Is eXp Realty A Scam(A Legit Real Estate Agency Or A Pyramid Scheme!?)

It’s likely that you have come across eXp Realty through an email list, on social media or got it recommended by a friend or family member.

Is eXp Realty a scam? The reasons why you’re here is because you have want answers right so, that’s what I’m going to provide for you within this eXp Realty review.

First and foremost I must commend you for actually doing a bit of extra research before committing to joining eXp Realty. For all you could have known, the product could be a major scam so the fact you’re here right now, researching whether or not that’s the case is a pretty smart move on your part.

To be fully transparent with you, I am personally not a member of eXp Realty so I can assure you that I will not attempt to sell you it unless of course it’s worth investing in.

What I will aim to do is provide you with an unbiased 3rd party look at eXp Realty that will hopefully help you to make the best decision you can in the end.


PRODUCT NAME: eXp Realty (ER)

OWNER/S: N/A

TYPE OF PRODUCT: real estate MLM

PRICE: $149 + $85/month + $25 + $40

SUMMARY: The good news is that ER is neither a pyramid scheme or a scam, it’s a pretty legit MLM company and real estate brokerage with the 10 years of being in business adding to its legitimacy.

The other thing that I like about the company is that it has regularly updated training so newer members can learn the craft of a real agent if they do decide to join however, this also shows how this business opportunity does have a pretty high learning curve even if it is cloud based.

The high failure of agents and the need for both you and your agents being able to generate clients on a regular basis is another thing that makes ER a tough online business opportunity to recommend in my opinion.

In general there doesn’t seem to be too much wrong with it however, if you’re not willing to put in the hours to learn how to generate leads and spend money on ads to do so as well as recruit tons of people, becoming a successful ER agent probably isn’t going to be worth it.

FINAL RATING: 2.5/5

RECOMMENDED: No


WHAT IS EXP REALTY?

Exp realty logo

ER is a cloud based real estate brokerage that also follows a MLM based business model. It was founded all the way back in 2009. Although ER is regarded as a MLM, they are first and foremost a real estate brokerage and one that actually operates 24/7 because they’re cloud based.

I couldn’t find much info regarding the owner of the company but considering its been around for a decade I’m sure the company somewhat legitimate.

So, in short a lot of the services ER offer are online based, therefore if you want to tour a property, all you’ll need to do is go to the company’s virtual office.

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EXP REALTY PRODUCTS

As I said, first and foremost ER is a real estate brokerage therefore they don’t actually sell any physical products, it’s more so a service based system.

ER agents simply can earn money by providing services to potential clients by helping them find properties. The only thing unique regarding the services an agent provides is that it starts off virtually. Other than that, there’s nothing too different from how ER or a normal real estate business works.


PEOPLES OPINIONS OF EXP REALTY?

On bbb there are a fair few people who have had a negative experience purchasing property through ER. One person even got lied to regarding the property being remodeled, which they found out when they went to the estate, was not the case.

Exp realty bad

Exp realty bad

There are some who’ve enjoyed working with ER.

Exp realty good

Exp realty good

But, overall the consensus on ER is a mixed bag.


HOW DO YOU MAKE MONEY WITH EXP REALTY

As is the case with pretty much all MLM businesses there are 2 ways to make money with them, ER being no exception.

1. The first method is by directly selling the product to other individuals and in return make a commission for the sales

2. You make money through your recruits and downline, by getting residual income by following and meeting certain criteria as well as make money through bonuses and incentives due to meeting company set goals.


HOW TO GET STARTED

If you want to join ER, there are a few fees that you’ll need to part with. The first fee is a one time cost of $149, which amounts for just your start up cost. After this there are additional fees you’d need to pay as well :

  1. $50/month tech fee
  2. $35/month eXp University fee
  3. $25 broker fee, and
  4. $40 risk management fee.

So in total you’ll be paying around $1k – $1.2k to participate in ER’s business opportunity.

After paying what’s necessary you’ll be given access to the following resources :

  1. 20 to 25 hrs of live training per week
  2. Training from guest speakers
  3. Workshops
  4. Mastermind sessions
  5. Access to a large library of on-demand training videos
  6. Lead generation & management tools

As you can see the resources that are provided are actually pretty solid, you actually get continuous education for the monthly amounts. Although you could still argue that paying around $1k a year for the resources might be a little much, at the very least you have to agree that the consistently updated training is still very nice.

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COMPENSATION STRUCTURE

The first aspect of the plan is something that everyone who is a broker will have. This included the following benefits :

  1. 80/20 split
  2. $16K cap
  3. $50/month technology and resource investment

The 20% that’s paid to ER is as stated by them, used to :

  • Pay agents their residual income, based on revenue sharing.
  • Fund company operations, marketing, and other expenses.

Now moving onto the revenue sharing aspect of the company, which is the reason why ER is often regarded as a MLM.

ER refer to this element of the structure as the cascading revenue sharing program where there are 7 levels. As for how the structure works, the first level is where your direct referrals will be placed, the 2nd level is reserved for your direct referrals personal recruits and this basic formula follows until it caps out at the 7th level.

The maximum that a member can earn through this program is $4000 per recruit depending on the tier they’re on. As for the amounts you can earn (per referral) from each tier/level, they are the following :

  1. TIER ONE : Up to $2,800
  2. TIER TWO : Up to $3,200
  3. TIER THREE : Up to $2,000
  4. TIER FOUR : Up to $1,200
  5. TIER FIVE : Up to $800
  6. TIER SIX : Up to $2,000
  7. TIER SEVEN : Up to $4,000

On top of this, there are also requirements to qualify for each of these tiers. This will be determined by the number of agents you have within your team.

