Brokerage questions

Discussion in 'Freight Broker Forum' started by Dino soar, Oct 1, 2024.

  1. wichris

    wichris Road Train Member

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    It's a do or die thing.
    Some do real well if they have a good work ethic.
    Some die off fast because they don't.
     
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  3. JimmyTwoTimes

    JimmyTwoTimes Medium Load Member

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    Yeah, definitely more risky than going to work for a standard brokerage. But more reward if you can pull it off.
     
  4. Dino soar

    Dino soar Road Train Member

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    I'm more interested in the agent model.

    Starting a brokerage from scratch that is your own brokerage without connections and at least some level of experience seems very difficult to me.

    The difficult part is that you are one guy. One guy that doesn't have the connections that doesn't have the carriers that doesn't have the shippers that may or may not have the financing, and one of the more difficult things I'm sure is that when you call and say you're from XYZ brokerage, you're Joe schmo, especially if you have a new brokerage. I would think it would certainly be easier having The credibility of an established brokerage behind you.

    Being an agent for an established brokerage takes you from being one man to being one man with a lot of resources.

    It seems that what you would give up in a percentage, you get back by having an army of vetted carriers, and a back office that will handle everything from billing to chasing down people that don't pay and whatever other legal issue or problems arise.

    I like the idea also because if they have trucks leased on to them, those trucks are in the same network and the odds of them flaking or at least doing things that an independent truck would do, probably is minimized because the mother company would penalize them.

    Support is a good thing.
     
  5. Long FLD

    Long FLD Road Train Member

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    What about money? Do new and/or small brokerages run on an operating note from the bank so they can offer quick pay? Regardless the brokerage needs access to some money even if they offer 30 day pay to the carrier just in case their customer doesn’t pay. I know in the zag world the old “you get paid when I get paid” is pretty common but I know that wouldn’t fly in the truckload sector.

    Anyway, I always wonder about the money end of it especially when there’s always comments here about how brokers don’t have any overhead compared to truckers.
     
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  6. wichris

    wichris Road Train Member

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    Some do just like some trucks do, factor and live day to day.

    Some start with enough capitol and keep increasing it and the business.
     
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  7. Long FLD

    Long FLD Road Train Member

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    I thought maybe an operating line would be an option, similar to what farmers do. Get some money coming in and just pay the interest that you owe the bank.
     
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  8. wichris

    wichris Road Train Member

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    Need decent credit and background in running successful business for that.

    Many don't have it so they factor. Then live off the advance and hope nothing happens. Just like the trucks, they can't live 30-60 days waiting.
     
  9. 86scotty

    86scotty Road Train Member

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    I figured this was true but it scares me all the same. Running spot market/load board freight I kind of like using a bunch of different brokerages to spread out the risk.
     
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  10. wichris

    wichris Road Train Member

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    By the time the first reports hit it's usually too late. Old saying, everyone's credit is good until they quit paying.
     
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  11. midey2882

    midey2882 Bobtail Member

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    nice good to know.
     
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