The Facts!

An Open Letter To Those Wishing To Work As A Freight Broker Or Freight Broker Agent

Hardly a day goes by that we don't receive a phone call from someone wanting to know more about our services and how to become a freight broker or freight broker agent. That's fine, as a matter of fact we encourage that as we feel those considering working in this industry should have the facts before making that decision.

The reason for this open letter is that with nearly every call we receive, we find that the caller has been given bad or misguided information about working as a freight broker or freight broker agent. This bad information has normally been provided by a freight broker school in an attempt to lure the caller to attend their school. This has reached the point to where we felt the record needed to be set straight on several issues, and thus this letter.

First you should understand that TALTOA is a transportation and logistics training & consulting firm, not a school. We only accept clients that are wishing to work as a freight broker (obtaining their own authority, bond, BOC-3, and UCR) or to work as a freight broker agent (contracted to a freight broker working under their authority). Although one is the broker the other an agent the two still have one glaring similarity... they are both their own independent business. There is not an employee/employer relationship.

As such that is why our Packages are "consulting". It is not our intent to fill up a room with 20 people, teach them how to be a broker, and say good luck... next 20. All of our consulting packages begin with a Workshop for the individual or company and their staff. If you have ever spoken to us about working as a freight broker or freight broker agent, you've heard us say that it doesn't matter if someone has 20 years experience or no experience, all should attend the training Workshop designed for the package chosen.

Although much emphasis is placed on training, as well it should be, the real jewel of our packages is the consulting following the workshop. This is when you are working as a freight broker or freight broker agent and have questions and/or situations arise in which you need assistance. As this occurs, you are able to pick up the phone and call your assigned consultant to obtain the assistance needed. In addition, all of our consulting clients have the ability to use our eWorkshop Plus during their consulting period for review and further study.

In short, our concern as a consultant is for our clients success! Not how many paid tuitions we can sell. It's very obvious to us as well, from the daily calls we receive, that those interested in learning the business have listened to a lot of "sales pitches" from those interested in only one thing, getting your money!

One of the questions we are always asked is "How come you are so much cheaper?" The reason you'll find many of our packages more affordable is that we want you to succeed as a broker or agent. If you are successful we believe that you'll return to us for more of our services or products in the future. For example; marketing, web site, staff training, agent training, and/or extended consulting periods to name a few. For us, your success is our success!

Now here are some common misconceptions we hear on a daily basis concerning the facts of working as a freight broker or freight broker agent;

1) Freight Broker Certification

Freight Broker Certifications are only provided by schools. To work as a freight broker or freight broker agent one does not get certified. If one is going to be a freight broker (not a freight broker agent) they must obtain their Authority, BOC-3, UCR, and $10,000 bond. This can be done on your own however we recommend a process agent to perform this service for you in order to save you time, the peace of mind knowing that the paperwork was filed correctly, and you are indeed legal.

2) You Can Use A Factoring Company, So Capital Isn't A Requirement

To be honest, this is the reason for our Open Letter (straw that broke the camel's back). We received a call yesterday from a potential client and it was stated that he was told that he could use a factoring company for cash flow so capital wasn't a huge concern. This is so wrong in many ways, and for a "school" to be stating this, it's obvious their only interest is sales, not the client.

A factoring company should never be used by a freight broker! If you are unsure of what a factoring company is or does, in a nutshell they buy your unpaid invoices, pay you a percentage immediately, then pay you the balance, minus commissions and fees, when your customer pays the invoice.

Now on the surface this sounds like a good idea, but in reality you are basically out of business before you begin. A broker will net, on average, 15% of the total invoice (some a bit more some a bit less). Most factoring companies will advance you 85% of the invoice, with the balance paid after the invoice is paid. If you are using a factoring company to create cash flow the only one reaping the benefits is the trucking company, as they'll be paid faster. You on the other hand have only been advanced enough to maybe pay the carrier. You are still waiting for your money as it will not be paid until the invoice is paid by the shipper. However, even if you are able to wait for your money from the factoring company, you'll find that out of your 15% you may only see 10% or less after the fees and commissions are subtracted.

