convertkit form=4902437]

In the world of real estate, many newcomers and outsiders often confuse commercial real estate agents and residential real estate agents for each other or even worse, taken to be the same type of Agent running the same type of business. For many new agents just entering the industry or individuals looking to join the industry, they have very little if any idea what the difference between a commercial agent and a residential agent.

As a commercial real estate agent, you know that your business and what you do is completely different from that of a residential real estate agent or REALTOR. Commercial real estate agents operate in a space that is almost completely different from a residential agent and therefore needs different tools, resources, assets, and systems to run their businesses.

In 2023, the global real estate company eXp Realty has taken the world by storm and is making waves around the world by becoming the fastest growing real estate brokerage in history and changing the lives of real estate agents that the industry has never seen before. But to the detriment of many agents, they believe that eXp Realty is only for residential agents and that the model is the same for both commercial and residential agents at eXp.

Although that is true in the past, in 2020 eXp Realty officially launched their commercial real estate division, eXp Commercial, and has introduced a model that is tailored made for commercial real estate agents. This new development at eXp Realty has once again shocked the real estate industry and now commercial real estate agents, as well as residential real estate agents are changing their lives, improving their businesses, and shaping their lifestyles in ways that have never been seen before in the industry using the eXp Realty model.

In today’s post, I am going to help you uncover the secret of eXp Commercial and give you a full breakdown of the eXp Commercial model like you have never seen before in our Ulitmate Guide to eXp Commercial – Everything You Need to Know About Becoming an eXp Commercial agent in 2023!

We are going to break this post down into 3 different sections, each explaining in depth one aspect of the commercial model at eXp so that you have a full understanding of the eXp Commercial model, its compensation plan, opportunities, tools, assets, and systems, as well as why it is the perfect brokerage for real estate professionalsa selling commercial properties.

But before we dig into the details of the eXp Commercial model, let’s take a look at the history and concept of eXp Realty.

What is eXp Realty?

eXp Realty is the first-ever cloud-based independent brokerage in the history of the world. Founded in 2009 at the height of the real estate crash by former Keller Williams Regional Owner, Glenn Sanford, eXp Realty was created to serve not just the client but also the real estate agent as the first-ever “agent-centric” brokerage ever.

Allowing the typical real estate agent to build wealth and accumulate residual income and equity through multiple income streams and duplication, eXp Realty was founded on the belief that it is the brokerage’s job to provide agent’s, team leaders, and brokers not only the tools and training to succeed in business, but also the income opportunities to build long term wealth for themselves and their families.

In the past, real estate agents had no exit strategy in their business and relied only on their one stream of active income, their sales business, to make a living, making it extremely difficult to retire in less than 4 decades. Traditionally, real estate agents can only make an income at their brokerages through closing transactions and earning commission checks. Now at eXp, agents can not only maximize their income earning potential but also build wealth for the first time ever in the history of this industry.

As an independent cloud-based brokerage, eXp is not a franchise and does not require the red tape and additional costs and fees to use their tools and become a part of their network. By implementing some of the most innovative technology that the real estate industry has ever seen and significantly lowering overhead operating expenses, eXp provides its agents around the world with the most efficient business tools to capitalize on income-earning opportunities as well as reward its agents with lucrative wealth-building growth incentives.

eXp Commercial

When eXp launched it’s commercial division back in November of 2020 with president of eXp Commercial James Huang, the vision for the company dramatically increased. By slightly altering the tools, incentives, offerings, and overall model of eXp Realty residential, eXp Commercial provides commercial agents with the same wealth-building, time-saving, and expense-lowering opportunities that eXp Realty gave residential real estate agents.

Although the eXp Realty has even been popular with some commercial agents and commercial teams, eXp decided to massively enhance their model specifically for commercial agents and tailor-made a commercial brokerage model that combines the outsourcing capabilities and wealth creation opportunities available to eXp Realty agents with business systems and technologies that are specific for commercial agents and their business needs.

