Lars Hedenborg explains why he joined eXp Realty and how agents can build residual income through the platform's seven-tier revenue-share plan. He walks through concrete examples: a 5×5 agent structure and a 10-agent team, then contrasts eXp's low overhead model to traditional franchises. Peers like AJ Maida and John Mikish scaled using the platform.
Questions this video answers
September 11, 2020.
About 37,000 agents.
EXPI.
An 80/20 split with a yearly cap at $16,000, after which agents receive 100% commission for the remainder of the year.
$149 to join (includes the first month's $85 brokerage fee).
All right, let's go. So this is the truth about exp. I've been in this platform for almost, well, not quite two full years after years of saying no to it. So I've learned a lot about the platform and how I dismissed it and why I dismissed it and done a pretty good job in sort of sharing the truth about exp. So. And there's a reason it's the fastest growing real estate company by a factor of two of all time. And I also want to show you how in this platform, in our game changers nation, how you don't have to pay for tech, for training or coaching ever again. Here is the warning. I wish someone would have like grabbed me and sat me down and said, lars, I don't care what you think about the platform. You don't actually know what you're talking about. You. And so if you've heard of it or you think you know what it is and you haven't really spent the time, I mean hours, not many hours, but like three to four hours, having conversations with, you know, people that might have approached you about Exp or watching different videos. You need to slow down and really study this platform. And this is one of those steps is for you to be fully present today and really just take the time to study this. So I'm going to make this call all about you guys. I'm already in the EXP platform. I've done real estate at a very high level. I've done coaching at a high level. I'll tell you a little bit about myself here in a minute, but this call is really about you. I'm going to go through 10 questions and if you're able, I would write one through 10 on a piece of paper and grade yourself. And you're going to, you know, each question is one through ten. One not so good in that area of your business and 10, it is awesome. And you're crushing it. So let's go. Question number one. How would you rate your current real estate business overall in terms of the time you're putting in, the money you're getting out and the stress that you're enduring? And I wouldn't overthink this, just sort of gut reaction one to ten. Question number two, Is your broker or brokerage actively helping you grow and scale your real estate business and live a bigger life? I mean, like really getting in the trenches with you and actively doing it with you. Scale of 1 to 10? Question 3. Does your brokerage offer an actual technology stack that directly helps you grow your Business. Just think for a second, like my brokerage, my broker, are they like sharing or giving me access to technology that is really helping me grow and scale and sell an unfair amount of homes? I say unfair with quotes because it's our job here with the shifting market is to get our unfair share. 1 to 10 tech stack. Question 4. Are top agents in your brokerage or in your office regularly just training and giving you their best stuff? You might say, like what? I don't even know what that looks like. If you're saying that then it's probably a one or two. But if you're like, yeah, the agent that sells, you know, 40 or 50 homes, they've given me their listing presentation, they're giving me their, you know, whatever, right? Are they sharing their best stuff with you? 1 to 10 Question 5. Does your brokerage offer affordable health insurance options? This one is a little bit like the deck is stacked because exp does offer health insurance. So this is a 1 or a 10. Either your brokerage does or they don't. So this, this will take you from an A plus 100 all the way to a 90 if every other question was a 10. But 1 to 10 health insurance. Question 6. Does your brokerage give you stock just for selling homes? Like every year you just go sell homes and you have this stock account that just accumulates stock.1 to 10. This is also pretty linear. If they don't, it's a 1 and if they do, it's a 10. Question 7. Is your brokerage or broker partnering with you and showing you how to build residual income? Like, are they coming alongside you and saying, hey listen, this is a path to build residual income? Let me show you how to do it. 1 to 10 Question 8. Is your brokerage offering timely and relevant training or masterminds to thrive in the coming shift? And I'm going to let you know what that looks like in our game changers group here in a minute. But your current situation, you know, are you getting access to a bunch of business minded pros that are, you know, slogging it out and fighting the good fight Together, scale of 1 to 10? Question 9. Is your broker or brokerage teaching you how to gracefully exit real estate production? So if you sat down with your broker or team leader or brokerage owner and they're like, hey, listen, you know, you've got eight years that you still want to sell real estate. Here's what it's going to look like in eight years. Let's come up with an exit strategy for you. Where you can have residual income, right? Scale of 1 to 10, question 10. Are you excited about the future of your real estate brokerage? And if you're independent, like, how excited are you about, about your independent brokerage, right. And the future of real estate and the economy and kind of getting into that as a, as a lone ranger or if you're with a franchise, same question, 1 to 10. How excited you are you about the platform that you're, you put your business on? Make no mistake that the brokerage independent or franchise or, you know, a local independent or regional independent, that's the platform that you've chosen to put your real estate business on. And you need to demand more from the platform, right? So you're going to hear me a lot about, say about exp and the platform. And it's just a platform, right? You take your business from one franchise over to another, you're just shifting from one platform to another platform. So we need to demand more out of the platform that we put our real estate businesses on. Bonus question, and this is sort of the crux of our time together. And this is what I really want to challenge you on. And this is you asking you, right, Business is you versus you all the time. So do you have a clear roadmap in place to scale your business, crush your financial goals so that you can live a life of meaning, impact and satisfaction? So just thinking about the future, like the plans you have in place now, the roadmap that you're following, is it like clear, you know, you're going to crush your financial goals so that you can crush life and make a dent in your family and your community and maybe in the world? One to ten. All right, so how did you do?
