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Why Brokerages Are Joining eXp Realty [MASSIVE ADVANTAGES for Real Estate Brokers]

what's up guys is Mike sherrard today

I've got a very special episode for you

for brokers what we're gonna be doing my

business partner Connor Steinbrueck and

I is breaking down all of the advantages

of what happens when a broker or a

brokerage comes over to exp there's a

lot of brokers that are coming over

there's a lot that are considering

coming over but I know that there's also

a lot of fragmented and misinformation

out there so what we want to do is we

want to clear the air and break down all

of the advantages of using their system

in order to scale your brokerage and

make it more efficient for you there's a

lot of ways that we can help you save a

lot of time energy attention and money

using the team acronym and we're gonna

break this down for you to show you why

it could be one of the best decisions

you've ever made as a broker and what HP

is helping so many brokers scale their

business quicker than they ever could

have imagined without having to invest

more time and actually saving an

astronomical amount of time as well as

giving their agents such better training

than they ever could have had so I'm

excited to bring this to you let's dive

into it and learn why exp is the best

place for your brokerage all right

what's up guys super excited to have you

guys back on my channel with the

business partner you guys know that I

collaborate on a lot of things with my

good buddy and business partner Connor

Steinberg him and I collaborate on the

social strategy mastermind together

we're also team leaders at agent

Wolfpack here at exp and what we want to

do today is explain the importance of

why so many brokerages are flocking to

exp this episode is going to be of

immense value to you because you're

truly gonna see the outsourcing power of

this model and why people are seeing

this as a huge time saver a huge money

saver and an opportunity to scale in a

better more efficient way especially as

cloud-based brokerages start to become

the new norm so Connor welcome brother

super excited to have you back on yeah

man I appreciate it list again let's

kind of paint a picture of why an

entrepreneur would want to move their

business over th speed definitely so as

you know I've talked to you about this

many times before even I was skeptical

to join the brokerage because I truly

didn't understand everything about it I

have a lot of people sending me this

presentation the presentation left me

with a bunch of questions and I never

truly understood the power of the model

especially from an entrepreneurs

perspective a lot of Realtors and

brokers and team leaders call themselves

entrepreneurs but they don't really

carry out their business in a way that

reflects

that of a true entrepreneur so what I

really want to dive into is some of the

important reasons of why a brokerage

would want to switch to exp because I

know a lot of brokerages are patriotic

they're patriotic to a bigger brand name

that they've worked before or they might

have even got their own brokerage

license and now they've built up their

own name so they're wondering why would

I want to leave a big well name

brokerage for something like exp or why

after so many years after creating my

own brokerage why would I want to go to

a brokerage like exp so do you want to

just break down some of the incredible

advantages and reasons why that might be

of value to them to do yeah yeah similar

to you myself it took me a long time to

come to a company as well and it wasn't

because the value proposition wasn't

there from the company

there's the fragment information out

there in the marketplace I think where

there's confusion where some people have

the opportunity to see the big small in

the right light and some are not is

we're now the single faster current

brokerage over in North American history

and that means there's a lot of people

come in the company and there's a huge

opportunity so you guys are playing

hearing stuff that's too good to be true

even though the XP is incredible you're

sharing stuff that's too bad to be true

that can't be true either there is a

middle ground in the middle ground is a

massive opportunities so just to kind of

give you an idea of who I am if you

never met me so I'm a top 100 influencer

here at exp out of about 29,000 agents I

was just recognized recently last week

shareholders event I was able to speak

on stage for social media as well the

top social media experts in the company

and I run an organization here across 29

States in multiple countries and I've

been very successful doing this and I'm

very grateful for the company

Glen Stanford created for us a huge

opportunity that we have and so it

frustrates me when I see all this

information out in the marketplace somes

accurate Suns inaccurate but if you

don't get the accurate information how

can you make an accurate decision if

this is good for you and your business

so there's a difference between an

agents perspective and entrepreneurs

perspective now a lot of agents consider

themselves entrepreneurs but what

entrepreneurs do is they work for wealth

creation components multiple streams of

income equity components they're busy

small residual and components time and

money passive income and then

duplication they're hiring employees

they're building a team they're

outsourcing they're leveraging tools and

systems and so what I think the easiest

way to explain XP is for a broker owner

