One of the additional streams of income agents at REAL have access to is the free stock they can earn for hitting certain milestones in their business. REAL is publicly traded on the NASDAQ, ticker symbol REAX. After the REMAX acquisition, the stock you can earn is in the REAL REMAX Group.
In this article, I am going to explain the 7 different paths REAL agents have to earn this stock.
REAL Broker Stock Incentive Programs Explained
REAL has 5 stock awards for agents: a stock purchase match, capping RSUs, attraction RSUs, the Elite Agent Production Award, and the Elite Agent Cultural Award.
One REAL Mortgage has 2 more through the REAL Originate program. Those last two are mortgage awards, not the same as the five brokerage awards.
1. Agent stock purchase
REAL offers its agents an option to purchase stock directly out of their commission checks. If an agent chooses to enroll in this program, REAL will reward them with a match of additional shares on top of their purchase.
Before an agent caps, they can commit 5% of their commission check to purchase stock and receive a 10% match in additional shares. After an agent caps, they can then commit 10% of their commission check, up to $15k a year, and receive a 15% match in additional shares.
So if you have capped and purchased $1,000 of stock out of your commission, REAL will give you an additional $150 worth of stock for free.
2. Capping
REAL Broker has an 85/15 commission split until you have paid REAL your full annual cap. In the US, that cap is $12,000 for solo agents and team leaders. In Canada, it is $15,000.
Upon capping, REAL rewards you with free RSUs in the company.
Solo agents and team leaders: 15 shares
Team members: 7 shares
Mega-team members: 5 shares
These shares have a 3-year vesting period and require you to remain in good standing with the company during those 3 years.
3. Agent Attraction
Instead of growing the company through paying for advertisements, REAL has instead decided to reward the agents who are most influential in attracting new agents and growing the company. This is a similar model Keller Williams Realty and eXp Realty have used to grow their companies.
For attracting an agent to REAL, the sponsoring agent receives up to $4,000 a year in “revenue share” as well as stock in the company. You receive those attraction RSUs when the agent you sponsored closes their first deal.
Solo agents and team leaders: 7 shares
Team members: 3 shares
Mega-team members: 2 shares
These shares have a 3 year vesting period and both you and the agent you attracted have to be in good standing with the company during those 3 years.
4. Elite Agent Production Award
REAL has an Elite Agent Production Award for agents with exceptional sales volume.
To reach Elite status in the US, agents must meet one of the following:
Pay the full $12,000 annual cap AND generate $6,000 in post-cap transaction fees, OR
A minimum GCI of $500,000 AND at least 10 completed transactions of $1 million or more.
In Canada, the path is:
Pay the full $15,000 annual cap AND generate $9,000 in post-cap transaction fees, OR
The same GCI path: $500,000 GCI AND at least 10 completed transactions of $1 million or more.
For hitting Elite, US agents receive $12,000 in stock for the Production Award. Canadian agents receive $15,000 in stock for the Production Award. This stock has a 3 year vesting period.
Hitting Elite also makes you eligible for the separate Elite Agent Cultural Award. It is not one combined $16,000 or $20,000 grant.
5. Elite Agent Cultural Award
The Elite Agent Cultural Award is a separate stock grant for giving back inside REAL. You can earn an additional $8,000 in stock by hitting the Elite Agent Cultural Award.
You have to qualify for Elite first. Cultural is not automatic when you hit production.
This award also has a 3 year vesting period.
6. One REAL Mortgage $15,000 volume award (REAL Originate)
These next two awards are from One REAL Mortgage, through the REAL Originate program. They are not the same as the five REAL Broker agent awards above. You need a loan officer license and to join One REAL Mortgage as a REAL Originate originator.
If you close $20 million in loan volume through One REAL Mortgage in a year, you will be awarded $15,000 in RSUs.
7. One REAL Mortgage $500 sponsor award (REAL Originate)
If an agent or lender you sponsor into REAL Originate closes a transaction in their first 90 days, you will be awarded $500 in RSUs from One REAL Mortgage.
These One REAL Mortgage awards are restricted stock units with a 3-year vesting period.
I break down the rest of REAL Originate (pay, Level Up, licensing) in REAL Originate Fully Explained.
Incentivizing A Culture Of Sharing
As an agent with REAL Broker, receiving free stock in the company is great and is an additional stream of income for me but what I appreciate most is the impact it has on the culture of the company.
Life is all about incentives and disincentives. Because most of us own stock in the company and want to see that stock rise in value, we are all incentivized to help each other out and share out knowledge and experience. I have never in my life owned a stock which my actions could have a direct impact on the value of that stock.
This is very different than a typical local brokerage which instead of focusing on competition and does not reward agents for sharing or helping each other. If I am at a small brokerage, there is no incentive to giving away your best strategies or tips to other agents in your brokerage, in fact, it could actually hurt your business.
But because REAL is a national company and your broker covers the entire state, not just your specific city, it makes it far easier for agents to share their best strategies and by doing so, they are ultimately helping the stock price increase and their investment in the company increase along with it.
FAQ
What is REAL Broker’s stock symbol?
REAL Broker’s stock symbol is REAX and is publicly listed on the NASDAQ.
Is REAL Broker Profitable?
Yes, REAL Broker achieved EBITDA profitability in Q2 2023 and continued to be profitable into Q3 2023 and Q1 2024. See REAL Broker’s quarterly financial reports here.
