Are you looking for an eXp Realty MLM review? Is eXp Realty a pyramid scheme? If you want to make money online, you might have heard of this program. But you may wonder if it is a scam.
There is a good chance that you heard about eXp Realty MLM through someone – a friend or family member.
Many people these days are looking for additional income, and you are most likely one of them. There was then an opportunity to work from home through eXp Realty MLM.
I have a passion to help people explore the best money-making opportunities online, so over the years, I have reviewed hundreds of similar online programs like eXp Realty MLM.
To help you make a more informed decision, I have thoroughly researched the eXp Realty MLM so I can tell you more about it.
As a disclaimer, I’m not affiliated with eXp Realty MLM. It means I’m not paid to write this review. So you can rest assured that you will get an honest and unbiased review from me.
At the end of this review, I’ll also tell you the best alternative to eXp Realty MLM that has enabled me to make a full-time passive income online.
What is eXp Realty MLM?
eXp Realty is a subsidiary of eXp World Holdings (EXPI), a publicly traded company on the Nasdaq stock exchange. The SEC has verified that eXp is completely legal.
In 2009, Glenn Sanford founded eXp Realty. It now has over 20,000 real estate agents in all 50 states of the United States and almost all provinces of Canada.
eXp Realty agents split their commissions 80/20 up to $16,000 and pay a $85 monthly fee. This fee covers a wide range of tools and resources available to real estate agents. These tools include kvCORE, Skyslope, eXp World, Workplace by Facebook, and many others.
Because eXp Realty is a publicly traded company, agents have the opportunity to own a piece of the company. Some of these opportunities include receiving stock each year when an agent sells their first home or when the company hires a new agent who then sells their first home.
Following that, the ICON agent award program returns the full $16,000 cap to high-performing real estate agents in the form of company stock if they meet a simple benchmark.
Finally, eXp Realty provides equity that is similar to a 401k. Agents can participate in a program that uses 5% of their gross commission to purchase eXp stock at a 20% discount from its current trade price.
What Products Does eXp Realty Offer?
eXp Realty affiliates market and sell properties on the market to clients. The property list on the eXp Realty website can be found here.
Agents are paid commissions when their clients buy or sell real estate through them.
On trustpilot.com, there was only one review of eXp Realty services, and it stated that its agent didn’t know much about real estate.
What is MLM?
Before we get into eXp Realty MLM, I’d like to explain what MLM is and how it differs from traditional business models.
An MLM company does not pay you a salary.
You make money by recruiting others to join your business rather than selling products. If you hire someone and they start making money, you get paid a commission on the sales and recruits they bring in.
There are several levels to this (hence multi-level).
Think about a triangle. If the person at the top of the triangle recruits ten people, and each of these ten recruits ten more, and each of these ten recruits ten more, you will receive commissions from everyone in the triangle because they are all in your direct downline (in an MLM, the people beneath you are known as your ‘downline,’ and you are their ‘upline’).
You can earn $1100 by recruiting 10 people.
Even if your MLM company offers a wide range of products, most people prefer to recruit others because they can earn a lifetime passive income from them, whereas if they sold a product, they would only receive a one-time commission.
People at the top make a lot of money because money trickles up to the top of the triangle, while people at the bottom make the least.
The ultimate goal of someone who works for a company like eXp Realty MLM is to have as many people in their ‘downline’ as possible, allowing them to earn large amounts of passive income.
How Does eXp Realty MLM Work?
eXp Realty has significantly reduced its overhead costs when compared to a traditional real estate brokerage. They accomplish this by eliminating company-paid brick-and-mortar offices and locating all company support and training in a virtual office known as eXp World.
There are no regions or franchises to sell or pay for because there is only one eXp Realty and it is not a franchise. The eXp Realty agents then receive a portion of the cost savings, which helps the company grow.
This is how eXp Realty’s revenue sharing works. When you bring in a new agent, you get a percentage of the money that agent brings in for the duration that both you and the new agent work for the company.
You also get a cut of the money if that agent recruits another agent for the company. This benefit is available for seven generations, also known as tiers.
Is eXp Realty A Pyramid Scheme?
A pyramid scheme recruits members by promising them money or services in exchange for enrolling others.
A pyramid scheme is unsustainable and frequently a scam because members lose money as the number of recruits increases.
Those who want to join must pay a fee to an organization that runs a pyramid scheme. The organization will share a portion of the funds raised from each additional member they recruit as a reward.
The directors of the organization receive a portion of these payments (those at the top of the pyramid).
The scam is profitable for the directors whether or not they do any work. It is in the membership’s best interests to recruit and funnel money to the top of the pyramid.
Such organizations almost never sell valuable goods or services. The scam’s only source of revenue is from recruiting new members and soliciting more money from current members because it does not produce any goods or services.
Pyramid schemes are very similar to exponential growth mathematics. The size of a pyramid grows dramatically with each level. A pyramid scheme would have to grow indefinitely in order to make money for everyone who joins. This is impossible due to the planet’s finite population.
