Is eXp Realty a Scam? Investigating a Real Estate MLM!
Welcome to my eXp Realty review!
Probably another unique MLM company that we have the chance of reviewing is called eXp Realty, a program that allows you to become a real estate agent.
And in this review, we’ll take a closer look at how lucrative their program is and if it can give you a full-time income.
First of all, I must Congratulate you for taking your time to do your own research before buying into any "seemingly good" product.
That's the way to avoid scams and find the legitimate way to make money online!
Let me be completely transparent with you, I'm not associated with eXp Realty in any form.
So, rest assured that I'm not here to pitch or sell anything to you.
Instead, I'm here to reveal what this unique MLM opportunity can give you, and whether or not it's guaranteed to give you a full-time income.
eXp Realty Review Summary
Product Name: eXp Realty
Founder: Not disclosed
Product Type: Real Estate MLM
Price: $149 plus recurring fees
Best For: People who are already experienced in the real estate industry
Summary: eXp Realty is a MLM company that markets a real estate opportunity. They let you join in as a real estate agent and you're basically a real estate agent enjoying their MLM opportunity (residual commissions). But there are several reasons why this program isn't something I'd recommend to anyone. There's just a lot of work done when it comes to securing sales and building a network, so it's essentially a full-time job in itself. But for those who're already experienced in real estate, this may be worth something to them.
Recommended: Yes and No
What is eXp Realty?
eXp Realty is a cloud-based real estate brokerage and a MLM or multi-level marketing company that’s been around since 2009.
They are a cloud-based company, so professionals work with clients in their 24/7 virtual office instead of working with them in a physical office or location.
Based on their official Facebook Page, they are the first of their kind in terms of providing meetings between clients and agents through their virtual office.
So to tour a property, agents and clients just need to log on to their virtual office.
Here’s a look at their virtual office:
Apart from the realty-related services, they also provide opportunities to ear income via their MLM compensation plan.
eXp Realty Product Line
Basically there are no products being offered here, but rather a service.
There’s a system in place where real estate agents under eXp Realty can earn money by providing a real estate service to clients by helping them find properties for commercial or residential use.
There’s nothing unique about their real estate service, so there’s no need to expound on this further.
Does the Product Work?
In most reviews done by Smart Affiliate Success, if there are no products to be reviewed, then we take a look at the services instead and we go through them by looking at what people say about it.
These feedbacks cover what agents and clients have to say about it. According to one of their concerned real estate brokers, you don’t really have a say in how to improve the company or if you have any complaints about anything.
Sometimes, you’re not allowed to even have complaints or any grievances, so you’ll just have to pack up and quit.
Some realtors also complained about how eXp Realty is just making money off of their realtors through their compensation plan.
You’ll find more about their reviews from these sites:
How To Make Money with eXp Realty?
To make money from eXp Realty, you need to have a solid understanding of how the real estate industry works to begin with.
There are two ways for you to make money from eXp Realty:
- Earning a commission from every property sold
- Earning commissions via recruiting people under you
How To Get Started with eXp Realty?
To get into their program, you’d have to pay $149 one-time start up fee, and then these are your additional fees:
- These are the additional fees :
- $50/month tech fee
- $35/month eXp University fee
- $25 broker fee, and
- $40 risk management fee.
You’re probably going to shell out at least $330 for your first month, and then roughly $85 monthly recurring fees from there on out.
With the fees, you also get access to their resources such as:
- 20 to 25 hrs of live training per week
- Training from guest speakers
- Mastermind sessions
- Access to a large library of on-demand training videos
- Lead generation & management tools
So you’re just not spending monthly fees on air if you sign up with eXp Realty. You’re getting continuous education from them to build your skills and credibility as one of their realtors.
Sadly, I wasn’t able to uncover any feedback about their trainings and other resources to determine whether or not these were any good.
eXp Realty Compensation Plan
There’s some form of residual income through their compensation plan.