Lets put this into perspective, you have a shipper that you move a load for once per week at a rate of $2,000.00. Subtracting your 15% (your money) you pay a truck $1,700.00 to move the load. You have been factoring this shipper/load over the course of a year. Let's look at how much money you lost by using a factoring company;

Total Freight From Shipper: $2,000.00 x 52 weeks = $104,000.00

Total Paid To Trucks: $1,700.00 x 52= $88,400.00

Total Income for broker before factoring: $15,600.00

Total Paid by broker for Factoring Company Services: $5,200.00

Total Income for broker AFTER factoring: $10,400.00

This example is using one customer & one load. However if you are using a factoring company, you don't factor a load, you factor a customer. That basically means that if you factor one customer, you have to factor ALL loads from that customer.

If you are moving 3 loads a week for the customer above, using the numbers provided in the example, now the cost for factoring has gone from $5,200.00 per year to $15,600.00 per year! The kicker is that you are still waiting until the shipper pays the invoice to the factoring company to get the balance of your money. In addition, it's taken more time for you to get your money as the money owed you is first going to the factoring company, then to you.

There are many reasons why a broker should NOT use a factoring company than just this example, but you should be able to see why factoring is not a good idea for a freight broker. For a school or training organization to recommend factoring as a means of financing is, in our opinion, very irresponsible and only being recommended as a sales tool to get you to attend their school.

3) When Will I Take My Test So That I Can Start Brokering?

First there is no "Official Test" to work as either a freight broker or freight broker agent. The only tests are those given for review purposes by the school or training organizations. The fact is that one does not have to attend any school, pass any test, receive any type of a certificate to work as a freight broker or freight broker agent. Additionally, one can obtain their own authority to work as a freight broker without any previous transportation industry experience. One may also work as a freight broker agent without any training or experience as well. However, in both instances it is highly recommended that you do have the knowledge before moving forward.

As with any business though, it must be built. As you move loads you will earn money. Same as it would be if you had a brick and mortar store selling widgets, you have to have customers in order to be successful.

We've had clients that were making as much as $1,000.00 a week in 30 days and we've had clients that quit the business in 30 days. This past summer we did a study as to why some clients succeeded while others failed when both were taught the same material, had the same access to consulting, and had the same access to the review material. We found that those whom succeeded were more ambitious, worked harder, and did all of the little things which the others did not. All in all discipline was the biggest difference between those who succeed and those who failed.

The only one that can insure success in this business, or any other, is you.

We hope that this has helped you to learn the facts, as you make your decision as to work as a freight broker or freight broker agent. Being a freight broker or freight broker agent can be a rewarding career personally and financially.

Thanks for your time and if you have any questions please feel free to call us.

TALTOA
www.taltoa.com
800.582.4167

TRUCKERS - How Much Money Are You Not Making?

As a trucking company, owner operator, or even company driver if you're not also brokering freight as a freight broker or freight broker agent, you're missing out on literally tens of thousands of dollars!

As a transportation & logistics training and consulting company we are obviously working with transportation industry professionals on a daily basis. Either as their consultant or fielding calls seeking information concerning all aspects of the industry.

More times than not, a trucking company will contact us in order to learn how to find their own accounts. This is fine as a trucking company should have their own accounts for head hauls, using a freight broker exclusively for back hauls. Just by making this one adjustment in their operation they can increase their net income as much as 10% - 20% if not more.

As a trucking company client, one of the first things we recommend is that they should also obtain their broker authority in order to add another stream of revenue to something they are already doing. Makes sense doesn't it?

A trucking company that has obtained their own accounts can often broker their excess freight from those accounts which they are unable to pick-up with their own trucks. More times than not this is due to the trucking company not having any of their trucks available for the shipper when needed. So instead of saying "no" now they can say "yes" and accept their shippers load and move it using another trucking company. Thus they have made money from brokering the load which otherwise they would have made nothing.

