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Freight Tec News

Milestones

We recently had six employees reach work anniversary milestones:
• Steve, Jeff and Melanie reached their 20 years with our Freight Tec team! 🏆
• Leisa, Marty & Cherie reached their 5 years with our Freight Tec team! 🏆
All of them are such valuable members of our team! 🙌 Congrats! #bestemployees #freighttec #freightbroker #freightbrokerage #freightagent #bestagentprogram #backofficesupport

Coats for Kids

Last weekend we were able to participate in our local Coats for Kids Car Show 🚗 event put on by the Rotary Club of Bountiful. This event helps local kids to buy a coat for our cold winters ❄️ here in Utah. This is Freight Tec’s 2nd year being a gold sponsor for this event. 💛 This car show is held on the same street our office is located on in historic downtown Bountiful, Utah – this year it raised enough 💰 to help 800 kids get warm coats this winter! 🙌 #coatsforkids #carshow #event🚗 #bountifulrotary #freightbroker #freightbrokerage #freightagent #freighttec #bestagentprogram

Paint With Love

Last weekend our very own CFO, Jeff Graves, donated 43 oil paintings with proceeds donated to a charity called Red Barn Academy! Jeff learned to paint almost 2 years ago – his “covid talent.” 🎨 He loves to share his art and decided to create paint.with.love.jeff (instagram) to donate proceeds from his paintings to various charities. There was also a 5k race that almost 300 people participated in! 💪 #freightbroker #freightbrokerage #freightagent #freighttec #bestagentprogram #paintforcharity #covidtalent

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.

 

 

Why Joining a Company With an Internal Brokerage Could Cost You Your Business

In the right circumstances, becoming a freight agent can be a fantastic career choice, filled with opportunities to focus on bringing in first-time clients, building relationships, and exceeding the expectations of shippers and carriers. The freedom, pay, and level of control can be enticing. However, in the wrong situation, joining a freight brokerage can be a debilitating decision.

One of the riskiest moves for a freight agent is stepping into an organization that runs its own internal brokerage. As an agent, you shouldn’t have to compete within your company to keep the business you’ve already secured.

The professional relationships you’ve developed are a huge part of your success — both now and for many years to come. You may lose some of those relationships through natural attrition, but that healthy fear of competition should stem from external agents, not from people within your company. Freight agents who are forced to compete with an internal brokerage spend too much time looking over their shoulders.

Burning Out From Unnecessary Competition

The constant struggle to drum up new business is as American as apple pie, but it’s not always necessary. While a certain level of competition is good for keeping you sharp, undue competition — the type that’s common with internal brokerages — burns salespeople out far too quickly.

Within a brokerage, each independent freight agent should be able to plan his or her business development strategy based on the tools at hand, without fear of being blindsided by salespeople who supposedly are on their own team. Natural growth unfolds as a result of healthy competition — not because of stressful, excessive pressure from an internal brokerage.

At Freight Tec, we sign a non-compete, non-disclosure agreement every time we partner with a freight agent. Read over the document here.

Lack of Freedom and Support

Many experienced freight agents are recognizing there’s a balance between too little freedom and too little support. The sweet spot is where independent freight agents thrive.

With a company like Freight Tec,  these talented independent agents have the autonomy to use their time-tested processes to close deals, enjoy the fair gross profit commission split they deserve and have the back-office support that’s so difficult to obtain outside an established company. Benefits such as paid-for technology platforms and exhaustive back-office administrative help are game-changers for many agents.

Leave Internal Brokerages Behind

The presence of internal brokerages is a thorn in the side of many excellent freight agents. If you’re interested in leaving internal brokerages behind, explore the benefits of becoming an independent freight agent by emailing your questions to info@freight-tec.com. Or, learn more about the perks of the independent freight agent lifestyle in our infographic.

Learn More About Our Freight 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.

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 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.