How does an eXp agent qualify for FLQA?
To qualify for a front-line qualifying agent (FLQA), an agent must produce a minimum of $5,000
gross commission income (GCI) from qualifying transactions for the past 6 months (based on
the actual close date). US and Canada Only - Global Country amounts vary
What is GCI?
Gross commission income is the commission on a transaction prior to transactional fees being
applied and after state taxes if applicable.
Key point: On transactions with multiple eXp agents, GCI is calculated for each agent based on
the commission split percentage listed on the respective transaction document.
Example: If Jack and Sarah are both parties to a transaction, splitting the commission 50/50 and
the transaction produces an overall total of $6,000 GCI, then Jack and Sarah would each show
production of $3,000 GCI.
Key point: On transactions where a state tax is applicable (example Virginia GRT Tax) the GCI is
the value post taxes prior to transactional fees.
Keep in mind files with multiple eXp agent’s the tax is calculated on the individual agent level.
Example 1: If a transaction is a total sale price of $250,000 with a 3% commission, the overall commission would be $7,500. If there is only one agent on this transaction receiving 100% of the $7,500 the tax would then apply to that full amount. In Virginia GRT’s example that is a total of .23% leaving a remainder of $7,482.25 being the total GCI for this agent.
Example 2: If a transaction is a total sale price of $210,000 with a static value of $5000.00 as the overall commission, and there is only one agent on this transaction receiving 100% of the $5000.00 the tax would apply to that full amount. In Virgina GRT’s example that is a total of .23% leaving a remainder of $4,988.50 being the total of GCI for this agent.
If you have any questions on which states may include taxes, please contact the revenue share team via the blue help button located in your My eXp dashboard.
What is not considered a qualifying transaction for FLQA?
These are not qualifying transactions:
● Personal sales
● Broker price opinion (BPO), referral, or lease/rental with a GCI of LESS THAN $1,000.
US and Canada Only - Global Country amounts vary
When do my directly sponsored agents become FLQA?
When an agent meets the criteria based upon closing a qualifying transaction(s), the FLQA
status will update the first of the following month.
Key Fact: Closing is based on the date it closes in our system – not the actual close date of the
transaction.
Example: John Smith closes a transaction on 12/3 and settles within our system on 12/6 with $5,000 GCI, then John will become an FLQA on 1/1.
If the agent meets the GCI criteria and it is their first time doing so, their “New Agent Grace
Period” becomes activated. This takes effect immediately and is active for 6 months to the day.
The period also ends immediately 6 months to the day.
Example: John Smith closes a transaction on 12/3 and settles within our system on 12/6, with a GCI amount of $5,000. John will then be FLQA on 12/6 and fall off FLQA on 6/6, not on 7/1.
When do my directly sponsored agents stop being FLQA for me?
FLQA status updates the first of every month and evaluates the previous 6 months to see if the
required criteria have been met.
Key Fact: When an agent goes Inactive, they will automatically fall off as an FLQA for their sponsor
Example: John Smith closes a qualifying transaction on 12/3 and it settles on 12/6 within our
system with $5,000 GCI. If John does not close any further transactions in the following 6
months, the FLQA eligibility will expire on 6/3. However, the FLQA will not be updated until the
next time FLQA is calculated. In this example, first of the month updates begin on 7/1.
Expiration dates are adjusted on an ongoing basis as the agent continues closing transactions,
which in turn, updates the FLQA eligibility expiration date.
Example: John Smith closes a qualifying transaction on 12/3 and it settles on 12/6 within our
system with $5,000 GCI. John’s FLQA expiration date will show as 6/3 on his FLQA page of the
revenue share dashboard. On 2/9, John then closes a qualifying transaction with $5,000 GCI. On
2/11, that transaction settles within our system and John’s FLQA expiration date adjusts from
6/3 to 8/9 on his revenue share dashboard.
When does FLQA update?
FLQA updates occur on the first of every month.
There are a few events that can trigger a mid-month recalculation, but they are rare.
How do mid-month triggering events occur?
A mid-month triggering event occurs when both the sponsee and the sponsor update due to
certain criteria such as a front line agent (FLA) converts to active or moves to inactive; or a
sponsee triggers their new agent grace period, or the expiration of a new agent grace period.