is this as an outsourcing system for all

the maintenance tasks the headache tasks

in your biz

most people don't want to run adult

daycare but that's what the traditional

broke is just kind of like running you

wear every single hat in your business

you're on the hook for liability on the

hook for all the capital expenditures

setting up the marketing for the

business answering all the questions of

a contractor view all the little things

that happen throughout the day

slow your growth down so every broker I

talked to says their number-one goal for

the most part is expansion but the

regular end approach MA is the expansion

which is big reasons broke owners are

partnering with exp is getting as our

cloud-based system allows you to get

outside that local restrictive business

model and now you have international

expansion opportunities and so if you

guys are unfamiliar with what exp is

we're cloud-based brokerage and in the

cloud we have the virtual building with

hundreds of paid employees there's

actually up between five hundred six

hundred active employees and they're

working right now while I'm sitting here

doing this podcast so if I had my

hundreds of agents all across North

America having questions they don't come

to me they're going to the outsourcing

system in the club so the tech outposts

the County Department the payment

crossing the center the live broke rooms

in the cloud so if you think about that

let's just say that there's 600 paid

employees in the cloud I know it's

growing literally a lifetime how they're

hiring individuals but a very

conservative number you guys are

business owners what would you pay an

employee and you're in your business any

business typically corporate employees

between 40,000 maybe 70,000 so I don't

know 100% sure what they're paying these

exp employees but I'm gonna guess to

make prob about $50,000 give or take a

little bit so if there's 600 employees

$50,000 apiece that's a 30 million

dollar business that we as business

owners get to outsource everything to

yet we pay nothing for it essentially in

the relationship to what we'd normally

have to pay tens of millions of dollars

I pay $85 a month to hold my license at

this company and every single time I

have a question that would normally

follow my plate as a broker owner a team

leader come to me

I can outsource that out to these paid

employees so say Mike's an agent my team

says Connor I need you to review this

contract make sure it's okay I say go to

the broker room go the tech outpost go

to the accounting department in every

single time another employee in the

company spends 30 minutes to an hour

answering that question that 32 minutes

to an hour is no longer on my task list

and it goes back to my pocket to scale

my business or I can

do what I want or what you guys want to

do is broke owners have the life that

you've always wanted to have coach your

kids soccer team travel a little bit

more do what we always wanted to do when

we got into business because now you're

not tied to your business and there's a

lot of other benefits to it but um we

can kind of dig into those but that's

just a good starting point to really

reference what we're doing here we have

an outsourcing system in the cloud for

all your liability for all your

liability and all your maintenance tasks

in your business well one thing that I

really wanted to talk about because

that's so powerful and I think a lot of

people seem to forget that time is the

most precious commodity in the world you

can't get it back and a lot of people

are wondering why they're not making the

money that they would like to make and

it's because they're not treating their

time as valuable as it should be treated

now one thing I'd like to get into

before I roll into what we're doing

differently at the wolfpack that could

help brokerages and training their

agents is actually the tools that exp

provides because a lot of people

especially in the brokerage world have

to pay thousands of dollars a year for

something like a B core or some sort of

system for prospecting or system for

lead generation or systems for Google

pay-per-click or systems for CRM as well

as things like DocuSign or any sort of

contractual platforms that they need for

their business to actually operate but

as I've seen very quickly and as you're

gonna explain here the power of the

tools that are readily available for $85

a month at exp is incredible so what

kind of systems do people get that would

help alleviate a broker owner from those

costs what can I do for the agents to

help the agents produce more which would

actually benefit the broker even more

and then let's roll in a bit about what

we're doing differently and then let's

give a quick little roleplay example for

for example sake of how this is so

powerful for a broker yeah yeah so

that's a lot on what I'm gonna try to

knock these out step by step so think

about what a broker owner does how do

they scale a business how do they expand

their business it's a combination of

attraction and retention and so what a

lot of broker owners decide to do is

roll their brokerage into a franchising

company to get the system in a box so

what does a franchise really think about

the movie the founder with McDonald's

and the speedy system you're buying a

system a bolt-on business in a box but

because we're cloud-based when we did

this we really eliminate the need to

have a franchising system so exp is not

a franchise

we are an independent brokerage across

all 50 states the seven Canadian