The scam will fail in the absence of new recruits and other income sources. Because the largest terms are at the bottom of this geometric sequence, the majority of people live in the pyramid’s bottom layer.
Workers in pyramid schemes typically promote the company rather than the product they are selling. At some point, no one at the bottom of the pyramid will make any money, while only those at the top will profit.
People at the top of the pyramid usually make money, while those at the bottom usually lose money. Because they are at the bottom of a pyramid scheme, the majority of participants lose money.
Members at the scheme’s bottom will have no chance of profiting if the scheme fails, but they will have already paid.
Is eXp Realty, then, a pyramid scheme?
No. eXp Realty does not operate as a pyramid scheme. It’s possible for members of the company to make money by selling their products.
They don’t have to make money solely through recruitment.
Watch the short video below to learn more:
What is the eXp Realty MLM’s Compensation Plan?
The incomes in the eXp Realty compensation plan are as follows:
eXp reality pays a straight commission of 80% to the agent who closed the deal. The remaining 20% is paid to eXp reality, with some of it used to pay commissions to agents higher up the chain.
When an agent sells $16,000 in goods or services, he or she receives 100% of the proceeds.
They will then be charged $250 for each transaction until they reach $5,000, at which point the transaction fee will be reduced to $75.
As a result, transaction fees are reduced from 20% to $250, and they remain at $75 as the total sales amount increases.
Agents can bring in new agents in order to profit from the sales made by those new agents.
Tier 1 (downline level 1) is for agents who brought themselves into the company. Tier 2 agents are recruited by tier 1 agents.
FLQA are active Frontline Qualifying Agents who have made at least one sale in the last six months.
You receive 3.5 percent of the total amount when your tier-1 agents sell something through eXp Realty.
For example, if you hired John and he made a $10,000 sale, your commission would be 3.5 percent of that, or $350.
Agents must meet the FLQA requirements to receive both the eXpansion share commission and the eXpotential share commission. If an agent fails to meet the FLQA requirements, they are only given eXpansion share.
For example, if you want to earn a total of 4% (0.2 percent eXpansion plus 3.8 percent eXpotential) from a deal made by tier-2 agent Mary, you’ll need 5 to 9 FLAQ in your downline. If you don’t, you’ll only get 0.2 percent of Mary’s sales, which isn’t much.
10 Reasons Why I Don’t Recommend eXp Realty MLM
1. The Good Reviews are Written by eXp Realty MLM’s Affiliates
You probably have found some other reviews of eXp Realty MLM and all of them are saying good words.
But all of them are actually paid to write, meaning they will receive a commission if you join eXp Realty MLM via their links. Therefore, their words are often biased and not trustworthy.
Those reviews are simply sales pages and do not tell you the hidden costs and the difficulties of really making money.
By common sense, should you trust someone who has a conflict of interest that receives huge compensation by “reviewing” the program? Probably not. They are not reviewing, but selling!
Therefore, I recommend reading the reviews of those written by the non-affiliates of eXp Realty MLM.
2. Very Few People Can Make Money With eXp Realty
Success is difficult to achieve with an MLM company like eXp Realty.
You can look at the statistic that says 72.5 percent to 99.9 percent of MLM members lose money.
The reason for this is that MLMs have sales quotas that require members to continue selling products in order to remain active and eligible for commissions.
They will not be paid if they do not meet the quota.
As a result, many MLM members lose a significant amount of money before even recruiting one person into the company.
3. Losses From eXp Realty MLM Are Reframed As Investments
eXp Realty MLM uplines often reframe their financial losses as ‘investments’ in their business so as to keep their reps in an MLM scheme, dangling the carrot of future financial freedom.
But the reality is that these are not investments. You are unlikely to get the money back. And the return on “investment” is negative in most cases. So saying that it’s an investment is cheating.
4. eXp Realty MLM is a Cult
Why do people continue to work for eXp Realty if it appears to be so bad? Our investigation of MLMs revealed that they all have cult-like company cultures.
Critical thinking is actively discouraged among MLM representatives. They are chastised and even isolated when they ask questions that deviate from the ‘this company is a-mazing’ mindset.
MLMs, like abusive partners, encourage you to isolate yourself from anyone who questions your involvement.
Those who leave an MLM are labeled as failures or bad people/influences, and reps are not allowed to contact them.
Rejection from people they once considered practically family is one of the most devastating losses experienced by former MLM representatives.
MLMs frequently expect their representatives to prioritize their events and business over their personal lives in order to further embed them in the business while separating them from their family and friends.
5. You May Need to Purchase eXp Realty Products Yourself
If you don’t have a large network of friends, family, neighbors, and so on, you may have to buy products yourself each month. It’s a losing proposition all around.
I think it’s quite ridiculous when you have to buy the products you are trying to sell. But this is very common for people who join MLMs like eXp Realty. That’s why in the long term, you are going to lose a lot of money, not to mention making money.
