Broker Question - Splitting broker payment between two parties?

**joker760** · 07.08.2012

Hey all,

So I'm not a broker, far from it. I'm an agent who finds loads for a few truckers. I usually get them the best possible loads and I don't charge them much. However I just offered to find loads for a weird trucker and he tells me he doesn't want to pay me a % of the load, instead he wants me to negotiate the price with the broker and tell the broker to just send whatever money's leftover to my private bank account. For example If he wants me to get a load for $2.00 per mile and I get him a $2.15 he wants me to tell the broker to send the 15 cents to my personal account (dumb I know).

I told him I don't think this is possible, that I would rather charge him a % like I do with all my other truckers. I guess my question is, do brokers actually do that??? (I doubt it)
Anyways can anyone help me and share some info on this matter.

Sorry If this question is stupid,I'm fairly new to the whole trucking industry.
Thanks

**G/MAN** · 07.08.2012

Why does he want the broker to pay you instead of him? If your normal way of doing business is for the carrier to pay a percentage and he doesn't want to pay you then it may be better to walk away. I think most brokers would question the ethics of spliting the money.

**Grumman** · 07.08.2012

Typically they won't split the payments. They are going to remit to whomever sends the invoice which should be the carrier with whom they have the rate confirmation. Walk away from this arrangement, too much other business out there to be had.

**jbatmick** · 07.08.2012

Nope, sounds hinky.

**Pilot1** · 07.08.2012

Hey guy's I will chime in on this! Does it sound hinky? Yes it does... When I bill a customer that I haul for, and they pay me; there are no "split payment's" so to speak. If you are not a broker; then how does the driver pay you and who does the billing? Are you working "under" a Broker number?
You should stick to your company policies. And if that doesnt work for the driver; then there's more business out there I guess! As G-man stated "most" Broker's would look at it kinda suspiciously. I know I would! The normal thing for "3rd party dispatchers" is that you would take a certain % or a flat fee that is negotiated between you and the carrier. Hope this help's!

**BoyWander** · 07.08.2012

Probably because he thinks he might be able to get away with not having to add that "extra" to his taxable income. Although he could deduct what he pays you from his taxes, he wouldn't have to pay taxes on it PERIOD if it's never ADDED to his income.

I don't know if he'd get away with that anyways, the IRS might notice something off, but I'd stick with your own business strategy of charging by % of linehaul.

BTW, do you mind mentioning what % you do charge? Do you think "private dispatching service" might better describe what you do?

**ralph** · 07.09.2012

I betting the O/O just can't be bothered with the additional paperwork. If the agent sends an invoice and the O/O doesn't get home then the agent may not get paid in a timely manner. He may be one of those guys that works on a "cash" basis.