Right?
I'm not going to ask you, I'm not going to call you out and have you put it in the chat, but how did you do? There were 10 graded questions, a total score of a potential of 100. If you were on the, you know, 60 is a D minus, 80 is a B minus. How'd you do? I would just mentally register that number because that is the grade as we sit here in this moment that you're giving your real estate business on the platform that you've chosen to operate. Here's the harsh reality. Whether we like it or not, the industry has failed to create a path to financial freedom for real estate agents and traditional brokerage. You know, all they can really offer the agent is the next deal like, okay, great job, we'll process this transaction, go sell another home. It's called the transaction treadmill. And being in the coaching space since 2013, I will say that productivity coaching and traditional methods that are out there, they're not getting it done in terms of showing a clear path to freedom. And I'll get more into that here in a little bit. And most agents and team leaders, you know, will not be able to retire. How many, like real estate agent retirement parties have you been to? Right, you, you, you don't retire from real estate. You just sort of disappear. Like you kind of die out of real estate. And I will say this. If you, in terms of your time here today, it's going to be well spent if you know there's another level of growth in your business, if you want to hang around with business builders that are going to crush this coming shift, if you want to grow your business in a very specific way, and this is something that I've been working on personally in my business, and I'll share that a little bit. But since 2013, the mission of real estate B school is to help agents, you know, build businesses that systematically increase your net worth and time off. So you're in the right place if you want to know a little bit more about that. And then I think most importantly, if you want to make the shift from that transaction treadmill approach to more of a lucrative lifestyle business, you're in the right place. But as we sit here right now, there's a lot of fear, uncertainty and doubt. We call it fud. There's massive FUD going through just our culture, but the economy is a little wonky. The global sort of economy's weird real estate and kind of the bleeding headlines that are out there. So just take some comfort. If you're not in a good place and you're not where you want to be financially, you're in the right place if you're working out of bounds and you're working evenings and weekends. If you're more stressed out than anyone you ever know and you're missing out on the stuff that really matters, right? You're in the right place. And a little bit about me, I don't want to spend a ton ton on me, but I think my most important roles are. I mean, first and foremost, I'm a believer. I'm a follower of Jesus Christ, which is pretty cool. I'm a dad, I'm a husband. I love business. I love it when it's really good and like money's rolling in and you're like, I'm the most smart guy ever. And then I Love it when it's really bad. And so like, what am I thinking? Like I'm stupid. I love my podcast, Real estate team Builders podcast. I think we're on episode like 492. I wrote a book called Scale or Die. Pick it up at Scale or Die book dot com. And when I got into business, I didn't have any sales, marketing, or business building experience. And so 2007, fast forward 5,000 plus families served in that business. Went from a solo agent. My first full year was 2008. 44 sides. That's beginning in my market of the great Recession. Handful of years later, sold over 400 homes working only 42 days that year helped hundreds, I think even over a thousand agents do the same in their businesses. At this point, I have a multiple seven figure liquid net worth and averaging around $80,000 a month of residual income. And I work an awesome schedule Monday through Thursday, generally 12 to 5 or so. I take as much vacation as I want. And I don't say any of that to brag because it comes with a whole lot of mistakes. I've made all the mistakes you can make in business all the times you can possibly make them. In fact, I continue to make mistakes that I've made 10 times. So I'm not a good learner in terms of the blood and guts that I put into my businesses. But the difference is I'm willing to share those with you so that maybe you don't have to make those same mistakes. When I got into the business, this is on the left. It's late 2007. I can't quite tell how old Anders is, but on the right, maybe he's a little older or maybe he's the same age. Either way, I was like all into the business. It was all out of bounds all the time. I was working when I shouldn't work and when I was with my family, you know, I felt like I needed to work. And there was. There was just no boundaries to the business. This is our first family vacation. You can virtually raise your hand if you worked on a vacation and let down your spouse as a result. I mean, really, this hurt Julie at the core. I promised her that I wouldn't work on vacation. And it was an $850,000 short sale. And I was like, 850 grand? Like, I need the $25,000 commission check. The deal never went through. Deal never went through. And the motivation really for me to build a leveraged income stream came in 2010 when Kendall was born in April. And my motivation Was like, I have to figure this thing out. And I did figure it out, right? 