Most real estate agents have heard of the amazing 80/20 eXp Realty commission split and the awesomely low $16,000 annual cap. But what does that mean? And are there cases where the split and cap are different? Why, yes: for specific types of teams, the recently launched Referral Division, and for eXp Commercial.
Let’s break down the real estate agent eXp Realty commission split and cap variations, from single agents and self-organized teams to standard teams, Mega ICON teams, and domestic partnerships, as well as eXp Commercial and eXp Referral Divisions.
What is a commission split?
A commission split is where a real estate agent and their managing broker agree to split the real estate commissions on a percentage basis from the sale of a property. Commission splits can range widely from 40/60 to 95/5, where the higher-end agents typically will not have an opportunity to cap (see next section).
For example, if the commission split is 80/20 and the total commission from an agent’s sale is $10,000, then $8,000 would go to the agent and $2,000 would go to the brokerage.
What is a commission cap?
A commission cap is where a brokerage agrees to put an upper limit on commissions paid to the broker each year. Commission caps can vary widely from never capping to $30,000+ to cap. Once an agent “caps” for that year, their commission split would go away, and they’d then earn 100% commission for the rest of that anniversary year.
For example, if an agent joins a brokerage in January and hits their commission cap of $16,000 in August, they will earn 100% commission for the rest of the year until their cap resets again in the following January.
eXp Realty Commission Split and Cap for Single Agents
For the vast majority of eXp agents,the eXp Realty commission split is simply 80/20: 80% of each commission check goes to the agent, and 20% goes to eXp Realty. This happens on every transaction until an agent caps and then goes to 100% commission! There are no additional percentage-based fees like franchise fees or desk/office fees.
Most outside agents don’t know this, but we believe it is a really important fact to shed light on.Half of all commissions paid to eXp Realty are immediately returned to the agents as revenue share!
That means that eXp is only actually taking 10%, and with that 10%, they are creating a ton of value in the form of training, tools, support staff, benefits, partnerships, awarding company stock, and more! This is truly an agent-centric brokerage. Learn moreabout eXp Realty with this comprehensive post!
eXp Realty Commission Cap for Single Agents
The eXp Realty commission cap is $16,000 for single agents. After paying eXp Realty $16,000 from the 20% commission split, agents receive 100% commission for the remainder of the anniversary year! The anniversary year typically starts in the month an agent joins eXp.
eXp Realty Commission Split and Cap for Teams
There are four types of teams at eXp Realty. Each team has a different eXp Realty commission split and cap arrangement. In the sections below, we will very briefly explain the team type and the eXp Realty commission split and cap structure for each.
Note that we are not discussing revenue-share teams in this post, you can learn more abouteXp Realty's revenue-sharing programin this great post.
eXp Realty Self-Organized Teams
Self-organized teams are exactly how they sound. These teams are the most common and the easiest to form, and they closely resemble a simple referral agreement between the team leader and the team agents. Self-organized teams can set themselves up in any commission split arrangement that they’d like.
Typically, self-organized team agents will pay a predetermined commission split to the team lead. Then the eXp Realty commission split will be applied to the remaining agent commission. This is exactly how an agent-to-agent referral arrangement works.
For example, let’s say the self-organized team’s structure is that team agents pay a 30% commission split to the team for team-provided clients. If an uncapped agent closes a transaction with a $10,000 commission, the team lead split will be $3,000. Of the remaining $7,000, eXp Realty’s split is $1,400 (20%), and the agent earns $5,600. Not bad for not having to generate that lead!
Some teams, such as the one run by one of the co-founders of this blog, only apply the team split to team-provided leads. That means that agents who generate their own clients just have the standard 80/20 split for those leads. It’s a win-win!
In summary,for self-organized team agents, the eXp Realty commission split and cap is the same as for single agents, it just gets applied after a team split per transaction, if there is one.
eXp Realty Standard Teams
A standard team is required to have an eXp Realty commission split of at least 25% with the team leader. The team split is set by the team leader. There are pros and cons of an eXp Realty standard team.
With standard teams, agents will usually have the option to reduce their cap by half. That means standard team members can pay an $8,000 cap before going to a 100% eXp Realty commission split rather than the normal $16,000.
However, when an agent chooses to half cap, they are no longer eligible for the ICON agent award. Standard team leaders must pay the full cap.
There’s also a production requirement for standard teams at eXp Realty: the team must close a minimum of $6 million in closed transactions, or 30 transactions each year.
