The real estate industry is a dynamic, ever-evolving, and competitive industry with a lot of players trying to make it big. However, due to market fluctuations, changing client expectations, and continuous technological advancements, real estate agents navigate through these shifts, facing challenges and opportunities as they strive for success in this competitive field. The only way to survive and thrive in this industry is to keep up with advancements and choose the best platform to accelerate your growth and profits.
Choosing the right cloud brokerage is a critical factor that shapes an agent’s career trajectory, influences financial outcomes, and significantly impacts personal and professional growth. The internet is filled with diverse options, and the selection of a brokerage becomes a strategic decision, requiring alignment with an agent’s values, goals, and aspirations.
The cloud brokerage industry is currently dominated by two big players, eXp Reality and REAL Broker; where eXp Reality stands as the founder of cloud brokerage, and REAL Broker comes as a student surpassing the master by resolving all the flaws and creating a platform that is collaborative, powerful and expand financial opportunities.
My journey in the real estate industry took a transformative turn when I made the decision to transition from eXp Realty to Real Broker. This move wasn’t merely a change in affiliations; it represented a deliberate and strategic choice driven by a quest for a collaborative culture, unparalleled business and wealth opportunities, and the potential for national expansion. This transition became a profound exploration of what it truly means to thrive in the competitive world of real estate.
The decision to shift from eXp Realty to Real Broker was rooted in a deep understanding of my professional aspirations. Real Broker’s collaborative culture resonated with my desire for a supportive community and shared success. It offered an environment where collaboration was not just encouraged but celebrated, fostering a sense of collective achievement.
Beyond culture, the business and wealth opportunities at Real Broker played a pivotal role in my decision. The unique commission structure and wealth-building possibilities aligned seamlessly with my financial goals, providing a clear pathway for sustainable success in the real estate industry. Moreover, the prospect of national expansion with Real Broker was an enticing opportunity, offering the potential to grow my business beyond local boundaries.
However, keeping the personal experience aside, we will conduct a detailed exploration and comparison of eXp Realty and Real Broker. By dissecting their respective offerings, we aim to provide real estate professionals with valuable insights to guide them in making informed decisions. This comprehensive analysis will draw from personal experiences and serve as a practical guide for fellow agents seeking a brokerage that aligns with their unique aspirations and ambitions.
Traditional brokerage models have long been the cornerstone of the real estate industry. These models typically involve physical office spaces, hierarchical structures, and commission-based compensation for agents. While these established models have played a significant role in shaping the industry, they come with inherent limitations, often characterized by high overhead costs and a more rigid organizational framework.
The landscape of real estate brokerages has witnessed a transformative shift with the emergence of innovative models such as eXp Realty and REAL Broker. These companies represent a departure from the conventional norms, introducing virtual and technology-driven approaches to the real estate business.
eXp Realty stands out as a pioneer in virtual collaboration. The brokerage operates on a cloud-based platform, providing agents with a virtual workspace and fostering a sense of community through shared online experiences. This departure from the traditional brick-and-mortar model allows for flexibility and accessibility, enabling agents to collaborate and conduct business from anywhere in the world.
REAL Broker, on the other hand, has redefined traditional brokerage dynamics by introducing a model that emphasizes agent ownership. The company operates as a publicly traded company, allowing agents to own stock and share in the success of the brokerage. This innovative approach not only aligns agents more closely with the overall success of the company but also creates a unique sense of ownership and investment in the brokerage’s growth.
The decision to align with a particular real estate brokerage is a pivotal one for agents, influencing their career trajectory and overall success. When contemplating this decision, several key factors come into play:
Understanding the commission structures offered by a brokerage is crucial. eXp Realty and REAL Broker provide unique commission structures, revenue-sharing, or stock ownership options.
The structure of commission splits is a fundamental consideration in evaluating which model offers more flexible and potentially lucrative arrangements.
Examining the fee structure is essential. Agents should be aware of any upfront fees, transaction fees, or other costs associated with being part of a brokerage.
Understanding how stock bonuses are awarded and their potential financial impact is crucial for agents considering long-term investments.
Revenue-sharing models, where agents receive a portion of the company’s revenue, can be a significant factor. Agents should explore the details of these programs and evaluate how they align with their financial goals.