44 sides, my first full year to over 400. We live an amazing life. At the end of all of that right files, 5,000 plus families served. I made all the mistakes. Fully leveraged business on the right profitable economic model. I started a coaching company called Real Estate B School and it's really so that others could have an easier path to growing and scaling their business. That's been the real motivation. But with all of that experience, the good, bad, ugly about my journey and I've done, like I said, all the, all the things you could do wrong. I've done a lot of things right as well. I see still see massive challenges with the estate industry. The first challenge is that as a solo agent, a traditional agent, right, 85% of agents don't have an administrator, so they're running and gunning in their business solo. When you stop selling, you stop making money. There's no exit strategy. And I think the hours and stress that go into being a traditionally successful real estate agent, I don't think it's worth the sacrifice that you need to put in. So let's say you scale a team. This is, you know, I've helped a lot of folks go from solo, hire an admin a showing agent and go the team model. Ultimately you bring agents in and they leave you, right? There's this sort of like revolving door. If you get them to stay for two to two or three years, it's probably better than most teams, right? Or, and so in that model you ultimately train your competition. It's like this sort of training ground to launch out of your team or, or you give away margin to keep your agents happy. And let's say you have this really bright idea. I'm going to start like a local independent brokerage. That model, even at the highest levels, at the franchise model level, the constant churn of agents, the grass is always greener, right? And there's, in a lot of those models, there's no profit margin. The owners are having to subsidize either through title, mortgage or their personal production. And ultimately as a result, there's really no way to add real value and deeply impact agent lives. Agents lives. But I think the biggest challenge in our industry is the exit plan challenge. And this model was presented to me. Oh, I'm trying to think. I came into exp in September 11, 2020 and I probably learned this in 2010 from Tony Robbins at Wealth Mastery in Fiji. Tony taught me and it took like 30 hours to get there to learn this. So pay attention. It's not massively profound, but it changed my perspective on everything. He said the key to real wealth is to spend less than you make, like, ta da. And invest the difference. So spend less than you make and invest the difference until you get to a point where you have a critical mass of investment capital so that you can live off the interest. So simply said, it's like, spend less than you make, invest the difference, so you have a pile of cash that you can earn interest on it and not have to go out and do the thing that you were doing all those years. So in this example, the critical massive investment capital, that pile of cash is 4.8 million. It translates into 20,000amonth at 5% if you could get 5% conservatively, right? So the goal is to save enough money where either we have residual income of 20,000 or we saved 4.8 million. And that's a massive challenge when it comes for real estate agents. I'm going to take you through an exercise and personalize it for you in a little while. So don't stress too much. Let me shift gears here for a second. I want to tell you about my journey into EXP Realty. AJ Maida is on the right there. The taller, better looking guy. John Mikish is my sponsor at exp. He's the dapper dude in the middle and then a slightly heavier version of me. This is in early 2008 where AJ was sharing with John and I how he's, you know, he's been in EXP for, I guess at the time, a little over like 15 months. His Rev Share team, quote, unquote. I put the quotes around it. He's like, no, my Rev share team is 200 agents. And John and I are like, what are you talking about? You know, I coached AJ for a couple years in the team building model and I kind of told him he was crazy. I was one of the first people he told about EXP that he was going. And I was just totally dismissed it. He was like a mega fan of KW and John didn't get it either. John was running an independent brokerage. He had been with REMAX and was kind of done with the brokerage world and we just, we dismissed it. But fast forward, you know, a couple years later and I'm not really like friends with AJ at this point, but I'm seeing him do his thing. We were in a men's group, so it's not to say I wasn't friends with him for sure. We had a business relationship. We were in a men's group. So I was friends with him, but I wasn't talking to him every week. But I see him on Facebook living this like lifestyle that I never thought was possible as a real estate agent. Turns out that he was able to exit his real estate business, which is like nobody ever does that. He retired from