6. eXp Realty Products are Overpriced
As with other MLMs, eXp Realty offers overpriced products. There are many other brands that offer similar products but at lower prices.
Therefore, you may find it difficult to sell eXp Realty products because your prospects can buy the same product elsewhere at a much cheaper price. This explains why most people who join MLMs only focus on recruitment instead of selling actual products.
7. eXp Realty’s MLM Business Model Has a Bad Reputation
Some people have benefited financially by joining a network marketing/MLM company. Unfortunately, most people who join MLMs are left with nothing but regret and a lot of useless products that they were unable to sell.
MLM like eXp Realty is fundamentally flawed. The distribution of commissions is skewed toward the top.
The majority of those in the top tier and pioneers make the most money, while those at the bottom will not even break even after a few months.
As a result, many people do not consider eXp Realty to be a legitimate business opportunity.
8. Exaggerated Claims Of Income
eXp Realty, like any other MLM company, makes exaggerated income claims, but in reality, very few people make a good living by promoting eXp Realty.
eXp Realty’s low retention rate can also be discouraging, as less than 41% of its distributors are active.
According to eXp Realty’s payouts to distributors, over 99 percent of eXp Realty distributors never make a profit.
9. eXp Realty Is Like A Pyramid Scheme In Disguise
If you want to avoid losing money every month, the MLM will actually encourage you to recruit people.
Every system that requires you to recruit people in order to make money eventually looks like this.
eXp Realty is not a pyramid scheme in the traditional sense because you can earn money by selling their products.
However, in order to make a living, you will need to hire others in reality.
10. Recruiting is Required to Succeed
I don’t recommend MLMs to people for this reason. MLMs like eXp Realty put a lot of effort into recruiting. Eight out of ten ways to earn money with eXp Realty require recruiting. If you don’t recruit, you are destined to lose money at the end of the day.
My #1 recommended platform is different. You can make a 4-figure, 5-figure or even 6-figure passive income by promoting and selling products you truly like. You don’t have to recruit people but recommend useful and great products. I will tell you more at the end of this eXp Realty review.
How Much Does It Cost To Join eXp Realty MLM?
To become an eXp Realty Agent, you must pay a one-time fee of $149 as well as a $85. monthly fee.
Each agent must pay a broker review fee of $25 per transaction and a risk management fee of $40 per transaction, up to a maximum of $500.
eXp Realty provides training and virtual tools to its agents in exchange for the fees it charges.
eXp Realty MLM Positive and Negative Feedbacks By Real Users
- If you’ve always wanted to be a real estate agent, this is your chance.
- A company’s stock can be purchased.
- A “unique” multi-level marketing company
- You might not be able to make any money.
- Monthly expenses
- You’ll need a large number of customers.
- Commissions are split 80/20.
- It can be overwhelming; it is not suitable for beginners.
Is eXp Realty MLM a Scam?
I cannot say eXp Realty MLM is a scam for legal reasons. A scam is defined as “a dishonest scheme; a fraud” by the Oxford Living Dictionary.
Can you make money selling eXp Realty products? We already know that a majority of eXp Realty reps did not earn any money. A few people do make money but only if you put in a lot of effort. And usually, the way they make a lot of money from eXp Realty is by recruiting aggressively.
Also, eXp Realty blatantly makes disingenuous and irresponsible marketing claims to recruit members. Therefore, some people do consider eXp Realty MLM a scam.
My #1 recommended platform, however, has seen a lot of beginners earn four figures a month after joining it for a year.
I will tell more about my #1 recommended platform at the end of this review.
Final Verdict: eXp Realty MLM Review
Here comes the conclusion of my eXp Realty MLM review. Overall, I don’t recommend joining eXp Realty MLM to make money.
You will have a tough time at the beginning when you are prospecting and trying to find recruiters to add to your eXp Realty commission.
The worst part is that you practically have to ask your family and friends to join your eXp Realty business opportunity. It’s not fun.
Your upline is constantly following up with you to encourage you to buy more Business Support Material even as you struggle to get people to join your downline.
The reality is that you’re likely to lose more money. Statistics confirm this as well. 99% of people who join an MLM break even or lose money, according to a case study on the FTC’s website.
People who join these MLM-type businesses often feel under pressure to succeed, and that is one of the main reasons they leave.
Why not consider starting your own online business if you want to earn money and have a flexible schedule?
Thus, you can choose what you want to promote rather than having someone tell you what you must promote.
Let me tell you how to build an online business in a legit way to make passive income online in the next section. This has allowed me to make a full-time income in a year. Most importantly, unlike MLM models, It’s 100% legit and sustainable.
The Best Alternative of eXp Realty MLM To Make Passive Income Online
If you’re beginning your online business journey, you deserve a programme much better than eXp Realty MLM.
My #1 recommended platform is called Wealthy Affiliate.
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But How Much Can You Earn with Wealthy Affiliate?
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To give you more examples, here are some of the other inspiring success stories of Wealthy Affiliate members.
Where to Join Wealthy Affiliate?
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