The culture of a brokerage plays a significant role in an agent’s experience. Collaborative and supportive environments, like that fostered by eXp Realty’s virtual platform or REAL Broker’s emphasis on agent ownership, can contribute to a more fulfilling professional journey.
Technology and Innovation
Assessing a brokerage’s use of technology is vital in the modern real estate landscape. Virtual tools, cloud-based platforms, and other innovative technologies can enhance efficiency, communication, and overall business operations.
Consideration should be given to the opportunities for growth and expansion. Whether a brokerage facilitates national or international expansion, as seen with eXp Realty and REAL Broker, can significantly impact an agent’s ability to broaden their market reach.
A brokerage’s commitment to supporting its agents through training programs, mentorship, and ongoing education is critical. This can contribute to an agent’s professional development and long-term success.
As we delve deeper into the specific attributes of eXp Realty and REAL Broker in the following sections, the aim is to provide real estate agents with a comprehensive understanding of these key factors. This exploration will empower agents to make informed decisions based on their unique preferences, goals, and aspirations.
We have divided the evaluating factors into three major categories, and we will add details in each category and will be picking our winner from eXp Reality and REAL Broker in that category to make it easy for you to make a decision.
Our financial category has all the costs that you have to pay to eXP Reality and REAL Broker in terms of fees and commissions.
In the realm of commission caps, both eXp Realty and REAL Broker leverage their cloud-based structures to pass on cost savings to agents. However, REAL Broker provides a lower annual cap, translating to substantial savings of $4,000 annually for their agents compared to those affiliated with eXp Realty.
Commission splits, a pivotal consideration for agents, demonstrate a clear distinction between eXp Realty and REAL Broker. eXp Realty opts for an 80/20 split, with agents retaining 80% of their commission. In contrast, REAL Broker embraces a more agent-centric approach, providing an appealing 15/85 split, allowing agents to keep 85% of their earnings. This becomes particularly advantageous for newer or part-time agents seeking increased financial flexibility.
Total Fees at eXp Realty: $1,020 + $500 + $500 + $3,250 = $5,270
Total Fees at REAL Broker: $500 + $3,375 = $3,875
Considering the scenario of selling 20 homes at an average price of $400,000 with a 3% commission:
After evaluating all the financial factors, including commission cap, split, fees, and breakdown structure, we have a clear-cut winner in the financial category, that is REAL Broker, as it offers better benefits in all subcategories, making it a financially advantageous choice for real estate professionals aiming to optimize their earnings.
Now, we will be covering both platforms’ stock bonuses and awards to determine which platform gives better incentives to real estate agents.
Both REAL Broker and eXp Realty, being publicly traded companies, provide stock bonuses to their agents as part of their incentive programs. Let’s delve into the details of their respective stock bonus offerings.
eXp Realty offers its agents three avenues to earn free shares in the company, fostering a sense of ownership and alignment of interests.
First Transaction of the Year
Agents earn shares on their first transaction of each year.
Capping
Agents earn shares when they reach their annual cap.
Sponsoring Agents
Agents earn shares when an agent they sponsor completes their first transaction.
Agents can earn $16,000 worth of shares by achieving the Icon Agent Award.
Agents can purchase shares at a 10% discount out of their commission.
REAL Broker, like eXp Realty, provides its agents with opportunities to earn free stock through various achievements. Here are the four paths agents can take to earn stock at REAL Broker:
Agents earn stock by reaching the annual cap, with the amount varying based on stock price and the number of agents in the brokerage.
Agents earn stock by attracting new agents to the company.
Agents can earn $24,000 worth of stock by achieving the Elite Agent Award.
Agents can purchase stock out of their commission and receive up to 50% additional free shares, with a maximum of $8,000 free stock per year.
Both brokerages offer similar stock incentive programs, with slight variations in the ways agents can earn shares. While eXp Realty has one additional method of earning stock, REAL Broker offers a more attractive bonus incentive for purchasing stock with commission and provides a higher award for achieving Elite Agent compared to eXp’s Icon Agent.