real estate sales and living a life of complete freedom. And a couple posts that really struck me because he hasn't been silent about his exp journey. August 19, 2020. Huge milestone. Keep in mind, in March 2018 he was at 200. Just 18 months later he hit 2000 agents in his Rev Share organization. He tells the story of EXP and KW and all of it on the right. He said, my Rev share team closed 1,008 houses last month. When I saw that one, I think it was about a week after the August 19th. I'm like, what the heck? I know at this point he lives in Puerto Rico because he's making so much money he needs to not pay so much in taxes. And I'm like, what is he talking about? I couldn't even comprehend it because I had dismissed it and I just locked down the gate. My gate was closed to anything Exp at this point. I actually didn't mind the post in the middle because 22nd of the month is generally when we get paid Rev Share and both my kids are born on the 22nd, so I actually didn't mind that one. So John calls. So the dapper dude in the middle of that picture is John Mikish. He is here after 15 months of spending time in a less luxurious RV than AJ but totally off the grid, had been off Facebook, grew this massive beard. He calls me on September 5, 2020. So a couple weeks after I see this post from AJ and keep in mind that I had consulted into John's business. We're in similar markets. He's about 30 minutes north of me in Lake Norman. I'm more in Charlotte proper at this point and I essentially showed him everything that I did to build a really a multimillion dollar real estate team that's super profitable and not have to mess with it or tinker with it. So he's spending 15 months away from his business. It's running on autop. Calls me out of the blue and he says, I have something to tell you. Are you sitting down? I'm moving my team to EXP on the first one here. When he said, I have something to tell you. Are you sitting down? He had such a tone of seriousness in his voice that I thought for sure something was wrong. I'm not even joking and I don't say this jokingly. I thought it was like a terminal illness or something was up with Jen. Now I know they have a strong marriage, but I thought divorce. I'm like terminal illness or divorce. And he says, I'm moving my team to exp. And I only laugh because at that time that was like. Not that it was as serious as those two, but he knew that we both agreed to dismiss it. So this was not an easy call for him to make. But then he sort of like kind of a two by four to the. To the head where I launched into like, John. I like my palms are sweating at this point. My heart palpitated a little bit. I'm not even kidding you. I had a physical reaction to what he told me and he said, have you actually studied the model? He cut me off in mid sentence. He said, have you actually studied the model? And I said I hadn't. I watched less than one minute of one video that one person asked me to watch and I totally dismissed it. It's been said that the most expensive thing you can own is a closed mind. 100%. I was guilty of this. The truth is I didn't see the platform for what it is because I never looked at it. Fast forward, this is only six months after I join exp, right? Yes. September 2020. So AJ goes from 200 to 2000 to 3750 is currently well over 6000 at this point. And now we're recreating the picture, but with, you know, we're all in the platform, we all get it now, we're all adding massive value, having fun in real estate again. And it's just this sort of nice story. But the point of it is, is that I just dismissed it. And I'm not a stupid guy. I don't know everything. I'm not the smartest guy, but my mind was so closed off to it. So if you're at that point now and you're sort of feeling that same thing, I have been there. Nobody would have, I promise you, you're not as closed off to it as I was back in those early days. At this point though, it's not, we're not blazing any trails, right? It's 82,000 plus agents and it's growing, you know, still at about a thousand agents a week or something like that. And I can say with all of that experience, the real estate team journey the 5,000 plus families serve the I would say maybe even over a thousand top agents and team leaders that have helped in their journey. You know, and now being a couple years into EXP and building out this platform that I would say the only way, but for sure the fastest way to grow and scale your real estate business and create a pile of wealth through stock and a massive leverage income stream is to partner with somebody that sent you here, Right? Somebody in our Game Changers Nation community sent you here. If I invited you here, for sure I want you to slow down and study the model. But I can say this without any hesitation and you could do it without paying for all this stuff. The coaching, the training, the technology ever again. I'm going to play a short video. This is EXP explained in nine minutes and it does a really good job of hitting on all the points of the exp, like actually explaining the model. It would take me probably 30 minutes to go through what this explains in nine and a half minutes. Pay attention as if your business and financial future depends on it. Because I think it does.
