Am I being paid a “fair” commission split for the kind of business I’m doing?
What is a “fair” split?
A “fair” split is one that takes many things into consideration. Here are a few of them:
What Freight Tec takes into consideration:
- Trustworthiness of the Agent / Prospective Agent
- revenue level
- gross profit
- credit risk of your Shippers
- ease of doing business with your Shippers
- (the list goes on, and for simplicy’s sake – I’ll stop here)
I notice when prospective Agents call me to find out about Freight Tec’s Agency program – the first, and most popular question they ask is “… what is your commission split?” While a fair and reasonable commision split is important to have, it is not the most important thing to have.
If a company offered you a radically high commission split, would you take it?
Would it raise any red flags to you?
What are some potential risks for you?
Here is a list of some critical issues You need to know before signing on with ANY Broker:
- Trustworthiness of the Broker
- Financial stability
- Back office support
- Hours of operation
- Reputation in the industry
- Policies and Procedures of the Broker
Companies in the industry offer commission splits that range from 25% – 70% being paid to the Agent. The Industry average being paid out is 50% – 60% to the Agent.
More to come on each of those topics listed above… If you have questions or comments – please email them to: steve@freight-tec.com
Thank you
