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Category : Agent Program

As an Agency Owner, Why Would I Want to Transition to Freight Tec?

For many, owning a business is the end goal. It’s means you’ve “made it.” It’s a sign of independence and a bright future. However, for those who own a freight broker agency, challenges often are just as plentiful as benefits.

Life as a freight agency owner usually entails incredibly long days, rampant uncertainty and a huge list of tasks to complete — each and every day.

The challenges are vast, but with Freight Tec, so are the opportunities. Here are some of the reasons why Freight Tec is an excellent transition brokerage for freight agency owners:

Freight Tec’s Agent Support System

We believe in trying to find a different load for a Carrier, who wants to be home for the weekend to spend time with his family…  Taking care of some of the extra headaches for a Shipping Manager so he can spend more time with his family… or making sure our Agents and Employees get the time they need to spend with their own families. We consider each of these part of the our Freight Tec Family as well.

The following are letters of appreciation from our Freight Tec Agents:

Thank you both so very much for the yummy Christmas treats, and the unexpected Christmas bonus. How very generous of you both!! It was a much-needed surprise.

I really appreciate what you both do to make this such an enjoyable place to work. I have never worked for a company where I look forward to coming to work every day.

Merry Christmas to you and your families!!

Thank you again,

-Lisa


Brent, I just wanted to reach out and thank you for your help and advice a few months back. I especially want to thank you for the referral to Freight-Tec. They have been absolutely amazing to work with! The transition has been seamless with the help of a great support staff in Freight-Tec. they were everything that I was looking for when I made the switch. This has been a blessing in every way for my family, especially financially. I will make 5X my previous salary as a Western U.S sales manager with another brokerage. I couldn’t be happier with your advice and I am so happy that I listened to you & followed your advice because I did have my mind made up at the time to try this a different way. There are a lot of bad brokerages out there and the good ones are not easy to find. Especially difficult to find a company that treats you the way Freight-Tec does. Thanks again!!!

Hope you are doing well


Believe me, all the gratitude is directed towards you and Carrie and your entire team that I have worked with. I am amazed how easy this process is and how wonderful the support has been from your office. This has been such an amazing transition and all the words can’t describe how easy and wonderful you and your office has been in helping me to be successful.  I have never 1 time not received help immediately and far beyond my expectations every time I have reached out. Also, you guys have signed up some very large accounts in minutes. Compared to my last company that took days (literally). I love the positive vibe that I get from your office and it makes the world of difference.

Thank you for EVERYTHING!


 

Hi team,

I wanted to say thank you for the help and support in the past week and a half. I have been out with my eye surgery and I appreciate everyone helping from support, collections, carrier set up and everything else. I have been working mostly remote from my phone and laptop as I have to have limited exposure to light so it’s been difficult but your help has been very appreciated: It is great to be a part of such a dynamic organization and the little things you all help with go a very long way. A very special thanks to Barbara for dealing with my not so easy clients the past few weeks as well.
I look forward to continued growth with you guys. Please by all means let me know if there is anything you can critique me on so I can be sure to make your jobs easier. I hope you all have a blessed weekend with your families and enjoy the summer weather. I hope to eventually get out to the office to meet you all in person. I am extremely thankful and blessed for this opportunity. It was a very scary and tough decision to become an agent on my own but you have all made me feel like I am truly part of the Freight-Tec family and it has definitely made it so much easier.

Sincerely appreciative

This is a perfect example of Freight Tec’s values. If you wish to recieve this kind of support in your career, take a look at our Freight Agent Program.

Is Freight Brokerage Still A Good Business To Be In?

The short answer is: Yes.

Lets dive into why the industry is thriving. Todd Bryant of Bryant Surety Bonds lays out the facts in this article for JOC.com.

Here’s a summary:

Growing Demand:

Since January of 2014 Broker business has increased by 15%, and that grown still isn’t meeting demand.

Sound Income:

Brokers typically make more than the national salary average; and with control that comes with the business, you have the opportunity to increase your income.

Stable Industry:

Broker bonds were raised to $75,000 in 2013, as a result, the brokerages with low credit scores shut down, bringing in a new batch of more financially secure brokers.

Freight Tec carries a $100,000 bond, and was rated in the Top 100 Broker by Inc. Magazine.

