One of many greatest battles happening on the market in the actual property brokerage world proper now’s eXp Realty vs. Keller Williams. Whereas doing my analysis, I encountered a variety of misinformation and half-truths about every brokerage mannequin.
Let me begin by saying each brokerages are wonderful corporations and have distinctive benefits over each other. I’m personally with eXp Realty, however I’ll attempt to keep as unbiased whereas writing this text as doable.
I’ve by no means labored for Keller Williams. Nevertheless, I’ve many shut pals who do, and I’ve confided in them to grasp the mannequin and their expertise with the brokerage.
Firm Historical past
Keller Williams
Let’s begin by evaluating the 2 brokerages’ histories. Keller Williams was based in 1983 by Gary Keller and Joe Williams. The corporate began as a person workplace positioned in Austin, Texas. It shortly turned the most important actual property agency in Austin, with 72 licensed brokers. Round 1985, the housing market skilled a nationwide housing bubble. Presently, Keller Williams started providing “Revenue Sharing” to retain brokers and get by way of the recession.
Within the early 90s, Keller Williams started providing franchise alternatives and opened its first location in Oklahoma. Persevering with its progress throughout the nation all through the ’90s and into the 2000s, in 2004, Keller Williams had over 30,000 brokers nationwide. In 2007 Keller Williams opened their luxurious division, and in 2008, its business division.
By 2010 Keller Williams had over 77,000 brokers and have become the 2nd largest brokerage. And in 2012, Keller Williams went worldwide, launching in Vietnam. That very same yr it opened workplaces in Germany, Austria, and the UK.
At the moment Keller Williams has simply over 160,000 brokers and accounts for round 10% of all properties offered in North America.
eXp Realty
eXp Realty, then again, was based in 2009 by a former KW workforce chief, Glenn Sanford. Glenn was a high-producing workforce chief, doing over $80 million in quantity by way of a number of growth groups throughout the nation. Nevertheless, when the market turned within the housing collapse of 2008, Glenn was caught with a ton of overhead. It almost brought on him to exit of enterprise.
Reasonably than quit, Glenn determined to create a brand new actual property brokerage. This actual property brokerage wouldn’t rely on brick-and-mortar workplaces. As an alternative, it could assist brokers nationwide by way of a cloud workplace. This brokerage was eXp Realty. The workplace would develop into eXp World.
Taking a web page from Keller Williams, Glenn realized how vital profit-sharing was to Keller Williams’ huge progress. Glenn created eXp Realty “Income sharing.” There are some important variations right here that we’ll get into in a while within the article.
Along with eXp Realty’s income share, Glenn took eXp Realty public in 2013 and created the agent-equity program the place brokers may earn publicly traded inventory within the firm for his or her gross sales manufacturing and attraction efforts.
In 2015, the corporate was rising steadily however was nonetheless underneath 1,000 brokers nationwide. That was till, in late 2015, eXp Realty attracted a few high-profile former Keller Williams brokers, Gene Frederick and Rob Flick. Gene owned over 6 Keller Williams market facilities, and Rob was certainly one of Keller Williams’ high revenue share earners of all time.
From 2016 to 2019, eXp Realty elevated its agent rely from 1,000 to over 20,000 brokers and expanded its footprint to all 50 US states and almost all of Canada. It’s the 2nd largest unbiased actual property brokerage as ranked by The Actual Developments 500.
eXp Realty vs. Keller Williams Enterprise Mannequin
These two corporations, though completely different in some ways have an analogous philosophy in that they put the actual property agent’s wants first.
Keller Williams focuses on coaching and schooling, though they’re rising their stake to develop into a expertise firm. Keller Williams gives brokers packages like Command for CRM and Kelle, a voice-activated AI private assistant.
eXp Realty additionally focuses on coaching for brokers, providing them over 50 hours of dwell coaching weekly in its cloud workplace and much more on-demand. Additionally, eXp Realty offers all brokers first-class web sites and CRM by way of kvCORE, a third-party device normally costing brokers hundreds per yr.
Along with the assist choices for brokers, each corporations provide brokers further earnings alternatives. As talked about, Keller Williams supplies profit-sharing to its brokers; eXp Realty supplies revenue-sharing.
Moreover, eXp Realty gives brokers inventory for his or her manufacturing and attraction efforts. Keller Williams is privately held and doesn’t present inventory possession to its brokers.
