eXp paid out more than $230M in rev share and stock last year
In a new compensation report, eXp said it paid agents and brokers nearly $198 million in revenue share and $34.7 million in EXPI shares.
eXp announced this week that the company paid out $232 million in revenue share and stock benefits last year, a slight decline compared to 2022 when total brokerage revenues were higher.
How were the funds distributed? eXp describes its revenue share program as "a percentage of revenue that agents earn for attracting agents who are generating revenue for the company" — in other words, the sales activity of productive agents in their downline.
The total of the revenue share pot paid out to agents last year was $197.9 million, eXp said in the compensation report published on Monday. Additionally, eXp said it issued roughly 2.22 million shares of eXp World Holdings (EXPI) stock to agents and brokers, which the company valued at $34.7 million.
What eXp said: eXp's rev share program is a key component of the company's attraction strategy for agents and independent brokerages and a major driver of its stratospheric growth in recent years. In the report, CEO Glenn Sanford said that the company was not just a brokerage, but a "community of forward-thinkers committed to shared growth opportunities."
"Despite market challenges, our resilient model continues to thrive, proving that when our agents succeed, we all do," he said. "As we continue to build in the evolving real estate landscape, our focus remains on empowering agents, fostering their growth, and ensuring they have a significant stake in the collective success of our company."
In an effort to make rev share more accessible to newer agents, the company launched its "Accelerate" program in September which unlocks additional rev share tiers that were previously unavailable to agents who had recently joined the brokerage.
How did the payout compare to last year? Sanford's remarks about "market challenges" were reflected in eXp's most recent earnings report. The company saw year-over-year revenue drop 7% to $4.3 billion in 2023, and eXp ended the year with a net loss of $9 million. In 2022, on the other hand, the company reported net income of $15.4 million.
Agent compensation was also down in 2023. The company said it paid over $240 million to its agents and brokers in 2022, including $202 million in revenue share and 2.57 million shares of EXPI, which it valued at $42.5 million around this time last year.