Bright Future:

With increased demand, more robust Brokerages, and growing incomes, the business is more trustworthy and profitable than ever.

If you’re interested in changing careers and becoming a Freight Tec Agent, check out or Agent Program.

 

 

Freight Agents: How Internal Brokerages Kill Agent Entrepreneurship

Entrepreneurial individuals have been shown to possess certain character traits—passion, risk tolerance, leadership, and others—at a higher percentage than the rest of the professional population. All of these characteristics are important, but the trait that sets many entrepreneurs apart is a strong desire to enjoy the fruits of their own success.

Freight agents are truly the entrepreneurs of the transportation industry. Most of them founded and continue to run their own businesses. Nearly all of them possess a desire to work hard and to enjoy the results of that hard work. Unfortunately, many freight agents end up working with transportation companies that also have internal brokerages. By preventing them from capitalizing on their own hard work, those internal brokerages can kill the spirit of entrepreneurship (and the motivation) of freight agents.

As entrepreneurs with an independent streak, most freight agents run very small operations. Oftentimes, these are one-man or one-woman operations. They work hard to find, convert, and close prospective customers that they hope will grow their businesses. Sometimes, however, when those accounts do grow, the small operations of independent agents can no longer manage the associated workload. Unfortunately, it is at this point that many independent freight agents lose control of their own accounts.

While independent freight agents sometimes have trouble scaling their resources, large trucking and transportation companies have plentiful resources and can scale up or down easily. For this reason, they often “step in” to fill the deficiencies of their freight agent partners with their own internal resources. Most transportation companies pull in business from two competing sources—independent freight agents and internal brokers. Unfortunately, that line can become blurred when an account grows beyond an agent’s ability to manage it and their resources become mashed with those of an internal brokerage. Of course, this also complicates the attribution of revenue and, therefore, the distribution of gross profit.

Certainly, agents have the option to hire additional help. Indeed, many agents try to bring on a second person (first employee) when an account begins to grow. But hiring and managing an employee is an entirely new undertaking for most agents. Many find that they lack the experience to bring on an employee and get them up to speed quickly. And, in a fast-moving industry, those delays can be extremely costly. Transportation companies understand those costs and, therefore, quickly apply pressure to supplement using company resources. It is through this seemingly logical process that some agents have their accounts stolen by the internal brokerages that claim to support them.

Freight-Tec is entirely different than other trucking and transportation companies. Freight-Tec has never managed  (and will never manage) an internal brokerage. From the beginning, the company’s success has depended upon its healthy relationships with independent freight agents. As the sole source of the company’s business, freight agents are highly valued and actively supported through an industry-best freight agent program. Among other things, the purpose of that program is to respect and nurture the entrepreneurial ambitions of independent freight agents.

Freight Agents: Building your business on a Level Playing Field

In business, the notion of a level playing field is essential to long-term success. A level playing field is defined as an “economic and legal environment in which all competitors, irrespective of their size or financial strength, follow the same rules and get equal opportunity to compete.” Great business people can be clever, cunning, and shrewd, but they always respect the need for a level playing field. Unfortunately, level playing fields are hard to find for freight agents.

The vast majority of trucking and transportation companies run their own internal brokerages, while also soliciting freight from independent agents. In doing so, they have failed to create a level playing field for their agents. For obvious reasons, this system creates numerous conflicts of interest within the company. Sharing a single set of resources, internal and external agents cannot be expected to play by the same rules and cannot receive equal opportunities to compete. In nearly every instance, the needs of internal agents will win out over the needs of external, independent agents.

In these environments, transportation companies do not view freight agents as true partners. Rather, they are seen as lead generation vendors—a channel for supplementing the leads brought in by their internal brokerages. Naturally, independent agents find themselves low down a long list of priorities for the brokerage. In extreme cases, independent agents have even seen their freight customers stolen by an internal brokerage.

At Freight-Tec, we built our business differently. We don’t have an internal brokerage company. In fact, as our only source of business, our agent program entirely determines our success. That reliance on freight agents is a primary differentiator for our company. Because our agents are so important to our business, we view them as true partners and we take customer service very seriously. Local, personable, and responsive, our offices provide agents with everything they need to succeed. Most importantly, Freight-Tec is the only company that will guarantee, in writing, that it will never steal from its agents.

