Revenue Share Comparison: REAL Broker vs. eXp Realty vs. LPT Realty
One significant advantage of joining a cloud-based real estate brokerage is access to additional streams of income, such as Revenue Share. Revenue Share reallocates the company's marketing budget to agents who help grow the company, providing them with an additional income stream and benefiting the company with increased agent retention.
The three biggest real estate brokerages following this growth model today are eXp Realty, REAL Broker, and LPT Realty. This article will dive deep into each company's Revenue Share programs, discuss the pros and cons of each, and run various scenarios comparing REAL Broker vs. eXp Realty vs. LPT Realty’s revenue share models.
REAL Broker Revenue Share Program 2024
REAL Broker's Simple and Lucrative 5,4,3,2,1 Revenue Share Model Explained
Looking for a straightforward way to maximize your earnings in the real estate industry? REAL Broker offers a simple and lucrative 5,4,3,2,1 revenue share model that rewards you for building and expanding your team.
Tier 1 - Direct Sponsorship (5% Revenue Share) When you directly sponsor an agent into REAL Broker, you earn 5% of their commissions until they cap. Out of the 15% commission split that REAL Broker takes, 10% goes to REAL and 5% goes to you. This can add up to a maximum of $4,000 per year for each agent you sponsor directly, placing them in your Tier 1.
Tier 2 - Indirect Sponsorship (4% Revenue Share) Agents sponsored by your Tier 1 agents fall into your Tier 2. You will earn 4% of these agents’ commissions until they cap, which can amount to up to $3,200 annually.
Tier 3 - Third-Level Sponsorship (3% Revenue Share) For agents in your Tier 3, you earn 3% of their commissions until they cap, reaching up to $2,400 per year.
Tier 4 - Fourth-Level Sponsorship (2% Revenue Share) Your Tier 4 agents bring in 2% of their commissions to you until they cap, totaling up to $1,600 annually.
Tier 5 - Fifth-Level Sponsorship (1% Revenue Share) Finally, for agents in your Tier 5, you earn 1% of their commissions until they cap, which can be up to $800 per year.
Maximize Your Earnings If you sum up the potential revenue share from all tiers, it equals $12,000, which is the cap set by REAL Broker. This means you have a clear and achievable path to substantial earnings by expanding your team.
Real-World Example Imagine you sponsor 10 agents who each reach their cap. REAL Broker will pay you $40,000 in revenue share for that year, demonstrating the powerful earning potential of this model.
Join REAL Broker and Grow Your Income By leveraging REAL Broker’s 5,4,3,2,1 revenue share model, you can significantly boost your income while helping other agents succeed. Start building your team today and take advantage of this lucrative opportunity.
Unlocking Revenue Share Tiers with REAL Broker
Automatic Access to Tier 1 Upon joining REAL Broker, your Tier 1 benefits are automatically unlocked, allowing you to start earning immediately from the agents you directly sponsor.
Unlocking Tiers 2 through 5 To unlock the benefits of Tiers 2 through 5, you need to have a specific number of “Producing Agents” in your Tier 1.
Definition of a Producing Agent REAL Broker defines a “Producing Agent” as an agent from whom the company has received at least $450 from its 15% share of that agent’s commission within the prior six-month period. In other words, the agent must earn at least $3,000 in total commission over six months to be considered a Producing Agent.
Requirements to Unlock Each Tier:
Tier 2 Benefits: You need at least 5 Producing Agents in your Tier 1.
Tier 3 Benefits: You need at least 15 Producing Agents in your Tier 1.
Tier 4 Benefits: You need at least 20 Producing Agents in your Tier 1.
Tier 5 Benefits: You need at least 25 Producing Agents in your Tier 1.
By meeting these requirements, you can progressively unlock higher revenue share tiers and maximize your earning potential with REAL Broker.
REAL Broker Co-Sponsorship Explained
One unique benefit offered by REAL Broker is the co-sponsorship option. When an agent joins, they can list up to two agents as their sponsors.
How Co-Sponsorship Works In a co-sponsorship scenario, the revenue share is divided as follows:
45% to the first sponsor
45% to the second sponsor
10% retained by REAL Broker
Purpose of Co-Sponsorship REAL Broker allows co-sponsorship to provide flexibility and support to agents. The company retains 10% to ensure the sustainability of the revenue share program, especially since co-sponsorships can effectively unlock "unlimited tiers" by including agents in Tier 5. This retention helps maintain the long-term viability of the program while rewarding both sponsors.