Now you may be thinking, well that's fine for a large trucking company...they have the money available to obtain their authority and pay the trucks. I'm just a small trucking company, owner operator, or even a company driver & I can't afford that kind of expense.

You don't have to be able to afford that expense as you can do it for FREE! Ahhh...the FREE word, must be a catch. Nope, you as a small trucking company, owner operator, or company driver can start brokering freight by working as a Freight Broker Agent, now. Let's break this down per your specific position in order to better explain.

Small Trucking Company - You already have your own carrier authority. You should have several of your own accounts, if not you most definitely will learn how to obtain your own accounts as a freight broker agent. By contracting as a freight broker agent with an existing freight broker, you can now broker your excess freight plus start prospecting new accounts that perhaps you have delivered to in the past. In addition to finding shippers for your brokerage, now you just might be finding your own back hauls thus increasing your revenue since you are now eliminating the need for a broker on some loads.

Owner Operator - As an owner operator leased to an existing trucking company, there is a strong possibility that you will at some point in time become your own trucking company. What better time to start preparing for that day than today. By becoming a freight broker agent now, you can begin building relationships with shippers that will aid you in the future for your own trucking company. In other words when you decide to obtain your own carrier authority, you'll already have accounts in place thus eliminating the need to use a freight broker 100% of the time while you are getting started. In addition, you can begin making money from these new accounts that you are finding now, by brokering the freight they have available now. Another form of revenue which you can begin generating today!

Company Drivers - You are in contact with shippers on a daily basis. All of those notebooks you have that you used to write down pick-up and delivery information.... those are worth millions to you as a freight broker agent, and you can start cashing in on them now! By becoming a freight broker agent you can begin acquiring accounts in which you can broker their freight.... from your truck! Even if you moved only one load a week, you could be adding $200.00 - $300.00 per week to your income. You may even have the desire to get off the truck so you can be at home more... this is an excellent way to work toward that goal, and you can start doing it today!

You see, no matter how big or small your trucking operation may be, brokering freight either as a fright broker or freight broker agent is something you can begin doing today to change your tomorrow! We invite you to contact us to learn more about working as a freight broker or freight broker agent and how you can start making more money for something you are already doing. Just call 800.582.4167 to speak to a TALTOA Consultant.

www.taltoa.com

Transport Companies Seeking RV Transporters

Just about this time last year, historically when the RV Transport industry begins its annual slowdown, we started to hear from all of the RV Transport companies concerning their immediate need for drivers. This was more than welcome after suffering through the 18 months of a recession that saw Elkhart, In. Nearly become a ghost town.

Last month the RVIA (Recreational Vehicle Industry Association) released information stating that RV Shipments totaled 76,000 units in the second quarter of 2010, the largest year-to-year gain the past quarter century. The outsized increase followed record-setting declines due to the recession and credit freeze. Additionally it was stated that the rapid pace of increase will moderate during the year ahead. Total shipments are expected to reach 239,000 in 2010 and 259,600 in 2011.

Although not double digit increases as seen in the industry pre-recession... it's definitely a positive. This positive increase of over 20,000 units translates to more units to be transported to dealerships. Breaking these numbers down we can figure approximately how many transporters will be needed to transport the expected units for 2011.

Using the figure of an average full time transporter transporting 6 new units per month or 72 units per year, the number of transporters needed to deliver these units would be 3,600. This would explain why we are now hearing rumblings from transport companies on the need for more transporters in the next 30 - 60 days.

Due to this, we have created a Mini Workshop for those considering the possibility of becoming an RV Transporter. This extremely affordable ($99.95) RV Transport Mini Workshop has been designed for the express purpose of;

1) Providing the basic facts on transporting RV's
2) Answering your questions concerning the RV Transport Industry.

