One of many greatest battles occurring on the market in the true property brokerage world proper now could be eXp Realty vs. Keller Williams. Whereas doing my analysis, I encountered quite a lot 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 attainable.
I’ve by no means labored for Keller Williams. Nevertheless, I’ve many shut buddies who do, and I’ve confided in them to know 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 situated in Austin, Texas. It rapidly grew to become 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 the recession.
Within the early 90s, Keller Williams started providing franchise alternatives and opened its first location in Oklahoma. Persevering with its development 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 12 months it opened workplaces in Germany, Austria, and the UK.
At this time Keller Williams has simply over 160,000 brokers and accounts for round 10% of all properties offered in North America.
eXp Realty
eXp Realty, alternatively, was based in 2009 by a former KW group chief, Glenn Sanford. Glenn was a high-producing group chief, doing over $80 million in quantity by 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.
Fairly 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 might assist brokers nationwide by way of a cloud workplace. This brokerage was eXp Realty. The workplace would turn out to be eXp World.
Taking a web page from Keller Williams, Glenn realized how necessary profit-sharing was to Keller Williams’ large development. Glenn created eXp Realty “Income sharing.” There are some vital variations right here that we’ll get into afterward 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 might 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 one in all Keller Williams’ prime revenue share earners of all time.
From 2016 to 2019, eXp Realty elevated its agent depend 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 Traits 500.
eXp Realty vs. Keller Williams Enterprise Mannequin
These two corporations, though completely different in some ways have the same philosophy in that they put the true property agent’s wants first.
Keller Williams focuses on coaching and training, though they’re growing their stake to turn out to be a know-how firm. Keller Williams provides brokers applications 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 provides all brokers first-class web sites and CRM by kvCORE, a third-party device often costing brokers hundreds per 12 months.
Along with the assist choices for brokers, each corporations provide brokers extra revenue alternatives. As talked about, Keller Williams supplies profit-sharing to its brokers; eXp Realty supplies revenue-sharing.
Moreover, eXp Realty provides 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 international locations into areas, which promote franchises or “Market-centers” to people seeking to open an workplace.
eXp Realty, alternatively, is one unbiased brokerage with no territories, areas, or franchise areas. Brokers and brokers can increase 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
Some of the mentioned advantages of those two corporations is the businesses providing residual revenue 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 know the distinction between the 2.
How It Works
On the basic stage, 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 is predicated on the revenue, AFTER overhead bills, from the market middle that the agent belongs.
With eXp Realty, the share is predicated on income BEFORE bills. Income share is a hard and fast share decided by multiplying the gross fee revenue instances that stage’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 whole. Every stage provides a unique quantity.
With Keller Williams, when an agent leaves that in your seven ranges, all brokers underneath that agent transfer up a stage. With eXp Realty, when an agent leaves, that place turns into an organization spot, and all ranges stay the identical.
The Large 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 instances 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 clarification, try my submit 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 the same construction. However one firm’s plan is far decrease general.
There’s one factor to level out about every firm’s compensation plan earlier than going into particular particulars. At Keller Williams, every market middle is individually-owned. Subsequently, compensation plans can range 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 everyday 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 middle. Moreover, brokers sometimes pay a 6% per transaction royalty charge that goes to Keller Williams company and caps at $3,000 yearly. There’s an E&O charge on each transaction that doesn’t cap. Relying available on the market middle, it might vary from round $40-75.
Listed below 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 assessment charge and a $40 danger administration charge on every transaction. The $40 danger administration charge goes away after 12.5 transactions ($500) per 12 months.
$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 30 days. eXp Realty’s month-to-month charges are $85 per 30 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 need to contemplate the next. New brokers at each actual property brokerages will sometimes come on with a unique 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 middle at Keller Williams as a result of they’re all independently owned. Nevertheless, from the brokers I spoke with, this appeared to be a typical theme. Do notice the 6% royalty is on prime of this cut up, so it’s nearer to 54/46 initially.