Keller Williams is a franchise mannequin. It breaks up nations into areas, which promote franchises or “Market-centers” to people trying to open an workplace.
eXp Realty, then again, is one unbiased brokerage with no territories, areas, or franchise areas. Brokers and brokers can broaden their enterprise or appeal to brokers from any space no matter borders. Additionally, brokers solely pay one cap even when they maintain licenses in a number of states.
Income Share vs. Revenue Share
One of the vital mentioned advantages of those two corporations is the businesses providing residual earnings to brokers that assist develop the corporate. Keller Williams supplies Revenue Share, and eXp Realty supplies Income Share. To match eXp Realty vs. Keller Williams, brokers want to grasp the distinction between the 2.
How It Works
On the basic degree, income and revenue share work like this. When an agent “Sponsors” one other agent to their respective firm, that agent is rewarded with a share of that new agent’s fee in perpetuity.
With Keller Williams, this share relies on the revenue, AFTER overhead bills, from the market heart that the agent belongs.
With eXp Realty, the proportion relies on income BEFORE bills. Income share is a hard and fast share decided by multiplying the gross fee earnings occasions that degree’s share quantity.
Tiers
Each corporations have a seven-level mannequin. This implies you earn this share share of the brokers you sponsor and that of the brokers they sponsor down seven ranges complete. Every degree gives a distinct quantity.
With Keller Williams, when an agent leaves that in your seven ranges, all brokers underneath that agent transfer up a degree. With eXp Realty, when an agent leaves, that place turns into an organization spot, and all ranges stay the identical.
The Huge Image
Brokers which have earned hundreds of thousands of {dollars} of Keller Williams revenue share and now earn related quantities of eXp Realty income share state the next. With the identical variety of brokers of their organizations at eXp Realty and Keller Williams, they make between 6 to 10 occasions extra at eXp Realty each month due to the distinction between revenue-sharing (earlier than bills) and profit-sharing (after bills).
For an in depth rationalization, take a look at my put up about eXp Realty Income Share.
Transactional and Month-to-month Charges
While you examine the compensation plans of eXp Realty vs. Keller Williams, you’ll discover they’ve an analogous construction. However one firm’s plan is way decrease general.
There may be one factor to level out about every firm’s compensation plan earlier than going into particular particulars. At Keller Williams, every market heart is individually-owned. Due to this fact, compensation plans can differ from one workplace to a different, particularly in numerous states. At eXp Realty, all brokers are on the identical cut up no matter state, size of the enterprise, or manufacturing ranges.
Transactional Charges
Nearly all of Keller Williams workplaces from brokers I’ve spoken to state the standard cut up is 70/30 with an $18,000 cap yearly. Nevertheless, this may vary from $9,000 to $42,000 relying on location and market heart. Moreover, brokers usually pay a 6% per transaction royalty charge that goes to Keller Williams company and caps at $3,000 yearly. There may be an E&O charge on each transaction that doesn’t cap. Relying in the marketplace heart, it could vary from round $40-75.
Listed here are a few fast examples:
$10,000 Fee at Keller Williams
- Keller Williams retains $3,675
- The agent retains $6,325
At eXp Realty, the fee is a hard and fast 80/20 cut up with a $16,000 cap throughout the board. Moreover, brokers pay a $25 dealer overview charge and a $40 threat administration charge on every transaction. The $40 threat administration charge goes away after 12.5 transactions ($500) per yr.
$10,000 Fee at eXp Realty
- eXp Realty retains $2,065
- The agent retains $7,935
Month-to-month Charges
In most market facilities, the month-to-month charges at Keller Williams are round $60-80 per thirty days. eXp Realty’s month-to-month charges are $85 per thirty days within the US and $139 in Canada.
New Brokers at eXp Realty vs. Keller Williams
In the event you’re a brand new agent contemplating both Keller Williams vs. eXp Realty, you’ll wish to take into account the next. New brokers at each actual property brokerages will usually come on with a distinct fee cut up and be supplied distinctive coaching alternatives particular to new brokers.
Mentorship Cut up
Keller Williams
Most new brokers at Keller Williams are arrange on a 60/40 cut up for his or her first $1 million gross sales quantity. Once more, this may change for every market heart at Keller Williams as a result of they’re all independently owned. Nevertheless, from the brokers I spoke with, this gave the impression to be a standard theme. Do word the 6% royalty is on high of this cut up, so it’s nearer to 54/46 initially.
