Real estate in the US is big business; as such, competition is fierce among rivaling real estate brokerages. The structure, reputation, and compensation model of a brokerage set new agents up for their careers, so it’s important to choose wisely. But with so much conflicting information flooding the market, it can be challenging to make a reasoned decision about who is right for you.
In this article, we have decided to explore eXp Realty vs Keller Williams and delve into the details of what each brokerage model has to offer for agents. Do you want to learn why these brokerages have achieved the mammoth success they experience today and gain some insight about which may be best for you? Then let’s get started.
Background: Where Do Brokerages Come From?
Understanding the background and growth of eXp Realty and Keller Williams is an excellent way to discover the core differences between the two companies. Here, we will examine how both companies started and their current development.
eXp Realty
eXp Realty is the more modern of the two brokerages and was launched in 2009. It was founded by ex-Keller Willams team leader Glenn Sandford.
Following the housing crash of 2008, Sandford went from a volume of over $80m to almost going out of business due to costly overheads. This inspired his decision to change how he worked and take advantage of the modern technology at his disposal to create a cloud office.
There were numerous benefits to this model, including the added convenience and autonomy agents gained by working from home, and reduced expenses by eliminating brick-and-mortar offices. Agents also enjoy benefits including equity opportunities in eXp World Holdings and revenue sharing.
2021 saw the company being recognized as one of the fastest-growing companies in its sector with an incredible 75% year-on-year increase in agents. eXp now boasts more than 80,000 agents around the world. As the brokerage continues to expand it has made moves to improve its online search, lead generation, and listing opportunities for brokers and agents. If you’re looking to launch your real estate career with eXp, submit an enquiry to join Elizabeth Riley today!
Keller Williams
Keller Williams was founded by Gary Keller and Joe Williams in 1983. The first office was located in Austin, Texas, and quickly grew. Due to the 1985 housing bubble, Keller Williams consulted with top agents to learn about their preferred business model. As a result, ‘Profit Sharing’ was first implemented to help agents survive the crisis.
Franchise opportunities were first offered in the early 90s, helping the company spread nationwide. This also sped up their growth – and their international launch, which started in Vietnam in 2012 – saw international expansion. The company now has over 170,000 agents in the US and Canada and is a Fortune 500 company.
Business Models: eXp Realty vs. Keller Williams
The reason Keller Williams could establish itself over the years and eXp Realty is experiencing unprecedented growth and success is because they employ business models that put agents first.
Both companies place a strong focus on training and provide the tools and software necessary for agents to succeed and develop. They also offer opportunities for additional income. eXp provides a revenue share model while Keller Williams opts for profit share.
These models will be explained below, and you will be able to see each model’s pros and cons.
eXp Realty Revenue Share
The eXp revenue share model sees the company share 50% of each transaction’s revenue before expenses. This will also encourage existing agents to refer and ‘sponsor’ new agents as they will be able to benefit when the new agent makes a sale.
The benefits of the revenue share model sway heavily in favor of the agent with perks for closing deals, bringing in new business, and referring new agents. eXp offers a seven-level tier system that results in agents benefiting from new (or “sponsored”) recruits, along with new agents they eventually sponsor as far down as seven levels. Each level down will offer a different profit share percentage.
If an agent in this tier system leaves, the company occupies their space so that all agents can remain in the same tier. The cons of this are that it can be expensive for companies, making it less profitable due to the percentage paid back to agents.
eXp Realty also offers stock options and is not bound by regions or territories. This allows the agent to expand their business and lifestyle without geographical limitations. The eXp revenue-sharing model has seen some successful agents making a substantially higher income than they could through the Keller Williams profit-sharing model.
Keller Williams Profit Share
The profit share model exhibited by Keller Williams is better suited to real estate businesses, although it does offer agents the opportunity to make extra money based on their performance.
Unlike the eXp Realty revenue share model, the Keller Williams model gives its agents a share after expenses have been deducted. Unfortunately, this can result in a productive and successful agent making nothing from their sales if the franchise or office they work from is not profitable. Keller Williams sees this as a viable model to encourage both the brokerage and agent to work together to achieve success. Realistically, it can result in agents’ unfairly missing out on growth opportunities in their careers.