In this article, we are going to show you these tools through 3 different sections. Each section explaining a specific overarching theme of eXp Commercial. These 3 sections are:

1. The 3 Income Stream Compensation Plan to Build Wealth
2. The Propreitary Back Office Outsourcing Tools of eXp to Save Time, Lower Expenses, and Reduce Stress
3. The Business Analytics and Marketing Systems for Commercial Agents to Run their Business More Efficiently

Section I: The 3 Income Stream Compensation Plan to Build Wealth

The first section that this article over eXp Commercial will cover is the 3 income streams at eXp for commercial agents and why they help agents build wealth instead of just earn an income.

In order for wealth to be built, 4 components are needed: Multiple streams of income, residual income, equity, and duplication. At eXp commercial, all 4 wealth-building components are present through the 3 income stream compensation model that eXp offers. Traditionally commercial agents are only able to earn their income through their transactional commissions, but there was never any real way to build wealth and financial freedom at their traditional brokerages. At eXp, by being able to earn multiple income streams, commercial agents can now build the wealth they need to create time and money freedom in order to live the lifestyle they desire.

The 3 streams of income for commercial agents at eXp Commercial are:

1. Commissions through transactions
2. Equity through stock ownership
3. Residual income through revenue share team building

The Sales Model at eXp Commercial: Commission Splits

The first income stream for agents at eXp Commercial is the sales model. At eXp Commercial, agents receive the most unique and profitable commission split model that has ever been seen at any commercial real estate brokerage.

At eXp Commercial, the sales model is an 80/20 split with a $20,000 cap. This means that 80% of all sales, rental, referral, and BPO transaction commissions go to the commercial agent while 20% is paid to the company. Once the commercial agent has paid a total of $20,000 to eXp Commercial in a year, they have capped at the company for the year and only have to pay a transactional fee of $250 on every transaction for the remainder of the year.

There are also two additional transactional fees that commercial agents must pay on every transaction whether they have capped or not. That is a $250 broker review fee and a $100 risk management fee that caps at $1,000 a year every year. These fees are put in place to compensate and pay for the transaction management and liability that the brokerage must carry on your behalf.

As an agent or associate broker of eXp Commercial, you no longer carry the liabilities and the burden of contract reviews that would otherwise have to if you were running your own commercial brokerage, because eXp Commercial has designated managing state brokers in every state, the company is able to carry all of your legal risks so that you never run the risk of being sued.

Equity Through Stock Awards

The second income stream at eXp Commercial is equity through stock ownership in the form of company stock awards or “equity awards” given to agents who have completed certain milestones in their sales or team-building business every single year. All stock awards at eXp Commercial are annual stock awards, so that means the agent will have the opportunity to earn each stock award over and over again every year.

eXp Commercial is a brokerage that is held under the publicly-traded holding company EXP World Holdings LLC on the NASDAQ based in the United States. This means that agents at eXp Commercial have the opportunity to acquire part ownership in the form of stock shares in their company simply by meeting annual sales milestones.

The first stock award for agents at eXp Commercial is a transactional stock award for closing your first transaction of the year. You are able to earn $200 worth of EXPI stock for closing your very first transaction every single year. The second transactional stock award for eXp commercial agents is the capping stock award given to agents who hit their cap for the year and have paid a total of $20,000 in commission splits to the company that year. Agents who have hit their cap receive a $400 stock award at eXp.

The final transactional stock award is the ICON program, also known as the single most prestigious award in real estate today. ICON agents at eXp Commercial are the most elite agents in the world today, and because eXp is focused on rewarding their agents for their success and contributions to the company, they have saved the most prestigious and lucrative stock award for the top agents at the company.

ICON agents at eXp Commercial are agents who have closed a total of 20 additional transactions after capping for the year at the company. This means that when an agent has capped at the company and paid $20,000 in splits, they would need to close an additional 20 transactions in the remainder of the year in order to become an ICON agent.

The reason why the ICON award is so sought after is because of the massive incentive that is given to them by eXp Commercial. When an agent earns the ICON award at eXp, they are eligible to receive their entire $20,000 cap back in the form of stock awards. That’s right, at eXp Commercial, top producing agents are able to earn their entire cap back in stock awards every single year. That’s $20,000 in free equity every year that you reach ICON status.