In the assessment of stock incentive programs, REAL Broker has a slight edge due to its more lucrative bonus incentive for purchasing stock and the higher award for achieving Elite Agent. Although eXp Realty has a broader range of ways to earn stock, the specific advantages provided by REAL Broker make it the winner in this category.
Both REAL Broker and eXp Realty recognize their top-performing agents through prestigious awards that include stock bonuses. Let’s compare the Elite Agent program at REAL Broker with the Icon Agent program at eXp Realty.
eXp Realty’s Icon Agent program provides agents with up to $16,000 in stock, distributed across three separate awards:
$8,000 Production Award
Requirements include paying the $16,000 cap, $5,000 in post-cap transaction fees, or having a team that pays $40,000 in “company dollars.
$4,000 Cultural Commitment Award
Active ICONs can earn stock by contributing to company culture through time, talent, and knowledge.
$4,000 Event Attendance Award
ICON agents have the opportunity to earn up to an additional $4,000 worth of EXPI common stock for attending approved events.
REAL Broker’s Elite Agent program offers up to $24,000 in free stock, divided into a $16,000 Production Award and an $8,000 Cultural Award.
Agents can achieve this award by paying the $12,000 cap and $6,000 in post-transaction fees (27 transactions) or by paying the $12,000 cap and earning $500,000 in GCI with at least 10 transactions.
Awarded for contributing to the REAL Academy, giving back to the Real agent community, or contributing to the local community.
Icon agents need to meet specific production requirements, engage in cultural commitment activities, and attend approved events to receive up to $16,000 in stock.
Elite agents have to meet production requirements and contribute to the community to receive up to $24,000 in stock.
eXp Realty Total Cost:
Total Cost: $23,995
eXp Realty Total Cost (Adjusted for Stock):
Adjusted Total Cost: $7,395
REAL Broker Total Cost:
Total Cost: $18,143
REAL Broker Total Cost (Adjusted for Stock):
In this scenario, REAL Broker demonstrates a significant cost advantage, effectively making it free for the agent to sell 35 homes a year and leaving them with a surplus of $7,257. On the other hand, eXp Realty, even with the deduction of $16,000 in free stock, incurs a total cost of $7,395. Therefore, REAL Broker emerges as the winner in this comparison, offering a more favorable program for top-performing agents.
Referral areas are a great way of using your network to generate extra income, and the landscape of real estate brokerages has undergone a transformation with the introduction of revenue share and referral programs. Initially conceptualized by Keller Williams Realty to incentivize agents, this model has been embraced and evolved by companies like eXp Realty and REAL Broker. In this in-depth analysis, we will meticulously dissect the intricacies of their revenue share programs, aiming to shed light on the nuanced differences that define their approaches.
The origin of revenue share can be traced back to Keller Williams Realty, a pioneer in introducing innovative compensation structures. The fundamental idea was to attract agents by promising a continuous stream of income through the recruitment of new talent.
eXp Realty’s revenue share program is a multifaceted structure designed to reward agents for their role in expanding the brokerage. Let’s delve into the granular details:
Agents at eXp Realty have the potential to earn up to $2,800 annually for each new agent they bring into the company. This reward is a percentage of the new agent’s $16,000 annual cap and continues as long as the recruited agent remains with eXp.
The program adopts a tiered structure comprising multiple levels extending up to 7 tiers. The agents in the first tier are those directly recruited, and subsequent tiers (2 to 7) involve agents brought in by those in the preceding tier.
An agent must successfully recruit 40 or more qualifying agents in their Tier 1. to unlock the rewards for all 7 tiers. In this context, Qualifying agents are those actively producing results, closing transactions, and contributing significantly to the brokerage’s overall success.
The eXp Realty revenue share program is strategically designed for long-term wealth building, especially for agents with expansive networks and robust recruiting capabilities. However, it’s crucial to note that unlocking all 7 tiers demands a substantial and sustained recruitment effort.
REAL Broker’s revenue share program shares the essence of eXp Realty’s model but introduces distinctive elements that set it apart. Let’s delve into the specifics:
REAL Broker offers agents a flat $4,000 annually for every capping agent they attract to the company on their Tier 1. This introduces a performance-oriented criterion, as agents need to bring in agents who have not only joined but have also reached their annual cap.