Welcome to EXP Realty. This is an overview of one of the most innovative real estate brokerage models today. A global community designed, powered and owned by our agents and partners, transforming the real estate experience. Our family of agents build their own businesses while having equity opportunities in EXP World Holdings. As technology has transformed entertainment, hospitality, transportation and retail, it's now transforming the real estate industry. There's been little to no innovation with the old fashioned real estate model. Franchise brokerages all start with the company at the top, which feeds down to regions followed by offices or market centers, followed by a local manager or team leader. The focus was on the brokerage and their brand, not on the agent and their business. The evolution of real estate brokerages has always been driven by how agents get paid. This can be clearly seen with EXP's growth compared to old fashioned models at EXP. At SP Realty, we've eliminated old fashioned bloat by removing franchises, territories, brick and mortar and redundant layers of management. By doing this, we've created opportunity to give equity back to the agents and have made the agent the focal point of their business. We do this by having multiple income opportunities within our model and leveraging our fully immersive cloud office environment where agents enjoy 24. 7 access to State of the art collaborative tools, coaching, support and socialization. EXP Realty continues to experience consistent record breaking year over year growth with a mission to reach 1 million agents globally. It all began in the United States and Canada with Exp Realty perfecting the model over the first 10 years, laying the foundation for our global expansion. Our international footprint now expands the over six of the seven continents. Our core values define our culture and ensure decisions are always aligned. Like being agile allows us to make adjustments at any time for our agents and their clients. EXP is at the forefront of technology. Every agent gets their own lead generation CRM system called KVCore. For a non exp agent, it could cost over $5,000 a year. This industry leading system provides you with a behavioral driven personalized idx, website, CRM, email and text campaigns. You'll always be notified of your contact's behavior, helping you convert and close more transactions. Skyslope allows agents to manage their business totally paperless. This all in one transaction management system helps you effortlessly scrape stay organized with your transactions. All of your important data is contained on one detailed checklist so you have everything in one place. One of our top priorities is building our own technology. Our back Office Business Intelligence center gives agents both autonomy and great visibility into their business. Within your dashboard you'll be able to monitor your performance metrics, commissions, revenue share, equity awards, transactions and and more. Whether you need a quick postcard or a full presentation, the EXP Marketing center has it all. You can edit marketing collateral within minutes by choosing from over 5,000 marketing pieces. In fact, when a new listing is added to your mls, you'll get an email with marketing items created automatically for your listing. Welcome to EXP World, our three dimensional virtual cloud based office environment. Meet, learn and collaborate with agents and staff from anywhere with an Internet connection. Join a meeting or training within a community via your phone, tablet or computer. In EXP World, agents get real time live support from our over 1000 full time staff members. Access over 80 hours of live training weekly in Exp World. Our training focuses on industry best practices, how to grow profitable real estate, business, professional development and much more. These sessions are taught not only by our highly experienced training department professionals but also by our top producing agents and teams from around the world. EXP Realty agents also have access to Workplace by Facebook, which is a dedicated and secure working space to connect, communicate and collaborate with other agents and EXP staff. You'll be able to use familiar Facebook features like news features, feed, groups, messages and events to get things done quickly and efficiently. We understand that some agents enjoy the office setting from time to time, which is why every agent at EXP gets a global membership to Regis shared offices and their new brand spaces. Regus offers 3,000 office locations in over 900 cities in 120 countries. Every agent at EXP has the opportunity to become a shareholder in EXP World Holdings. Earn Equity awards for closing your first transaction each year Capping each year and every time an agent you attracted joins EXP and does their first transaction. Our Agent Equity program helps agents prepare for retirement. You can elect to take 5% of your gross commission per transaction and buy the company's stock at a 10% discount. Our ticker symbol is EXPI. Note that some stock awards are subject to vesting. EXP's ICON agent program is unmatched within the industry. Our founder, Glenn Sanford, strongly believes that top producing agents should be rewarded for their contribution. There are two ways to qualify for Icon $5,000 paid in post cap transaction fees or 500,000 annual GCI with a minimum of 10 closed transactions. When you achieve Icon status, you'll receive 100% of your cap that you paid to EXP back in the form of company stock, essentially putting you at a 100% commission split. One of the most exciting aspects of our compensation plan is our revenue sharing model, which allows you to build a monthly leveraged income by attracting productive agents to the company. Here's a breakdown of how the revenue sharing model works. Tier 1 contains the agents that you personally attracted to the brokerage. For each transaction on this tier, you'll get 3.5% of their total commission. This amount is taken out of exp's 20%, not out of the agent's 80% commission. Once the agent has hit their annual cap, they start receiving 100% of their commissions. You therefore no longer receive income from their