Before Signing On With Any Brokerage Company - Read This
We have heard several horror stories about new agents not knowing what to look for and what questions to ask before signing on with a Broker.
So please view information below ... For we believe by helping you - we are helping this industry!
1. Preferably never sign an Exclusive Agreement: ( unless they agree to pay a salary or is a company that is very credit worthy or has an excellent bonus package to sign on ). This is usually not to your advantage why? This may cut you off possible from going to another freight brokers if you become unhappy with your present Broker. Usually it will state: If you decide to leave you can not do any brokering business from anywhere from 90 days to 5 years. If you sign this - you MAY be locked in with that Broker. Even if you get dissatisfied with this individual company or don't agree to their procedures. Your customers could possible locked in with that Broker and they could possibly be sue you if you try to leave with them!
Usually if a Broker ask you to be EXCLUSIVE it will sometimes also state somewhere in their contract that your shippers can not go with you - if you decide to leave their brokerage company for any reason! Be very careful of this clause in contracts with Brokers.
2. Make sure it states in the "Broker-Agent Agreement" that if you decide to leave their brokerage company - your customers (shippers) are yours to take with you if you decide to leave.
3. If your signed on with a Broker and all of a sudden - drivers start calling you and notifying you they haven't been paid.... Or other agents who work for the same company start calling you - and asking if your getting paid on time.... This is a WARNING FLAGS! Look for another broker quick! It usually means that there may be possible financial problem within this Brokerage Company.
4. Difference between our Broker Agent Training Program and Brokering Schools. Several of the training courses or Brokering schools out there have their own Brokerage Company. Please be careful and ask a lot of questions such as;
Why would you want to sign on with a brokering school who say they'll train you to be a Broker but you can be an agent until you get established? Think about this! First your paying to be trained...and that's fine. 1. Why would they want to share all their information about Brokering - if your going to compete against them as a Broker? 2. Ask them how long is going to take you to become a Broker? This process of learning may take anywhere from an average 6 months to 5 years.... why... you have to build up your customers. And what they don't tell you is - you have no credit and unless you know shippers that are already willing to work with you - it will take time.
That's why we teach the way we do! To understand this business before sticking your neck out to far. Working with a Broker who already has excellent credit - it is easier to get freight from a shipper. If you wish to go out on your own as a Broker - first earn the trust of the shipper. Then spring it on him that you wish to out on your own and if their willing to work with you. You will find thou - working for a well established Broker that does all the billing, collection and carries the liability - it works really well.
5. You will see that the average Brokers
pay an average percentage of 60% to agents. Anyone paying over 65% - BE CAREFUL -
WHY? Keep in mind some Brokers will pay more because they have not been in
business long enough to establish a good credit standing. It is harder
for the agent working for them to get freight from shippers to move. So be
aware of Brokers who offer a higher
percentage. Just cause it looks like a good deal - does not mean it good for you! You want to Broker
with High Credit Rating!
6. Want to learn more - give us a call: 877-737-9479 or 770-872-2639
VIEW WHAT ELSE WE HAD TO SAY IN THE TRUCKER MAGAZINE
So please ask questions before signing on with any broker.
There are several out there that will take advantage of new agents!