provinces UK and Australia but if you

think about it our independent brokerage

is mimicking and operating as a

franchise does but what is the headache

of buying a franchise massive

handcuffing system with the legalities

with a contract that you're tied into

for whatever you agreed upon huge

capital expenditure on the front side so

for the way I see it as I pay eighty

five dollars a month or a thousand

twenty a year to have a system I have a

full marketing system in the back all

the signs Flyers postcards socially

share bells pre-done listing

presentations I have fully duration that

I can offer my agents kV Corps is a very

very expensively duration software

full-on CRM full-on leader ation system

where the most powerful in the

marketplace right now very very

expensive you can be saving hundreds of

dollars a month just by coming to each P

if you're using this right now our

founder was an online lead generation

expert rose up to top of Keller Williams

by doing internet strategies like Google

Ads Google pay-per-click and we have an

affiliate program called making it rain

that will run your pay-per-click

campaigns for you now the reason why

we're still in so many houses and that

may shock some of the competitors out

there it's because they're like don't

you guys just recruit and I hate to hear

that because it just is a it's a bad

thought process to have that stops a

conversation to keep you from looking at

a real opportunity and so you might not

know this but we sold almost 140,000

houses that our company last year and

the reason why we're selling so many

houses is because the caliber of our

training system so this is gonna be

strong how I paint this out for you guys

are brokers if you roll your team in

because you give superior training to

your agents now the cool thing is XP is

built for wealth creation for the agent

we have multiple streams of income

our sales business is 8020 16k cap and

since we're not a franchise company

we're not charging our agents royalty

taxes on their transactions which helps

them make more money or keep more money

I guess you could say but a cool power

cool part of our business model is we

have a stock award plan so we brought

from corporate the mentality of equity

programs and what this does is it

doesn't just attract talent to the

company it does what corporations use

equity programs for it retains talent

you've heard the term the golden

handcuffs we're giving out the gold

ownership in the company or handcuffed

them to company I guess you could say or

any company through the vesting period

so we have a three year vesting period

on most of our stock Awards here but

the big attractions to our company as we

have what's called an icon program so

our icon program launched in 2015 in

2016 we trip out our agent count and now

are the fastest cram brokerage ever and

whether icon program is is a massive

incentive for the elite agents in the

country all the high-performance

individuals so if you pay the company

your 16,000 our cap and then you do 20

sales transactions after capping you

become an icon agent so it's a capping

plus 20 program and if you hit icon

stass they will reimburse you the 16,000

our cap and paid in the company back in

company stock now why this is important

is because it's a loss leader program so

if you're not familiar with what a loss

leader is this is a product or service

that a company offers to break even on

for the most part that attracts other

business around it so these top

producing agents come over here gonna

keep pretty much all their what they

paying the company when the math breaks

down but success is following them so

we've seen this attract top town

individuals now why the icon program is

important for you broker owners is the

majority of our trainers in the cloud

are icon agents so our coaches at our

company are the elite of the elite from

the fastest-growing brokerage in North

American history from a fool of going on

30,000 agents so if you think about what

you offer to your agents right now if

you're a broker owner unless you have

the skillsets to teach them all sorts of

advanced strategies you have 10 20

agents in your office you have to train

them yourself now if you're coming from

a franchise company and you're a team

leader you're getting the best the best

even if it's a great company from one

franchise company from one city from one

market Center from one pin point on a

map we're bringing the best the best

from one the biggest baddest companies

ever gonna exist and my opinion is the

best that's why I hold my license here

but we have a large selection of these

icon agents coaching our agents and

they're performing in today's

environment they're doing strategies

that work today because they just did

big production today to qualify for our

constants

when I went to business school Mike here

it's all time none of my business

coaches were in a business and I just

thought is the dumbest thing ever I'm

like how can I learn to run a business

from someone that doesn't run a business

ask yourself right now guys does your

real estate coach at your office that's

training you do they sell real estate to

day actively and if not you need to

leave that's horrible

who would be at an office who's being

trained by people that don't sell real

estate today and I see it happen all the

time it's a big flaw in industry if your

coaches don't sell real estate

how can they teach you how to do it it's

crazy that's make sense and so that's

the first reason so I'm not saying even

