Curious about brokerage structure

Discussion in 'Freight Broker Forum' started by 86scotty, Jan 22, 2023.

  1. 86scotty

    86scotty Road Train Member

    Aug 27, 2017
    I think I have this figured out but I'd like to run it by some of you guys. Seems to me in dealing with brokerages there are 2 different main jobs, or maybe three for bigger brokerages.

    First one is the actual broker. Brokers make a lot of money if they are good because they go out and find the contracts, pay the bills (insurance,bond,overhead) and it seems to me the sky is the limit on what they can earn, much like owner operators or trucking company owners. Basically, the reward is how much skin you have in the game or how much responsibility you care to take on. I think these are the people we sometimes think of as sitting around in their pajamas answering the phone but in all actuality they are the ones who's ##### are on the line. They negotiate the contracts and take on the responsibility.

    Second is the people most of us deal with on the phone with 3pl's. These would be 'agents' or whatever they are called who answer the phone almost 100% of the time. They sell loads but don't have much skin in the game. I suppose most are on salary plus commission. Seems like the turnover is really high. These would be the younger folks most of us O/O's deal with booking loads everyday. They have a range to sell a load in and have to get approval (from the actual broker) to go over a certain amount for a load. Seems to me this is a job anyone could do from the couch with a laptop but seems like a majority of them are sitting in a big office or call center.

    Third would be dispatchers. The people who keep up with tracking, some of the scheduling, handle phone calls/problems after hours like lumper fees and mark arrivals and departures. Not much different I would suspect than a dispatcher at any trucking company.

    I do realize at some smaller brokerages everything is done by everyone except for actual contract negotiations which I would assume is always done by the actual broker/boss or whatever.

    I guess if we're talking about the whole office you'd add accounting and compliance as well. Seems like this dept. varies depending on the size of the brokerage from 1 person to hundreds doing those jobs.

    What do I have wrong?
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  3. wichris

    wichris Road Train Member

    Jan 17, 2011
    Pretty much it. All depends on the size.
  4. LoneRanger

    LoneRanger Road Train Member

    Jun 3, 2018
    I just list it as broker and minions. But you have it right.
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