One of many largest battles occurring on the market in the true property brokerage world proper now’s eXp Realty vs. Keller Williams. Whereas doing my analysis, I encountered numerous misinformation and half-truths about every brokerage mannequin.
Let me begin by saying each brokerages are wonderful firms 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 potential.
I’ve by no means labored for Keller Williams. Nevertheless, I’ve many shut associates 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 situated in Austin, Texas. It shortly grew to become the biggest actual property agency in Austin, with 72 licensed brokers. Round 1985, the housing market skilled a nationwide housing bubble. At the moment, Keller Williams started providing “Revenue Sharing” to retain brokers and get by means 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 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 houses bought in North America.
eXp Realty
eXp Realty, however, was based in 2009 by a former KW crew chief, Glenn Sanford. Glenn was a high-producing crew chief, doing over $80 million in quantity by means of a number of enlargement groups throughout the nation. Nevertheless, when the market turned within the housing collapse of 2008, Glenn was caught with a ton of overhead. It practically triggered him to exit of enterprise.
Relatively than hand over, Glenn determined to create a brand new actual property brokerage. This actual property brokerage wouldn’t rely upon brick-and-mortar workplaces. As a substitute, it will help brokers nationwide through 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 progress. Glenn created eXp Realty “Income sharing.” There are some vital variations right here that we are going to 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 below 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 practically all of Canada. It’s the 2nd largest impartial actual property brokerage as ranked by The Actual Developments 500.
eXp Realty vs. Keller Williams Enterprise Mannequin
These two firms, though totally different in some ways have an analogous philosophy in that they put the true property agent’s wants first.
Keller Williams focuses on coaching and training, though they’re rising their stake to turn out to be a expertise firm. Keller Williams presents 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 stay coaching weekly in its cloud workplace and much more on-demand. Additionally, eXp Realty offers all brokers first-class web sites and CRM by means of kvCORE, a third-party device often costing brokers hundreds per 12 months.
Along with the help choices for brokers, each firms provide brokers extra earnings alternatives. As talked about, Keller Williams gives profit-sharing to its brokers; eXp Realty gives revenue-sharing.
Moreover, eXp Realty presents 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, however, is one impartial brokerage with no territories, areas, or franchise places. Brokers and brokers can increase their enterprise or entice 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
Probably the most mentioned advantages of those two firms is the businesses providing residual earnings to brokers that assist develop the corporate. Keller Williams gives Revenue Share, and eXp Realty gives Income Share. To match eXp Realty vs. Keller Williams, brokers want to grasp the distinction between the 2.
How It Works
On the elementary 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 proportion of that new agent’s fee in perpetuity.
With Keller Williams, this proportion is predicated on the revenue, AFTER overhead bills, from the market middle that the agent belongs.
With eXp Realty, the proportion is predicated on income BEFORE bills. Income share is a hard and fast proportion decided by multiplying the gross fee earnings occasions that stage’s proportion quantity.
Tiers
Each firms have a seven-level mannequin. This implies you earn this share proportion of the brokers you sponsor and that of the brokers they sponsor down seven ranges complete. Every stage presents a unique quantity.
With Keller Williams, when an agent leaves that in your seven ranges, all brokers below 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 Massive Image
Brokers which have earned thousands and thousands of {dollars} of Keller Williams revenue share and now earn comparable 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, 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 an analogous construction. However one firm’s plan is far decrease total.
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 middle is individually-owned. Subsequently, 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
The vast majority 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 will vary from $9,000 to $42,000 relying on location and market middle. Moreover, brokers sometimes pay a 6% per transaction royalty price that goes to Keller Williams company and caps at $3,000 yearly. There may be an E&O price on each transaction that doesn’t cap. Relying in the marketplace middle, 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 assessment price and a $40 danger administration price on every transaction. The $40 danger administration price 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 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
For those who’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 provided distinctive coaching alternatives particular to new brokers.
Mentorship Break 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 will 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 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 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 about as much as help brokers who haven’t bought 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 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) e book. This e book 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 about as much as launch brokers of their first 90 days. The native market middle sometimes teaches this class at predetermined occasions all year long. It’s primarily a Keller Williams agent class however relying in the marketplace middle’s crew chief; different brokerage brokers have been allowed to hitch.
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 at the moment presents 5 several types of teaching: Mastery, OnDemand, BOLD, Breakthrough, and Group. BOLD is without doubt one of the commonest 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 fashionable 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 practically 50 hours of stay coaching each week from their houses.
eXp Realty’s company trainers, top-producing brokers, and crew 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 specific matter.
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 through their pc stay in eXp World or eavesdrop on the go through the eXp World cellular utility.
Groups at eXp Realty vs. Keller Williams
One of many subsequent commonest questions requested when brokers examine eXp Realty vs. Keller Williams is how groups examine. The reply depends upon a few components mentioned under.
Keller Williams
There are totally different crew charges at Keller Williams, relying on once you joined the brokerage.
Some grandfathered Keller Williams crew leaders have a construction the place extra crew brokers don’t add to their cap.