Freight agents looking for a level playing field must seek out a transportation partner that does not manage its own internal brokerage. Unfortunately, such companies are a rarity in the industry. Many agents select a transportation partner, only to find that they are competing with an internal brokerage and that the fight isn’t fair. Freight-Tec built its business model on the success of its agent program and, in doing so, created an ideal working environment for hardworking agents.

Freight Agents: Red Flags When Selecting a Broker

When selecting a brokerage partner, freight agents generally know what to look for. They look for a partner that offers a generous gross profit revenue split, capable support, and sufficient insurance. But, sometimes freight agents should pay less attention to what is there and more attention to what is not there. In particular, these red flags can help agents to know which brokerages to stay away from.

Red Flag 1: A Disconnected Team

In the transportation industry, teams rely on each other for information and support. Effective teamwork is an essential part of a freight agent’s success. In the transportation industry, nearly all companies are made up of virtual teams, with separate team members working hundreds or thousands of miles apart. With some team members on the road, and others working remotely, it’s essential to look at how cooperatively the team works together.

Red Flag 2: Outdated Technology

A company’s technology is often a reflection of its broader culture. Company’s that invest in the latest technologies frequently emphasize growth, innovation, and employee satisfaction. Outdated technology can signal a lack of efficiency and an unwillingness to change. Unfortunately, failure to invest in new technologies can cause some transportation companies to lose their financial edge and sink into obscurity. When investigating freight broker, agents should inquire about the software platforms and other technologies utilized by the company. Agents should avoid companies that appear to have actively avoided upgrades in technology.

Red Flag 3: Excess Focus on Gross Profit Revenue Split

The gross profit revenue split is a major factor for agents when choosing a freight broker. Unfortunately, many agents place too much emphasis on this singular factor. A favorable split can distract agents from other shortcomings that will cause problems down the road.

Red Flag 4: Poor Communication

As a freight agent, your success depends on your ability to communicate with the other members of your team. In the virtual teams common to the transportation industry, that communication can be a challenge. In fact, you’re likely to end up communicating less in person and more through technology. You should be sure that your team communicates regularly and effectively. Long distance teams, which aren’t well connected quickly, become dysfunctional in other ways. Poor communication is a major red flag and agents should be very wary of these circumstances.

When looking for a broker-partner, freight agents should perform their due diligence before making a final decision. But, rather than simply looking at the positive attributes of each company, agents should also look at the potential weaknesses. Instead of getting distracted by flashy “good deals,” agents should use a critical eye.

Freight Agents: Tips for Selecting a Broker

We all recognize a good friend when we see one. Good friends share, they look out for others, and they support us when we need it. No matter what our stage in life, we all need good friends to do these things for us. Business partnerships, including agent-broker arrangements, are a lot like friendships. Before you pick a freight broker, be sure to ask yourself if they do the sorts of things you’re used to seeing good friends do. In particular, watching for the following friendship-inspired behaviors can help agents make better decisions when establishing broker relationships.

Good Friends Always Share

Over the years, much has been made of the gross profit commission split between agents and brokers. Agents should only partner with brokers that provide a fair and generous percentage of the business they bring in. Agents should also inquire about what the brokerage provides for the percentage of the money it keeps. While this split isn’t the only consideration when forming a new partnership, it is a foundational matter that should be given careful consideration.

Good Friends are Supportive

Chances are, your best friends have always been there for you through thick and thin. Agents should ensure that their brokerage partners are going to offer them a similar level of support. Comprehensive back-office support and expertise can be a valuable resource to agents as they source and secure new business.

Good Friends are in it for the Long Haul

You know those friends that moved on as soon as they found something better? Some freight brokers are no better than those fair-weather friends. A good broker partner should express a long-term interest in agents by providing career and retirement planning services.

Good Friends Aren’t Selfish

A true friend doesn’t need to be the exclusive recipient of your friendship. So why do some brokerages make agents sign non-compete agreements? A good brokerage will allow agents to earn a healthy living by engaging with multiple partnerships and harnessing multiple revenue streams.

So, if you’re a freight agent looking to establish a partnership with a broker, be sure to give them the friend test first. Do they meet the criteria that you’ve always used to measure successful partnerships? Specifically, do they share commissions fairly, provide excellent office support, and give you the freedom that you need to advance your career? If not, break it off as soon as you can and look for a broker willing to treat you as a true partner.