Why join Exit Realty? When looking for your sponsored broker, you have no shortage of options. From large franchise brokers, like Century 21, to midsize franchise companies, like Exit Realty, to independent boutique real estate brokers.
With so many options out there, it can be hard to pick the right brokerage to work for.
In this article, we’re going to go over seven reasons you should join Exit Realty.
Favorable Commission Splits
Exit Realty has a favorable commission split for new and experienced real estate agents. Every single agent starts the year out at a 70-30 split which slides to 90-10 when an agent produces more than $100,000 in gross commission income within a year.
The gross commission income is calculated by taking the total value of all home’s sold multiplied by the average commission rate (typically three percent).
For example, assume you sold 10 homes worth $250,000 at an average three percent commission rate. Your gross commission income would be 10 times $250,000 times three percent commission, or $75,000.
Big name brands, like Coldwell Banker or Century 21, new real estate agents start out at a commission rate around 50-50 or 60-40 split.
This difference in commission split can easily add up to tens of thousands of dollars every year. That’s huge for a new real estate agent.
The leading cause of agent failure is a lack of cash flow. Too much money going out and not enough coming in. So, by having such a favorable split, a new agent increases their odds of success.
Better Value For The Price
There are other real estate brokers, like Keller-Williams, that offer a 70-30 split to their real estate agents. Heck, there are emerging brokers offering new real estate agents an 80-20 split.
But, when you peel back the curtain, there isn’t a whole lot of value being offered at these companies. You have to think of your commission split as an expense rather than what you’re getting.
So, rather than focusing on keeping 80 percent, think about how you’re paying your broker 20 percent of a sale. On an average price of $250,000 at three percent commission, that’s $1,500 per transaction. Multiply that by ten and you’re paying your broker $15,000 a year.
It then becomes a question of value when looking at different brokers. In other words, are you getting $15,000 worth of services or support? If not, it’s not a good deal.
You will only pay less at some of these brokerages than you would at eXp, but the value isn’t there for many real estate agents.
At Exit Realty, you might pay more, but the value that you get from Exit is much higher than what they charge in commission splits and fees.
The Whole Agent
One pillar of Exit Realty’s culture is their focus on the whole agent. Every brokerage I’ve worked for or researched cared only about the agent’s career and their production. They didn’t care about the person behind the job title.
At Exit, there is a conviction to strengthen, both personally and professionally, every single real estate. It’s not only about being a good real estate agent.
It’s about achieving your human potential. Being all that you can be. Not just in your career. All areas of your life.
You will see that when you join an Exit Realty and your brokerage holds a vision board night, asks you to identify your big why, or when you have to pick a word of the year.
In 2020, during the Covid pandemic, Exit Realty invested $50 million in different projects to help their real estate agents. One of those projects was a focus on mental health and well-being — something we have all struggled with.
Other real estate brokers? They just focused on your production. Ignoring the person behind the real estate agent.
A Supportive Caring Culture
Exit Realty has built a team that is supportive, caring, and fun. You will find agents encouraging one another much like a family would do.
Whether that’s participating in a community project as part of the Spirit of Exit, accompanying a top-producer on a listing appointment, or sharing best practices during weekly meetings.
You will find that Exit Realty has built a supportive and caring culture that is invested in your success as a real estate agent.
Real estate agents can easily get help from other agents in the office. It’s common for new agents to go on listing appointments, attend closings, or go to showings with experienced agents.
Hands-on training and support is important to every Exit Realty.
Additional Income Opportunity
Traditionally, real estate agents could only earn money when they helped clients buy or sell a home. In 1996, Exit Realty changed that when they introduced their Exit Formula.
The Exit Formula is a way for real estate agents to create an additional income stream. It works by sponsoring other real estate agents into the company and helping Exit Realty grow.
Every year, Exit Realty pays a 10 percent bonus, up to $10,000, of a sponsored agent’s gross commission income.
Example: You sponsor agent Allison into the company. Allison produced $75,000 in gross commission income. Agent Allison gets her 70-30 split. Exit Realty pays you $7,500, or 10 percent of agent Allison’s gross commission income.
You can receive these payments every year as long as both you and agent Allison are at the company. That can result in huge earnings over the years.
If you’re thinking about building a real estate team, this is a good set up. Even if you don’t want to build a team, you can list a sponsor and they can mentor you.
Your sponsor has a financial incentive for you to succeed.
A Retirement Plan
The Exit Formula gets better because it can also act as a retirement plan. When you decide you’re ready to get out of real estate, you can still receive bonus payments at a reduced rate of five percent.
As real estate agents, we’re independent contractors, which means we’re responsible for our own retirement plans.
The sad reality is that most real estate agents have no retirement plan and end up working into their retirement years because they need the money.
Sponsoring agents into the company can be a solid way to build up a retirement nest egg, in addition to setting up your own IRA or 401(k).
No Desk Fees
A lack of cash flow is the biggest reason 80-plus percent of real estate agents fail within three years. They have too much cash going out and not enough coming in.
A big contributor to a lack of cash flow is all of the desk fees and technology fees that some real estate brokerages charge every single month, regardless of whether or not you close any transactions.
These fees can easily range from $80 to $130 to $200+ per month. Imagine paying that amount of money every single month without having any income.
It happens and a lot of these brokerages have high failure rates of newer real estate agents.
When you’re a new real estate agent or within your first three years, you want to minimize your monthly expenses as much as possible.
This way, if no money comes in, it’s okay because no money went out. Exit Realty doesn’t charge a desk fee, saving you hundreds or thousands of dollars a year.
It puts you in a better cash position and increases the odds that you’re part of the 20 percent that make it longer than three years in real estate.
Final Words On Why Join Exit Realty
Exit Realty is a by invitation only company. Another way that Exit Realty is different. Most real estate brokerages will accept anyone. For them, it’s a numbers game. Throw a bunch of agents at the wall and see which ones stick.
At Exit Realty, we don’t want anyone. We want the right people. If these seven reasons resonated with you, then you may be a good fit for Exit Realty.
You can apply to work with us and we will go through an interview process to see if you’re a good fit for Exit Realty.