Qualify to Receive Revenue Share with REAL Broker
To participate in REAL Broker’s revenue share program, agents must first qualify as a “producing agent.” This means the agent must earn at least $3,000 in commissions within a six-month period. These commissions can come from referrals, team leader splits, rentals, or sales.
Requirement Rationale REAL Broker implemented this requirement to ensure that their team consists of active, producing agents.
Revenue Share Retirement Plan REAL Broker also offers a Revenue Share Retirement Plan for agents who wish to step out of production while continuing to receive revenue share benefits. The plan is structured as follows:
1 Year of Production: Eligible to receive 20% of revenue share after stepping out of production.
2 Years of Production: Eligible to receive 40% of revenue share.
3 Years of Production: Eligible to receive 60% of revenue share.
4 Years of Production: Eligible to receive 80% of revenue share.
5 Years of Production: Eligible to receive 100% of revenue share.
This plan allows agents to gradually step back from active production while still benefiting from the revenue share program based on their years of production at REAL Broker.
Willable Revenue Share with REAL Broker
A unique feature of REAL Broker’s revenue share program is its willable structure. In the event of your passing, you can designate a beneficiary, such as a child, grandchild, or other loved one, to continue receiving your monthly revenue share checks.
Structure of the Willable Revenue Share Program The willable revenue share program is similar to the retirement plan, starting at three years of production:
3 Years of Production: Your beneficiary can receive 60% of your revenue share.
4 Years of Production: Your beneficiary can receive 80% of your revenue share.
5 Years of Production: Your beneficiary can receive 100% of your revenue share.
This allows you to provide ongoing financial benefits to your designated beneficiary, ensuring that your hard work continues to support your loved ones.
Thoughts
Among the three companies I've reviewed, I find REAL Broker's revenue share model to be the simplest and most straightforward with its 5, 4, 3, 2, 1 structure. I appreciate that they offer the highest payout on Tier 1, up to $4,000 a year, because this is the tier you have the most control over. Most agents who receive revenue share will likely only have agents in this tier.
REAL Broker also stands out by paying the highest percentage of their monthly income back to agents—up to 60%. In comparison, eXp Realty and LPT Realty both pay up to 50%. This generous distribution is a significant advantage for agents.
When compared to eXp’s revenue share model, where agents earn more from a Tier 2 agent than from a Tier 1 agent, REAL Broker’s structure avoids the dilemma of choosing between maximizing revenue share for a Tier 2 agent or placing them in Tier 1 to unlock additional tiers. This simplicity is a considerable benefit.
Moreover, REAL Broker offers a truly willable revenue share program. This means you can leave your revenue share to your children, which is not as straightforward with eXp Realty, where the beneficiary must also be a licensed real estate agent with eXp.
As a single parent with a son who has severe intellectual disabilities and autism, it gives me great peace of mind knowing that he will continue to receive my revenue share if I pass away. This security is invaluable to me.
Another significant difference between REAL and eXp Realty’s revenue share models is the number of tiers: REAL pays out on 5 tiers, whereas eXp pays out on 7. While 7 tiers might seem better on the surface, the benefits of eliminating Tiers 6 and 7 are worth it.
It's worth noting that very few agents at eXp actually receive revenue share on their 7th tier—less than 0.1%. By removing Tier 7, which pays up to $4,000 a year, REAL Broker was able to lower the cap for all agents by $4,000, bringing it down to $12,000 a year instead of $16,000.
By eliminating Tier 6, which pays up to $2,000 a year, REAL Broker can pay out more on 3 of the 5 tiers: $1,200 more on Tier 1, $400 more on Tier 3, and $400 more on Tier 4. This adjustment aligns perfectly with the amount paid out on Tier 6 at eXp, suggesting a deliberate strategy to benefit a broader range of agents.
By focusing on 5 tiers instead of 7, REAL Broker ensures that while the top 0.1% of agents might not make as much in revenue share as they could with eXp Realty, all agents save up to $4,000 a year on their cap. Additionally, the majority of agents who would never have unlocked Tiers 6 or 7 will earn more in revenue share due to this structure.