We can do this via a Virtual Workshop where you will login to our system via the internet in order to view what we are discussing via the phone....no special equipment needed. The topics covered are;

1) Required qualifications
2) Basic equipment needs
3) Income expectation
4) DOT Rules & Reg's

This is followed by a Q & A period where you can ask the questions you need answered before making the decision. Upon completion of this Mini Workshop, you will receive the RV Transport 101 Hardcopy Manual, RV Transport 101 Digital Manual (delivered via email immediately following your Mini Workshop, and the "Hours of Service - A Drivers Handbook (an instruction manual for keeping a DOT logbook) which will be shipped with your RV Transport 101 Hardcopy Manual.

Additionally should you decide to become an RV Transporter and wish to attend either our RV Transport Workshop or the RV Transport Virtual Workshop the $99.95 paid for your Mini Workshop will be deducted from the total.

To learn more about the RV Transport Mini Workshop, just follow the link below;

http://rvtransport101.com/mini.htm

Becoming A Freight Broker Or Freight Broker Agent...

For nearly two decades TALTOA has provided training and consulting services for individuals and companies wishing to begin a career as a freight broker or freight broker agent. TALTOA began strictly by accident from our very own freight brokerage.

In the 90's our freight brokerage was experiencing tremendous growth and out of need we decided to train our own agents. Part of the training for our new agents was a manual that our management created in order to assist our new agents as well as free our time to prospect new accounts, move our loads, and in short make more money.

At the dawn of the Internet age, as we know it today, someone suggested that we make available our manual online for those that might be interested in becoming a freight broker or freight broker agent themselves. After a few adjustments to the manual we provided our staff, in order to make it adaptable to any situation, we did. It didn't take long before we were consulting those wishing to enter the industry as a freight broker or freight broker agent.

As time went by, our consulting services expanded to trucking, hot shot, RV Transport, transportation marketing, even our own Internet Radio Network (3PL Radio - www.3plradio.com). Today we can proudly say that we have assisted thousands in their careers in the transportation industry. Our original manual is still available for purchase, updated regularly, as well as a host of other transportation related products and services from Workshops to Web Design.

In this report we hope to answer questions that you may have about becoming a freight broker or freight broker agent, help you decide which would be best for you, give you a realistic idea about your income potential, introduce you to freight broker tools, discuss your home office set-up (most brokers work from their home), and more.

Freight Broker

A freight broker is one that has their own authority along with their bond, UCR, and BOC-3. One thing we hear quite often about being a freight broker is "I want to get my broker authority so I can find loads for my truck(s)". This is a common misconception as a trucking company that has their carrier authority are already able to procure their own freight for their own trucks, they just can't broker their freight to other carriers.

A carrier should however obtain their own broker authority in order to broker their "EXCESS" freight as a form of additional revenue. For example, your shipper calls with a load but none of your trucks are currently available. Without the ability to broker the load you have to tell your shipper no. This is money that is now gone forever, and that's really unacceptable. By the carrier having the ability to broker their own freight, instead of saying "no", now they can accept the load and find a truck to move it.

More times than not we've had carriers utilize our services in order to learn how to obtain their own accounts. They lean this plus they acquire the knowledge needed to broker not only their excess freight but new freight as well. Not only does this allow the carrier to never have to tell a shipper "No", but it allows them to benefit from a revenue source previously untouched.

A freight broker with their own authority is the company where-as a freight broker agent is contracted to the freight broker working under their authority. The freight broker is responsible for the financial aspects of the company (i.e.; invoicing shippers, paying carriers, extending credit, claim assistance, paying agents...).

The process for obtaining one's own freight broker authority (license) isn't hard at all. The process can be done online (www.safersys.org) however we don't recommend this to our clients as one mistake can delay the process. Below is what you will need to have before your authority is active and you can begin working as a freight broker;

1) Authority - This is your license. Before it is active you will need the additional items listed.

2) Bond - A $10,000.00 Surety Bond must be acquired.

3) UCR - Unified Carrier Registration. Although a broker, this is still a must.

