REAL Broker Revenue Share Explained 

I have seen several different flavors of the “revenue share” model adopted in the real estate industry over the last few years, starting with eXp Realty, who is considered the original creator of this model. I spent 5 years at eXp Realty and can compare/contrast the model well!  See my other post for an in-depth comparison!

Revenue share is seen as an alternative growth strategy for a company compared to the strategy of spending money on your typical marketing channels. The revenue share model offers additional advantages besides just growth such as providing its agents with additional streams of income, incentivizing a culture of collaboration, and creating a better new agent experience.  

REAL Broker Revenue Share Tiers Explained 

REAL Broker has a 5 Tier revenue share model where the sponsoring agent can earn up to $4,000 a year for any agent you directly attract to REAL Broker. 

The agents you directly attract would be your “Tier 1” and any agent that your Tier 1 agents attract would be in your “Tier 2”. You would also receive up to $3,200 a year for those Tier 2 agents. 

 

    - If your Tier 2 agents attract new agents to REAL Broker, they will be in your “Tier 3”. You would receive up to $2,400 a year from those agents. 

    - If your Tier 3 agents attract new agents to REAL Broker, they will be in your “Tier 4”. You would receive up to $1,600 a year from those agents

    - If your Tier 4 agents attract new agents to REAL Broker, they will be in your “Tier 5”. You would receive up to $800 a year from those agents. 

 

Your Tier 1 benefits and revenue share is immediately unlocked but in order to unlock the revenue share benefits of all 5 Tiers, you need to attract 5 producing agents to your tier 1 position. 

    - To unlock your Tier 2 benefits, you need to have at least 10 producing agents in your Tier 1.

    - To unlock your Tier 3 benefits, you need to have at least 15 producing agents in your Tier 1.

    - To unlock your Tier 4 benefits, you need to have at least 20 producing agents in your Tier 1.

    - To unlock your Tier 5 benefits, you need to have at least 25 producing agents in your Tier 1.

REAL Broker defines a producing agent as an one who has contributed at least $450 in company dollars in the previous 6 months. So, if they close at least 1 deal or even one referral or rental transaction, that provides REAL Broker $450 or more, they are considered a producing agent. 

To get credit for an agent in your Tier 1, they will need to list you as their “sponsoring agent” when they sign their Independent Contractor Agreement and join REAL Broker. The revenue share amounts are determined by a simple 5%, 4%, 3%, 2%, 1% model. Revenue share is taken out of the $12,000 cap each agent pays to REAL Broker every year. This is paid in with an 85/15 split which means 15% of each commission is paid to REAL Broker until they pay their full $12,000 cap.

From the 15% paid to REAL Broker, 5% of the commission goes to the Tier 1 sponsor, 4% goes to the Tier 2 sponsor, 3% goes to the Tier 3 sponsor, 2% goes to the Tier 4 sponsor and 1% goes to the Tier 5 sponsor.

The Benefits of Revenue Share

This growth model is an alternative to traditional marketing and has numerous additional benefits to the company and the agents. Think of it as instead of a company spending $10M a year advertising to recruit agents, REAL Broker is giving that same $10M directly to the agents responsible for helping grow the company. Not only is this model more efficient at growing a company but there are several additional benefits to it besides just growth. 

There are 3 main benefits to adopting this model over traditional marketing models. 

    1)     When a new agent comes into the company, at REAL they have up to 5 agents in their upline who are financially incentivized to help that new agent get adjusted to the company and be successful at REAL. I always hop on a Zoom call with them and give them an overview of how to use the different programs, where to find resources, and answer any of their questions. I don’t receive any revenue share on them unless they are successful and close deals so there is a financial incentive for me to help them in any way possible. 

    2)     Agents are provided with the opportunity for an additional stream of income as real estate agents through revenue share. Even if you just had a few people in your downline, that can provide additional income coming in which will help take the pressure off of a lot of real estate agents’ businesses. Many agents set the goal of getting at least 3 producing agents in their tier 1. By doing this, you are essentially paying for your cap through revenue share and essentially keeping 100% of your commission. 

    3)     Revenue share incentivizes a culture of helping, sharing knowledge, and collaboration. A lot of real estate companies talk about their “culture” but when you really evaluate what they are doing to implement and encourage that culture, it’s usually pretty lackluster. REAL Broker has actually integrated financial incentives into its business model to encourage the type of culture they want to see. Through REAL Brokers stock program and revenue share program, the agents here have a financial incentive to share their knowledge, collaborate with one another, and help each other out in any way they can because as the saying goes “a rising tide lifts all boats“. When the agents in our downline succeed, we succeed, AND because so many of us own stock in the company, even when agents not in our downlines succeed, we all succeed.

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