Overall, I believe REAL Broker’s revenue share model offers simplicity, higher payouts, and a structure that benefits the majority of agents, providing a sustainable and rewarding system.
LPT Realty Revenue Share Explained 2024
LPT Realty is one of the latest cloud brokerages, positioning itself as a "third-generation cloud brokerage." They offer two business models for agents:
Business Builder: This model features a $500 per transaction flat fee with a $5,000 annual cap. While agents in this plan are not eligible for revenue share, they can build a downline and transition to the RevShare Partner program when they're ready to start receiving revenue share.
RevShare Partner: This program resembles eXp's model with an 80/20% commission split and a $15,000 annual cap.
Based on conversations with several LPT Realty agents, approximately 90% to 95% of the company's agents are on the flat fee Business Builder plan.
LPT Revenue Share Tiers
LPT Realty offers a revenue share structure across seven tiers, similar to eXp. However, unlocking tiers 2 through 7 at LPT is simpler compared to REAL or eXp Realty.
To unlock benefits for each tier:
Tier 2: Have 3 active agents in Tier 1
Tier 3: Have 5 active agents in Tier 1
Tier 4: Have 7 active agents in Tier 1
Tier 5: Have 9 active agents in Tier 1
Tier 6: Have 14 active agents in Tier 1
Tier 7: Have 15 active agents in Tier 1
LPT Realty pays different revenue share amounts depending on the agent's chosen business plan:
Tier 1:
Up to $775 annually for Business Builder agents
Up to $2,325 annually for Rev Share Partner agents
Tier 2:
Up to $450 annually for Business Builder agents
Up to $1,350 annually for Rev Share Partner agents
Tier 3:
Up to $175 annually for Business Builder agents
Up to $525 annually for Rev Share Partner agents
Tier 4:
Up to $175 annually for Business Builder agents
Up to $525 annually for Rev Share Partner agents
Tier 5:
Up to $175 annually for Business Builder agents
Up to $525 annually for Rev Share Partner agents
Tier 6:
Up to $250 annually for Business Builder agents
Up to $750 annually for Rev Share Partner agents
Tier 7:
Up to $500 annually for Business Builder agents
Up to $1,500 annually for Rev Share Partner agents
Program Requirements
There are two key aspects of LPT Realty's revenue share program to note:
You cannot collect any revenue share during your first 120 days with the company. LPT Realty implements this policy to encourage new agents to focus on production during this period.
All revenue share earned is first applied to your $15,000 cap.
Qualifying to Receive Revenue Share
To qualify for revenue share, you must be enrolled in the RevShare Partner program and remain in good standing with the company.
Thoughts
Given that the majority of LPT Realty agents are on the Business Builder plan, the revenue share payouts are significantly lower compared to those at REAL Broker or eXp Realty. For example, a Business Builder agent at LPT can earn up to $775 a year in revenue share, whereas a capping agent can earn up to $4,000 a year at REAL Broker or $2,800 a year at eXp Realty. Additionally, LPT agents need to close at least 10 transactions a year to earn that $775, while agents at REAL and eXp can cap with just 7 transactions on average.
LPT claims that making it easier to unlock tiers offsets the lower revenue share payouts, but in my opinion, this does not sufficiently compensate for the lower earnings. With an estimated 90% to 95% of the company on the Business Builder plan, most agents receiving revenue share would only receive a fraction of what they could earn at REAL or eXp Realty.
This is particularly relevant because LPT's revenue share program may not attract many large teams, builders, or influencers due to the lack of strong incentives. For example, a 100-agent independent brokerage would earn about 20% in revenue share at LPT compared to what they would earn if they transferred to REAL Broker.
My concern is that offering such low revenue share might negatively affect the company's culture, community, and training. I am very active in my company and willingly provide lots of training because of the substantial revenue share I receive. If 95% of the agents don't receive any revenue share, and those who do receive very little, it could impact the overall culture, community, and training within the company.
