The true property market has seen super ups and downs in the previous few years—wildly fluctuating rates of interest and evolving pandemic shopping for and promoting tendencies to call only a few. However eXp Realty, with its fully digital mannequin and industry-disrupting compensation plan, has not solely weathered these hills and valleys, however thrived all through them.
On the latest International Celebration, eXp was honored with its third consecutive Bravo Progress Award for home service-based corporations, given to the direct gross sales service-based firm with the very best year-over-year progress share. This publicly traded actual property firm grew from $3.8 billion to $4.6 billion in 2022, including one other $800 million final yr to attain 21 p.c year-over-year progress. With over 85,000 impartial brokers worldwide, eXp Realty is positioned for one more yr of stellar progress.
Breaking the Mildew
Glenn Sanford, Founder & CEO of eXp, upended the actual property {industry} in 2009 when he launched eXp Realty, a totally digital brokerage providing brokers a brand new solution to do enterprise from anyplace. As an agent himself in a conventional actual property company within the early 2000s, Sanford had skilled the frustrations and limitations of company life—desk and franchise charges that he had no management over and an earnings degree that didn’t appear to budge regardless of what number of hundreds of thousands in offers he introduced in.
The {industry} was prepared for a transform. In direct distinction to the way in which issues had all the time been carried out, his new firm would empower brokers to construct wealth by means of a number of levers, together with fee, income share and inventory choices. Brokers could be handled extra like shareholders with fairness within the firm and an 80/20 fee cut up. The transform was a threat that continues to repay for Sanford and his group and the tens of 1000’s of brokers worldwide.
“In 2009, we efficiently launched the cloud-based, agent-centric brokerage mannequin, which is now the mannequin for a lot of newer brokerage companies throughout the {industry}. As we iterate on the agent worth proposition, our focus is to modernize our infrastructure for the subsequent technology of actual property brokers,” Sanford defined. “Our cloud-based mannequin and strong monetary basis allow us to proceed investing in synergistic merchandise and applied sciences that lay the groundwork for the longer term, whereas delivering an enhanced agent expertise immediately.”
eXp Realty went public in 2013; reached 10,000 brokers 5 years later; expanded internationally in 2019; and ended 2022 with over 85,000 brokers and 24 international areas. Whereas the corporate’s momentum is staggering and exhibits no indicators of abating, Sanford and his group have constructed an infrastructure and management lineup to comfortably deal with this sort of explosive progress.
“Since late 2018, we’ve actually upgraded our group and stayed forward of the expansion,” Sanford mentioned. “We needed to actually invent our solution to scale as a result of nobody had actually scaled this quick within the historical past of actual property. Any system constructed pre-eXp was not designed to scale as quick as we scaled.”
Shiny Future Forward
The corporate’s 2023 appears to be simply as thrilling, with strong Q1 monetary outcomes, a latest partnership with Realty.com and new management group and Board of Administrators appointments. However the firm’s progress continues to be constructed on the facility of its agency-focused enterprise mannequin. Staying true to its authentic industry-redefining imaginative and prescient, eXp introduced its 2022 income share and agent fairness payout figures this spring. Based on the corporate, eXp distributed extra revenue/income share advantages final yr to brokers and brokers than every other actual property brokerage mannequin or platform—growing income share to brokers 20 p.c to $202 million in 2022.
“When eXp Realty was based, we got down to construct essentially the most agent-centric brokerage that solved the largest ache level in actual property for brokers,” shared Sanford. “Traditionally, brokers have been usually not supplied significant possession within the brokerages they have been a part of and the revenue/income sharing fashions didn’t present a viable path to potential retirement for the overwhelming majority of brokers. Our mannequin and core enterprise has confirmed to be sustainable in each good and unhealthy markets. Extra importantly, it proves that we’re delivering on the promise we made to brokers when eXp was based in 2009. By constructing essentially the most agent-centric actual property brokerage on the planet, we proceed to develop, bettering the lives of brokers across the world.”
DSN congratulates Glenn Sanford and your complete eXp group on their third consecutive Bravo Progress Award.
From the June 2023 difficulty of Direct Promoting Information journal.
