The eXp Realty business model and operating environment can be a confusing place for agents. Peaking into the cloud, we can start to understand why so many are leaving the cloud-based brokerage in 2023. eXp entered the real estate industry with a revolutionary approach back in 2009, making waves among agents across the country. However, as new opportunities have arisen and progressed over time, more team members have chosen to pursue other goals rather than staying on at eXp.
Agents often discover that eXp Realty may not be the optimal fit for their career, as limited earning potential and inadequate support when recruiting new agents create difficulties. Furthermore, a lack of clarity around management structure can lead to further frustration.
In this article we will discuss 13 common reasons why agents are leaving eXp Realty in 2023 and provide useful tips on how agents can make the best decision for their careers moving forward.
1. Limited Earning Potential:
eXp Realty is a cloud-based brokerage, and as such, agents can expect to make less than they would at a traditional real estate office. eXp has implemented an agent revenue sharing program that allows agents to earn commissions on other agents’ transactions, but it’s not always easy for agents to take advantage of the program and maximize their earnings potential.
eXp offers commission splits that tend to be lower than its competitors, which makes it difficult for agents to maximize their earnings potential with eXp Realty. eXp adds an extra layer of transaction fees to agents’ base commissions, further decreasing the money they bring home. These transaction fees and broker fees are charged on all transactions, even after an agent has supposedly capped. This leads to agent frustration because the 100% commission promise is not correct.
2. Poor Support and Training:
eXp Realty offers some basic support and training for its agents, but many feel it’s not enough and that eXp fails to provide the necessary resources needed to succeed in a competitive real estate market. Agents often struggle to find answers to their questions, leaving them feeling frustrated and unsupported. Their cloud based training lacks the interaction that agents desire, especially in the areas of role playing and scripts. The lack of a cohesive roadmap for the cloud leaves agents grasping for answers, without knowing where to turn.
eXp Realty’s training program for new agents may leave something to be desired; experienced eXp Agents report that the current resources are insufficient, leaving them with a lack of support and guidance which can hinder their success. With this in mind, it is clear that changes need to be made if eXp wants its real estate professionals to truly flourish.
3. Recruiting Struggles:
eXp Realty is unique in that it operates as a cloud brokerage, allowing agents to work remotely from anywhere. However, this can make recruiting new agents difficult since eXp lacks the traditional physical office space where other brokerages can easily meet with prospective agents. eXp has implemented various recruitment programs aimed at helping agents build their teams, but many agents find them time-consuming and ineffective.
eXp does not have a formal recruiting team or system in place to help agents recruit new talent into the ecosytem. eXp relies heavily on its existing agent pool for recruiting, which can be difficult for new agents who may lack the necessary network connections or resources to successfully recruit.
Without this recruiting team or system in place, agents have to spend more time focused on recruiting agents and less time on working with buyers and sellers. This can lead to lower commission earnings. When other agents are engaged to assist with recruiting, there is always a fear in the back of the agents mind that the prospective agent will be poached by the other agent and recruited into their downline.
4. Lack of Real Estate Tools:
eXp Realty offers a variety of real estate tools to help agents with their day-to-day operations, but many feel that eXp falls short when compared to other brokerages that offer more expansive toolsets like marketing automation software and client relationship management systems. eXp also lacks the latest cutting edge technology that can give agents an edge over their competition in the marketplace.
5. High Fees: eXp Realty charges its agents high fees for transactions they conduct on the platform as well as additional fees for using eXp’s services such as marketing, advertising, lead generation and more. Agents may find that their commissions are rapidly dwindling due to rising fees, leaving them feeling overwhelmed and underfunded.
6. Poor Brand Recognition:
eXp Realty is a relatively new brokerage and as such, lacks the brand recognition that some of its competitors have built over the years. eXp has attempted to boost its visibility through various marketing campaigns but many feel that eXp still needs to do more in order to establish itself as a major player in the real estate industry.
7. Lack of Local Presence:
eXp Realty operates as a cloud brokerage and therefore lacks the local presence of traditional firms which can be beneficial for agents looking to build relationships with potential clients. eXp has attempted to bridge this gap by establishing virtual offices in certain areas, but many agents find them inadequate and dissatisfactory.
eXp has yet to become a household name in the real estate industry, which can make it difficult for eXp agents to gain recognition for their work and develop strong reputations within the marketplace.
8. Complicated Technology:
eXp Realty’s technology is complex and requires agents to be tech savvy in order to use it effectively. eXp offers basic training on the platform, but many agents struggle to understand how all the components work together and become overwhelmed with the complexity of eXp’s cloud brokerage model.
eXp is a cloud-based brokerage, so technology plays an important role in the success of agents within the ecosytem. Unfortunately, eXp has been known to struggle with providing adequate support when it comes to its technology platforms and tools. Agents may experience technical problems or find themselves unable to access the eXp tools they need due to eXp’s inadequate technology support.