Aside from transactional stock awards, agents at eXp Commercial can also earn stock through the discount equity program at eXp. The discount equity program is a completely optional stock purchase plan for agents at eXp Realty and eXp Commercial to buy shares of EXPI stock at a 10% discount from the market trading price. Agents who opt into this program are enrolling to use 5% of their commission on every transaction to purchase shares of EXPI stock at a 10% discount.

So this means that if you closed a transaction that yielded you a gross commission of $10,000 after all splits and fees are paid you will have $8,000 left as the agent share of the commission, and 5% or $400 of at commission check will be used to purchase EXPI stock at a 10% discount. On 7/9/2021 currently, the stock is trading at $38.95 per share, so this means that your $400 will be used to purchase the stock at $35.06 per share (38.95 x 90%=35.06) or 11 shares of EXPI stock (400/35.06=11). Comparing that purchasing 11 shares of the stock at market price for $428.45, you are getting instant equity of $42.79 (428.45-385.66=42.79).

Last but not least, the final way that agents at eXp Commercial can earn stock awards is by participating in revenue share, the third income stream at eXp, and building their own team to help the company grow. If you help the company grow and attract one agent to the company who names you as their sponsor upon joining the company, you will be rewarded a $400 stock award when that agent closes their first transaction for the year, every year.

This stock award is given to you for every agent that you directly attract to the company who completes this milestone every year. So this means that if you directly attract 6 agents to the company who name you as their sponsor, and they all close at least one transaction that year, you will receive $2,400 total in stock awards that year. If they do the same thing next year, you will receive another $2,400 in stock awards, and so on and so on.

Revenue Share Team Building

The third and in my opinion, most powerful, stream of income for commercial agents at eXp Commercial is the revenue share model, which rewards team leaders, brokers, and growth leaders who want to attract other talented agents to the company and help the company grow.

Because eXp is able to lower a substantial amount of overhead expenses by eliminating the brick and mortar aspect of the brokerage and implementing new technology yand going cloud-based, they are able to share revenue before expenses back to the agents for helping grow the company instead of sharing profit after expenses like other traditional 7 tier models.

At eXp Commercial, when you introduce another agent to the company and attract them to join the brokerage, you receive 3.5% of the gross commission income of that agent up until they cap at the company. Once the agent caps, your revenue share is capped as well because revenue share is paid on the brokerage side of the commission split, not the agent side so that the agents can keep their full 80% commission split on their transactions.

This means that if you attract an agent to the company, and they name you sponsor when they join, you can receive up to $3,500 in revenue share from the production of that agent. If an agent you sponsored directly to the company closes a transaction that yields $10,000 in GCI, you will receive 3.5% of that which is a $350 revenue share. If they close a transaction that yields $20,000 in GCI, then you will receive a $700 revenue share and so on until this agent caps for the year at the company.

Revenue share is calculated and paid every month and because the cap resets every year, this means that once you sponsor an agent to the company, you are able to receive revenue share from the production of that agent every single year the agent remains an active agent at the company.

Let’s look at another example:

Let’s say that you joined eXp Commercial and sponsored 6 capping agents to the company in your first year. If all 6 agents hit their cap, then you will receive the maximum capped revenue share payment from every agent which is $3,500 per agent.

So by sponsoring only 6 capping agents to the company in your first year at eXp Commercial, you will have earned a total of $21,000 that year in revenue share. And if those 6 agents cap every year at the company, you will earn $21,000 every single year from revenue share.

But revenue share into only paid to you from the production of the agents that you directly sponsor. You can also receive revenue share from the agents that are sponsored by the agents that you directly sponsored to the company. When an agent joins eXp Commercial sponsored by one of the agents that you directly sponsor at the company, they will fall one tier removed from you. This will go on for 7 tiers of compensation at varying payout percentages.

Let’s look at another example:

Using the same example from earlier, let’s say you sponsored 6 capping agents to the company directly on your first tier. If each of those 6 agents sponsored one agent themselves, those agents will fall one tier removed from you, and you will have 6 agents on your first tier and 6 more agents on your second tier, a total of 12 agents in your revenue share group.

