EPISODE 325: Advantages of Using EXP as Your Brokerage
John and Robert featured Ricky Carruth on the 325th episode of the Mail-Right Show. Ricky Carruth is Alabama’s best real estate agent. He also began speaking, writing, and coaching in 2017 through his Zero to Diamond free real estate coaching company to lower the real estate industry’s failure rate by bringing awareness that it’s not about the deal. It’s about the connection. Ricky is the Agent of No-Pressure. Ricky has risen to prominence as the Gulf Coast’s top agent since 2014. This episode is about Ricky Carruth’s ascension to the top of the real estate market and his transition from RE/MAX to EXP.
What is EXP?
EXP Realty is a cloud brokerage operated by agents. According to Inman News, it is one of the “most inventive real estate enterprises globally.” There are no desk fees or royalty costs at eXp, and agents keep between 80 and 100% of their commissions. A cloud, or “open platform,” must compete with eXp and other cloud brokerages. A cloud-based open platform connects all of your brokerage systems. It means bidding farewell to tool weariness and a lack of flexibility. EXP is a cloud-based real estate brokerage that is far more cost-effective and profitable than traditional brick-and-mortar brokerages.
What is RE/MAX?
The original RE/MAX philosophy was to give agents complete control over their businesses while paying them 100% of their commissions. The commission structure is a critical component that real estate agents evaluate when choosing which brokerage to work with. A significant commission split means the agent keeps more of the proceeds from each transaction because they are not required to submit them to their contracted agency. REMAX agents can pick from a variety of commission structures. The first is a 95/5 split, in which the agent retains 95% of their commissions. It’s the commission rate for which REMAX gained notoriety, as most other firms provide a 70/30 split or less. While agents retain the majority of their commissions, they must pay a monthly desk fee to REMAX. It covers the franchise’s operational costs and is preferred by people who wish to budget for the cost as a fixed item.
The Advantages of Using EXP as a Brokerage
- Virtual workplace – Instead of traditional brick-and-mortar offices, eXp Realty agents, brokers, and staff can work from home or any other location. Agents are highly mobile and set up shop anywhere there is an internet connection.
- Collaborative technology — eXp collaborates with agents and staff using cutting-edge tools and technology.
- Agents can be shareholders — After hitting certain milestones, agents can earn shares of eXp World Holdings (eXp Realty’s parent business). Owning stock in the company gives financial security and empowers agents by providing them with a voice in the organization and strengthening their commitment to eXp’s success.
- More significant commissions — At eXp, the commission structure is 80/20 with a $16,000 annual maximum. When an agent closes on a property, they retain 80% of the commission, and eXp owns 20%. Once the agent reaches the $16,000 threshold in their anniversary year, they keep 100% of the commission earned on each sale.