if it's the same company go to different

markets than find a different area

that's gonna give you training but

that's why agents are having so much

success here they're getting elite

training a large selection of training

luxury classes Airbnb classes commercial

investing classes we even have classes

and Spanish for the Hispanic community I

mean the XP is really doing it right I'm

super proud to be here

definitely man I think it's so powerful

and I've even seen the power of the

training in there because I even I even

knew here a lot of the coaches when I

first got started in the business with

my first four months I was feeling the

big you know traditional brokerages and

they brought in this you know guru of a

coach and he was a coach that coached

back here he sold back in the 90s and he

was teaching us stuff that is even far

behind any of the coaching ed exp and he

was paying he was charging the agents at

that brokerage at a discounted rate

$1200 for a month's worth of training

and he hasn't sold the house in years

and that's when I realized that there

has to be a better way there has to be a

better way and the thing is is that

because there's not the best training

locally here now I have access and so do

all the agents on our incredible team

with the best of the best across

multiple states multiple provinces

multiple countries so I'm super excited

about it and maybe before we wrap up

here I'd love to chat about what we're

doing differently because I think exp

got such an incredible powerful robust

system that is a huge outsourcing tool

for brokers but you and I also have

created some pretty cool stuff that will

help the newer agents scale beyond

measure especially with what is hourly

readily available to them so you and I

have also created additional training

above and beyond what exp offers we've

created some of the best lead generation

strategies in the full Facebook ad

course an Instagram course showing

agents how to build a top of mind

personal brand in their market as well

as a YouTube course that you've created

in order to show people how to locally

rank their videos like Aditya so mo who

sold 250,000 in his first year the

majority of which came from YouTube so

we also give these programs to the

agents on anybody that decides to

partner with us which now becomes

available to all of the agents at a

brokerage which is really powerful in

addition to all of the amazing

and resources we created or social media

because we realized that a lot of agents

even though cold calling works door

knocking works don't get me wrong I've

done both of them but it's not enjoyable

it's not sustainable and it's not

scalable and as you talked about earlier

with the wealth creation quadrant you

need to be able to duplicate your

efforts and by trading money for time

versus time for money I think that we've

created the robust marketing training in

order to allow agents to ramp up get off

the ground spread their wings and then

soar and skyrocket with the right modern

technologies and the modern strategies

that they've always wanted but didn't

have anybody to give it to them yeah I

mean there's one thing I hate it's

losing so I do everything I can to win

so like everything I'm thinking about is

like how to not feel that feeling of

losing and that we want that same

feeling for you guys in our business so

a little over a year and a half ago we

wrote on a board we wanted to create a

value add proposition so strong that

when an agent would look at our team

first any other team in North America

whether it be exp or any other team that

they feel irresponsible to hold their

license to anywhere else that was the

mentality we had when we went into

creating this so we've not only just

created all this social media training

and all these extra coaching's on all

sorts of different things time

management emotion management system

ization database management how to build

self-esteem how to understand how

decisions are made with a conscious

unconscious mind filtering mechanism

like your brain stem at the bottom of it

called the reticular activating system

so we're training you on all sorts of

different entrepreneurial mindsets but

we also create a massive outsourcing

system behind the scenes for agent

attraction which is why you're seeing a

lot of brokerages look at what we're

doing here with our teams specifically

here at HP and what we've done is we've

created the national webinar system for

international growth because exp is not

built locally you can build your team

all over the country and this is how

I've expanded in 29 states so we do live

presentations multiple times a week and

we're also doing live mastermind

trainings to train the ages once they

come in so your agents do not have to

take the time to learn the communication

skill sets communicator business model

effectively so if you can clearly see

that I put a lot of time into this I do

care about what I do so I put a lot of

effort into it to be able to communicate

it correctly your agents can invite

agents to our calls I handle the

communication and when they come in

they'll be that agent sponsor now this

is important to understand because we

have a duplicatable business model which

is one of the four components of wealth

create

duplication and if it doesn't duplicate

it doesn't matter so this is gonna

accelerate your growth reduce your time

because you don't have to do it on your

own

and one of the big flaws I see with

other teams they're growing probably not

as fast as what we're doing is they