Because the revenue share payout changes from 3.5% to 4% from your tier one agents to your tier two agents, if all 6 agents on your second tier also hit their caps, you will receive a total of $4,000 per agent in revenue share which amounts to $24,000 total revenue share received from your tier 2 agents.

Adding that back up to the revenue share you will have received from your first-tier agents, you will have received a total of $45,000 a year in revenue share. And if all 12 of your agents across your first and second tiers cap every year at the company, then you will receive $45,000 in revenue share every single year.

Below is a chart for the compensation percentages of each tier across all 7 tiers of revenue share:

For easy math purposes, here is a breakdown of the total maximum capped revenue share that you can earn from each agent on each tier:

1. $3,500
2. $4,000
3. $2,500
4. $1,500
5. $1,000
6. $2,500
7. $5,000

For more information on revenue share, Book a Free Strategy Call Today or check out one of our many resources and informational articles on revenue share at eXp:

• eXp Revenue Share Calculator
• eXp Revenue Share Breakdown: Expansion vs Exponential Share
• eXp Revenue Share vs Profit Share
• How to Retire in One Year with eXp Revenue Share
• Free Revenue Share Strategy Session

Final Note on Revenue Share: A Limitless Opportunity

eXp Commercial’s revenue share model is truly the most powerful team-building model and opportunity in real estate. With the ability to duplicate your success within your team by giving every team member the opportunity to build their own teams for exponential growth, commercial agents are looking at a prime business opportunity to expand their teams and even brokerages to other markets in the US and across the world.

Because all 3 eXp brokerages, eXp Realty for residential agents, eXp Commercial for commercial agents, and eXp Global for eXp agents in other countries outside the US, any agent at any of the 3 brokerages can attract agents to any of the 3 brokerages under their revenue share group. So this means that as an eXp Commercial agent you can attract a residential real estate agent to join eXp Realty, and they will also be sponsored by you in your revenue share group. If you attract an agent in India, they will also fall under your sponsorship in your revenue share group.

As you can see, revenue share is truly a limitless and borderless model that allows you to expand your team to markets all around the world. Also, remember that the same 3 income streams are offered to every agent at eXp Realty and eXp Global with the same basic model, so this means that the percentage payouts for each tier of revenue share will be the same across all 3 brokerage models and the only difference being the caps.

We understand that this is a complicated model that is completely unique and new to the industry. So if you are interested to learn more about the revenue share model, click below to book a free no obligations informational strategy session on eXp revenue share.

Section II: Outsourcing Tools at eXp to Reduce Stress, Lower Expenses, and Save Time

Now that you have had a clear look and detailed breakdown of the 3 income compensation plan for agents at eXp Commercial, let’s now dig into the proprietary back-office outsourcing systems at eXp Commercial.

Again, to understand fully the scope of tools that eXp Commercial provides it’s agents, we first have to understand the different sectors of support that eXp provides. At eXp Commercial, agents get support and outsourcing from the company in 3 different ways: Live Support, Company Support, and Internal Communications.

Each level of support can be broken down to the 3 main outsourcing tools that eXp Commercial agents have access to which are:

1. eXp World
2. eXp Enterprise
3. eXp Workplace by Facebook

eXp World: The Office of Tomorrow

The first support system that we are going to touch on is also the most popular and exciting tool amongst all agents at eXp Commercial, eXp World.

eXp World is a live-time cloud-based virtual platform for agents at the company to interact with each other, attend training, resolve issues with live support staff, and host meetings and events. The one reason why eXp World is such a powerful business tool is that it is a massive outsourcing tool allowing agents to save time throughout their day.

Inside the cloud office environment at eXp World, agents are represented by an avatar version of themselves and can move around and interact with company staff, colleagues, and executives just as if they are physically present at a brick and mortar office.

With eXp World, agents at eXp Commercial can now work completely remotely from the comfort of their own home saving travel and commuting time.