4) BOC-3 - This is a processing agent that is responsible for forwarding to you all court documents, should you be contacted by such.

There are literally hundreds of companies around the country that can complete this process for you. This will insure that all of the needed paper work is completed correctly, filed correctly, and that you are in fact legal. Prices for this service can range from $450.00 and up.

Freight Broker Agent

The freight broker agent, as mentioned earlier, is one that is contracted to a freight broker working under the freight brokers authority. The agent performs the same duties as the broker minus the financial responsibilities associated with having one's own authority. In short you could say that the freight broker agent concentrates only on making money.

Often we will recommend to our clients that have little to no previous transportation experience to begin their career as a freight broker agent. The reason for this recommendation is so the client can acquire experience before taking on the financial responsibilities as the freight broker. This allows the broker agent to work as a broker (finding accounts, negotiating rates, acquiring carriers, moving loads...) without the burden of the initial expense of obtaining one's own authority or the responsibility of paying carriers (often before the broker is paid by the shipper).

Most freight broker agents work from home, this reduces overhead immensely. To work as a freight broker agent from home you will need some basic equipment;

1) Phone - We recommend 2 phone lines. One with call waiting the other a dedicated fax that may also be used as an auxiliary phone line.

2) Computer - A must as most of your work will be done via computer.

3) High Speed Internet - DSL or Broadband is recommended. If using DSL make sure it is on the fax line.

4) Fax & Printer - Separate or All-In-One machines are acceptable

One of the perks of being a freight broker agent is that you can literally work from anywhere. I can honestly say that I've brokered freight from hotel rooms while on vacation, worked from my boat, worked while camping in my RV. I've even known truck drivers that were able to broker loads while on the road. Needless to say the opportunities are endless.

Freight Broker Agents are independent contractors. In other words, even though you are an agent for an existing freight brokerage, you are your own company. You will receive a 1099 at the end of the year from the brokerage in which you are contracted. This means that you are paid gross monies ---- no taxes withheld. As such you will want to keep receipts for everything. We highly recommend that our clients obtain the services of a good tax preparer in order to keep your tax liability to a minimum.

As a freight broker agent contracted to a freight broker, you will be paid on commission. The average commission paid to a freight broker agent is 60% of load net. Load net is the difference between what your shipper agreed to pay for the load and what you agreed to pay a truck. For example, if the shipper agreed to pay $1,000.00 to move a load from point "a" to point "b" and you agreed to pay a truck $700.00, the load net would be $300.00 ($1000.00 - $700.00 = $300.00), thus your commission would be $180.00 ($300.00 x .60).

An average broker agent should be producing approximately $2,000.00 in load nets per week which translates to $1,200.00 commission (60% contract). This is not to say that you will be making $1200.00 a week from day one as a broker agent, but what you can expect to earn as your business builds. Keep in mind also that these amounts are for an average freight broker agent as well, many are able to earn more depending on their amount of business. Remember, this is your business.... your responsibility! No one is going to do the work for you! This is why it's so important to know what you are doing before doing it.

There is a common myth for those seeking to enter the industry that there is a test or certification that one must take or have before being able to work as a freight broker agent. This is just not so! The only licensing requirements are for those wishing to be a freight broker (see Freight Broker section above). One desiring to be a freight broker agent only needs a freight brokerage to contract them. You don't need a school, some type of official certificate, or even a license to work as a freight broker agent.

One favorite feature for our clients choosing the Virtual, TeleWorkshop, Basic, or Plus Package is the coaching they receive on using our proven methods to obtain a freight broker agent contract on their own. We advise our clients to use our methods and if they are unable to procure a contract to contact their consultant so that we may intervene and assist them with obtaining a contract. We believe that this is a very important for a new broker agent as it allows them to have that first success in their own career.