deals for the remainder of the year, which is why the max you can earn on this tier per agent is $2,800. You can earn on all seven tiers, but it's contingent upon how many agents you've personally attracted to the brokerage and their level of production. For example, if you attract five producing agents, you earn exponential share in commissions on Tier 1 and Tier 2, which are agents that your Tier 1 agents attracted. If you attracted 10 producing agents, you earn exponential share in commissions on Tier 1, Tier 2 and also on Tier 3, which are agents that your Tier 2 agents attracted. On Tiers 4 through 7, you'll still receive a reduced share in commissions, which is called our expansion sharing. So let's go through a quick example of how you can create a monthly leveraged income through the revenue share program. Here's you you personally attract five capping agents. Then each of those five agents attract five capping agents of their own, giving you five agents of tier one and 25 agents on tier two. For the five capping agents on tier one, you earn up to $2,800 each. And for the 25 capping agents on tier two, you earn up to $3,200 each, giving you an annual leveraged income of up to $94,000. But note that these figures are based on each one of these agents capping, which is approximately selling $2.7 million of real estate per year with an average commission of 3%. You can speak to an exp agent or staff member for further explanation. Express offers a revolutionary new home selling option for homeowners who want to skip the hassle and uncertainty of a traditional home sale. The platform connects sellers with institutional buyers who can pay cash and close quickly. Unlike other ibuyer platforms, Express offers allows agents to receive real estate commissions. At exp, you'll never pay a desk fee, royalty fee or franchise fee. Every agent is treated equally and is on an 8020 split which caps each year at $16,000. You then receive 100% commission for the remainder of your year. Here's the amazing part. It's only $149 to join exactly. And that includes your first month's $85 brokerage fee. On each transaction, there's a $25 broker review fee and a $40 risk management fee. The risk management fee caps at $500 each year. We're also excited to announce that we've added a low cost healthcare alternative. Our agents get a one on one virtual consultation to ensure they've selected the right plan. EXP Realty continues to set industry records, becoming the number one independent brokerage in the US for closed transactions. For more information, reach out to the agent who shared this video with you.
I love that once you have seen it, you can't unsee it. I know that was true of me and I actually went through a little bit of EXP insomnia where once I actually wrapped my head around what EXP was and a little bit like what? Why were you so closed off to this thing? You know, I realized that in addition to like all this stuff, you know, it has tech, it has training, it has, you know, competitive cap and cut and health insurance and stock and you know, like Express offers and a level of collaboration that I've never seen before. And then it has Rev Share. I'll get into agent attraction here in a little bit as well. But I realized that it was like dead aligned with my core focus which you know, I did my journey in terms of growing and scaling my real estate company, but then since 2013, I exist to help agents scale their business so that they can have some time and money freedom ultimately so they can have greater purpose and impact. So this was right in line with that. And you know, whether we like it or not, it's doing its thing. It's already done its thing. Right. I joined at 37,000 agents and that was 45,000 agents ago. And I thought I was too late. And we're just getting started.
Right.
You know, the video mentioned this being just an innovation that's happened in every other industry. It's finally like it's not going away from real estate. This is the most efficient way to run a brokerage in our industry is via a cloud based system. And we've proven that, which is exciting. I love this quote by the CEO of Jim Keats. This is back in 2008 where they had the chance to buy Netflix. He says neither Redbox nor Netflix are even on the radar screen in terms of competition. And here I am, even Redbox in my local market and 52,000 kiosks. They figure out a way to stay relevant and stay in business where others just don't understand the benefit of leaning out non productive expenses. And Tony Robbins. And this is old because valuations have changed, but I think it's even more opposed here. At the time, Airbnb was 10 years old versus Hilton was almost 100 years old and their market values weren't even like close.
Right.
And Airbnb owns no real estate. And so I'm going to go through the history of traditional real estate model. This is the last hundred years. And they touch on some of this on the video. So I'm not going to spend a ton of time on this, but a typical take a franchise has an international which goes out and sort of cuts the world up in the United States up and Canada up into regions. The regions go out and sell either market centers or franchises and those owners go and hire staff who then go recruit agents.
Right.
And then the agents have to go sell a bunch of homes to afford the whole reverse pyramid.
Right.
And EXP just took a different approach where they said, what if we designed a company where it was so stacked in the agent's favor? And Glenn Sanford had said this, it's not a direct quote, but he said something to the effect that he wanted to make the value proposition of EXP so undeniable that it would be irresponsible for agents not to Bring their license over to exp. So to put the agent first.
Right.
Versus like the last thing that happens in the other models. Like, oh, we need agents to pay for all the stuff we just set up.
Right.
Where the agents are now owners in the company, where the staff is now eliminated for the most part.
Right.
The regions and the owners, they don't exist anymore. And the international. So the folks that sort of started the company are on don't exist except for the agents and they know it.
Right.