I also dislike that your revenue share is applied to your cap first. If you want to semi-retire, become a referral agent, or work part-time, you still have to pay LPT the $15,000 annual cap before you can start receiving your full revenue share. This policy seems to benefit the company far more than it benefits the agent.
eXp Realty Revenue Share Explained 2024
eXp Realty offers two forms of revenue share to their agents: eXpansion Shares and eXponential Shares. Together, these contribute to your total percentage of AGCI (Adjusted Gross Commission Income). AGCI is calculated monthly to ensure that no more than 50% of the company's revenue is paid back to agents as revenue share. If the revenue share for a given month exceeds 50% of the company's total revenue, the amount paid out to all agents will be reduced accordingly. Therefore, the figures provided below may not reflect the final amount agents receive.
eXp Realty Revenue Share Tiers
eXp Realty offers revenue share up to seven tiers. Agents you directly bring in are placed in your Tier 1, agents they bring in are placed in your Tier 2, and so on, extending down to Tier 7.
For eXpansion Shares, your tier 2 through 7 benefits are automatically unlocked. However, for eXponential Shares, you must unlock the benefits for tiers 2 through 7 by having a certain number of "Front Line Qualifying Agents" (FLQAs) in your Tier 1.
An FLQA is defined by eXp Realty as an agent who has closed a minimum of $5,000 in Gross Commission Income over the prior rolling six-month period.
The current FLQA requirements to unlock your tier 2-7 benefits for eXponential Shares are as follows:
Tier 2: 5+ FLQA
Tier 3: 10+ FLQA
Tier 4: 15+ FLQA
Tier 5: 20+ FLQA
Tier 6: 25+ FLQA
Tier 7: 30+ FLQA
eXpansion Shares
eXp Realty automatically pays out eXpansion Shares for Tiers 2-7 without requiring you to unlock these benefits. The payout structure is as follows:
Tier 2: Earn 0.2% of any commission an agent earns until they cap, up to $160 per year per agent.
Tier 3, Tier 4, and Tier 5: Earn 0.1% of any commission an agent earns until they cap, up to $80 per year per agent.
Tier 6 and Tier 7: Earn 0.5% of any commission an agent earns until they cap, up to $400 per year per agent.
For example, if you have 10 agents in your Tier 2, you will earn $1,600 per year in eXpansion Shares revenue share.
eXponential Shares & %AGCI
eXp Realty provides sponsors with 3.5% of every commission earned by agents they directly sponsor until those agents reach their cap. These are known as "Tier 1 Agents." With a $16,000 annual cap, a sponsor can earn up to $2,800 per year for each directly sponsored agent.
Example: If you directly bring in 10 capping agents, eXp Realty will pay you $28,000 annually in revenue share for those agents.
For Tiers 2-7, eXp Realty combines both eXpansion Shares and eXponential Shares, collectively known as "% of AGCI" (Adjusted Gross Commission Income). Below is a breakdown of these shares by tier, assuming all tier benefits for eXponential Shares are unlocked and the total revenue share for the month does not exceed 50% of the company's monthly revenue:
Tier 1: Earn up to 3.5% in eXponential Shares, with a maximum of $2,800 annually.
Tier 2: Earn up to 0.2% and 3.8%, totaling 4% of AGCI, with a maximum of $3,200 annually.
Tier 3: Earn up to 0.1% and 2.4%, totaling 2.5% of AGCI, with a maximum of $2,000 annually.
Tier 4: Earn up to 0.1% and 1.4%, totaling 1.5% of AGCI, with a maximum of $1,200 annually.
Tier 5: Earn up to 0.1% and 0.9%, totaling 1% of AGCI, with a maximum of $800 annually.
Tier 6: Earn up to 0.5% and 2%, totaling 2.5% of AGCI, with a maximum of $2,000 annually.
Tier 7: Earn up to 0.5% and 4.5%, totaling 5% of AGCI, with a maximum of $4,000 annually.
The total maximum revenue share across all seven tiers adds up to $16,000, which matches eXp's cap.
Assumable Downline
eXp Realty offers a benefit where if an agent with a downline passes away, their family members can assume the downline. The family member has up to six months to obtain their real estate license after the agent's passing and must maintain an active license with eXp Realty to continue receiving the departed agent’s revenue share.
Qualifying to Receive Revenue Share
To qualify for revenue share (both eXpansion Share and eXponential Share), an agent must be Revenue Share Eligible on the date when a Qualifying Sale Transaction closes, and the agent’s license must be active and affiliated with eXp in every state where they engage in activities requiring a real estate license.
