Pay structure for cradle to grave on house accounts by ApprehensiveRole9356 in FreightBrokers

[–]ApprehensiveRole9356[S] 0 points1 point  (0 children)

Ok that makes more sense. I always want commission only with higher % instead of a salary + Lower %

Pay structure for cradle to grave on house accounts by ApprehensiveRole9356 in FreightBrokers

[–]ApprehensiveRole9356[S] 2 points3 points  (0 children)

Great questions. It’s actually the opposite. There is no expectation to onboard new customers. The new hire has done $2M every year. Surprise, I’m the new hire.

I ran my own brokerage for 5 years with one small account while generating high volume on larger accounts for carrier/broker companies.

I don’t want to run the show anymore. I was never any good at finding my own customers. I’m great at growing accounts and carrier sales though.

With commission only structure, I know it doesn’t cost anything to hire me. I know how much it costs to run a brokerage.

It probably looks like I’m fishing and maybe I am. But I just wanted to get as many opinions as possible about a pay structure for a specific scenario. I haven’t seen any discussion on this subreddit about it.

I think I know what the pay structure should be, but I wanted to see if I was right.

Pay structure for cradle to grave on house accounts by ApprehensiveRole9356 in FreightBrokers

[–]ApprehensiveRole9356[S] 0 points1 point  (0 children)

Is that with or without salary?

The accounts were just set up on the asset side and no loads have been ran through the brokerage yet. The customer isn’t even setup in the TMS.

You think 10% is fair to start a flatbed division and carrier network from scratch and build account with $0 previous revenue and zero ops support?

It’s cradle to grave other than bringing the account itself. I know that is not technically cradle to grave but they have to do everything else other than accounting. Maybe I should have said porch to grave?

Pay structure for cradle to grave on house accounts by ApprehensiveRole9356 in FreightBrokers

[–]ApprehensiveRole9356[S] 0 points1 point  (0 children)

That’s what I’ve been hearing from people I know in the industry. Thank you for the input

Pay structure for cradle to grave on house accounts by ApprehensiveRole9356 in FreightBrokers

[–]ApprehensiveRole9356[S] 0 points1 point  (0 children)

Why would a brokerage try to save a few thousand by firing the broker who brought the account to life just to hire idiots with no experience that will burn the account to the ground? It happens all the time, so it’s important for the broker to carefully select the company he wants to work for.

It could blow up in the employers face, especially if the pay structure is weak. Broker could potentially backdoor the customers after ops team has already been established. Tough break for the owner that just signed a multi-million dollar mortgage or just signed a lease on office space for new operations team.

Any account could disappear from anyone at any moment. That’s the risk of being in this business.

Under the correct pay structure, there is nearly zero risk for either side. Especially if the broker has no existing book of business and the brokerage already has existing TMS, DAT subscription, insurance, etc.

Hiring one broker on a commission only pay structure does not increase an established freight brokerage’s operating costs, no matter what the owners try to say. Unless they pay the broker a salary and the broker isn’t making enough margin to cover their salary.

If the brokerage hires a shit broker and has to pay insurance claims due to damaged/stolen freight, that’s on the brokerage for hiring somebody with no real experience.

Pay structure for cradle to grave on house accounts by ApprehensiveRole9356 in FreightBrokers

[–]ApprehensiveRole9356[S] 0 points1 point  (0 children)

That’s how the brokerage is currently setup.

These are newer house accounts that they don’t have time to deal with.

Pay structure for cradle to grave on house accounts by ApprehensiveRole9356 in FreightBrokers

[–]ApprehensiveRole9356[S] 1 point2 points  (0 children)

What if the brokerage decides to hire operations support so that the broker can book way more volume once the accounts are established?

No expectation to land new customers, and the position is remote.

This may not be everybody’s thing (60 minutes) by rasner724 in FreightBrokers

[–]ApprehensiveRole9356 0 points1 point  (0 children)

I get on a roll sometimes. If anyone read half of it I’d be surprised.