And the value proposition, proposition in terms of the lead gen that we have available, the tech and the training. Health insurance. I'll save about $10,000 this year on the health insurance alone. Five ways to earn stock revenue share. I'll get it to here in a second. And then a level of collaboration that has not been seen in our industry. And this was the question I finally. So, you know, being in real estate B school, I've coached some of the top teams that were early adopters in exp and mentally I said no to it. Only one person actually formally reached out to me. But I finally asked myself the question. And this is after John called me on September 5th of 2020. I was licensed at exp on September 11th. But I asked myself, I'm like, Lars, are you really going to sit on the sidelines while EXP continues to disrupt the real estate industry? I love business, I love other industries, you know, disrupting and Uber and two clicks. I can't have a stranger, you know, come to my front door and drive me somewhere, you know, doordash. I don't have to leave my house anymore. I was literally at the. When we were playing the video, I was eating something that was doordash to me. So I was not willing to sit on the sidelines anymore. I decided that I wanted to be a part of the revolution. And so I get asked this question, like, how is it really different? You know, it is the change that's happening in every other industry. This is the platform, this is the Uber, the Amazon, whatever analogy you want to use. That is what this is for the real estate industry. You know, there's economies of scale and the value is placed appropriately, which is with the agents. And now we have a chance to align our interests in a way where we can collaborate at a high level without it costing you any additional money. And I'll talk about our game changers nation here in a little bit. And there's no company that has a clear path for agents to real wealth and exiting production and making real estate fun again. There was a recent article by this guy, Mike Delpriet, and it was a very simple concept. So he was saying EXP is well positioned for what might hit the fan here. I believe some stuff is going to hit the fan. Not in the next few months. I think in the next few years it's just going to be a tough time. And he just took Q1, so quarter one, January, February, March, operating expenses, and divided it by the number of transactions sold by five real estate companies. And EPS operating expenses per transaction was $691. So if you look at that, the only thing coming into these companies for the most part are commission checks. If you look at think of the average commission check, and some of these companies might have bigger one, like Douglas Ellman, they may have $25,000 average commission check, but they're spending 10,000 of it on overhead.
Right.
And so I just think EXP is doing a better job, a better steward of the opportunity given to them by the commissions generated by agents. If you look at Compass next to exp, there's nothing wrong with Compass, right? They're just different model. They spent over $400 million in the first quarter. They sold about half the units that EXP agents sold and EXP spending about $80 million. So EXP spending less than one fifth of Compass. And they're selling more houses in terms of units.
Right.
And so let me go into a little bit before I get into the revenue share piece of it. What does it look like to partner with Game changers at EXP Realty? There's kind of two tracks that we focus on. For sure, we want you to help. We want to help you sell more real estate. So we have a sales and production mastermind weekly. I run those. I bring the best of the best in our whole community to those calls. But it's focused on helping you sell more homes in less time with less stress. It's not about just selling more homes for selling more home stakes. So our production mastermind, this is just sort of a. Last month we talked to a guy that he'll do about 350 million this year. He talks about, and that's not relevant for everyone, but he talks about breaking it down in terms of like, how did he go from a solo agent to growing and scaling, Right. And then every month we're. Until it doesn't make sense, we're going to do a market shift update and we're going to bring in people that know what's going on in the market and they can talk to it what's working and what's not working. We had someone come in and present the power of Giftology, a simple system that has about a 25 times return on investment, an awesome deal. And then we had a top agent mastermind. We had four agents that spoke truth into our group about what's coming and how to handle it. And so then we have the other side, which is Agent Attraction. That's the residual income side. We've built out the system already. We have all the building blocks and trainings done. We even have sort of done for you funnels built out. And all of that is already built out. And so I get asked this question like, Lars, it's easy for you to do Agent Attraction, right? You've got real estate B school. And I'll give some examples here of what I've been able to do. But my question for you more importantly is, do you have an exit strategy? You know, if you don't have an exit strategy, then you got to work on an exit strategy anyway. Could Agent Attraction be your exit strategy? This is straight up cash flow quadrant by Rich dad, Poor dad, Robert Kiyosaki, where you know, if you work for someone, you have a job, there's no leverage. You're not making a lot of money. When you create a job as a real estate agent, you make more money, but there's no leverage, right? So we want to be on the right side of this where either we have leverage income through our business, that's what I teach, and we invest that money, or we're building Rev Share, where we have access to a little bit via referral fees of the organization that we build at exp. So it's this awesome