In the 446th episode of Mail-Right Show, Robert Newman and Jonathan Denwood discussed the essential aspects realtors must consider when joining EXP realty, from company culture to growth opportunities and the challenges agents may face within this brokerage model. Robert Newman is the founder of InboundREM, a content marketing, story-telling-based platform. Meanwhile, Jonathan Denwood is the joint founder of Mail-Right, which builds beautiful websites on WordPress and provides CRM, landing pages, email, text outreach, and more in one great value package.
Successful and Experienced Realtors Would Be Successful at Any Brokerage
For real estate agents, building a robust marketing methodology is important. Whether using traditional marketing, referral groups, leveraging digital marketing, or adopting a hybrid approach that combines both, a clear strategy is key to success. Whichever method generates enough leads and turns those leads into sales, the agent can achieve success across various brokerage types.
Newer agents may benefit more from starting under an experienced mentor than joining an online brokerage, as mentors offer foundational insights and practical guidance. Selecting a brokerage becomes strategic once agents establish a strong lead generation and transaction management process. High-performing agents with strong marketing and transaction systems might choose brokerages that maximize profit retention with minimal transaction fees or annual costs.
Some brokerages, like eXp Realty, offer company shares and profit-sharing benefits. This model resembles a multi-level structure, where agents can build a “downline” and earn a percentage from transactions made by agents they refer. For agents seeking a combination of independence, growth potential, and profit-sharing, eXp Realty is a leader in the digital brokerage space with a distinct model. With their established digital-first approach and a competitive profit-to-earnings share ratio, they are recommended for agents interested in merging real estate expertise with innovative business models. However, agents should consider if this model aligns with their long-term goals, as stock performance and terms may vary over time.
Break the Mindset That Your Broker Is Your Employer
In real estate, the broker-agent relationship is more of a partnership than a traditional employer-employee dynamic. While brokers supervise and support agents, agents are independently responsible for marketing, lead generation, and managing their businesses.
Traditional brokerage models have treated agents more like employees, but many have since shifted away from this approach. For independent agents, success depends on viewing the brokerage relationship as a collaborative partnership rather than employment. Some brokerages provide substantial digital marketing support, offering their agents leads through dedicated digital managers. However, agents remain responsible for their client relationships and sales.
In the digital age, the concept of a broker as an employer is outdated, except for a small segment of luxury-focused brands, such as Sotheby’s, which have built such prestigious reputations that agents benefit significantly from the brand. Most brokerages now focus on high-volume transactions, providing training and structured processes without acting as employers. Digitalization in real estate also emphasized automation and business processes, making tools like digital document management, training videos, and sales scripts essential.
In evaluating brokerages, agents may consider firms like eXp and Realtor, which offer digital tools, training, and potential for shared equity as part of the agent’s long-term investment.
Priorities that You Need from Your Brokerage
When selecting a brokerage, realtors should consider their priorities, which depend on their professional style and the type of brokerage model they join. It can vary between traditional brokerages and digital-focused brokerages. Here’s an overview of the main factors to consider:
- Financial Structure: The commission split and associated fees are crucial. For example, at eXp Realty, the commission split is 80/20 up to a $16,000 cap. After reaching this cap, agents retain 100% of their commissions.
- Support and Training: Comprehensive support and accessible training are essential for agents, especially in digital-focused brokerages. For instance, eXp Realty offers extensive online training, which many agents appreciate. Meanwhile, traditional brokerages may provide more in-person resources, fostering a sense of community.
- Community and Networking. Digital brokerages may lack the in-person community feel of traditional ones. While they try to create online communities, they often don’t feel the same as the physical office experience.
- Digital Tools and Resources: Brokerages with strong internal tools benefit agents focused on digital processes as they provide IDX systems, CRM tools, and other resources to streamline communication, listings, and transactions.
- Brokerage Investment in Agents: Some brokerages invest more in agent support and marketing resources. For instance, The Agency RE provides professional marketing resources through its internal marketing department, covering costs many brokerages pass on to agents.
- Additional Charges: Large brokerages often offer advanced tools like BoomTown and KVCore by purchasing licenses, with costs usually included in agents’ monthly fees or digital packages. At eXp, KVCore remains a key component of their digital package, though agents are not strictly required to use it.
Comparing eXp Realty to the Main Competitors
Matthew Lawson co-founded a group called “YouTube Mastermind” for real estate agents, which currently has over 12,000 members. Real’s mission is focused on addressing some of the problems seen in other real estate models. As eXp grew, it faced challenges common to multi-level marketing (MLM) companies, where the focus often shifted from real estate transactions to recruiting new agents. This model can sometimes prioritize recruitment and training over the core value of buying and selling real estate.
Many agents within MLM models, including eXp, have approached others solely to build recruitment networks rather than directly engaging in real estate. Though these structures are profitable, aligning with a brand’s core philosophies and business values is essential. Conducting thorough research is advised for those considering joining an MLM model in real estate, especially given that only a few MLM-based businesses exist.