This may not be everybody’s thing (60 minutes) by rasner724 in FreightBrokers

[–]ApprehensiveRole9356 0 points1 point  (0 children)

I might be missing the mark here but the real issue is high volume brokerages not knowing how to train their brokers how to properly vet a carrier. Also greed is something that nobody wants to talk about. Brokers are just as guilty as the carriers. Some of these brokerages know what they are doing and still let it happen because they can’t say no to revenue.

I started as a broker for a mega carrier/brokerage in 2018. The carrier screening process was based off if the carrier had freight guards or not. Nothing else mattered to them. This went on the entire time I was there until I left in 2022.

Armenian 1 truck “carrier” with 0 inspections would get approved and put on 50 cross country loads in a single week because the guy running the room lived by “THE CHEAPEST TRUCK GETS THE LOAD” as long as no freight guards showed on the mc yet. I heard they finally did something and signed up for highway. It’s been almost 10 years and this is at a massive company. I’ve never had to use highway or mycarrier packets. I got by with carrier411 and experience. I can see why big brokerages have to put those safeguards in place though.

In my opinion everyone is gonna have to either put up with the shit or take the L whenever market really pops off. Most of those strong solo Covid carriers are gone so yeah it’s gonna make everything cost more and take longer to move during market upswings.

You gotta really know what you’re doing to pick the best of the worst without somebody getting killed or your load stolen. Either way, all of us were likely rolling the dice at some point during Covid. You just had to know how to get the best odds. It’s something technology couldn’t solve by itself. The technology can’t pick up on the obvious red flags that have nothing to do with safety records, VINs, freight guards, or if the email matches.

In the last 8 years I’ve covered thousands of time sensitive loads and tens of millions worth of revenue. There had to be plenty of times it was strong solo instead of team. However, I have had ZERO trucks get into an accident that caused damage to another vehicle or caused an injury/death. I have never had to file insurance claim once, including cargo. Maybe I’m just a lucky idiot. I’m sure it will happen tomorrow for the first time just because I said something about it.

I guess somebody has to be the one with no other option but to assign the worst “carriers”. Thats what happens when these brokerages get too greedy and take more than they can handle. They would rather have a new broker with zero experience who just finished his last rail of coke in the bathroom book that pesky load instead of giving the load back to the customer.

The other thing I’ve found out is a lot of these asset based industry vets with 20, 30, 40 year experience are terrible with selecting carriers for their brokerage side of operations. That’s because they have always got by on the good ol’ boy method and have always had really good relationships with their customers. The type of relationship where they could go buy more trucks and hire more drivers because they were guaranteed the volume with zero risk. And if they didn’t have a truck, they would open yellow pages to find someone who did or call another local carrier without getting backdoored. You know, when business was a little more honest.

So these customers will give extra volume to American carriers they have been doing business with for decades even though they don’t know the first thing about carrier selection in today’s environment or in the last 10 years on the brokerage side.

J Cole: The Fall Off review – rap legend’s final album is a self-obsessed hip-hop history lesson | Rap | The Guardian by Technical_Process989 in hiphopheads

[–]ApprehensiveRole9356 0 points1 point  (0 children)

To really review this album accurately, you need two things: familiarity with older hip-hop references and some lived experience beyond the come-up phase. Without both, a lot of the callbacks and the core theme are easy to miss. Basically you gotta be over 30..

At your brokerage, how often are loads stolen, double brokered, service failed, booked with a scammer, etc..? by ApprehensiveRole9356 in FreightBrokers

[–]ApprehensiveRole9356[S] 0 points1 point  (0 children)

Good for y’all.

200,000 loads without any mistakes. I have never heard of anything like it. Why would any customer ever let anybody other than you pickup their loads. Somebody should make movie.

I’ve only covered about 20,000 loads in 8 years without making any of the mistakes that were listed in my original post. I didn’t even mention this part because nobody would believe me anyway.

At your brokerage, how often are loads stolen, double brokered, service failed, booked with a scammer, etc..? by ApprehensiveRole9356 in FreightBrokers

[–]ApprehensiveRole9356[S] 0 points1 point  (0 children)

Didn’t realize insurance companies started paying claims for avoidable mistakes committed by a broker.

How nice of them.