Not only does it allow the client to have that first success, it allows them to choose a brokerage that they wish to contract instead of being locked in to a contract that may not be that appealing. Being a freight broker agent is sales and anyone that knows just a little about sales can tell you that having the right attitude is paramount to having success. Allowing clients to obtain their own contract provides that initial first success which, by doing so, creates the attitude of success that propels them on to their next success.

Another aspect of these Packages, which is so important before signing a contract, is what to look for in the contract. What is and is not in the contract can be detrimental to a new agent. The last thing you want to have happen is find out that you can't do something later (i.e.; work for another brokerage, start your own brokerage...) because of a clause in the contract you signed while inexperienced.

Although one does not need to take a test or receive some type of certification to work as a freight broker agent, you can see why it's to one's advantage to know what they are doing before attempting to do it. This greatly increases your chance for success. Not only success but having the proper knowledge allows you to begin with both feet on the ground and running! By hitting the ground running you will find yourself way ahead of the curve which translates into making money faster.

I've seen agents that have used our services have $1,000.00 commission checks with-in 30 days and I've seen others earning only $500.00 a week commissions a year later. Additionally I've seen those that failed and are now in new careers. Why do some succeed and others fail? The answer to this question is elusive as all were presented the same material and opportunities.

From the information we have obtained from those that have succeeded and have failed, we find that those that succeeded did the little things they were instructed to do while many of the others didn't. One of the biggest downfalls of those who failed was their lack of prospecting new accounts. This will be your own business, as such in order to survive you must be searching for new accounts on a daily basis. This is why we place so much importance on prospecting new customers with all of our services and packages.

We explain in detail how to prospect new accounts. Not only does this include how to find prospects but what to say to them as well. Starting with our Self-Study Package through the Freight Broker Plus Package, our clients are provided a starter Shipper Directory to help them to get on the fast track for prospecting and obtaining accounts. As with any business, prospects are the life-blood of success. Without prospects, no customers, without customers, no business.

Marketing

As with any business, marketing is an important part of the success equation. Oddly enough, this is one of the weakest areas we find with freight brokers and freight broker agents. Often we have brokers and broker agents contact us that are in dire need of assistance due to a basic lack of marketing.

Marketing for a broker or broker agent isn't something that should be so expensive that it is unaffordable for either. In today's "instant information" age, rule #1 is having a website! Think about this for a moment, you are reading this report because you found and downloaded it instantly from our website. Shippers and carriers search the internet constantly looking for someone to transport their freight or looking for freight to transport. You must be able to be found immediately by those seeking carriers or those seeking loads.

A website is not nearly as expensive as it once was. We provide our clients a free website (depending on Package chosen) or a greatly discounted website in order for them to be able to have this marketing tool. This marketing tool cannot be ignored as it is advertising your business 24/7 - 365 days a year!

Not only is a website an important part of your marketing strategy but blogs, forums, ezines and a number of other free tools available on the internet should be included in your marketing efforts. You, as the broker or broker agent, should put to use these free tools in order to draw more attention to your business. As a broker or broker agent, the entire country is your marketing area. As such you need a marketing strategy and marketing tools that are accessible nationwide, not for just one geographic location.

The Freight Broker Plus Workshop, in addition to providing the A-Z's of freight brokering, includes an entire section on marketing your brokerage or agency. Create the buzz and you create bizz. Yes your business is brokering freight, but you can't ignore the marketing side of your business.

Packages Designed For Your Needs

In order to assist you with choosing the right package we have provided a chart below which includes whom the package is best suited and a link directly to that particular package. Please feel free to contact us at any time if you have any questions. You can contact us via the website "Live Support" Buttons, using the form on our "Contact" Page, or by calling 800.582.4167.