Unlike traditional business communications platforms such as Zoom or Google Meet, agents using eXp World are not required to pre-book appointments with company staff members to speak with them in live time in order to resolve urgent issues. With eXp World, eXp Commercial agents can simply walk into the designated department using their avatar and speak with a real-life paid employee to help them answer questions, fix problems, and resolve issues.

Inside eXp World there are over a dozen different departments that act as support functions for agents run by over 2000 paid employees. Agents inside eXp World can use departments and functions that include but are not limited to:

• Tech Support
• eXp University
• Accouting
• Payment Processing
• Legal and Liability Support
• Live Broker Rooms to Speak with Your Managing Broker
• Live Training Auditoriums
• Agent Onboarding Experience
• Agent Transitions Team
• Attraction Support and Growth Team
• Commercial Operations
• Marketing and Branding Team
• and More!

To see the many benefits of eXp World for brokers and team leaders or check out our many resources on eXp World and its outsourcing power, see our articles below or book a free strategy call to receive a free 2-week guest pass to eXp World for a live demo walkthrough.

• Why Brokers and Team Leaders Love eXp World
• eXp World as a Time Management Tool
• eXp World as an Outsourcing Tool
• Free 2-week Guest Pass

eXp Enterprise

With eXp World, eXp Commercial agents can access live support from company staff members and attend live training from ICON agents inside live virtual training auditoriums. On the backend business tracking analytics, and logistics side, eXp Commercial agents have access to an all included business dashboard called eXp Enterprise.

With eXp Enterprise, eXp Commercial agents can access all of their backend officing tools that it takes for them to run their business at eXp. Inside Enterprise, agents can track their business and transactions count, seeing how much of the annual cap that they have reached with every transaction, access and track their revenue share group and see total agent count numbers as well as monthly growth trends.

Agents can also access third party software and tools that eXp is partnered with and gives access to the agents for free such as Shareworks by Morgan Stanley to track their stock awards, Skyslope to submit, review, and upload transactions, and the marketing and business trends tools like Reonomoy and Buildout.

With eXp Enterprise, agents can now enjoy a franchise-like all-in-one business back office while avoiding paying franchise fees, royalty taxes, and additional add-on costs. For a free demo walkthrough of eXp Enterprise, book a free strategy session below!

Workplace by Facebook

Workplace is the database, internal communications, and collaboration platform at the company that stores useful and important information and files that agents at eXp Commercial will want access to such as recorded trainings, important documents, company news and announcements, collaboration groups, and other useful resources.

Built by Facebook as a work exclusive communications platform for companies and business owners that want a distraction-free environment to communicate with colleagues, access data, ask questions, and refer clients, Workplace is a 24/7 mastermind system for agents at eXp Commercial to share questions, brainstorm ideas, refer leads, and access company information and files.

Inside eXp Workplace, agents can chat with their colleagues and staff members even during after business hours and share important resources amongst each other anytime anywhere in a time-efficient manner. eXp Commercial agents can also find access to important company resources on their own through keyword research within Workplace and immediately get access to those resources without having to wait for a company staff member or broker to get back to them the next day.

The most powerful function of eXp Workplace in my opinion is the ability for eXp Commercial agents to trade referrals amongst themselves in designated groups. eXp Workplace provides commercial agents around the world with the single biggest and fastest referral network in the entire commercial real estate space.

Unlike residential agents, commercial real estate agents work extensively with out of state clients or customers who or local customers own businesses and investments in other states so having a tool like Workplace where agents can reach other commercial agents and specialists in any part of the country or world will greatly benefit your ability to serve your clients and maximize your referral income.

For a demo of eXp Workplace book a free no obligations strategy call with us today and see for yourself the power of referrals at eXp Commercial.

Section III: Marketing and Business Technology Tools to Maximize Business Opportunities

In the last section of this article, we are going to cover the two business analytics and marketing tools that are provided at no additional cost to all eXp Commercial agents to help them and their teams run their businesses more efficiently, win more deals, and enhance your entire deal cycle. Residential real estate agents know that eXp Realty provides the most cutting-edge real estate lead generation, IDX, and CRM follow-up platform, now the same can be said about eXp Commercial.