Thoughts
I appreciate that eXp Realty offers eXpansion Shares so agents can receive some revenue from tiers they haven't unlocked yet. While these tiers typically pay out 0.1%, amounting to up to $80 annually, every dollar counts, and this feature is unique compared to most other brokerages.
However, I find eXp’s revenue share model complicated and difficult to understand. Terms like eXpansion Shares, eXponential Shares, and %AGCI can be confusing at first, and I believe simplifying these terms would be beneficial.
I also have concerns about how the commission percentages for each tier are structured. It appears that the highest-paying tier (up to $4,000 annually) is the hardest to unlock, which benefits the company more than the agent. In contrast, REAL Broker pays the most (up to $4,000 annually) on their Tier 1, which is automatically unlocked.
Additionally, eXp pays more on Tier 2 than Tier 1, seemingly to incentivize agents to place new recruits in Tier 2 to help unlock additional tier benefits. This structure appears to be designed more for the company's benefit than the agent's.
After analyzing the numbers, I believe that if you are a full-time recruiter or influencer and can build a top 1% downline at eXp Realty and unlock all seven tiers, you may earn more revenue share than at any other company. However, if you are a producing agent and view revenue share as an additional income stream, aiming to recruit a few dozen or even a few hundred agents, you will likely earn more revenue share at REAL Broker.
eXp Realty vs. LPT vs. REAL Broker Revenue Share Calculator
Let's explore a few scenarios with my calculator to provide a realistic estimate of potential revenue share earnings from eXp Realty, LPT Realty, and REAL Broker. It's important to note that earnings depend heavily on the distribution of your agents across various tiers and which tiers you have unlocked. Your downline structure might resemble a pyramid, an inverted pyramid, or be narrow at the top and bottom but broader in the middle.
To set realistic expectations, at both REAL and eXp Realty, only about 15% of agents receive any revenue share. At LPT, that number is almost certainly smaller. This means roughly 85% of the agents you bring into the company will not recruit anyone else.
There's a common narrative among recruiters suggesting that by bringing in a few agents, those agents will subsequently build a vast network for you. However, this is rarely the case for the majority of agents at any of these companies. With this in mind, I aim to keep these scenarios as conservative as possible.
Key Considerations for These Scenarios:
LPT Realty Revenue Share: LPT offers different revenue share amounts depending on whether an agent is enrolled in their Business Builder plan or their RevShare Partner plan. Based on conversations with many LPT agents, I estimate that 90% to 95% of the company is enrolled in the Business Builder plan. Therefore, I will compare the Business Builder revenue share, as it is the most likely scenario for LPT earnings.
Capping Agent Definition: At REAL Broker and eXp Realty, an agent typically caps after about seven transactions, whereas, at LPT Realty with the Business Builder plan, an agent caps after ten transactions. Thus, it's not an exact apples-to-apples comparison, as it's more challenging to earn the full amount of revenue share at LPT than at REAL and eXp.
By running these scenarios through the calculator, you can get a clear idea of the realistic revenue share potential from all three companies, considering the nuances and challenges unique to each.
eXp Realty vs. LPT vs. REAL Broker Revenue Share Calculator
Let's explore various scenarios using my calculator to give you a realistic idea of potential revenue share earnings from eXp Realty, LPT Realty, and REAL Broker. Keep in mind that earnings depend heavily on the distribution of your agents across different tiers and which tiers you have unlocked. Your downline structure might resemble a pyramid, an inverted pyramid, or be narrow at the top and bottom but broader in the middle.
Scenario 1: 3 Tier 1 Agents
In this scenario, let's assume you bring in three capping agents into your Tier 1 at each company. At REAL Broker, you will earn $12,000 annually in revenue share, at eXp Realty you will earn $8,400 annually, and at LPT Realty you will earn $2,325 annually.
For many REAL Broker agents, having three capping Tier 1 agents is a goal since it fully covers the $12,000 annual cap. At eXp Realty, you would need six Tier 1 capping agents to cover your cap, while at LPT Realty, you would need 20 Tier 1 capping agents to cover your cap.
Scenario 2: 10 Tier 1 Agents
If you directly bring in 10 capping agents into your Tier 1, you will earn $40,000 annually at REAL Broker, $28,000 annually at eXp Realty, and $7,750 annually at LPT Realty.