Throughout this preliminary launch part, brokers are offered further coaching and assets from the market heart. Due to this fact the elevated cut up is warranted.
As soon as the brokers full their first $1 million in gross sales quantity, they transfer over to the fee construction we mentioned earlier.
eXp Realty eXpand Mentor Program
At eXp Realty, the eXpand Mentor program is about as much as assist brokers who haven’t offered three or extra transactions within the final 12 months.
The eXpand Mentor program assigns a LOCAL mentor to the agent. More often than not, this implies having somebody in your precise market or inside round 50 miles of you.
The mentor is licensed based mostly on their manufacturing, a certification class, and the mentor’s willingness to hitch the mentor program. They’re answerable for serving to to information you thru these first few transactions and finishing the extra eXpand Mentor courses.
Mentees are on a 60/40 cut up for his or her first three closed transactions, returning to the usual 80/20 cut up after graduating from the mentor program.
Coaching at eXp Realty vs. Keller Williams
Keller Williams
Keller Williams has lengthy been hailed as the actual property industries main coaching brokerage. In 2004 it created the Millionaire Actual Property Agent (MREA) guide. This guide has develop into a “Bible” for actual property brokers. Since then, Keller Williams has created varied coaching courses like Ignite and Maps Teaching, together with BOLD.
Ignite coaching is about as much as launch brokers of their first 90 days. The native market heart usually teaches this class at predetermined occasions all year long. It’s primarily a Keller Williams agent class however relying in the marketplace heart’s workforce chief; different brokerage brokers have been allowed to hitch.
Maps Teaching is further coaching; teaching brokers can signal as much as assist them take their enterprise to the subsequent degree. This teaching usually comes at a further price to the agent. Maps Teaching presently gives 5 various kinds of teaching: Mastery, OnDemand, BOLD, Breakthrough, and Group. BOLD is without doubt one of the most typical MAPS teaching teams.
BOLD’s design helps actual property brokers recover from one of many hardest hurdles: prospecting. This class is for each new and seasoned brokers. It would present group accountability, scripts, coaching, and assets to extend your prospecting as an agent.
eXp Realty
Because the extra trendy actual property brokerage on the scene, eXp Realty’s coaching is repeatedly rising and evolving. eXp Realty hosts most of its coaching inside its cloud workplace, eXp World. At the moment, brokers can attend almost 50 hours of dwell coaching each week from their properties.
eXp Realty’s company trainers, top-producing brokers, and workforce leaders from across the nation lead eXp Realty’s weekly coaching. Some coaching happens constantly each week, whereas others are one-time coaching that focuses on a selected subject.
eXp posts a schedule each Sunday night with the complete lineup of coaching for the week. Brokers can mark their calendars and plan to attend by way of their pc dwell in eXp World or eavesdrop on the go by way of the eXp World cellular software.
Groups at eXp Realty vs. Keller Williams
One of many subsequent most typical questions requested when brokers examine eXp Realty vs. Keller Williams is how groups examine. The reply is dependent upon a few elements mentioned beneath.
Keller Williams
There are completely different workforce charges at Keller Williams, relying on whenever you joined the brokerage.
Some grandfathered Keller Williams workforce leaders have a construction the place further workforce brokers don’t add to their cap.
At the moment most new brokers and workforce leaders pay their $18,000 cap plus every workforce agent provides $4,500 to the workforce leaders cap.
All the workforce’s manufacturing goes in the direction of paying the workforce cap at 70/30.
As soon as the workforce reaches the cap, it earns 100% of the gross fee earnings for the rest of the yr.
The workforce chief can set no matter cut up they want with their brokers earlier than and after capping.
eXp Realty
At eXp Realty, there are three spelled-out workforce fashions and a separate workforce for married {couples} known as the “Home Crew.” I’ll element every beneath:
Self-organized Crew
Crew brokers are eligible for the ICON inventory award and all different eXp inventory awards and income share packages.
The workforce chief doesn’t want to satisfy earlier manufacturing benchmarks for the sort of workforce.
Arrange a referral relationship with brokers. All workforce brokers have their very own $16,000 cap (as does the workforce chief). Agreed-upon offers are cut up with the workforce chief first, then eXp second.