Throughout this preliminary launch part, brokers are supplied extra coaching and sources from the market middle. Subsequently 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 ready 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 actual 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 affix the mentor program. They’re accountable 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 true property industries main coaching brokerage. In 2004 it created the Millionaire Actual Property Agent (MREA) ebook. This ebook has turn out to be a “Bible” for actual property brokers. Since then, Keller Williams has created numerous coaching courses like Ignite and Maps Teaching, together with BOLD.
Ignite coaching is ready as much as launch brokers of their first 90 days. The native market middle sometimes teaches this class at predetermined instances all year long. It’s primarily a Keller Williams agent class however relying available on the market middle’s group chief; different brokerage brokers have been allowed to affix.
Maps Teaching is extra coaching; teaching brokers can signal as much as assist them take their enterprise to the subsequent stage. This teaching sometimes comes at an extra price to the agent. Maps Teaching presently provides 5 various kinds of teaching: Mastery, OnDemand, BOLD, Breakthrough, and Group. BOLD is among 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 sources to extend your prospecting as an agent.
eXp Realty
Because the extra trendy actual property brokerage on the scene, eXp Realty’s coaching is constantly rising and evolving. eXp Realty hosts most of its coaching inside its cloud workplace, eXp World. At this time, brokers can attend almost 50 hours of dwell coaching each week from their properties.
eXp Realty’s company trainers, top-producing brokers, and group leaders from across the nation lead eXp Realty’s weekly coaching. Some coaching happens persistently each week, whereas others are one-time coaching that focuses on a selected matter.
eXp posts a schedule each Sunday night with the total 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 pay attention to 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 determined by a few elements mentioned under.
Keller Williams
There are completely different group charges at Keller Williams, relying on whenever you joined the brokerage.
Some grandfathered Keller Williams group leaders have a construction the place extra group brokers don’t add to their cap.
At this time most new brokers and group leaders pay their $18,000 cap plus every group agent provides $4,500 to the group leaders cap.
The entire group’s manufacturing goes in direction of paying the group cap at 70/30.
As soon as the group reaches the cap, it earns 100% of the gross fee revenue for the rest of the 12 months.
The group chief can set no matter cut up they need with their brokers earlier than and after capping.
eXp Realty
At eXp Realty, there are three spelled-out group fashions and a separate group for married {couples} known as the “Home Workforce.” I’ll element every under:
Self-organized Workforce
Workforce brokers are eligible for the ICON inventory award and all different eXp inventory awards and income share applications.
The group chief doesn’t want to satisfy earlier manufacturing benchmarks for this kind of group.
Arrange a referral relationship with brokers. All group brokers have their very own $16,000 cap (as does the group chief). Agreed-upon offers are cut up with the group chief first, then eXp second.
Instance: $10,000 fee on a 50/50 cut up to group chief. $5,000 to the group chief and $5,000 to the agent. Then 80/20 to eXp Realty. $4,000 to the group chief and $4,000 to the agent. If the group chief or agent have been already capped, that individual would earn 100% of their fee. On this instance, $1,000 would go to the group brokers’ $16,000 cap.
Customary Workforce
Workforce brokers are on a ½ cap ($8,000). This $8,000 doesn’t add to the group chief’s $16,000 cap. A minimal of 25% of EVERY group agent’s offers, written in that group agent’s identify, needs to be cut up to the group chief.
Workforce brokers are usually not eligible for the ICON inventory award however can earn eXp Realty inventory and income share.
The group chief will need to have closed a minimal of $6 million or 30 transactions within the earlier 12 months.
Agreed-upon offers are cut up with the group chief first, then eXp second.
Instance: $10,000 fee on a 75/25 cut up to group chief. $2,500 to the group chief and $7,500 to the agent. Then 80/20 to eXp Realty. $2,000 to the group chief and $6,000 to the agent. If both the group chief or agent have been capped earlier than the transaction, then that individual would earn 100% of their aspect of the cut up. On this instance, $1,500 would go in direction of the group brokers’ $8,000 yearly cap.