  1. TIER ONE :  1+
  2. TIER TWO : 5 +
  3. TIER THREE : 10 +
  4. TIER FOUR : 15 +
  5. TIER FIVE : 20 +
  6. TIER SIX : 25 +
  7. TIER SEVEN : 40 +

So, in total the revenue potential with ER can be endless depending on how many people you can recruit and how many properties you and your agents can sell.

If you’re a little confused regarding how this works, just check out the video below as I’m sure it should clear a few things up for you.


THE NOT SO GOOD THINGS

There Are Complaints Regarding The Bad Practices Of Some Agents

There have been issues regarding the experiences of some buyers from ER agents, with complaints of agents being disingenuous just to try and sell a house. This isn’t something unheard of in the real estate market but, it may be cause for concern for some which is why I’m mentioning here.

The Compensation Plan Shows That Recruitment Is The Most Effective Way To Succeed

Recruiting is essential if you want to make the most out of the tier based system that ER have going on. Most people probably wouldn’t do all that great when it comes to that so, this aspect will be detrimental for most people who decide to join.

Of course ER also isn’t your typical MLM so you’ve got to find capable recruits as well as leople who are able to make sales. Therefore, if you haven’t got the resources to target individuals who are already realtors or good at sales to some degree, ER is probably going to be a lot harder for you to succeed in than joining just a regular MLM company.

You’ll Need Get Good At Sales

In the end of the day, the core premise of ER is that of real estate brokerage therefore, you will need to be great at sales and generating consistent leads to get anywhere with the company. This also includes having your recruits be good at making sales too otherwise you won’t make anything with ER.

This isn’t necessarily a bad thing, it’s just the nature of being a real estate agent and something you should absolutely know if you were to join, you won’t get paid a percentage of the monthly fees your agents generate, instead you’ll only be paid a percentage of their sales and as you know, making a sale is a lot easier said than done.


THE GOOD THINGS

The Training Is Constantly Updated And Great

The training is updated on weekly basis. This is a lot better than your typical MLM company where you’re just thrown into the deep end and asked to fend for yourself. So yeah, I do believe the regularly updated content is a big positive for the brave newbies who join ER.

It’s Been Around A While

The company has been around for 10 years now, which adds a lot of credibility considering the majority of businesses tend to fail within 10 years.

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IS EXP REALTY A PYRAMID SCHEME/SCAM?

The good news is that ER is neither a pyramid scheme or a scam, it’s a pretty legit MLM company and real estate brokerage with the 10 years of being in business adding to its legitimacy.

The other thing that I like about the company is that it has regularly updated training so newer members can learn the craft of a real agent if they do decide to join however, this also shows how this business opportunity does have a pretty high learning curve even if it is cloud based.

The high failure of agents and the need for both you and your agents being able to generate clients on a regular basis is another thing that makes ER a tough online business opportunity to recommend in my opinion.

In general there doesn’t seem to be too much wrong with it however, if you’re not willing to put in the hours to learn how to generate leads and spend money on ads to do so as well as recruit tons of people, becoming a successful ER agent probably isn’t going to be worth it.


MY PERSONAL RECOMMENDATION

I personally will always recommend against using a MLM business model to make money, not because you can’t make money through it (you totally can) but, the system has always seemed shady to myself and is kinda synonymous with the likes of a pyramid scheme or scams (MOBE and Digital altitude).

Instead I prefer working with something created through ones own means and is ultimately dependent on yourself and your work ethic alone.

This method I’m talking about is affiliate marketing. 

The reasons as to why I recommend it over MLM based structures are because

– there is no need to recruit constantly

– it is a legitimate method that has been working consistently and continues to grow as more businesses want individuals to promote products

– and because it is free to start up, no unnecessarily large start up funds needed.

The service I recommend is Wealthy Affiliate. It’s free to sign up to and will get you set up and ready to start your affiliate marketing journey within minutes, as it did for me when I begun my journey.

If you have any questions that you would like to ask me regarding ER , feel free to do so in the comments section below and I will get back to you as soon as I can. If you have your own thoughts about ER and would like to talk about it, again feel free to do so in the comments below!

Thanks

Amhil

1 thought on “Is eXp Realty A Scam(A Legit Real Estate Agency Or A Pyramid Scheme!?)”

  1. I am strongly considering eXp because of the good split and stock options plus I personally know 6 agents who have done pretty well for themselves. Not many have heard of the eXp name among the likes of real estate titans Windermere and John L Scott in my area. My question is how would I help my clients overcome objections of a cloud based firm?

    Thanks

    Reply
    • That’s a good question, unfortunately I don’t work as an agent for the company so I can’t give you a great answer however, in general the best way to overcome objections regarding the firm being cloud based is simply by offering a superior experience to your potential clients over brick and mortar competitors .

      This might mean you’d need to take more images of a building your trying to sell, being in contact with your clients at all times, be easy to contact etc.

      Cloud based or not, being a real estate agent will still be heavily reliant on your ability to satisfy a customers needs so, as long as you can do that, although it’ll be harder to convince individuals to do business with you considering the whole cloud based idea is so unique, it can be very possible to overcome objections potential clients may show. As you said, you already know 6 reasonably successful exp agents right?

      You can also point out the fact exp has been in business for over 10 years which may make it a little easier to convince potential clients to be more accepting of the company.

      Once again I’m sorry I could give you a great answer but, that’s the only way right now, that’ll help you bypass the objections. Just go above and beyond with your customer service.

      I guess you could also advertise directly to customers via online ads too but, I’m not very knowledgeable on the subject of paid ads so, I can’t provide you with any help there.

      Reply

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