At eXp Commercial, agents get access to the industry-leading property intelligence research tool so that commercial agents can find more deals and access formerly exclusive property and ownership information, and the best property marketing and lead generation tool in the commercial real estate brokerage space to better promote and manage their listings and projects.

CRE collaborative tools at eXp Commercial:

• Reonomy
• Buildout

Reonomy: Property Intelligence and Market Research

Reonomy is the industry-leading commercial real estate property intelligence research tool backed by AI technology a big data so that commercial real estate agents can find, source, and prospect for more deals. Commercial real estate agents know how hard it is to find accurate property and ownership information on potential clients. Unlike residential real estate agents who can access the many data sources offered to them by the NAR such as RPR and local MLS tools, commercial agents are left most of the time, on their own to find the correct ownership information and property details for their potential deals.

With Reonomy, agents and brokers at eXp Commercial can now access accurate property and ownership information so that you can connect directly with decision-makers and win more deals through relationships. Access up-to-date property data and information so that you are more informed than your competitors when you are talking to property owners. And identify potential business opportunities in the market based on your strategic parameters and pursue them correctly.

Some of the features of Reonomy for commercial real estate brokers include but are not limited to:

• Narrowing property search by propperty type, size, sales history, ownership information, and debt history so that you can narrow your list of potential prospects
• Access property information such as dat e of last sale, mortgage amount, and renovation history so that you can properly approach your leads when you contact them
• Research ownership details on every prospective property and their direct contact information so that you can reach decision-makers directly instead of being blocked by LLCs and Corporations.

Buildout: Leading CRE Brokerage Marketing Software

Buildout is the commercial real estate marketing and brokerage operations software that allows agents to enhance their marketing efforts, reinforce their relationships with prospects through database management, showcase your brand, and process deals and commissions so that you and your team can work out of one platform.

With Buildout, eXp Commercial agents can now showcase their unique brand by creating agent websites in an instant through templates and customization so that you can reach more prospects and build more credibility through a unique and standout online presence.

Agents using Buildout can also create individual websites and landing pages for each of their unique listings with separate URLs in order to prospect for buyers and customers more efficiently and syndicate their listings to local and national commercial listings websites to gain maximum exposure.

Another great feature of Buildout is the ability for commercial agents to manage their database of clients and prospects through an in house CRM system that allows the agent and their team to create automated workflows to save time and effort, generate and share activity and property performance reports for their clients and prospects to streamline effective communication, and create proposals and marketing pieces from your portfolio to promote to your database for immediate exposure.

Below is a features breakdown chart of all 3 major platforms that eXp Commercial agents get access to: Reonomy, Buildout, and eXp Commercial.

Join eXp Commercial Today!

Now that you have seen the plethora of features, opportunities, and benefits of eXp Commercial for commercial real estate agents, it is not very difficult to see why so many industry-leading commercial real estate agents are already showing an extremely high level of interest in partnering their business with eXp Commercial so quickly.

From wealth-building opportunities that stem from additional income streams to the single most advanced suite of commercial real estate brokerage tools in the industry, eXp Commercial is the place to be for commercial real estate agents looking to build financial freedom, acquire equity, or grow their businesses exponentially.

To learn more about the life-changing opportunity that eXp Commercial can bring you and your team, click the button below to schedule your free no obligations strategy session with the fastest-growing group at eXp that offers unique additional value to agents, team leaders, and brokers that no other team or brokerage offers.

Learn More About eXp Realty & Our Free Partnership Team!

If you are interested in joining the best brokerage for agent growth, compensation, and opportunity in the world, be sure to partner with the best sponsorship team in the world as well! We provide additional training, tools, coaching, partners, collaboration, masterminds, and resources for your success!

We believe in massive growth and financial freedom for all real estate agents! Live your dream real estate lifestyle with us.

For more eXp Realty details, check out our comprehensive About eXp Realty – Everything You Need to Know article.

The post The Ultimate Guide to eXp Commercial in 2023! first appeared on Agent Wealth Hustle.

The post The Ultimate Guide to eXp Commercial in 2023! appeared first on Agent Wealth Hustle.