Citing commission model, top NJ agent team ditches Keller Williams for eXp

Hoboken-based David Devoe said compensation structure is better at virtual brokerage

TRD TRI-STATE /
Feb.February 07, 2019 08:42 AM

David Devoe and eXp realty’s avatar platform

A top agent team on New Jersey’s Gold Coast has left Keller Williams for eXp Realty’s virtual brokerage, to escape what the brokers call a restrictive compensation model.

David DeVoe, the head of his eponymous team based in Hoboken, which counts 32 agents and 10 staffers, said he had decided to move because of the commission structure at Keller Williams, according to Inman. He predicts that a “wave” of brokers will continue to leave Keller Williams.

“Because they’re set up so heavily with brick and mortar and tons of salaries, expenses, dinners and lunches, what’s going to happen is their profit is going to get squashed and their profit share is going to be nothing,” DeVoe told the outlet. “That will crumble the culture they’ve built around that and people will need an answer.”

Devoe told the outlet that at Keller Williams, his agents paid a $22,500 cap to the Keller Williams International Realty and its local market center, prior to accessing 100 percent of their commission.

EXp Realty’s CEO Glenn Sanford founded the firm in 2009, which is effectively a platform that provides a virtual world where avatars of brokers can network and attend classes. Agents earn stock in the company when they close deals or recruit new agents. The company said last year it expected to have an agent headcount of up to 20,000 by the end of 2018.

Its sales have been strong, and in the second quarter of last year, revenue for eXp World Holdings, the parent company of eXp Realty, reached $130.5 million — above the $39 million a year earlier. Net loss was $1.9 million. [Inman] — David Jeans


Related Articles

arrow_forward_ios
Eric Gordon

Eric Gordon on the evolution of the residential data game — and how to stay competitive in the new world

Eric Gordon on the evolution of the residential data game — and how to stay competitive in the new world
Big Tech locations in NYC

MAP: Here’s a look at all the Big Tech locations in NYC

MAP: Here’s a look at all the Big Tech locations in NYC
What will proptech look like in 2019 and beyond?

What will proptech look like in 2019 and beyond?

What will proptech look like in 2019 and beyond?
Renderings of 17 Jane Street and Edward J. Minskoff (Renderings via Kristen Krajewski; Minksoff by Patrick McMullan/Patrick McMullan via Getty Images)

Minskoff sells first condo in West Village project for $22M

Minskoff sells first condo in West Village project for $22M
Central Park South saw its median sales price for condos nosedive to $1.5 million (iStock, photo by Gary Hershorn/Getty Images)

Here’s where Covid hit Manhattan condo market hardest

Here’s where Covid hit Manhattan condo market hardest
Corcoran Group CEO Pam Liebman (Photography by Sasha Maslov)

Corcoran absorbs Contra Costa brokerage in NorCal

Corcoran absorbs Contra Costa brokerage in NorCal
641 Fifth Avenue and 32 East 64th Street with Jeff Zucker (Google Maps; Getty)

Best week since March for Manhattan luxury market

Best week since March for Manhattan luxury market
Lincoln Center, Hudson Yards and Financial District (Wikimedia, iStock)

Bad to worse: Manhattan nabes where home sales fell most

Bad to worse: Manhattan nabes where home sales fell most
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...