Instance: $10,000 fee on a 50/50 cut up to workforce chief. $5,000 to the workforce chief and $5,000 to the agent. Then 80/20 to eXp Realty. $4,000 to the workforce chief and $4,000 to the agent. If the workforce chief or agent had been already capped, that individual would earn 100% of their fee. On this instance, $1,000 would go to the workforce brokers’ $16,000 cap.
Customary Crew
Crew brokers are on a ½ cap ($8,000). This $8,000 doesn’t add to the workforce chief’s $16,000 cap. A minimal of 25% of EVERY workforce agent’s offers, written in that workforce agent’s identify, needs to be cut up to the workforce chief.
Crew brokers usually are not eligible for the ICON inventory award however can earn eXp Realty inventory and income share.
The workforce chief should have closed a minimal of $6 million or 30 transactions within the earlier 12 months.
Agreed-upon offers are cut up with the workforce chief first, then eXp second.
Instance: $10,000 fee on a 75/25 cut up to workforce chief. $2,500 to the workforce chief and $7,500 to the agent. Then 80/20 to eXp Realty. $2,000 to the workforce chief and $6,000 to the agent. If both the workforce chief or agent had been capped earlier than the transaction, then that individual would earn 100% of their facet of the cut up. On this instance, $1,500 would go in the direction of the workforce brokers’ $8,000 yearly cap.
Mega ICON Crew
Similar because the Customary workforce above aside from the next:
All workforce brokers are on ¼ caps ($4,000)
The workforce chief should have closed a minimal of $40 million, 175 transactions, and had ten capping workforce members within the earlier 12 months
Home Crew
Legally married {couples} may be thought of for an eXp Realty home workforce.
- $149 one-time be part of charge.
- $85 month-to-month charge cloud brokerage charge.
- $50 month-to-month partner tech charge.
- One shared fee cap of $16,000
- Each {couples} produce towards one cap and might earn one ICON award for the couple.
- Share one line of income share.
Places of work at eXp Realty vs. Keller Williams
One of many important variations between eXp Realty and Keller Williams is having bodily brick-and-mortar workplaces.
Brokers at Keller Williams obtain entry to that market heart’s shared workspaces. Moreover, they’ll buy personal workplace area at a further month-to-month expense. This expense ranges from a number of hundred {dollars} a month to hundreds in higher-cost markets.
Most coaching and assist happen throughout the bodily workplace at Keller Williams, which means that brokers journey to and from the workplace to handle enterprise.
At eXp Realty, there aren’t any bodily brick-and-mortar workplaces. Brokers obtain Regus memberships the place they’ll entry the shared workspaces in over 3000 areas, 900 cities, and 120 nations.
Moreover, eXp brokers can buy personal workplaces from Regus at a lowered charge attributable to this membership already offered by eXp Realty. Non-public workplaces rely in the marketplace and the scale of workplace most popular and vary from round $500/month to some thousand a month.
Alternatively, brokers can lease personal workplaces from Regus for round $30-50 per hour to satisfy shoppers or work privately. Many eXp brokers additionally make the most of lenders, title corporations, and native espresso retailers for workplace area.
At eXp Realty, coaching and assist happen in eXp Realty’s digital workplace, eXp World. Over 500 eXp employees members can be found to brokers 11 hours a day in real-time from the comfort of the agent’s own residence or wherever they’re with an web connection.
Retirement Plan (Inventory Buy Program)
The considered retiring as an actual property agent is most frequently simply that, a thought. While you ask most brokers and brokers what their exit technique is from actual property, you’ll both get a dream or a aim however not a plan.
eXp Realty is publicly traded on the NASDAQ inventory trade and gives brokers and brokers fairness possession within the firm for manufacturing and attraction milestones. Over time, brokers purchase increasingly more possession and begin to construct a portfolio of EXPI inventory that may later be offered and used for a number of issues, together with retirement.
For instance, I’ve been an agent at eXp Realty for over two years (as of July 2019). In that point, I acquired over 10,000 shares of EXPI inventory for my manufacturing and attraction efforts. I promote roughly 50 properties yearly ($15 million quantity) and have been an ICON agent at eXp Realty each years I’ve been right here.
ICON Program
Brokers that cap ($80,000 gross fee earnings) and pay a further $5,000 in capped transaction charges (20 transactions at $250/transaction) annually are eligible to develop into ICON brokers.