The program extends to 5 tiers, each with varying annual revenue share. To unlock all 5 tiers, an agent needs to recruit at least 25 qualified agents, adding a layer of complexity to the qualification criteria.
To qualify for revenue share at REAL Broker, agents must bring in capping agents, emphasizing the significance of performance within the recruited pool. The program rewards agents for recruitment up to 5 tiers deep, striking a balance between depth and stringent qualification criteria.
In a detailed analysis, REAL Broker’s revenue share model emerges as more lucrative for agents, especially in the crucial Tier 1 and the subsequent tiers (2, 3, 4). While eXp Realty provides a deeper 7-tier structure, the effectiveness of REAL Broker’s program for the average agent, with a limited direct network, becomes evident.
Mega recruiters can find eXp Realty’s program advantageous for fully unlocking all 7 tiers. Agents must consider their recruitment strategy, network size, and each model’s long-term wealth-building potential in evaluating these revenue share programs. The nuances in compensation structures make this a critical decision for agents seeking sustainable income and growth within their chosen brokerage.
In conclusion, the exploration of eXp Realty and REAL Broker’s revenue share programs unveils a complex interplay of compensation structures, recruitment thresholds, and wealth-building potential. Agents navigating this terrain must weigh the intricacies and align their strategy with the unique offerings each brokerage provides. The decision ultimately hinges on a nuanced understanding of one’s network, recruitment capabilities, and the desired trajectory for long-term success in the real estate domain.
While building passive income from any platform, there are a few factors that matter more than the number any platform is paying, as there are chances that the high number can rip the agent off his hard work as no policies are mentioned in the platform to protect the real estate agent.
There is a major difference between eXp Reality and REAL Broker in terms of protecting the agent, as REAL Broker has mentioned a clause within REAL Broker’s Independent Contract Agreement explicitly forbidding the promise of ANYTHING OF VALUE in exchange for being named as the referral agent. This seemingly minor clause carries substantial implications, reaching far beyond the confines of contractual technicalities.
This cultural divide is not a mere abstract concept; it has tangible repercussions. Agents at eXp Realty find themselves in a situation where promises of exclusive content and benefits become decisive factors influencing a recruit’s choice of sponsorship. This impacts new eXp agents and disrupts existing agents’ efforts in building out their downlines. This happens as there is no claim in the eXp reality policy backing up the real estate agent.
Consider the scenario where an agent diligently introduces a recruit to the merits of eXp Realty, answering queries, providing resources, and guiding them through the onboarding process. The agent excitedly shares the news of joining eXp, only to reveal that they chose another sponsor enticed by promises of exclusive training and access to private groups.
For the average agent running a real estate business, competing against a full-time recruiter armed with promises of extensive perks becomes impossible. This dynamic not only affects the new eXp agent but also disrupts the efforts of existing agents in building out their downlines.
REAL Broker addresses this challenge head-on by implementing a clause that prohibits the promise of anything of value for sponsorship. This strategic move is aimed at fostering a fair system where every agent, irrespective of their recruiting prowess, stands on an equal footing.
In light of this cultural distinction, REAL Broker offers a fair and level playing field. While both companies have carved their paths in the revenue share landscape, REAL Broker’s commitment to eliminating the practice of promising perks for sponsorships stands out as a decisive factor in creating an environment conducive to the growth of the average agent.
The revenue category is the most dense, confusing, and extensive out of all categories. Even though both platforms have given real estate agents options to multiply their wealth, it is evident in policies that REAL Broker has created every policy from the real estate agents’ perspective and did their best to help them succeed. Hence, we give this round to REAL Broker as well.
The software and tools a brokerage provides also play a crucial role in picking a platform. In this technological comparison between REAL Broker and eXp Realty, let’s dissect the software offerings to determine their impact on an agent’s daily operations.
Before delving into the exclusive offerings, it’s essential to acknowledge the common ground. Both REAL Broker and eXp Realty utilize Skyslope for transaction management. This platform serves as the hub for submitting contracts, ensuring compliance, and undergoing broker reviews.
Additionally, Workplace, a platform by Facebook designed for business use, is employed by both companies. It functions like a series of business-oriented Facebook groups, enabling agents to collaborate, search for peers, and engage in direct messaging. Both eXp and REAL Broker integrate additional training resources within the Workplace platform.
