In the fast-changing world of real estate, agents and clients are weighing the merits of eXp Realty, a cloud-based brokerage, against traditional brick-and-mortar firms. Launched in 2009 by Glenn Sanford, eXp Realty has expanded to over 85,000 agents worldwide, offering a virtual platform, cost savings, and unique commission splits. Traditional brokerages, such as Keller Williams and RE/MAX, maintain physical offices and hands-on supervision. This article examines how these models differ in cost, technology, and agent support, helping agents choose the best fit based on their needs in 2025.
Overview
Cost Structures: eXp Realty vs Traditional Brokerages
The cost structures of eXp Realty and traditional brokerages differ significantly, impacting agents’ earnings and expenses.
- eXp Realty offers an 80/20 commission split with a $16,000 annual cap, meaning agents keep 80% of their commissions until they reach the cap, after which they keep 100%. Agents also pay a monthly fee of $85 for access to tools and services (Next-Gen Agents).
- Traditional brokerages typically have varying commission splits, such as 70/30 or 60/40, with no annual cap, meaning the brokerage takes a percentage of every transaction indefinitely. Additionally, agents often face higher overhead costs, including office rent and utilities, which can reduce their net earnings.
For example, an agent earning $100,000 in commissions at eXp Realty would pay $16,000 to the brokerage (after capping) and keep the remaining $84,000, plus 100% of future commissions for the year. In contrast, at a traditional brokerage with a 70/30 split, the agent would pay $30,000 to the brokerage, keeping $70,000, with no cap on future transactions.
Technology and Flexibility
Technology is a key differentiator between eXp Realty and traditional brokerages, shaping how agents work and collaborate.
- eXp Realty operates entirely online through its virtual platform, eXp World, which allows agents to work remotely, attend meetings, and access tools like KVCore and Skyslope from anywhere. This flexibility is a major draw for agents seeking work-life balance (eXp Life).
- Traditional brokerages rely on physical offices, which can limit flexibility but provide a structured environment for in-person collaboration. While some traditional firms are adopting technology, their integration is often less comprehensive than eXp’s virtual model.
Glenn Sanford, founder of eXp Realty, emphasizes the company’s focus on agent-centric technology: “eXp Realty has found its ‘purpose,’ which is to be the most agent-centric company in the country” (Inman). An agent shared on Reddit, “The virtual platform saves me time and lets me work from home,” highlighting the practical benefits of eXp’s model (Reddit).
Agent Support and Training
Agent support and training vary widely between eXp Realty and traditional brokerages, influencing how new and experienced agents develop.
- eXp Realty provides over 60 hours of weekly online training, including lectures, Q&A sessions, and video resources. However, it offers less direct supervision, which can be challenging for agents who need hands-on guidance (Next-Gen Agents).
- Traditional brokerages typically offer in-person training, direct broker oversight, and mentorship programs, which can be more structured and personalized. This hands-on approach is often preferred by new agents or those who thrive in collaborative environments.
A real estate analyst notes, “eXp’s training is robust, but some agents need the personal touch of traditional firms” (HousingWire). This highlights the trade-off between eXp’s extensive online resources and the direct support found in traditional settings.
Recruitment and Business Models
The business models of eXp Realty and traditional brokerages differ in their approach to recruitment and income generation.
- eXp Realty uses a revenue-sharing model that allows agents to earn income from the production of agents they recruit, which some critics liken to a multi-level marketing (MLM) structure. This model has fueled eXp’s rapid growth to over 85,000 agents (eXp Life).
- Traditional brokerages focus primarily on transaction-based income, with minimal incentives for recruitment. Agents earn commissions from their sales, and brokerages may offer small bonuses for referrals, but recruitment is not a core part of their business model.
The recruitment-focused model has sparked debate. A Reddit user commented, “eXp is 100% MLM. You make money from recruiting people. That’s it. If you’re not recruiting, you’re not making money” (Reddit). In contrast, traditional brokerages emphasize sales performance over recruitment.
Conclusion
As the real estate industry evolves, agents face a choice between eXp Realty’s cost-efficient, tech-driven model and the established, hands-on approach of traditional brokerages. eXp’s rapid rise suggests a shift in the industry, with its virtual platform and commission structure appealing to agents seeking flexibility and savings. However, traditional brokerages continue to attract agents who value direct support and in-person collaboration.
Looking ahead, hybrid models that blend virtual tools with physical offices could shape the future of real estate, offering agents the best of both worlds. The decision ultimately depends on individual needs—whether agents prioritize cost savings and technology or hands-on guidance and structure.
