Average pay structure for brokers

Discussion in 'Freight Broker Forum' started by humco, Dec 12, 2017.

  1. NHS

    NHS Bobtail Member

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    Yeah hard to tell exactly what is going on here based on how he’s said it, but if he’s getting loads from other 3PLs that are tendering the freight on behalf of the shipper then essentially he’s getting the freight direct from the customer because that 3PL is working just as the customer/shipper would be to find trucks to move the freight. One has to assume there would be some sort of setup process for the OP’s company to get qualified with the 3PL to move there freight, which would include verification of their Authority. So I would guess they know he’s a broker and are good with it.

    I agree that if he’s just working other brokers freight from within his own company, his compensation is probably close to fair. However if he’s establishing these accounts on his own from the ground up, then I’d say he’s leaving some money on the table for sure. Either way OP if you are unhappy with your current situation, I’d say now’s the time to move on. I had always thought if a person was going to switch companies it would be best to have a big book of business then make the switch, but someone pointed out to me once it may be best to make a switch before you have too much to lose. What happens if you have all these big accounts, you leave your your current gig and then have to sit out some sort of non-compete? A lot of things could change during that period of time and you might find yourself back at square one when you can start working again. Just my 2 cents. In any case it sounds like you have enough experience that you should be able to find someone to take you on as an agent under a 60/40 type deal or at least work as a sub agent under someone else for a bigger piece of the pie than you have now.

    But before you jump ship for greener pastures as an agent on your own make sure you are up to the task of paying your own way with no base salary or benefits. It seems like no big deal with tremendous upside, but no matter how big a book of business you “think” you have it is nerve racking as heck to come into work each day and figure out where the the revenue is going to come from. Even though it seems like your base salary isn’t much, at least it is a small safety net against making nothing, despite your best efforts.
     
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  2. rollin coal

    rollin coal Road Train Member

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    I dunno about all of that but thanks anyway. There's no stress when its just me or not as much anyway. But then there are some who would ask what fun would trucking be without some added stresssssss? Hahaha!
     
  3. boredsocial

    boredsocial Road Train Member

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    I know I'm a much better person under stress. If you're going to be whiny and neurotic it helps to have a reason lol.
     
  4. PPDCT

    PPDCT Medium Load Member

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    If I was putting together a TTR team to make a ton of money, you and @RollinCoal would definitely be on it.
     
  5. stayinback

    stayinback Road Train Member

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    Let me ask you a question, How Confident are you on that statement?
    Think about it a bit before you answer.

    Next, As Carriers and Owner-operators have become Smarter over time lately.....Do you think the scale will continue tip in your favor?
     
  6. PPDCT

    PPDCT Medium Load Member

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    To some degree, it isn't about us vs. them, as far as pricing goes. It's about a time expenditure. If I book ten loads a day making $100/ld in margin, and you make a thousand per day, it averages out the same. Granted, our numbers are both going to fluctuate some in either direction. But when an individual O/O commit to a load, he's doing that one load. I can, in theory, move dozens over the course of a day (Not necessarily realistic for my operations at present). So ultimately the earning *potential* is higher on my end.
     
    Last edited: Dec 13, 2017
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  7. humco

    humco Bobtail Member

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    I don't get freight from coworkers, we're all on our own. We start in a training room and hit the load board for a few months, slowly build up customers, then get out on the floor and start working them. Thanks for all the advice here guys, this has been incredibly valuable for me.

    That hypopthetical, 10 loads at 100$ a load... Is that actually happening somewhere? That's just stupid money compared to my setup. What kind of numbers do you guys move, loads per day and average pay per load. I'd really like to have some sort of benchmark to aim for, you guys seem competent and I'd love to have some sort of ammunition before going to negotiate a raise.
     
  8. wichris

    wichris Road Train Member

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    The ones I have on a 70/30 I like to see an average of 800-1000/day. Much below that and it's 65/35 or 60/40.
     
  9. spyder7723

    spyder7723 Road Train Member

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    This was my thought. Sounds like he is just covering trucks, not working in sales.
     
  10. spyder7723

    spyder7723 Road Train Member

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    Your deal with three kellogg stuff is called cobrokering. Nothing immoral or unethical about it. Double brokering would be if you told the broker you are working with it was going on your trucks, and you brokered it out to another carrier.
     
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