Landstar agent long-term motivation

Discussion in 'Landstar' started by Ruslan KZ, Apr 25, 2017.

  1. Ruslan KZ

    Ruslan KZ Bobtail Member

    1
    0
    Nov 25, 2015
    0
    Hi guys!

    Nice to meet all of you, I'm from far away Kazakhstan, the other side of our planet :)
    Read a lot about Landstar business model and still cannot understand one thing.

    Why would a Landstar agent have long-term motivation to stay as agent? I understand that it can be a good start of business - financial support from Landstar, trainings, technology.
    But an average Landstar agent (as it's said on their website) makes around 5 million $ of revenue annually. Why on earth a person who's able to make $5 million would give most of its comission to Landstar? Why wouldn't he/she go free as an independent broker/businees owner/etc.?
    There are a lot of standard advantages for agents Landstar posts on their website and presentation materials - insurance, financing, technology, sales support etc. But in a nutshell - why agents continue working with Landstar? What is their core motivation or fear?

    Thank you for your help! LSTR-Revenue-Growth.png
     
  2. Bakerman

    Bakerman Road Train Member

    3,350
    4,976
    Jan 27, 2013
    Phoenix, AZ
    0
    Probably for the same reason drivers stay a co. driver. Security and/or fear of failure, not enough cash for startup.

    Could be a multitude of reasons.
     
    againstthewind Thanks this.
  3. MOGLAR

    MOGLAR Heavy Load Member

    736
    485
    Jun 19, 2013
    Kansas City , MO
    0
    Because the agents also have their own trucks! They basically use Landstar for their vast resources and logistics that are already in place.

    Broker with his own trucks will use landstars authority. Make money of booking the load and hauling it. Basically the brokers like to hang around to use Landstars massive resources. A means to an end.
     
  • Draft saved Draft deleted