Mega ICON Workforce
Similar because the Customary group above aside from the next:
All group brokers are on ¼ caps ($4,000)
The group chief will need to have closed a minimal of $40 million, 175 transactions, and had ten capping group members within the earlier 12 months
Home Workforce
Legally married {couples} could be thought-about for an eXp Realty home group.
- $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.
Workplaces 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 middle’s shared workspaces. Moreover, they’ll buy personal workplace house at an extra month-to-month expense. This expense ranges from a couple of hundred {dollars} a month to hundreds in higher-cost markets.
Most coaching and assist happen inside the bodily workplace at Keller Williams, which means that brokers journey to and from the workplace to deal with 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 international locations.
Moreover, eXp brokers should buy personal workplaces from Regus at a lowered charge because of this membership already supplied by eXp Realty. Non-public workplaces rely available on the market and the dimensions of workplace most well-liked 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 purchasers or work privately. Many eXp brokers additionally benefit from lenders, title corporations, and native espresso retailers for workplace house.
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 alternate and provides brokers and brokers fairness possession within the firm for manufacturing and attraction milestones. Over time, brokers purchase increasingly 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 revenue) and pay an extra $5,000 in capped transaction charges (20 transactions at $250/transaction) annually are eligible to turn out to be ICON brokers.
Right here at eXp Realty in San Antonio, Texas, roughly 32 transactions per 12 months. My common fee is round $7,000. So it takes 12 transactions to cap, then 20 to turn out to be an ICON.
As an ICON agent, eXp Realty provides again the $16,000 you paid to your cap within the type of EXPI inventory at its present worth.
I consider that to know an organization’s tradition and to have the ability to examine that of eXp Realty vs. Keller Williams; you’ll want to 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 factor 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 some other actual property brokerage. eXp brokers know that the higher the corporate does, the higher the share worth can be, and their monetary pursuits will enhance. This shared curiosity results in eXp Realty’s prime 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 normal periods, brokers obtain coaching, networking alternatives, and upcoming information in regards to the firm.
Keller Williams
A way of household is one in all Keller Williams’ key cultural features. Keller Williams brokers create long-lasting relationships with fellow brokers inside the firm that transpires enterprise alone.
As a result of the monetary incentive isn’t as easy as eXp Realty’s inventory award program, making a tradition the place brokers look out for each other is difficult. Gary Keller has achieved a wonderful job of incentivizing the fitting brokers to assist lead their collective teams inside Keller Williams. Most brokers at Keller Williams are glad to be there and love the model and management, although the monetary advantages are barely restricted.
Keller Williams holds two main occasions annually – MegaCamp and Household Reunion. These are large occasions with tens of hundreds of brokers in attendance. Like eXp Realty, they host coaching periods, breakout periods, speak about upcoming modifications with the brokerage, and way more.
Conclusion
In conclusion, eXp Realty and Keller Williams are improbable actual property brokerages. I consider the similarities between the 2 corporations outweigh the variations.
For many brokers, the choice to go together with eXp Realty vs. Keller Williams sometimes comes down to those few questions:
Do I want a bodily workplace, and am I prepared to pay a bit of extra for it?
If that’s the case, then Keller Williams is probably going your alternative. In the event you like the concept of digital and gaining access to assist and coaching by way of your pc, eXp Realty’s in all probability your choose.
Do I favor the extra secure established model of Keller Williams? Or do I need to pursue a possibility and get in on the bottom flooring with the rising newcomer, eXp Realty?
If constructing a number of streams of revenue (Commissions, Inventory, Income Share) is interesting to you, then the chance lies with eXp Realty. If these parts aren’t as thrilling and you favor a secure brokerage with a wonderful popularity, 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 couple of offers a 12 months, how does paying 64/36 vs. 80/20 have an effect on your small business?
In the event you have been an ICON agent at eXp Realty (roughly 30-35 transactions per 12 months in most markets), how do you are feeling about receiving your whole 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 12 months and turn out to be 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 Could 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 improbable, free life-style 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 submit on the finest actual property corporations to work for.
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