When it comes to CRM and websites, the two companies take slightly different paths. eXp Realty relies on Inside Real Estate & KV Core, while REAL Broker opts for Chime. Despite the variance in names, these services provide similar tools to enhance an agent’s customer relationship management and online presence.
While other smaller programs like Cloud CMA are available, the most impactful pieces of technology for both entities remain Skyslope, Workplace, CRM, and website tools.
Here comes the unique selling point for eXp Realty – eXp World, their exclusive “cloud office.” This proprietary software distinguishes eXp from other brokerages. It serves as a virtual space where agents can attend training sessions, inquire about commissions, and seek information from designated locations within the digital realm.
However, eXp World has garnered mixed reviews. While newer agents often find it engaging, seasoned professionals tend to express disfavor. The preference for traditional methods, like Zoom for live training or direct phone inquiries, prevails among experienced agents.
It’s crucial to note that eXp charges an $85/month “cloud brokerage fee” explicitly tied to eXp World. This fee contributes significantly to the cost of this proprietary software. In comparison, REAL Broker, without a comparable exclusive offering, doesn’t burden agents with an additional charge of this nature.
In the battle of software offerings, the verdict is difficult to pick. Both eXp Realty and REAL Broker provide essential tools, common platforms, and CRM solutions. While eXp’s exclusive eXp World adds a unique dimension, its reception varies among agents. The tiebreaker comes in the form of the additional cost associated with eXp World, making the overall evaluation even.
In conclusion, when assessing the technological landscape, agents must weigh the functionality, exclusivity, and associated costs of the software offerings provided by REAL Broker and eXp Realty. Each agent’s preferences and workflow requirements will ultimately determine which suite of tools aligns best with their business needs.
In our comprehensive exploration of the real estate landscape, we have meticulously dissected the financial structures, reward systems, and technological offerings of both REAL Broker and eXp Realty. The goal was to provide real estate agents with a thorough understanding of the key factors that can shape their journey toward success. Let’s recap our findings and arrive at a conclusive verdict.
In financial considerations, REAL Broker emerges as the clear victor. The lower commission cap of $12,000 compared to eXp Realty’s $16,000 significantly reduces the financial burden on agents. Additionally, the more favorable commission splits of 85/15 offered by REAL Broker compared to eXp Realty’s 80/20 provide agents with a more advantageous earning structure. When we delve into the fee structures, REAL Broker’s transparency and lower overall fees make it a more financially savvy choice.
Moving on to the rewards and opportunities category, REAL Broker continues to dominate. The more lucrative stock bonuses and revenue share program with higher payouts for tier 1 agents positions REAL Broker as the frontrunner in this crucial aspect. The strategic move by REAL Broker to prohibit promising anything of value for sponsorships enhances the integrity of its revenue share model, fostering a fair playing field for agents.
In the technological arena, both REAL Broker and eXp Realty present agents with a robust toolkit. Common platforms like Skyslope and Workplace create a shared ground, and CRM and website offerings provide similar functionalities. The tiebreaker comes with eXp Realty’s exclusive eXp World, a virtual space that, while engaging for some, comes with an additional monthly cost of $85. This ties the technological evaluation with nuances, making it a draw.
Considering the in-depth analysis across financial, reward, and technological dimensions, REAL Broker emerges as the overall winner. The financial benefits and a more robust reward system provide a compelling proposition for real estate agents seeking growth and prosperity. In contrast, eXp Realty introduces an innovative, exclusive offering in the form of eXp World; it’s mixed reception and additional cost temper its impact on the overall evaluation.
In the dynamic world of real estate, where every decision can shape the trajectory of an agent’s career, REAL Broker stands out as the steadfast choice. It not only provides a sound financial foundation but also offers a reward system that aligns with agents’ aspirations. With the added nuance of an extra cost for eXp World, the tie-in technological offerings solidify REAL Broker’s position as the superior choice for agents embarking on a journey of opportunities and growth. As you navigate the real estate landscape, may your path be guided by insights that empower your success, and may REAL Broker be the compass that leads you to new heights in your real estate endeavors.
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