How the Right Brokerage Can Boost a Freight Broker Agent’s Pay

by Drew Jackson
January 17, 2020

As a freight brokerage, one of our greatest pleasures is seeing an agent have what we call a “killer month.” At USL, we’ve seen some ambitious agents make in one month the equivalent of what most brokers are paid in a year. Much of an agent’s success has to do with their own tenacity and persistence, but it also helps to have a partner who can provide responsive and reliable logistics support that sets you up for success.

What should an independent freight broker agent look for from a brokerage? First and foremost, a good brokerage is going to provide services that make your work life easier and a commission that gives you the peace of mind that comes with knowing you can cover the inevitable ebb and flow of the logistics industry.

The first step to increasing your commission as an independent logistics agent is to understand the average commissions in your region. FreightWaves frequently publishes information on agent salaries and commissions across the United States. Once you’ve found companies that offer freight broker commission structures in your desired range, make sure that they don’t put any stipulations on commission, or charge fees against it.

At USL, we’ve committed to paying an honest 70% commission from day one. This way, when agents accept and book freight, they can be confident that they’ll be receiving a full 70% of the order. In addition, our 70% rate is higher than the commissions you will find at many competitive freight brokerages.

Beware of commission clawback clauses from freight brokerages. Many brokerages that pay 70% include clawbacks in their commission structures to cover themselves when a customer doesn't pay on their terms. This can be incredibly detrimental to an independent agent’s business. Because USL sees our role as an agent’s support staff, our goal is to decrease their stress. We don’t think it’s our place to punish the agent when a customer doesn’t pay the bill, so our contracts are clawback-free.

Look for a high level of support in return for the dollars a brokerage retains. Once an agent finds a commission structure that moves them toward their business goals, they should assess the level of support they are getting from the brokerage for the remaining percentage of each load. USL strives to provide maximum support so our agents have more time to spend building their business instead of managing administrative tasks.

In fact at USL, we see ourselves at true partners to agents. We understand the challenges agents face and work shoulder-to shoulder with them, providing unparalleled support.

Nadine Beattie, now a USL agent in Seminole, Oklahoma, spent six years with other brokerages before joining us. “From day one, they treated me as a valuable part of the team. USL has great support for their agents and they let you do your thing,” she says. “No other broker — and I’ve worked for a few — treat agents as a team member the way USL does, and no other broker offers solutions like USL.“

USL’s team of experienced leaders in 24/7 logistics can handle carrier onboarding, custom billing, collections, and claims management, giving agents the time to truly focus on growing their business. Our 98% retention rate speaks to our commitment to making sure the agents who work with us always know that when they call USL, they are going to get support from a real person, who’s always on it, working to help them succeed. Learn more about USL’s services for independent logistics agents at uslfreight.com.


Business Development Manager, Drew Jackson, has over 13 years of industry experience.




Contact

2245 Gilbert Ave. Suite 103

Cincinnati, OH 45206

800.226.4054


COPYRIGHT © 2024 | US LOGISTICS | ALL RIGHTS RESERVED | SHIPPER/CONSIGNEE TERMS | MOTOR CARRIER TERMS | PRIVACY POLICY
COPYRIGHT © 2024
US LOGISTICS
ALL RIGHTS RESERVED
PRIVACY POLICY