The CEO discussed how his profit-share model differs from Keller Williams’ version during an Inman Connect Las Vegas session.
In 2006, eXp World Holdings CEO Glenn Sanford brought 184 people into his profit-sharing group at Keller Williams, a company that touts its lifetime profit-sharing model for agents, as a recruitment incentive.
“You would think that would be meaningful, but my 1099 in 2007 was about $6,000,” Sanford said. “For me, that didn’t work.”
Sanford, who founded eXp Realty after leaving Keller Williams, used the lifetime profit-sharing model as one of the tenets of his virtual cloud real estate brokerage. Onstage at Inman Connect in Las Vegas, he told Warburg Realty President Cecilia Warburg Peters that the equivalent at eXp would result in roughly $90,000 per year.
EXp Realty is able to save on marketing and recruitment costs because their agents act as the marketing. The incentive for them to bring in other agents act as the company’s investment in recruitment.
“For agents to actually leave a physical space, that’s painful for them too, so the incentives have to be high enough for them to actually make the move,” Sanford said.
Watch the full conversation above on Inman Select.