you as the team leader.
Each agent (with the exception of the team leader) has a quarter cap of $4,000. The cap for the team leader remains at $16,000.
This team is similar to the standard team in that it requires a written team agreement as well as a team roster.
The Mega Team also mimics the standard team with a required referral percentage to the team leader of 25%.
Qualifications: A Mega Team requires a minimum of $40 million in closed transactions for the team, or 175 closed transactions. It also has to have 10 capping team members in the previous 12 months.
The team is responsible for $56,000 in caps regardless of how many agents reach their individual cap. This helps ensure that the team is producing, and is a bigger concern for a team of 10 agents, versus one that has 25 agents working toward that $56,000 cap.
Examples of a team commission breakdown
* Capped transaction fee reduces to $75 for mega teams and any agent whose capped transaction fees total $5,000 or more.
Example #1:
• 50/50 split between the team leader and team member (after eXp fees)
• Neither the team leader or team member are capped
• Transaction with $10,000 gross commission
Example #2:
• 50/50 split between the team leader and team member
• Team leader is capped
• Team member is not capped
• Transaction with $10,000 gross commission