Right here at eXp Realty in San Antonio, Texas, roughly 32 transactions per yr. My common fee is round $7,000. So it takes 12 transactions to cap, then 20 to develop into an ICON.
As an ICON agent, eXp Realty offers again the $16,000 you paid to your cap within the type of EXPI inventory at its present worth.
I imagine that to grasp an organization’s tradition and to have the ability to examine that of eXp Realty vs. Keller Williams; it’s essential have skilled them firsthand. I’ve solely been part of the eXp Realty tradition, so I can primarily communicate of this expertise. Nevertheless, I’ll share my outsider’s perspective of what I do know to be true of the present Keller Williams brokers I do know.
eXp Realty
One distinctive aspect that shapes the tradition of eXp Realty is the dedication to “One for all, and all for one.” As a result of eXp Realty is a publicly held firm and most brokers personal a stake, the collaboration amongst fellow brokers is not like another actual property brokerage. eXp brokers know that the higher the corporate does, the higher the share worth might be, and their monetary pursuits will improve. This shared curiosity results in eXp Realty’s high brokers, ICON brokers, giving again within the type of coaching and serving to the newer brokers succeed.
eXp Realty holds two signature occasions yearly, EXPCON and the Shareholder Summit. Hundreds of brokers and employees, and management come collectively to attend these occasions. Within the common periods, brokers obtain coaching, networking alternatives, and upcoming information concerning the firm.
Keller Williams
A way of household is certainly one of Keller Williams’ key cultural elements. Keller Williams brokers create long-lasting relationships with fellow brokers throughout the firm that transpires enterprise alone.
As a result of the monetary incentive isn’t as simple as eXp Realty’s inventory award program, making a tradition the place brokers look out for each other is difficult. Gary Keller has finished a wonderful job of incentivizing the suitable brokers to assist lead their collective teams inside Keller Williams. Most brokers at Keller Williams are joyful to be there and love the model and management, though the monetary advantages are barely restricted.
Keller Williams holds two main occasions annually – MegaCamp and Household Reunion. These are huge occasions with tens of hundreds of brokers in attendance. Like eXp Realty, they host coaching periods, breakout periods, speak about upcoming adjustments with the brokerage, and rather more.
Conclusion
In conclusion, eXp Realty and Keller Williams are implausible actual property brokerages. I imagine the similarities between the 2 corporations outweigh the variations.
For many brokers, the choice to go together with eXp Realty vs. Keller Williams usually comes down to those few questions:
Do I would like a bodily workplace, and am I prepared to pay somewhat extra for it?
If that’s the case, then Keller Williams is probably going your selection. In the event you like the thought of digital and gaining access to assist and coaching by way of your pc, eXp Realty’s most likely your choose.
Do I desire the extra steady established model of Keller Williams? Or do I wish to pursue a possibility and get in on the bottom ground with the rising newcomer, eXp Realty?
If constructing a number of streams of earnings (Commissions, Inventory, Income Share) is interesting to you, then the chance lies with eXp Realty. If these components aren’t as thrilling and you favor a steady brokerage with a wonderful repute, Keller Williams could also be for you.
Financially, does the price of doing enterprise at both of these brokerages stand out to you?
eXp Realty is a $16,000 cap yearly. Whereas at Keller Williams, you’ll doubtless pay round $21,000 ($18,000 cap plus $3,000 royalty).
If you’re solely doing a number of offers a yr, how does paying 64/36 vs. 80/20 have an effect on your enterprise?
In the event you had been an ICON agent at eXp Realty (roughly 30-35 transactions per yr in most markets), how do you’re feeling about receiving your complete cap of $16,000 again to you annually within the type of EXPI inventory? Examine that with doing the identical manufacturing at Keller Williams and never having that chance.
What I In the end Determined
Me, I planted my flag at eXp Realty in July 2017. Since then, I’ve offered between 40-50 properties per yr and develop into an ICON agent thrice. I’ve acquired simply over 26,000 shares of EXPI inventory and constructed a income share group of over 460 brokers (as of Might 2021).
My month-to-month income share pays all of my dwelling bills; the commissions I earn are play cash and financial savings. eXp Realty has helped me to construct a implausible, free way of life as an actual property agent. I really couldn’t be happier with my choice to construct my enterprise right here.
To study extra about eXp, Keller Williams, and different corporations, learn this put up on the finest actual property corporations to work for.
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