9. Lack of Resources:
eXp Realty provides some resources for its agents such as access to e-marketing materials, client management tools, and lead generation services, but these are often limited in scope compared to those offered by traditional brokerages. eXp also lacks the resources necessary to help agents navigate the ever-changing real estate market and stay competitive.
eXp does not have any physical office spaces for agents, which can be a drawback as agents often rely on in-person interactions with their colleagues and managers. This lack of face time can make it difficult for agents to get the necessary guidance or support they need when working with eXp Realty.
eXp may be one of the largest ecosystems in the real estate industry, but it is still limited in terms of resources. eXp does not have a dedicated marketing team or significant advertising budget to help agents with their branding and marketing efforts.
10. Low Morale:
eXp Realty is often criticized for its lack of a positive work culture, leaving many agents feeling unsupported and unmotivated. eXp has attempted to boost morale through various programs such as offering weekly calls with top eXp agents, but many feel that this does not do enough to improve the overall atmosphere at eXp Realty.
11. Misleading Promises:
eXp Realty has been accused of making unrealistic promises about agent success in order to attract new recruits, leaving many feeling let down when they don’t achieve the results eXp promised. eXp has attempted to address this issue by creating a more realistic expectations program, but many agents still feel that eXp is not being honest about what it can and cannot do for them.
eXp was founded on principles of collaboration and free exchange of ideas, but some eXp agents report that the ecosytem is not always as friendly or welcoming as it claims to be.
12. Difficult Leadership:
eXp Realty’s leadership team has been heavily criticized for its lack of transparency, with many feeling that eXp’s leaders are often unaccountable and unresponsive to their concerns. eXp has attempted to improve communication between the top echelon and its agents by introducing monthly town hall meetings, but many agents still feel unheard and frustrated when trying to get answers or guidance from eXp’s leadership team.
eXp’s corporate team has been known to be unresponsive when it comes to providing support and guidance to eXp agents, leading to frustration among many eXp agents.
eXp has been criticized for its lack of transparency when it comes to disclosing information about its corporate structure and operations. This lack of clarity can make it difficult for eXp agents to understand how their work fits into the larger ecosytem.
eXp does not always have a clearly defined management structure and many agents find it difficult to understand who their managers are, what their responsibilities are, and how they fit into eXp’s overall organizational structure. Each state has a managing broker and a supporting team, but the chain of command is sometimes lacking. This lack of clarity can lead to confusion and frustration for agents attempting to build successful careers with eXp Realty. It is also difficult to handle when in the midst of a dispute with another brokerage regarding an ongoing transaction.
13. Unsustainable Business Model:
eXp Realty’s business model may be unsustainable in the long term, as eXp is heavily dependent on recruiting new agents in order to generate revenue. eXp has attempted to diversify its revenue streams through partnerships and investments, but these have been met with mixed success so far.
Overall, eXp Realty offers many benefits for real estate agents who are looking to take advantage of the cloud brokerage model, but there are also a number of drawbacks associated with joining eXp Realty. Agents should be aware of these potential issues before deciding to join eXp Realty in 2023. With the right knowledge and preparation, eXp agents can still have a successful career with eXp Realty, but they should also be aware of the potential challenges that come with working with eXp Realty.
eXp Realty has seen a significant number of agents leave in recent years due to a variety of reasons such as high fees, poor brand recognition, lack of local presence, complicated technology, lack of resources and poor leadership. Agents are recognizing that eXp’s traditional recruitment-based model may not be sustainable in the long run, presenting a potential challenge for their stability. eXp has attempted to address many of these issues through various measures, but more needs to be done in order for eXp to remain a viable option for agents in the real estate industry. eXp Realty should be striving to ensure the success of its agents by creating a supportive environment where they can flourish. If eXp can address some of these issues and provide better support, then it may be able to retain more agents in the future.
The bottom line is that eXp Realty has been facing numerous challenges since its inception and many agents have left due to dissatisfaction with eXp’s services or policies. Despite eXp’s effort at improving their platform and services, there is still a long way to go before eXp can compete with other brokerages in terms of agent satisfaction and success. eXp Realty must make changes if it wants to remain a viable option for real estate agents in the long term. Hopefully, eXp will be able to address these issues and provide better support for its agents so that more can stay with eXp Realty in the future.
By keeping these 13 Reasons Why Agents Are Leaving eXp Realty In 2023 in mind, agents can make an informed decision about whether eXp is the right fit for them.