Package: Freight Broker Complete

Experience Level: Any

Freight Broker

Link:
http://taltoa.com/comp.htm
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Package: Freight Broker Plus

Experience Level: Any

Broker or Broker Agent

Link:
http://taltoa.com/fbplus.htm
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Package: Freight Broker Basic

Experience Level: Any

Function As: Broker or Broker Agent

Link:
http://taltoa.com/fbbasic.htm
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Package: Freight Broker TeleWorkshop

Experience Level: Any

Function As: Broker or Broker Agent

Link:
http://taltoa.com/fbtws.htm
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Package: Freight Broker Virtual Workshop

Experience Level: Previous Commercial Transportation Exp. Recommended


Function As: Broker or Broker Agent

Link:
http://taltoa.com/fbvws.htm
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Package: Freight Broker Self-Study Package

Experience Level: Any

Function As: Broker or Broker Agent

Link:
http://taltoa.com/fbssp.htm
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Package: Freight Broker 2K9 Manual

Experience Level: Any

Function As: Broker or Broker Agent

Link:
http://taltoa.com/fb2k9.htm
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Package: Web Design

Experience Level: Currently Operating

Function As: Any

Link:
http://taltoa.com/web.htm

Nine Years Later

* Originally Posted 9/11/2006 *

In every life there are events that happen which one remembers the smallest of details as to what they were doing at that exact moment or where they were when they heard the news. September 11, 2001 is one of those events. The difference in this event as opposed to others was this marked the 1st day of a changed nation if not world.

September 11, 2001 started for me as any other morning. I was up early, made coffee, and went down the hall to my office. My office was in my home but I normally didn't have the TV on. I was doing what I always did every morning. Looking over the loads I had to move for the day, post loads, check truck availability...just another day at the office.

By 7:00 A.M. the phones were beginning to ring, emails began coming in, carriers accepting loads, shippers scheduling loads...another busy day in the life of a freight broker. Then it stopped! It was so sudden that I remember thinking that my phones had quit working. One minute I was brokering freight, had people on the phone holding, emails being received, faxes being received...and suddenly, as if someone had turned a switch, nothing. A complete eerie silence.

I was the only one in my house and I didn’t have the TV on, so I hadn’t a clue. As odd and eerie as I new the events were I still moved forward. I picked up the phone and called a carrier to discuss a load. I still remember the conversation “oh man, we’re not doing nothing right now. Have you seen the news? A plane just hit the WTC….”

What?

So much has changed since that one phone call.

God Bless America!

New Year, New Opportunities

2010...Wow!

I was remembering the other day, elementary school back in the 60's. The subject came up of how old we would all be in the year 2000...and how our teacher at the time told us that was a long way off, no need to worry about it today! The long way off was 10 years ago!

As we begin this new year, much more come's to mind than just school in the '60s. The numerous clients that started or expanded their transportation careers using our services. Be it a Workshop, Manual, Directory or any number of tools and services we offer, the numbers are astounding.

Like the housewife in Texas that wanted to quit cleaning houses for a living and decided to begin brokering freight as an agent. With-in 30 days she was making $1000.00 a week.

Or the brokerage start-up in California who decided to forego the broker agent route in lieu of obtaining their own authority... they moved over 2,000 loads in their first 10 months.

Perhaps the Freight Forwarder from Alabama that decided to take over the domestic ground transportation part of his buisiness in order to add to his profit margin.

Maybe the mother and daughter in Florida that decided to step out and start their own brokerage in order to assist a single account and now broker freight for many shippers.

Even the trucking company in Indiana that knew they needed to find their own accounts and decided that learning to broker freight was their best chance for doing so. Soon after they were able to add to their revenue from not only their own accounts but also the added monies from being able to broker their excess freight.

Deep into our second decade of assiting thousands in the transportation industry with our products & services we know that a New Year brings New Opportunities for not only us but you as well. With each opportunity we wish you the greatest luck!

With that I'm reminded of this quote "Isn't it funny that the better prepared I am the luckier I get..."

Happy New Year!

Why 1+0 Doesn't = 2...

I was asked the other day, by a new freight broker agent, why are my shippers protected but my trucks aren’t? Why, since I’m spending most of my time looking for trucks, when I find a truck and set them up for my company does everyone else get to use them and I make nothing as the agent for them using the truck I set up? In short, I set-up my shippers and they are mine and my broker won’t allow another agent in the company to work them, but trucks…anyone can.