At REAL Broker, you will unlock your Tier 2 benefits, at eXp Realty you will unlock your Tier 3 benefits, and at LPT Realty you will unlock your Tier 6 benefits.
Scenario 3: 15 Tier 1 Agents with 1:0.5 Growth
In this scenario, you directly bring in 15 capping agents into your Tier 1, and 50% of those agents each bring in one other agent, creating an inverse pyramid network.
At REAL Broker, you will unlock three tiers and receive $95,200 annually. At eXp Realty, you will unlock four tiers and receive $78,000 annually. At LPT Realty, you will unlock all seven tiers and receive $17,200 annually.
This scenario shows that the amount of revenue share you earn per tier is more important than the number of tiers unlocked. At REAL Broker, with just three tiers unlocked, you will earn $78,000 more than at LPT Realty with all seven tiers unlocked.
Scenario 4: 15 Tier 1 Agents with 1:1 Growth
Now, let's assume each of your 15 Tier 1 agents brings in one other agent down all open tiers.
At REAL Broker, you would have a total network of 45 agents across three tiers, earning $144,000 annually. At eXp Realty, you would have a network of 60 agents across four tiers, earning $138,000 annually. At LPT Realty, you would have a network of 105 agents across all seven tiers, earning $37,500 annually.
This scenario again demonstrates that it's not just about how many tiers you have or how many agents are in your network. At REAL Broker, you can earn more revenue share with a smaller network and fewer tiers unlocked than at eXp and LPT with a larger network and more tiers unlocked.
Scenario 5: 25 Tier 1 Agents with 1:1 Growth
Assume you have 25 agents in your Tier 1, enough to unlock all five tiers at REAL Broker, six tiers at eXp Realty, and seven tiers at LPT Realty, with each agent bringing in one more agent down all unlocked tiers.
At REAL Broker, you would have a network of 125 agents, earning $300,000 annually. At eXp Realty, you would have a network of 150 agents, earning $300,000 annually. At LPT Realty, you would have a network of 175 agents, earning $62,500 annually.
This scenario also demonstrates how earning more revenue share per agent can be more profitable than unlocking additional tiers. In this case, you would earn far more at REAL Broker with just five tiers than at LPT Realty with seven tiers and a larger network.
eXp Realty vs. LPT Realty vs. REAL Broker Conclusions
When comparing all three companies' revenue share programs, consider these four variables: the amount paid per tier, the number of tiers offered, the ease of unlocking those tiers, and the percentage of monthly revenue paid out as revenue share.
REAL Broker pays out more revenue share as a percentage of their monthly revenue (up to 60%) than either eXp or LPT Realty (both up to 50%). When revenue share exceeds this monthly limit, all three companies reduce everyone's revenue share checks accordingly. Therefore, at REAL Broker, you are more likely to receive your full entitled revenue share.
REAL Broker pays the most on their first tier ($4,000) and requires 25+ agents in Tier 1 to unlock all benefits. eXp Realty pays the most on their seventh tier but is the hardest to unlock, requiring 30+ agents to unlock all seven tiers. LPT Realty pays the least on all tiers but is the easiest to unlock all benefits, requiring only 15+ Tier 1 agents.
Ultimately, the best program for you depends on the type of network you expect to grow. If you believe you can bring in 15 agents in Tier 1 who will build a massive network for you, LPT Realty may be a good fit since 15 agents in Tier 1 unlocks all benefits. However, this is not typically how networks grow.
At REAL Broker and eXp Realty, only about 15% of agents receive any revenue share. At LPT, this number is likely much smaller. Most agents you bring in will not recruit others, so a revenue share program that pays the most at the top is advantageous for most agents. Your Tier 1 is the only tier you have direct control over.
Running the same network size and structure through all three companies' revenue share programs shows that most agents will earn more revenue share at REAL Broker than at eXp or LPT.
Learn More About REAL Broker
After thoroughly examining all three companies' revenue share models, I found that REAL Broker was the best fit for my business. I earn more money at REAL with my network, it's simpler to understand, and I believe it offers the best revenue share program for the agents I bring into the company.
If you would like to learn more about REAL Broker, click below to schedule a 1-on-1 video call with me to discuss your business and see if REAL is a good fit for you as well!