opportunity. So my challenge for you is to pick a number, right? My number one that I gave an example before was the 4.8 million. That was the critical mass of investment capital. What's your number? And your number really is the number on the left. Like, how much money coming in every month would give you enough income where you could sort of, I'm done, right? At some point you're not going to want to sell real estate. You may be like thoroughly happy with it today, but at some point it's going to get the best of you and you're going to want to be done. You got to prepare for it. So pick a number on the left and then the I'm done number is on the right there. And then the exercise I want you to do is, so if it's 4.8 million and you've Saved nothing so far. You have no liquid net worth and you're saving, let's say, $5,000. Let's just keep the math even. Let's say you're saving $10,000 a month or $120,000 per year. $4,800,000 is your gap. It would take you 40 years, simple math, saving $10,000 a month to bridge the gap there. So if you don't have a lot of investment capital right now, you have to be honest with yourself. And based on where you are today, how confident are you in terms of where you're going? Three examples I want to give you of revenue share that every agent can accomplish. I don't care who you are. Here's the thing, only one out of eight agents at EXP participate in revenue share. But I know 100% of agents can achieve all three of these examples. I'm going to go through them. They're all based in the same production level. So an average agent, not a full capping agent. You know, seven homes a year, 352.75%. The SRS buffer just takes a little bit of money to make sure our rev share sustainable. It's a good thing. Even though it brings the numbers down, it's more conservative. Let's take a five by five where you invite five people in and they invite five people in. That's 50, $100 per month. You can see on the bottom there, the equivalent net worth of $1.2 million. If you can bring five in, you can bring another five in. And if the ratio in the middle there of 5 to 1 holds, that's an organization of 60 agents. It's $10,000 a month, almost 2.5 million net worth equivalent. And on the right is simply the 50 inviting one friend in each on average. So you can bring in 10 agents and very conservatively, very realistically generate $15,000 a month, which is an equivalent net worth of 3.8 million. And when I show these numbers to somebod and they don't have anything figured out in terms of residual income or significant net worth, they're like, all right, game on. Show me what I need to do. And the training's already built out my journey. It's only worth showing because it shows you the power of this. I believe everyone, if they focus on it a little bit every week, could build an organization of a thousand agents. It took me about 18 months to do that, which is not everybody will be able to do that. May take you 10 years to get to a thousand. But the last three months, I've averaged about $86,000 a month of residual income. That's a net worth equivalent of $20 million. And in my however many journey, my 15 year journey in business, I'd only generated a small fraction of that, about 20, 25% net worth. And now I have a net worth equivalent of about 20 million. And so this is what the dashboard looks like. The only thing I want to show you here is that my 41, that's my efforts. The 41 in the upper left went out and brought in the rest of the 1308. The big circle, well, it's actually 42. You could see in the level 1, 2, 3, 4, 5. The 42 brought in 290, brought in 417, brought in 291. And this thing will continue to grow out. And you can see that, you know, we're paid on the 22nd of every month or roughly. And this is about a week or two old at this point, but that's roughly how this works. In the last 30 days, 60 agents have joined me. Only one was for my effort. So it's massively leveraged. And I just believe like you can either, you know, save a big pile of money, 2.4, 4.8, 7.2 million, or you can attract 10 to 15 agents in the next few years. And it's not even a question of, you know, knowing that this is possible. It's actually predictable. And you're not going to be alone in this. The whole point of joining Game Changers Nation is for you to go further, faster. And if you're all the things that I described in the first couple slides, you know, you're underpaid, overworked, you want to scale, you don't know how, you want to put life first, create a future that you and your family deserve, challenge the status quo, build real wealth, and we're going to be really awesome business partners. And this platform is already doing its thing. I think there are five things going for it, right? The agent compensation is where it needs to be. The value is appropriate for who is more valuable. The agent revenue share is an amazing opportunity. The technology and the training is unbelievable. Our best agents are training on their best stuff. The equity opportunities, five ways to earn equity and literally on demand support where you can pop into the world or on workplace by fake Facebook. And I almost said fake book and get any question you need answered. So I'll end with this. And I'm actually interviewing Mike Michalowicz for my podcast here. Tomorrow. Actually putting your nose to the grindstone is a really easy way to cover up an unhealthy business. We think we can just work harder, longer, better if we can just hold out. Something good will happen one day and very rarely does it. So the goal here is to help you make more money so that you can have more freedom, so that you can have more impact. So connect with the GCN Game Changers Nation member that sent you here. For more information, ask for the next video. Ask to speak to their business partner. If I sent you here, message me on Facebook or you can text me at 704-741-2416. Much love, much respect. We'll talk to you guys soon. Be good.
