Agent or Owner?

Greetings Indeed Community!

I've seen the question passed around quite a bit and it usually goes something like this: "Should I sign on with an existing brokerage or get my own license and start my own brokerage?" and the common answer comes back stating something like, "Why take 50 or 60% as an agent when you can take 100% with your own license?".

From my experience, it's not quite that simple. There are several reasons to sign on as an agent which can best be expressed as reasons why a new brokerage usually fails. I understand these seem a little hard-and-fast in a world that isn't so much so. But, I think you'll get my point.

1. Capital. If you want to book a lot of freight, the old method of paying your carrier partners when you get paid by the shipper is dead. The first time you tell that carrier you don't have the money yet is the last time you'll be booking freight with them. Rule: Don't go for your own brokerage license unless you have the money to pay the carriers in your pocket now.

2. Market Recognition. Many shippers will not talk to you unless you have a license that's more than a year old. The same goes for the carriers. They will want to hear that you work with or on behalf of a name they might recognize; especially if they are a carrier that wants to make sure you're going to pay them. Also, consider that your company will have practically no credit history reflecting payments to carriers, which can be a major stumbling block. Rule: Don't go for your own brokerage unless you already have contacts in the industry that trust you, personally.

There are several more; but for now, you get the point. And I'm guessing this will get the discussion going.

Im a former fleet owner that never had motor carrier authority. Im interested in getting my freight broker license. My biz associate is leased to a carrier currently and just recently established a relationship with a shipper promising freight for upto 20 trucks. I decided to loan them the money for the freight broker and carrier license, and work under her frieght broker license as an agent vs getting my own, but im not familar with how i will b gettin paid as an agent from the freight from the shipper under my biz associate broker license? Or should i just get my own broker license. Im in excellent credit standings anc I hve capital to pay the carriers just hesistant because of all the different facets of the broker side, but i very familar with the industry. I also have access to a 25,000 sq ft warehouse off 85 where the owner will work a great deal out with me to store shippers freight. Just want to do it right and not b taken advantage of because of ignorance.

You may be the exception that could get your own license. But, to be honest, if you have the most fun just booking the freight, I would just work as an agent and leave the AP and AR to the brokerage. From my own experience as the founder of Diamond Logistics, LLC, we pay our agents a minimum of 70% of the margin for each load upon delivery. We use the 30% to cover our own administrative costs and for our net profit so there really are no other fees to the agents. I don't see this as all that hard to accomplish as a brokerage; so, I would recommend you accept anything less than that. Just be careful that as an agent or broker you do not take possession of cargo. For instance, if you take the cargo into your own warehouse, you could be seen as a freight forwarder instead of property broker, which is a different animal altogether. If you're going to allow the use of the warehouse space I would do so as an intermediary, primarily, at least as long as you hold yourself out as agent/broker.

To be honest with you , I have been an agent for other companies as well as running my own. I have found that since I became an agent with Landstar, my whole game was changed. Ofcourse there are obviouse bennefits to being an agent over running your own Brokerage, however not all companies that have an agent program are the same. Infact I would say that most are not very good at all as they may not give the support or service offerings you may need. I can say for sure that since I became a Landstar agent my business opportunities have increased beyond what I thought. The whole company is 100% agent based so there is no competing with company owned offices. We hacve every mode of service available to us even if we do not specialize in it. We have the abality to network with other Landstar agents that can help educate and handle freight for you. For instance I specialize in Intermodal, Truck Brokerage and LTL. I help other agents move intermodal for their customers. There are other agents that help me move International shipments. Yes I have heard that other companies may offer a higher comission, but when the day is all done I have made more with Landstar than I have with any other company. here is my site www.goafs.net

Paul in Lake Elsinore, California said: To be honest with you , I have been an agent for other companies as well as running my own. I have found that since I became an agent with Landstar, my whole game was changed. Ofcourse there are obviouse bennefits to being an agent over running your own Brokerage, however not all companies that have an agent program are the same. Infact I would say that most are not very good at all as they may not give the support or service offerings you may need. I can say for sure that since I became a Landstar agent my business opportunities have increased beyond what I thought. The whole company is 100% agent based so there is no competing with company owned offices. We hacve every mode of service available to us even if we do not specialize in it. We have the abality to network with other Landstar agents that can help educate and handle freight for you. For instance I specialize in Intermodal, Truck Brokerage and LTL. I help other agents move intermodal for their customers. There are other agents that help me move International shipments. Yes I have heard that other companies may offer a higher comission, but when the day is all done I have made more with Landstar than I have with any other company. here is my site www.goafs.net

I am very interested in getting brokering and being an agent is fine with me. I would like to speak with you if you have the time. Please let me know if this is possible at flowergirl30241@yahoo.com, thanks in advance.