The sponsee must have a triggering event prior to the sponsor for an FLQA update to take place.
When is revenue share calculated?
Revenue share is calculated when a revenue share-generating transaction is settled within our
system, which generates company dollar. Once company dollar is generated, eXp takes a portion
of the revenue and pays it back to the sponsoring agent.
When is revenue share paid?
Revenue share is normally paid around the 20th of each month. The payout includes the
transactions that were closed before the first of the current month and settled before the process
is initiated.
Example 1: Transaction is closed on 12/3 and is settled within our system on 12/6. It will be paid
out around the 20th of January.
Example 2: Transaction is closed on 12/3 but is settled within our system on 1/12 and revenue
share is initiated to be paid on 1/18. This will be included in the January payment batch (around
the 20th of January).
Example 3: Transaction is closed on 12/3 but settled within our system on 1/25 and the revenue
share payment is initiated on 1/20. It will not be included in the January payment but will be paid
out in February (around the 20th of February).
When is revenue share not calculated?
Examples when revenue share is not paid out:
- Revenue share is not paid out on transactions if the generating agent has capped, because there is no company dollar portion to share back with the agent.
- Revenue share is not paid out on transactions when it is a personal sale.
- Revenue share is not paid out on BPO, lease/rental, or referral transactions that produce less than $1,000 GCI
US and Canada Only - Global Country amounts vary
What are revenue share levels?
For transactions settled by agents you directly sponsor, you will always receive an exponential
revenue share on those qualifying transactions.
For agents within your level 2 - 7, you can earn two types of revenue share: expansion and
exponential. You will always receive expansion percentages no matter the level (outside of level
1) and no matter what your FLQA count is. Your FLQA count determines whether you receive an
exponential revenue share on the qualifying transactions completed at each level based on the
below values.
Level 1 – Automatic exponential share
Level 2 – 5 FLQA to unlock exponential share
Level 3 – 10 FLQA to unlock exponential share
Level 4 – 15 FLQA to unlock exponential share
Level 5 – 20 FLQA to unlock exponential share
Level 6 – 25 FLQA to unlock exponential share
Level 7 – 40 FLQA to unlock exponential share
Revenue share levels 2-7 are calculated based on your FLQA count on the transaction’s actual
close date, not the day it settles within our system.
Example 1: Mark Smith is level 7 for Eric Black, and Mark closes a transaction on 10/16 and it
settles within our system on 10/25. Eric Black has 42 FLQA at the time of 10/16, which means
Mark’s transaction did calculate with exponential revenue share and expansion. This is due to
Eric having level 7 unlocked (40 FLQA) at the time of 10/16.
Example 2: John Smith is level 7 for Jane Doe, and John closes a transaction on 12/31 and it
settles within our system on 1/3. Jane Doe only had 38 FLQA at the time of the transaction
closing on 12/31 but did have 44 at the time of 1/3. This means John’s transaction did not
calculate with exponential revenue share only expansion. This is due to Jane not having level 7
unlocked (40 FLQA) at the time of 12/31.
Example 3: You sponsor Tracey Jones, Tracey sponsors Billy White, and then Billy White
sponsors Jamie Smith. Jamie Smith would be on your level 3. Jamie closes a transaction on
1/15 and it settles within our system on 1/20. If you have 10 FLQA as of 1/15, you will be paid
exponential on that level for Jamie’s transaction. However, if you only had 9 FLQA as of 1/15,
you’d receive expansion revenue share only for that transaction.
Remember - All active agents with a productive revenue group will receive an expansion share.
However, in order to receive exponential share, agents must have the required number of Front Line Qualifying Agents for each respective level or tier.
Important note: For global sponsorships some country relationships will result in a buffer value
of 1 being placed between sponsor and sponsee - please reference chart below.
Key Fact: These agents can still qualify as an FLQA for you, but the revenue share calculations
will appear as level 2.
Example: You (a U.S. agent) sponsor John Smith (Mexico agent). John Smith will not appear as
your level 1, but will appear as your level 2 due to a sponsor buffer of 1 level for global
sponsorships.
Global Country Buffer Chart
If you have any further questions or are interested in learning more about Revenue Share please
use the blue Need Help? Button located on the bottom right of your My eXp Dashboard!