At this time most new brokers and crew leaders pay their $18,000 cap plus every crew agent provides $4,500 to the crew leaders cap.
The entire crew’s manufacturing goes in direction of paying the crew cap at 70/30.
As soon as the crew reaches the cap, it earns 100% of the gross fee earnings for the rest of the 12 months.
The crew 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 crew fashions and a separate crew for married {couples} referred to 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 packages.
The crew chief doesn’t want to fulfill earlier manufacturing benchmarks for such a crew.
Arrange a referral relationship with brokers. All crew brokers have their very own $16,000 cap (as does the crew chief). Agreed-upon offers are cut up with the crew chief first, then eXp second.
Instance: $10,000 fee on a 50/50 cut up to crew chief. $5,000 to the crew chief and $5,000 to the agent. Then 80/20 to eXp Realty. $4,000 to the crew chief and $4,000 to the agent. If the crew chief or agent had been already capped, that particular person would earn 100% of their fee. On this instance, $1,000 would go to the crew brokers’ $16,000 cap.
Normal Workforce
Workforce brokers are on a ½ cap ($8,000). This $8,000 doesn’t add to the crew chief’s $16,000 cap. A minimal of 25% of EVERY crew agent’s offers, written in that crew agent’s title, must be cut up to the crew chief.
Workforce brokers are usually not eligible for the ICON inventory award however can earn eXp Realty inventory and income share.
The crew 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 crew chief first, then eXp second.
Instance: $10,000 fee on a 75/25 cut up to crew chief. $2,500 to the crew chief and $7,500 to the agent. Then 80/20 to eXp Realty. $2,000 to the crew chief and $6,000 to the agent. If both the crew chief or agent had been capped earlier than the transaction, then that particular person would earn 100% of their facet of the cut up. On this instance, $1,500 would go in direction of the crew brokers’ $8,000 yearly cap.
Mega ICON Workforce
Identical because the Normal crew above aside from the next:
All crew brokers are on ¼ caps ($4,000)
The crew chief should have closed a minimal of $40 million, 175 transactions, and had ten capping crew members within the earlier 12 months
Home Workforce
Legally married {couples} could be thought-about for an eXp Realty home crew.
- $149 one-time be part of price.
- $85 month-to-month price cloud brokerage price.
- $50 month-to-month partner tech price.
- 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 middle’s shared workspaces. Moreover, they will 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 help 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 will entry the shared workspaces in over 3000 places, 900 cities, and 120 nations.
Moreover, eXp brokers should buy personal workplaces from Regus at a lowered fee on account of this membership already supplied by eXp Realty. Personal workplaces rely in the marketplace and the scale of workplace most popular and vary from round $500/month to a few thousand a month.
Alternatively, brokers can lease personal workplaces from Regus for round $30-50 per hour to fulfill purchasers or work privately. Many eXp brokers additionally make the most of lenders, title firms, and native espresso retailers for workplace house.
At eXp Realty, coaching and help happen in eXp Realty’s digital workplace, eXp World. Over 500 eXp workers 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 objective however not a plan.
eXp Realty is publicly traded on the NASDAQ inventory trade and presents 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 bought 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 houses 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 an extra $5,000 in capped transaction charges (20 transactions at $250/transaction) every year 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 offers again the $16,000 you paid in your cap within the type of EXPI inventory at its present worth.
I consider that to grasp an organization’s tradition and to have the ability to examine that of eXp Realty vs. Keller Williams; you 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 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 in contrast to every other actual property brokerage. eXp brokers know that the higher the corporate does, the higher the share worth will likely 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 workers, and management come collectively to attend these occasions. Within the normal classes, 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 points. 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 completed a wonderful job of incentivizing the correct 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, regardless that the monetary advantages are barely restricted.
Keller Williams holds two main occasions every year – MegaCamp and Household Reunion. These are large occasions with tens of hundreds of brokers in attendance. Like eXp Realty, they host coaching classes, breakout classes, speak about upcoming modifications with the brokerage, and far more.
Conclusion
In conclusion, eXp Realty and Keller Williams are implausible actual property brokerages. I consider the similarities between the 2 firms 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 just a little extra for it?
In that case, then Keller Williams is probably going your alternative. For those who like the concept of digital and having access to help and coaching through your pc, eXp Realty’s most likely your decide.
Do I choose the extra secure established model of Keller Williams? Or do I need to pursue a chance 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 parts aren’t as thrilling and you like a secure 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 couple of offers a 12 months, how does paying 64/36 vs. 80/20 have an effect on your online business?
For those who had been an ICON agent at eXp Realty (roughly 30-35 transactions per 12 months in most markets), how do you’re feeling about receiving your complete cap of $16,000 again to you every year 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 bought between 40-50 houses per 12 months and turn out to be an ICON agent 3 times. 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 implausible, free way of life as an actual property agent. I actually couldn’t be happier with my resolution to construct my enterprise right here.
To be taught extra about eXp, Keller Williams, and different firms, learn this submit on the greatest actual property firms to work for.
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