Like eXp Realty, Keller Williams offers a seven-tier system that sees the sponsoring agent receive a portion of the recruited agents’ commission, and all additional agents sponsored as far as seven levels down. The way Keller Williams’ tier model differs from eXp Realty is when an agent leaves, the agents below move up a tier, and this can result in higher commission portions for the original agent.
The benefits of the profit share model include the motivation and rewards it provides agents to excel. It is also great for morale when the brokerage and agents are rewarded by the company for their success. Cons for this model include the difficulty of managing different incentives and how challenging it is for agents rebuilding or starting out to achieve success.
Fees: eXp Realty vs. Keller Williams
The fees a real estate agent has to pay will have a significant bearing on their overall annual income. Agents can expect to pay transactional fees, as well as a monthly fee. These will differ between the companies and the transaction that takes place.
eXp Realty
Typically the commission split on transactions for eXp Realty is 80% to 20% in favor of the agent, and there is a $16k cap annually. There will be a monthly fee of $85, and agents will have to pay a $40 risk management fee and a $25 broker fee on their transactions. After $500 (12.5 transactions), the risk management fee no longer needs to be paid.
Because agents do not have a fixed office, naturally overheads and fees are much lower than a traditional brokerage. The higher commission split favoring agents and lower cap rate makes eXp a more attractive proposition for many agents when compared with Keller Williams.
Keller Williams
Keller Williams agents will have to pay a monthly fee that can average between $50 to $125. There is an additional 6% royalty fee on all transactions, capped at $3,000 per year. Transactional fees are typically split from 70% to 30% in favor of the agent. There is a cap of $18,000 per year for this.
An ‘Errors and Omissions’ insurance fee between $40 to $70 per transaction is also payable. This fee does not cap and will be paid on all transactions. There is also a desk fee for agents that work on-premises, which will vary based on location.
New Agent Information
As a new agent, you will expect access to the information you need to succeed, and both eXp Realty and Keller Williams deliver in that department.
Extensive training programs and access to developmental and educational software show the level of investment both are committed to in providing the structure and roadmap for new real estate agents to succeed.
eXp Realty
eXp Realty offers the eXpand Mentor program to recruits. Agents without three or more successful transactions over the previous twelve-month period are also eligible to receive mentorship.
This program provides a mentor that is either local or within 50 miles. Mentors will be selected based on their leadership capabilities and desire to empower and educate new industry entrants.
Mentors help guide agents through transactions and to complete the eXpand Mentor class work. Mentees must split their commissions 60% to 40% in favor of the mentoring agent for the initial three transactions. After graduating from the program, agents’ commission fees return to the 80% to 20% split.
Keller Williams
Typically, new Keller Williams agents will be on a 60% to 40% commission split until they reach $1m in sales. This figure can vary between brokerages. It is worth noting that the 6% royalty fee is on top of this.
During this period, new agents will be provided with resources and training by their local office, justifying the split. After the agent reaches $1m in sales, the commission structure will then move to the one discussed previously.
Team Structures: eXp Realty vs. Keller Williams
When dealing with large companies with thousands of agents worldwide, it can be easy for potential new agents to get confused about how the team structure works. The team structures are relatively straightforward, as this breakdown will exhibit.
eXp Realty
At eXp Realty, agents will work as part of a team with other nearby agents. Teams work together by sharing leads, profits, and client information to ensure deals are secured.
Team leaders are typically those that can be trusted to resolve disputes and have a history of success. There are typically three-team models that eXp Realty has, including;
Self-Organized
- Agents within the Self-Organized Team will be eligible for eXp stock awards, including the ICON stock award and other revenue share programs.
- Team leaders can be selected without meeting any predefined benchmarks, and the teams act like referral relationships with splits taking place with team leaders initially before eXp.
- A cap of $16,000 is in place for all agents and team leaders.
