Complete Guide to eXp Realty Commission Splits and Fees (2023)

As someone who has interviewed dozens of real estate agents at different brokerages, I can tell you eXp Realty’s commission splits and fees are very simple.

In fact, they’re so simple, I can sum it up in one graphic… which was created by eXp Realty.

Cost of eXp Realty Simplified

Before we dive in, I’ll answer some common questions and define terms so you know exactly what they mean.

What does it mean to cap at eXp Realty?

Capper at exp Realty

Capping at eXp Realty means an agent has paid eXp Realty $16,000 in the form of commission splits. Agents pay eXp Realty 20% of their commission until that $16,000 cap is met.

Does eXp charge a transaction fee?

Yes, eXp charges transaction fees. They are:
– Transaction Review Fee ($25 per transaction)
– Risk Management Fee ($40 per transaction but caps at $500 annually)

How much is eXp’s onboarding fee?

eXp’s onboarding fee is $149. Their onboarding fee waives the first monthly fee.

How much is the eXp Realty Monthly fee?

eXp Realty’s Monthly fee is $85. They call it a cloud brokerage fee and it includes a bunch of benefits such as access to training and a great CRM.

How much is eXp’s mentor program split?

eXp mentor program split is an extra 20%. Half of it goes to the mentor and the other half goes to eXp Realty. Most states require agents to complete 3 transactions to graduate from the mentor program but some states are now requiring 6 transactions.

Does eXp have a royalty fee or franchise fees?

eXp does not have a royalty fee or franchise fees. eXp Realty has a business model that is more friendly to agents than franchise brokerages.

Read the fine print at the bottom of the pic below… There are a few thousand dollars hidden there! 😉

Cost of eXp Realty Simplified

eXp Realty Commission Splits and Fees Before Capping

Real estate agents pay eXp Realty 20% of their commission until the sum of their commission splits add up to a total of $16,000. If you didn’t already notice, this is equivalent to earning $80,000 in gross commission income (GCI).

When you first join eXp Realty, your join date starts the clock on your annual ‘cap refresh’.

This means if you join on Jan 20th, 2024, your commission cap resets on Jan 19th, 2025. Keep that in mind while we talk about commission splits before and after capping.

For example:

20% x $80,000 in GCI = $16,000 paid to eXp Realty as a commission split

This leaves you with $64,000 BEFORE further fees and potentially another commission split. Let’s see what else you would pay eXp Realty.

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eXp Realty Fees Before Capping

You’ve already paid eXp $16,000… What else could they want?

eXp Realty charges transaction fees of:

  • $25 transaction review

  • $40 risk management fee (Capped at $500 annually)

Your start-up fee is $149 but that also includes your first $85 monthly cloud brokerage fee.

Let’s say you cap in your first 10 months with eXp Realty with 10 transactions. Here’s an example:

$8,000 GCI x 10 transactions = $80,000 GCI

  • – $16,000 Commission split

  • – $914 Startup and 9 monthly fees [$149 + ($85 x 9)]

  • – $250 transaction review fees ($25 x 10)

  • – $400 risk management fees ($40 x 10)

($80,000 GCI) – ($17,564 in commission splits and fees) =

$62,436 is left for the eXp Agent… Although it seems like you’re paying eXp Realty a ton of money, in reality, it’s way cheaper than the majority of brokerages.

The last thing you want to hear about is another fee, even though it’s great for newer agents. If you’ve completed more than 3 transactions in the past 12 months, skip to splits and fees after capping.

eXp Realty Mentorship Program Commission Split for New Agents

eXp Realty’s mentorship program charges an additional 20% for their first 3-6 transactions depending on your location and level of licensing. Half of that 20% goes to eXp while the other half goes to the mentor.

If you haven’t completed 3 real estate transactions in the past 12 months as an agent, eXp Realty requires you to complete their mentorship program.

eXp Realty Commission Splits and Fees After Capping and Before ICON Award

You’ve already capped so you don’t need to split any more commission checks!

Unfortunately, you have to pay a $250 capped transaction fee and a $25 broker review fee for the next 20 transactions. Also, you may still owe some money in risk management fees if you haven’t paid $400.

Let’s cover another example where an eXp agent hits the ICON Agent Award. They completed 30 transactions with $8,000 per commission in their first 10 months.

$240,000 GCI

  • – $16,000 Commission Split

  • – $914 Startup and 9 monthly fees [$149 + ($85 x 9)]

  • – $750 transaction review fees ($25 x 30)

  • – $500 risk management fees (capped at $500 annually)

  • – $5,000 Capped Transaction Fees ($250 x 20 transactions after capping)

($240,000 GCI) – ($23,164 in commission splits and fees) =

$216,836 is left for this eXp Realty Agent… But wait, there’s more!!


eXp Realty Commission Splits and Fees After ICON Agent Award

Congratulations on hitting Icon Status! Now that you’ve paid in a bunch of money, eXp only charges you $100 per transaction which consists of:

  • $75 Capped/ICON transaction fee

  • $25 broker review fee

Let’s jump into another example… This time we’ll do 40 transactions at $8,000 per transaction within 10 months.