At first read, I’m sure you were just as dumfounded as I. But try to answer that question…Why is the broker agent rewarded nothing for setting up the carrier? Obvious answer is that the shipper is the one paying the bill and we (the broker) are paying the carrier. True but a considerable amount of time and effort went into locating that carrier, so shouldn’t the agent be rewarded when another in the company use that carrier to move their load?

Believe me when I say that when I first tried to answer this question I knew the answer was no. An absolute no, the agent should not be rewarded for another agent using the carrier that the original agent had set-up. However, when you try to explain this (minus the obvious answer of the shipper pays) you find yourself starting to wonder the same thing. The arguments for protecting the agent’s carrier and providing a financial reward to the agent when one uses the carrier they set up are compelling.

But the answer is still no! Agents do not and should not be paid for setting up carriers. Besides the obvious, the shippers pay the freight bill, let’s look at several other reasons…

1) A carrier set-up is not with the agent, but with the company. Carriers are not set-up for financial consideration to the company per se, but as a vendor. We contract the carrier’s services to perform a function for our client (whom is set-up for a financial consideration), the shipper. As a rule we must “set-up” the carrier in order to perform our due diligence in order to assure that this “vendor” will meet our clients “shippers” needs. Once the carrier is set-up with the information on file at the company, the agent is free to use that carrier with any shipper that is now or may become a shipper of the company. Allowing agents to have protected carriers would literally hog tie the company where no one could benefit. For instance, broker 1 set up a carrier, broker 2 has a shipper that can use that carrier. Broker 2 notices that the carrier is available, however broker 1 was the originating agent for that carrier. What does broker 2 do? Call the carrier direct and forego a percentage of their commission only because broker 1 was the agent that set the carrier up, or call another carrier? For now, let’s say broker 2 decided to find another carrier. Now broker 2 and the company has lost. Broker 1 was never really in the equation except only to halt the deal.

2) Continuing from the preceding scenario, broker 2 sees that almost any truck they find to move one of their loads has already been set up by another broker. Finally broker 2 decides to quit prospecting shippers and only prospect carriers. Why not, it’s really easy to call a trucking company and say I’m going to set you up so if you have an empty truck you will be able to use our company. With this type of attitude it won’t be long before the broker is out of business. They have plenty of carriers, but no loads. This is nearly the equivalent to stopping people on the street and saying, hey I have a product that you might buy in the future can I get your shipping information now so if you buy it, I’ll have it?


3) In order to complete a load we need a shipper and a truck. I can have all the truck’s I want, but without someone to pay me to use them I only have trucks. The same can be said about loads, I can have all the loads I want but without a truck I only have loads. However there is a huge difference. The shipper is a customer while the truck is a vendor. Let’s stretch that out a bit further… the shipper is our customer, we are the shipper’s vendor and the carrier is our vendor. As shippers use numerous vendors to complete their business so do we. A broker only seeking trucks will never make a dime. How could they? They have no customers to pay them, only vendors in which to pay which they can’t because they have no work for the vendor to perform.

Are you more confused now than when this started? Me too…almost. The only reason I believe that I brought this to the table was because I’ve seen agents first seek to prospect carriers first. They attempt to build a relationship with the carrier then move to setting up accounts. This is fine if that’s the way you choose to work, not my way but fine just the same. However when you wish to be paid for only sending some paperwork back and forth and nothing else (no load, no financial consideration, no shipper) forget it, that’s not business. The person doing the negotiating, finding the shipper, the load, the truck…that’s the person that is doing business.

If you are one that has chosen to contact carriers and set them up first, that’s fine. But you need to ask yourself a question and be 100% honest about it... are you contacting the carriers first because you are afraid of contacting the shippers? Eventually you are going to have to call a shipper…Today’s a good day to call shippers and prospect!