Standard
- Standard teams see their agents on half caps at $8,000, with team leaders remaining on a $16,000 cap. Team leaders will receive a minimum of 25% of deals and will be eligible for eXp revenue share and Realty Stock, and team leaders will not be eligible for the ICON stock award.
- Team leaders can only be appointed if they have a minimum of 30 transactions across the previous 12-month period or have closed at least $6m.
- Deals will be split with team leaders first and then eXp.
Mega ICON
Mega ICON teams will follow the same rules as standard teams, apart from a few differences.
- All agents are on $4,000 caps
- Team leaders will have had ten team members across the last 12 months, as well as carrying out 175 transactions and closing $40m.
Domestic Teams
Domestic teams are an option for married couples. Domestic teams at eXp Realty will have to pay a one-time joining fee of $149, a $50 spouse tech fee every month, and an $85 cloud brokerage fee every month. They will have a $16,000 shared commission cap and will earn one line of revenue share and an ICON award per couple.
Keller Williams
Keller Williams team system offers agents an opportunity to start at Blue Teams that can then work towards becoming Gold Teams.
Blue team leaders are available for anyone and can be appointed or elected. Experience and a desire to work hard and support your team members are essential for the roles.
Offices
You will find a big difference between how eXp Realty and Keller Williams work with office spaces. eXp Realty prefers virtual office learning and contact, compared to the traditional brick-and-mortar offices of Keller Williams.
eXp Realty
While eXp Realty avoids investing in expensive office space as a way to reduce overheads, there are still options available to agents that need a physical location to conduct work. That said, many agents can carry out the majority of their work from home.
Those needing an office space can enjoy Regus memberships that provide access to shared workspaces worldwide. Private Regus offices can be rented at a reduced rate and will differ in cost depending on the office size and location. eXp Realty agents that need office space to meet clients can also rent private Regus offices hourly.You can also enjoy Regus for free by simply downloading the Regus app and utilizing their shared space offices.
Support and training at eXp Realty are provided in a virtual office environment, and the agent will be able to enjoy this in the comfort and convenience of their own home or other locations that provide internet connections.
Keller Williams
Keller Williams has a more traditional take on office settings and provides market centers and shared workspaces. There are office fees applicable, but these will differ depending on location.
The support and training that Keller Williams provides its agents with will typically take place at Keller Williams offices, meaning that the agent will have to travel to and from these locations. While having a physical presence can be helpful, it can also be expensive and lead to agents spending a lot of time commuting when they could be putting their time towards something more productive.
Training: eXp Realty vs. Keller Williams
To be the best real estate agent possible, you must participate in continued education. As two of the largest real estate companies, eXp Realty and Keller Williams have robust training programs to provide agents with all the tools they need to succeed.
eXp Realty
As you might expect from a forward-thinking company revolutionizing the industry, eXp Realty offers an extensive catalog of online training materials. Training is carried out by team leaders, some of eXp Realty’s highest performers, as well as corporate trainers. eXp Realty agents can attend as much as 50 hours of training a week from the comfort and convenience of their own homes with a combination of regular weekly training sessions and one-off focussed training topics.
As well as offering excellent online training and on-demand facilities that allow agents to learn and brush up on their skills at their convenience, eXp Realty also offers in-person training opportunities.
Understanding the value of face-to-face learning and the convenience of innovative online learning experiences, eXp Realty’s in-person training and mentoring provide new agents with boots-on-the-ground experience. Additionally, eXp conferences (including EXPCON) are excellent ways to meet new people, network, and learn with exclusive lectures.
Keller Williams
With such a long history and so many agents, Keller Williams is widely recognized as having had one of the leading training systems in the real estate industry. The MREA (Millionaire Real Estate Agent) book was released in 2004 to guide agents, and the ‘Ignite’ training focuses on guiding new agents through the first 90 days of their careers.
Additional training known as Maps Coaching is available, and agents can sign up for this at an additional cost. There are five coaching types available through Maps, including Breakthrough, OnDemand, Group, Mastery, and BOLD. BOLD focuses on prospecting and is one of the most popular classes. It is used by new and experienced agents to improve their skills and results.