To sum it up,for standard team agents, the eXp Realty commission split is the same 80/20 split after the team split. However, agents can cap in half the transaction volume ($8,000 cap) and go to 100% eXp Realty commission split and only have the team split remaining.
eXp Realty Mega ICON Teams
Mega ICON teams are exactly what they sound like: massive production units. These teams usually have more than 10 agents. The team split is again set by the team leader and must be a minimum of 25%.
At Mega ICON teams, the eXp Realty commission split is still the same, but agents are now “quarter-capped.” Team agents pay a reduced $4,000 a year in brokerage splits to cap and go to 100% commission.
Mega ICON teams must complete at least $40 million in closed transactions, or 175 transactions a year, and must have a minimum of 10 capping agents on the team (quarter-capping). There are a few other details you can read about here.
So,for Mega ICON team agents, the eXp Realty commission split is the same 80/20 split after the team split. However, agents can cap a quarter of the transaction volume at $4,000 and go to a 100% eXp Realty commission split, leaving only the team split remaining.
eXp Realty Domestic Partnership Teams (Married!)
A domestic partnership at eXp Realty is a married pair of real estate agents acting as one. They’ll have the same combined split, cap, and E&O fees.
The big differences are that they will only be eligible for a single ICON award as a combined team and that their monthly fee is $149 instead of $85. Domestic partnership teams at eXp Realty can also start their own "standard," "self-organized," or Mega ICON teams.
In summary,for domestic partnership team agents, the eXp Realty commission split is the same 80/20 split and the same $16,000 cap as for the combined two married agents. You can think of it as a half-cap per agent, but it doesn’t exactly work that way since one agent can contribute more than the other to the cap.
eXp Commercial Commission Split and Cap
Transaction amounts are typically much larger in commercial real estate than in residential!The eXp Commercial commission split is the exact same 80/20 split at eXp Realty. The eXp Commercial commission cap is $20,000 versus eXp Realty’s $16,000 cap.
On larger average transactions, commercial agents still have the opportunity to cap quickly. And, until now, an 80/20 split in commercial real estate has been virtually unheard of! Splits are usually much less favorable.
eXp Referral Division Commission Split and Cap
Recently, eXp Realty formed an eXp Referral Division. This allows agents to go into a referral and self-representation-only status. Agents will eliminate the need for MLS or REALTOR associations and pay a lower monthly fee of $50. However, agents still keep a revenue share.
eXp Referral Division agents have a 75/25 split on referrals to eXp agents and 70/30 to non-eXp agents. As a Referral Division agent, there is no cap or ICON award.
You can still choose to be a referral-only agent and not be in the referral division. The benefit here is that agents who earn all rev share and referrals can reduce their MLS, REALTOR, and other expenses as well as their workload!
eXp Realty Cap Deferment Policy
Agents who want to join eXp Realty but have been recently capped at their current brokerage can opt to defer their cap upon joining eXp Realty. This means that they can remain capped at a 100% commission split at eXp Realty until the month in which they would have reset their cap at their previous brokerage.
If you want to defer your cap when you join eXp Realty, you must do so BEFORE you sign up. Feel free toschedule a call with us to learn more and take advantage of the eXp Realty cap deferment!
Other eXp Realty Costs and Fees
Here is a list of one-time and recurring eXp Realty fees and costs. Keep in mind that most brokerages have a monthly fee and a transaction fee after an agent caps and goes to 100% commission.
Learn More About eXp Realty & Our Free eXp Realty Team for more Value, Training & Support!
Get the most out of your real estate career bypartnering with the best sponsorship teamin the world! eXp Realty provides all the necessary training, tools, coaching, collaboration, and resources for your success. Be sure to check out our “About eXp Realty: Everything You Need to Know” article for more details on eXp Realty.
Check out my Agent Wealth Hustle blog for more real estate agent success, growth, and freedom tips. Here is the original blog post for this article.
About Charlie Cameron, Top 1% eXp Realty Team Leader
Hi! I'm Charlie Cameron - a military veteran turned real estate junkie with a passion for helping others succeed in real estate sales, investing, and building freedom.
I help real estate agents - new and pro - grow your businesses, build your team, and create your path to financial and location freedom as you sell real estate! Helping agents win (at no cost) is what I'm most passionate about.
If you're interested in partnering with me at eXp Realty, whether commercially or globally, I'd love to hop on a one-on-one call and see if it's the right fit for you.
