Is eXp Realty a pyramid scheme?

Let’s talk about the elephant in the room. You probably think eXp Realty sounds like a pyramid scheme. A company promising high returns, passive income, and business growth is basically the definition of a pyramid scheme, right? 

If it looks like a duck, and quacks like a duck, it’s probably a duck…even if he is a very well-dressed duck with excellent social skills who is promising you freedom from the 9 to 5 and success beyond your wildest dreams.

What is a pyramid scheme?

First off, let’s take a quick dive into Econ 101. The term pyramid scheme was coined to describe illegal business transactions in which unsuspecting investors are recruited into a corporation that promises great returns in exchange for relentless recruitment. There are usually expenses incurred to even become involved, thus “locking” people in with an investment they are assured will pay for itself in no time. 

Those who recruit well receive a portion of sales from those in their down line (even if those sales were purchases made by the new recruits who were forced to “pay to play” and are now thousands of dollars into debt and cannot sell enough to even break even.) Though upper-level members preach that you, too, could be as successful as they have been, this simply isn’t the case. Remember, a pyramid only has one point at the top.

exp realty, exp realty revenue share chart

eXp Realty is a multilevel marketing business, not a pyramid scheme

Pyramid schemes thrive behind the disguise of a very legal and successful marketing strategy: multilevel marketing, or MLM. MLM allows businesses to grow by rewarding the success of their employees (either monetarily, with revenue sharing, stock options, etc.) and encouraging them to guide new members along this path to success. Nearly every successful business utilizes such tactics with sales incentives, bonuses, etc. 

The key difference between MLM and a pyramid scheme is that MLM businesses are producing and selling a legitimate good or service. But the unspoken difference between the two is the incentive for recruitment.

A pyramid scheme makes you feel like you must recruit to get your money back, MLM incentivizes you to recruit to create more opportunities for your business to grow.


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What makes eXp Realty different?

So, if eXp Realty is legitimate, and I can become very successful as an eXp agent, why doesn’t everyone do it?

Because you have to want to do it. Upon joining, you will have access to the best of the best in training materials, industry connections, and business opportunities. But you have to want to soak all of this in, run with it, and eventually share it with the next in line.

You can lead a horse to water, but you cannot make it drink. There are a lot of horses out there saying “That water looks so great, I wish I had that water for myself.” But they would rather talk about it than start drinking.

You wouldn’t share the secrets to your business success if you knew it would hurt your chances for future success, right?

But what if sharing your tools for success didn’t take away from your business, but actually invested in it and made it more successful?

When you join eXp Realty, your sponsoring agent wants you to succeed because your success builds their income and revenue shares. eXp Realty is not a place for those who want to cloister the secrets to their success, because they simply won’t find much if that’s the way they operate.

If you cannot grow and cultivate a healthy, successful downline, you will not grow your business.  

eXp Realty Supports Agents By Giving, NOT Taking

eXp Realty offers revenue sharing and stock options to eXp agents that only increases as their downline grows. 

Revenue sharing comes from eXp Realty; it is not a profit share. A designated portion of eXp Realty revenue goes directly to the agents who made it. This means when you make a sale, you don’t get less of that money because it’s going to your upline, your upline makes money from the company.

You will never get less because you are a part of a downline, but you will get more being an upline.

Once again, the incentive to grow the business of those below you should never be at your expense, only to your benefit. This is how eXp Realty supports and increases success opportunities for one and all. eXp Realty isn't a pyramid scheme because it's not a pyramid, it's a big dining table with plenty of room for everybody, as long as you’re ready to bring something to the table!

exp realty, exp realty explained

Are you considering joining eXp Realty?

We talk to tons of real estate agents every single day about eXp and what we offer here at the Channel Junkies and we absolutely love it. We are all licensed agents who practice what we preach. NOT “gurus” or talking heads who don’t practice these very same methods. If you’re a new real estate agent don’t hesitate to reach out if you have questions about building your business!




A “win-win” is a saying that gets thrown around a lot. If you want to see what a REAL WIN looks like check out our partnership opportunity.

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