share videos around the internet and on

some of you guys watching this right now

I've had ESP agents and videos to you I

apologize for that it's not the way it

should be done agents our videos don't

attract agents agents attract agents we

know that you're your own unique

individual with your own family with

your own goals and you're coming from a

different perspective not everybody is

the same person in a video cannot answer

a question everything we do is a live

presentation to show respect for the

individuals we talk to as well as make

sure we get that accurate information

that they need I mean Mike and I talk to

try not name the name of them but he's

one of the biggest when most successful

agents in a big name brand company this

morning for about an hour and a half and

that was a big weighing factor on what

was important to him it had individual

sinem videos and it just it doesn't have

the same kind of impact it does to sit

down and look someone in the eye and

kind of they can hear the conviction the

belief in your voice so we do all live

presentations

behind the scenes we built out a private

training academy for the agents that

come in so we built this off what's

called the echo effect so you guys know

ed my lad he talks about the echo effect

in a different way but he's talking

about what you do today 90 days later

shows up in your life there's also a

different way to look at the echo effect

is it's something that comes up over and

over and over a problem in a business a

concern and if you hear an echo effect

in your business you need to address it

solve the problems so every time we hear

something from agents that we work with

come up over and over we create training

videos to address it and we put it into

this membership site if you want to sit

down with Mike and I we can show you

behind the scenes what we built out so

over 100 videos teaching guys how to

explain our business model correctly and

once you have the live presentation

videos are okay for follow-up but it's

best to do it live in the first place so

we're training you eight agents and

giving them all the resources to be

successful and then all the social media

training and then the other thing I do

is I kind of operate as a corporate

recruiter would maybe we can do a case

study I can kind of break this down is

assuming that you wanted to hire me as a

corporate recruiter to run your office

because a lot of you guys are running 20

person 30 person maybe even 60 person

shops and you're looking to hire someone

but you don't need to do that anymore

because that's a huge expense and I kind

of operate and do the same job as a

corporate recruiter what our office

manager would but you

don't have to pay me I don't work for

you you're not gonna work for me we're

gonna work together on the same team

it's a huge expense that you can avoid

but I do the same job so maybe you want

to kind of roleplay a little bit so we

can paint the picture of the savings and

expense for these brokers yeah

definitely let's get into it guys let's

do a quick little example of how this

would work because again we want to show

you the immense value that happens when

brokerages come over and a lot of them

aren't entertaining the thought because

they just simply don't know and have it

entertained it or like Connor alluded to

they've been sent a presentation that

didn't paint the right picture and now

they're missing out on one of the

greatest opportunities to properly scale

their brokerage beyond what they could

ever imagine so Connor let's get into it

and see you know how this conversation

will go so that people can really

identify and see in front of them what

the value is for a broker owner to to

join EXB yes so like we're about to

bring on a big brokerage right now and

you know simply ask the individual I

said yes assuming mike is the broker I'm

talking to you so so Mike as you know

I'm on the most successful Asian

tractors in the country what would you

pay me if you offer to pay me to come

build out your business for you and work

as an office manager in your office and

recruit agents to your company

maybe fifty seventy-five thousand

dollars max not likely but it's still

going to be a big check but that's

pretty typical for starting agent

traction individual for an office which

is pretty common out in marketplace so

let's be conservative for examples let's

say $50,000 so Mike with our

duplicatable system here we have a seven

tier revenue share model we've already

seen keller williams use a similar model

with the profit sharing system build the

largest company in north america but

we're using a revenue sharing model

which is before expenses not after

expenses which is built the biggest or

the fastest-growing real estate company

in north america but because of this she

has seven partners above you sharing the

same income stream for building the team

with revenue sharing and so these

partners of yours are going to operate

the same way an office manager a

corporate recruiter would that if you

had to hire them you would be on the

hook for the expense but they're gonna

be your partners they're not going to be

an employee essentially for you you're

not gonna have to pay them pay them but

they're gonna do the same job helping

you grow your organization that right

there alone if they're being paid for a

few thousand dollars piece is equivalent

to three hundred fifty thousand dollar

savings now on top of that we mentioned

before the benefit of the outsourcing

system one hundred paid employees Mike

and that's equivalent to tens of