Much of Keller Williams’s training takes place at the local market center, with fewer online opportunities than eXp Realty. The additional cost and inconvenience of having to physically attend training at Keller Williams make the easily accessible online courses provided by eXp Realty an easier and more affordable option.
Agent Benefits and Commissions: eXp Realty vs. Keller Williams
One of the biggest draws for agents for large real estate brokerages will be the benefits and commission packages offered. Here are the benefits that come with being an eXp Realty or Keller Williams agent;
Benefits and Commissions
eXp realty
eXp Realty agents are offered a 12% commission on sales up to $750,000; there will be an additional 0.25% for every $250,000 above this. eXp Realty also offers agents $150,000 insurance coverage for life and disability. Agents will also have their licenses and ongoing education paid for by eXp Realty.
This is an excellent package that allows agents to earn well and provides peace of mind and opportunities for development at no extra cost.
Keller Williams Realty
Keller Williams Realty has commissions as high as 33% available for some agents. It is important to remember that this is not a flat commission for all agents, and rates will vary depending on performance and experience.
Dental, vision and other health insurance plans are available at Keller Williams. This will differ depending on location and enrolment status, so it would have to be discussed before signing up.
Keller Williams’s long-term support and education opportunities are not as robust as eXp Realty’s, but agents can sign up for the KW Institute for additional training.
Rewards
The reward programs offered by companies reward the agent for the hard work they put in and act as an incentive to reach and surpass targets.
eXp Realty
eXp Realty offers a tiered reward system based on annual sales figures and volumes. These are as follows;
- 20% – Up to $250,000
- 25% – $500,000 to $750,000
- 30% – $750,000 to $1m
- 40% – $1m+ or $3,500 per month
Keller Williams
Keller Williams offers a tiered compensation plan based on sales volumes. Annual sales below $250,000 enjoy a 12% commission, and for every additional $250,000 a further 0.25% is earned.
Annual sales below $500,000 earn 15% commission and 18.5% for sales between $750,000 and $1m. After $1m an additional 25 cents per dollar, then moving to 20%. The 33% commission figure mentioned earlier is achievable for agents who reach more than $1m in annual sales.
Compensation
eXp
eXp Realty agent compensation allows agents to earn bonuses on top of commissions and includes retirement savings plans and health benefits.
Keller Williams
Keller Williams rewards start at $1,500 when sales quotas are reached or surpassed. If numbers are exceeded by 50% or more, this is increased by three times.
Retirement Plan
Keller Williams
Retirement plans and pensions are often left to the agent to plan in the real estate industry, which is true of Keller Williams. Agents will be able to explore private options.
eXp Realty
eXp Realty offers brokers and agents incentives for production, including equity ownership in eXp World Holdings. Stock can be built and sold to fund retirement, among other things.
eXp Realty Benefits and Commissions
eXp Realty offers agents attractive commission opportunities as well as incredible support and training that will help with the agent’s development.
As well as the excellent packages and programs outlined in this article that often rival and surpass rival companies, the innovative and forward-thinking dynamic of the company ensures agents are with a growing brand that is carving a new future for real estate.
Keller Williams Benefits and Commissions
Keller Williams has a long and strong reputation that benefits agents. The excellent commission opportunities also allow agents to earn based on their results.
Keller Williams is a more traditional company that relies on brick-and-mortar offices and in-person training, which some agents might still prefer today.
Final Thoughts
There is a good reason both companies are so successful. The accelerated growth of eXp Realty is evidence that agents prefer their excellent support, training, and commission models.
As eXp Realty embraces modern technology and combines it with traditional methods, eXp agents get to enjoy the best of both worlds, and this is seen by the significant financial success and lifestyle flexibility eXp agents have achieved.
Though Keller Williams realty has a more extended history and more extensive network of agents at present, the rapidly expanding eXp Realty appears to have a head start in using state-of-the-art techniques to revolutionize how the industry is developing and benefit agents. If you want to launch your career with one of the most innovative and supportive brokerages, contact Elizabeth Riley to get started with eXp Realty today.