All agents who join the eXp Realty will have the same commission structure:
- 80/20 split
- $16K cap
- $50/month technology and resource investment
The 20% that goes to eXp is used to:
- Pay agents their residual income, based on revenue sharing.
- Fund company operations, marketing, and other expenses.
Cascading Revenue Share Program
The Cascading Revenue Share Program allows you to earn on two tiers, or in other words, you can earn from agents that are your direct recruits.
You can a maximum of $3,200 per year.This goes down up to seven tier levels.
TIER ONE : Up to $2,800
TIER TWO : Up to $3,200
TIER THREE : Up to $2,000
TIER FOUR : Up to $1,200
TIER FIVE : Up to $800
TIER SIX : Up to $2,000
TIER SEVEN : Up to $4,000
What’s interesting here is you’re required to have a certain number of agents under you to unlock a level.
For example, to get into the Tier One level, you’ll need one agent under you. And then to get to Tier 2, you’ll need 5 or more agents.
TIER ONE : 1+
TIER TWO : 5 +
TIER THREE : 10 +
TIER FOUR : 15 +
TIER FIVE : 20 +
TIER SIX : 25 +
TIER SEVEN : 40 +
The more agents you sign up, the more money you’ll earn. That’s about it.
You’ll learn more about their compensation plan by watching this video:
eXp Realty Ugly Truths Revealed!
#1. Need For More Clients
This is a pretty obvious problem with any real estate income opportunity. You’ll need to work with a lot of clients to get more money, and that means investing a lot of money in building your network and establishing a strong reputation as one of the top realtors in your area.
The reason why you need more clients is that not a lot of them will end up buying property from you. So if you have a pool of 10 clients, only one or two will end up buying a property.
This means that you’re going to start off with a very low income potential until such time you build your reputation up.
#2. 80/20 Commission Splits
Per their compensation plan, you won’t be getting 100% of the commissions generated by your sales.
20% of your commissions will go to fund the company expenses as mentioned earlier.
To make their opportunity worth while, you’d have to recruit people to make up for the lack of sales. And even then, recruiting is another different difficult task in itself that will take up a lot of your time.
#3. Too Much Recruitment!
This may not really apply to all of the real estate agencies, but there are some firms and agencies that will place a lot of emphasis on recruitment to encourage their agents to build a strong selling team.
This goes the same way with eXp Realty and you’re rewarded with residual income from the people you recruit.
Now I know what you’re thinking. This might be a Ponzi scheme because there’s recruitment, right?
Well, to debunk that assumption, they have a service in place and that’s what most Ponzi schemes don’t have.
Besides, the recruitment income is secondary only to your primary means of earning, which is selling properties.
What I Like About eXp Realty?
#1. Unique MLM
You won’t find a lot of real estate-based MLM’s today that are as successful as eXp Realty, so this makes this one of the best products for network marketing.
Is eXp Realty a Scam
eXp Realty is a legitimate MLM opportunity that promises you a lucrative income through their real estate program.
However, there are several reasons why this may not be a good opportunity for you.
You need to spend a lot of time building up a strong network of clients and building up a team of realtors under you to maximize their income opportunity.
Much like any real estate opportunity, you have to be good at selling properties because these are major investments. But the payoff is definitely going to be worth it!
How I Make a Living Online?
I'm not a fan of MLM, not because it's illegal or not profitable, but because of all the restrictions and the expensive costs involved.
Instead, Affiliate Marketing is my top recommended business model for anyone to make money online.
The reason is simple...
- You don't have to recruit anyone to make money
- You have the freedom to promote any products you want and not being restricted to only promote the products from one MLM company
- It's Free to get started
In fact, with affiliate marketing...
I've personally created a 4-Figure Monthly Passive Income Stream and become financially independent at just 21 years old without any College degree or working experience!
Through my own hard work, I went from a broke restaurant waiter to living my dream laptop lifestyle in less than a year's time...
If you want to discover the secrets of how I did it at such a young age, click here!