millions of dollars if there

anywhere between forty and sixty

thousand dollars apiece which is

probably pretty close to what they're

being paid that's a huge expense as well

let me ask you something like right now

you're at 2024 agents or something right

in there give or take it bounce around a

little bit I know agents come and go but

what would you do for your agents as far

as an incentive financially to help them

grow your business do you offer them a

sponsorship reward or do you give them

anything if they sponsor an agent or

bring an agent to your team how does

that work and how much do you pay them

typically what I've seen is we give them

a slight adjustment on their split

otherwise sometimes they end up winning

an award at the end of the year it's

better than a copy disc Starbucks

whatever like little discount cards

again that's what most brokers give they

give Starbucks cards but um now what if

you could offer your agents more money

than you're paying them right now but

you didn't have to pay it out your

pocket so the cool thing about our exp

business model is we have a revenue

sharing system that if you sponsor a

capping agent on the first tier that we

have here it's equivalent to two

thousand eight hundred dollars in

revenue sharing for that year the cool

thing is next year their anniversary

date sets over two thousand eight

hundred dollars again if they capped

that year and every year throughout

their career and what I see is most

brokers I've already partnered with

we're offering between 250 and $500 as a

one-time sponsorship fee for the agents

to attract agents and side by side you

have an opportunity for $500 or $2,800

who's gonna work harder to attract

native to your business now on top of

that it's five hundred dollars or twenty

eight hundred dollars one time over and

over and over and then on top of that

with our seven tier system these agents

are going to have the ability to attract

a just on their own be compensated we're

at mature model as well now the big

difference here on top of that is that

exp is paying these agents forth revenue

sharing not you you're not paying them

with a check out of your pocket which is

hard to earn in the business today

especially what we're seeing in the

stress marketplace so you think of it

like this you're gonna have Mike

partners above you that you're not

paying to help you grow your business an

outsourcing system of hundreds pay

employees growing your business with you

and then all these agents underneath you

as your partners and families that

you're helping that are not going to be

paid by you but paid by the company and

they're being paid more than you're

paying your agents right now so how does

that sound as a business proposition for

sounds much better than I'm offering

right now and now you see why there's

been about 50 independent brokers coming

to exp just this year alone and I'd be

willing to guess that it's going to be

substantially larger than this as we go

through the year as you see franchise

owners getting through their look period

and a lot of you guys are coming up on

your look period meaning you have the

opportunity to look at a different model

and who's gonna take on a huge expand re

as men pick on that big capital

expenditure on the front side and then

buying cells the legal binding handcuffs

if you come over to exp it's not for you

you roll your teen out tomorrow you

renew a franchise agreement it's not for

you and you get frustrated cause the

markets turn right massive check to get

out of it or you're gonna have to ride

out a storm for a number of years and so

it's a lot more freeing there's a lot

more opportunity here and it's just I

just think we're gonna continue on

scaling the way we are you're gonna see

more teams and more brokerages coming to

the company and we also have a special

incentive program for brokers right now

that's kind of off the books that we can

sit down by executive approval only if

you want to learn more about this this

is a massive massive incentive you're

not going to find it on the Internet

only a few of us are able to really

speak bad intelligently so if you want

to sit down to find out what that is and

it is substantial so you're gonna be

curious to see you can reach out to Mike

and myself and we'll show you what that

is definitely guys so hopefully this

pain is a better picture for you to

explain some of the incredible value of

brokerages which is why Connor and I

have been in talks with a lot of them

recently and they want to be a part of

what's going on because once they sit

down and truly understand the model and

understand the power and the time it's

gonna save them as well as the income as

well as the benefit that it's gonna do

for their agents because brokers should

want the best for their agents and when

you can see the additional power and

resources that is gonna give them as

well as the time the money it's gonna

save you it's really powerful to see why

this is an obvious decision for so many

so guys if you do want to reach out to

Connor and I click the links below feel

free to send us a message drop a comment

however you want to reach out to us are

more than happy to jump one-on-one with

zoom with you and go through your

brokerage your model and see how we can

help you take your brokers to the next

level so thanks so much Connor super

stoked to have you on here as always

providing value guys hopefully this gave

you a little bit of insight as to why

this is so powerful otherwise we'll see

you next time