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HOW DOES NEXA MORTGAGE REVENUE SHARE WORK
Can someone give me a comprehensive detailed overview and step by step summary on how NEXA MORTGAGE Residual Income from NEXA MORTGAGE REVENUE SHARE RECRUITING PROGRAM WORK
Looked it up on the search engines to no avail
Can you please ho over several case scenarios on how the Residual Income REVENUE SHARE downline system works especially the risk layers that comes with it where a loan officer you sponsored leaves NEXA MORTGAGE and has a balance due. Thank you 😊
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1 Reply
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I will begin by outlining Nexa Mortgage’s revenue share and recruiting program, followed by a detailed explanation of how the Revenue Share program operates. Please note that information regarding risk layers and balances due when loan officers leave is not publicly available and will not be included.
NEXA MORTGAGE REVENUE SHARE PROGRAM – COMPREHENSIVE OVERVIEWBasic Structure
NEXA Mortgage loan originators earn 10 basis points (0.10%) each time a recruited loan officer closes a loan. The program includes three downline levels, each with specific qualification requirements.
Tier/Level RequirementsBased on the compensation calculator, the following structure applies:
- Tier 1 (Direct Recruits): Earn 10 basis points for each loan officer you directly recruit.
- Tier 2: Requires at least 5 personal recruits to qualify.
- Tier 3: Requires at least 10 personal recruits to qualify.
The revenue share model pays out across three levels, resets monthly, and provides 12 payments per year. Some competitors only reset annually.
Key Features
- Continuous Passive Income: Earn ongoing passive income on every loan you close and on loans closed by your recruited partners, as long as your tier remains active.
- No Management Overhead: Expand your team nationwide without the complexities of managing your own brokerage.
- Retirement/Exit Strategy: With NEXA, you retain your revenue share indefinitely, and it can be passed to your heirs. In contrast, traditional mortgage companies end income upon retirement.
Example Earnings Scenarios
Scenario 1: Single Producer
- For example, a producer closing $1.5 million per month can earn $18,000 in annual revenue share.
Scenario 2: Building a Downline
- You recruit 5 loan officers (Tier 1).
- Each produces $1 million in monthly volume.
- Revenue share per month: 5 × $1M × 0.10% = $5,000. Annual revenue share: $60,000.
- If those 5 each recruit 2 loan officers (totaling 10 in Tier 2):
- Each Tier 2 loan officer produces $500,000 per month.e share: 10 × $500K × 0.10% = $5,000/month = $60,000/year
- Total passive income: $120,000 per year.
CRITICAL: What Happens When a Loan Officer LeavesNEXA’s model addresses your risk question with a unique approach:
If a loan officer leaves NEXA, their downline is not removed; instead, it is transferred to NEXA.
In some cases, NEXA may generate additional revenue when individuals leave the company.
What this means:
- You sign up John, then John signs up Sarah and Mike.
- If John leaves NEXA, Sarah and Mike remain in your downline.
- Their positions move up to you, and you continue to earn from their production.
- NEXA assumes John’s former position in the revenue share structure.
Risk Mitigation Regarding Balances Due
- While the reference does not address your concern about balances due,
- it is important to note the following regarding NEXA’s business model:
- NEXA operates on a profit-and-loss model.
- Loan officers are responsible for their own business, pay a $75 monthly technology fee, and generate income from events and the technology platform.
The key protective element is that NEXA absorbs lost revenue when loan officers depart, as it assumes the downstream position in the revenue share structure. Outstanding balances are absorbed by NEXA and are not passed to you as the sponsor. NEXA captures:
- Revenue of the departed LO’s downline production.
- Ongoing contributions from residual producers.
- Active recruiters are relieved of any associated debt.
Step-By-Step Revenue Share Explanation
Month 1 (First Month Revenue Share)
- You sign up for NEXA as an MLO.
- You sign up Jane (This is Tier 1).
- Jane closes loans worth $500K
- You earn: $500K × 0.10% commission = $500.
Month 2 (Second Month Revenue Share)
- You sign up Tom (This is still Tier 1).
- Jane recruits Lisa (This is now your Tier 2).
- Jane closes loans worth $600K, Tom closes loans worth $400K, and Lisa closes loans worth $300K.
- You earn: ($600K + $400K) × 0.10% commission from Tier 1 = $1,000.
- You earn: $300K × 0.10% commission from Tier 2 = $300.
- Total earned: $1,300.
Month 6 (Still Month 6 Revenue Share)
- You now have 5 personal recruits (You have unlocked Tier 2).
- They collectively do $3M/month.
- They have recruited 8 people (Tier 2) who total $2M/month.
- You earn: $3M × 0.10% = $3,000 (This is Tier 1).
- You earn: $2M × 0.10% = $2,000 (This is Tier 2).
- Total: $5,000 per month, or $60,000 per year in passive income.
Month 12:
You have 10 personal recruits (Tier 3 unlocked)
Tier 1: $5M/month = $5,000
Tier 2: $3M/month = $3,000
Tier 3: $1M/month = $1,000
Total: $9,000 per month, or $108,000 per year.
Important Considerations
- Monthly Reset Structure: The revenue share program paid $870,000 to loan officers in a single month, demonstrating its scale across all participants.
- No Recruiting Required: NEXA Mortgage Loan Originators are not required to use the Recruiting Compensation structure, as there are many other reasons to join the company.
Response to Your Specific Balance Due Question
There is no publicly available information on how NEXA handles situations when a loan officer departs, including potential chargebacks or compliance issues. To clarify:
- Sponsor liability concerning recruit balance(s)
- Who is responsible for the chargeback(s)
- Costs associated with compliance violations
- What termination looks like, and the financial implications
I recommend the following actions:
- Ask NEXA directly for the complete compensation plan.
- Discuss the risk scenarios with a NEXA recruiter.
- Talk to some of the MLOs at NEXA to find out how it was for them.
- Check the contractor agreement and see the sections on liability.
Please let me know if there is any aspect of the revenue share program you would like me to research further.
https://gustancho.com/mlo-revenue-share-residual-income/
gustancho.com
MLO Revenue Share Residual Income For Loan Officers
Loan officers at Gustan Cho Associates will have the opportunity to participate in the MLO Revenue Share Residual Income, up to $3 million down.
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