$320,000 GCI

  • – $16,000 Commission Split

  • – $914 Startup and 9 monthly fees [$149 + ($85 x 9)]

  • – $1,000 transaction review fees ($25 x 40)

  • – $500 risk management fees (capped at $500 annually)

  • – $5,000 Capped Transaction Fees ($250 x 20 transactions after capping)

  • – $750 ICON Capped transaction fees ($75 x 10 transactions after ICON)

($320,000 GCI) – ($24,164 in commission splits and fees) =

$295,836 is more than most doctors make. Also note that paying your brokerage $24,164 is only 7.55% of your income, and significantly lower than you would pay at most franchise brokerages.

We aren’t including a significant amount of money…

eXp University Icon Shelby Osborne Johnson - Strategies for Short Term Rentals
I made $4,000 teaching four 1-hour courses at eXp University!

eXp ICON Agent Award Program

I was an eXp ICON agent 3 years in a row before I got out of production. I didn’t even know about the stock awards until early 2021, I opened my account and had over $100,000 in stock sitting there. Since then it’s fallen to like $40,000-$60,000. I haven’t checked it in a while.

Once you pay the $5,000 in capped transaction fees, eXp agents are rewarded with $8,000 in company stock (EXPI) for hitting their production requirement.

Agents are also eligible to receive another $8,000 if they meet the necessary cultural and event attendance requirements.

I wouldn’t tell a real estate agent to count the stock awards as income, but it’s pretty cool that if you hit ICON status you get $8,000 awarded back to you in stock.

ICON Agent Stock Compensation

Personal Transactions

I got my real estate license because I was interested in real estate investing. I saw a ton of houses and acquired 74 rental units in my first 3 years as a real estate agent, so the personal deals were near and dear to my heart.

eXp Realty allows three personal transactions per year where you don’t have to take a commission on the purchase and sale of the property, as long as you are the owner.

This also includes being the owner of the business that’s purchasing or selling the property.

eXp Realty charges $315 for 3 personal deals before capping and after capping. If you aren’t capped they charge $815 after the 3 deals… if I remember correctly.

Outgoing Referral Fees and Splits

There’s nothing sweeter than a referral closing. But, how much is eXp going to take from your referrals?

If you haven’t capped yet, you’re still going to pay your 20% split to eXp right off the bat. If the agent is at a different real estate brokerage (not eXp), you’ll pay a $25 broker review fee, but only if your commission is going to be over $1,000.

If the referral agent is with eXp, you will split the $25 broker review fee according to the percentage of the referral fee.

For example, most of my referrals are 25%, therefore the broker review fee is $6.25 instead of $25.

Outgoing Referral Fees and Splits after Capping

Once you’ve capped, the transaction fee jumps to $250 each. This can take a huge chunk out of your referral, therefor if your referral commission is under $1,250, the capped transaction fee will be 20% of the commission instead of $250.

I looked back at my referral payouts right after hitting ICON status and they only charged me $18.75 for capped referral transaction fees. This is another reason the ICON agent program is so powerful.

eXp Realty Team Fees and Splits

eXp Realty has some lower caps for teams. There are 4 different team models within eXp. The fees don’t change, but the commission cap can!

Five Pillars Team meeting at Pints n Properties in Charlotte
We had to put our masks on so the owner of the bar didn’t get in trouble (early 2021)

Domestic Team Fees and Splits

The domestic team is for spouses or a couple that files joint tax returns. This requires a marriage certificate or tax return proving joint filing.

eXp Realty allows two people to work towards the same cap and only earn 1 ICON Agent Award. The team lead will be the person awarded.

Self-Organized Team Fees and Splits

The self-organized team is the loosest ‘team’ structure. All agents will be working towards a $16,000 commission cap. This also means everyone in the team may achieve ICON Status.

Standard Team Fees and Splits

This is where some requirements are made by eXp because they allow team members a reduced commission cap of $8,000.

If a team member elects the reduced cap, the team leader must take at least 25% of the team member’s commission.

If the team member does not elect the reduced cap, the team leader isn’t required to take a minimum commission split. Those members may also achieve ICON status.

Mega Icon Team Fees and Splits

Team leaders are even more scrutinized for Mega Icon Teams. A team lead must be able to document $40 million in sales volume and 175 transactions closed in the prior 12 months. There must also be a minimum of 10 team members plus a leader who would have capped had they been at eXp Realty in the prior 12 months.

Team members have the ability to elect a commission cap of $4,000 in Mega Icon Teams. This also prevents them from hitting ICON status. Team members are required to pay the team leader a minimum of 25% if they elect the reduced commission cap.

If team members elect the full $16,000 commission cap, they can achieve ICON status and the team leader isn’t required to pay them anything.

Wrapping up eXp Realty’s Commission Split and Fees

Most real estate companies aren’t transparent about their fees and commissions. For newer agents, this can be really frustrating. eXp Realty is one of the most transparent brokerages I’ve ever seen, and its growth reflects its advantages. If you made it this far, check out our movement of real estate agents within eXp Realty.

If I forgot something, drop me a comment below!

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