Average pay structure for brokers

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

  1. humco

    humco Bobtail Member

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    yea I've read that distinction before, I didn't know it was colloquial to say co-brokered though.
     
  2. blairandgretchen

    blairandgretchen Road Train Member

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  3. fightingthebull

    fightingthebull Bobtail Member

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    From my experience, in some companies, if you are getting a base + commission you need to meet a seat cost. So that means if you are getting 40K + 12% commission, it would mean you have to meet the required 10K profit monthly seat cost and you would get 12% commission on anything past the 10k plus your salary. The 60/40 split and 70/30 splits are most common with commission based only and you are basically an independent contractor agent working out of your own office. The average broker should be doing $1000 a day in profit. At a 60/40 split on $4700 weekly profit, you should be getting over $2800 in your pocket. No matter the way I was getting freight, either co-brokering or direct customer contact, I wouldn't take anything less than a 60/40 split. I pay my broker agents 60/40 to 70/30 depending on their experience. If I have to train a green agent, then 60/40. I will also provide sales support and sales leads. A company that's not willing to support and train in sales obviously doesn't care about your success and are only trying to make money off your back. Being a broker is an ugly job. Drivers think you're evil and shippers think you work for free. At the end of the day you need to feed your family. If you are deciding to do this kind of thing, might as well get compensated well. Also, I would never sign a non-compete, and if you have, there are ways of getting out of it or around it.
     
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  4. boredsocial

    boredsocial Road Train Member

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    You have to sign exactly one non-compete in your career. It's the one you signed to get trained in the first place. It's not reasonable to expect people to invest a lot of money in teaching you a business just so you can run off and start your own thing. At the same time it's not reasonable to expect someone who already 'paid tuition' with a non-compete once already to agree to do it again.

    Basically if you're already a freight broker signing another non-compete makes absolutely no sense. I would basically never sign a noncompete that didn't specify what I was going to be paid while I sit out. If you're not going to pay me to find another industry (and I'm talking about 24 months of guaranteed salary for a 12 month noncompete) I'm simply not going to be open to it. I make my living by brokering freight. Regardless of who I work for that's how I make money right now. If you want to tell me to do something else I'm going to expect a LOT of compensation. Time sitting out in this industry is pretty bad when you try to rebuild.
     
    Last edited: Feb 7, 2018
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