Plus, a CSX train collides with a semi hauling a military tank in South Carolina, a truck driver is awarded $160M in a lawsuit over a defective truck, and Truckstop announces another round of layoffs.
Alabama jury rules against Daimler Truck NA in a $160M verdict for a truck driver injured due to alleged defective cab and seat design.
ATRI study shows 39% of truck deliveries face costly delays. Industry loses $15B annually.
Navigate commission structures, technology integration, and growth support. Here's what you need to weigh when choosing a freight agent program.
Change is driven by various factors in freight brokering. Whether you're facing financial pressure, operational frustrations, or seeking growth beyond your current capabilities, exploring new freight agent program partnerships can be strategic for your business.
Recent years have been challenging for freight brokers. You might be dealing with burnout from wearing too many hats or identifying a technology gap holding you back. Industry shifts may have you questioning your competitive edge or seeking new challenges that align with your goals. With the market poised for a turn, finding the right freight agent program partnership can be transformative.
Navigating Commission Structures and Payment Terms
Understanding the commission structure is crucial. The average commission split is between 60% to 70% of gross margin, slightly lower for less experienced agents or those with smaller books of business.
Maximizing your working capital involves looking beyond payday. While commissions are important, some programs have holdback policies where a portion of your commission is withheld for a period. This reduces your available funds, impacting your growth potential. Even a 1% revenue holdback can account for up to 10% of your profit. significantly affect your profit.
Consider how frequently commissions are paid and the average time from invoice to payment. Programs like Armstrong Transport Group offer up to 75% commission with no holdback and weekly payments, providing more flexibility to run your business your way. Additionally, Armstrong offers sign-on bonuses and runs various promotions; currently, you can get up to 10% more for the first year.
The logistics industry is increasingly tech-driven. The right tools can streamline operations, but new tech solutions can add complexity. Many logistics companies juggle multiple solutions in their tech stacks, often with associated fees and changes in workflows.
Evaluate how well a brokerage’s platform integrates with industry-specific apps, especially for carrier fraud prevention. Look for those that provide free access to essential resources like DAT and Truckstop load boards, as well as Highway for carrier vetting. Exclusive discounts on essential resources like ZoomInfo and third-party tracking services can significantly enhance your efficiency and profitability.
Real-time tracking features like MacroPoint, mobile accessibility for carriers through services like TextLocate, and data security protocols. Look for partners using advanced technologies like predictive analytics and automation to streamline operations. The scalability of their tech stack and the quality of their training and support are also important.
Operational support is the backbone of a thriving logistics business. Seek partners who respond quickly, are available 24/7, and solve problems proactively. Reliable back-office support managing accounts receivable, billing, collections, and credit frees you to focus on growth. Most brokerages boast exceptional back-office support, so it's crucial to dig deeper to understand what's behind the curtain.
Comprehensive training programs are essential. Look for digital and in-person training opportunities and advanced learning paths. Ensure the trainers have brokerage and operational experience to provide the most effective guidance. At Armstrong, our training programs are tailored to your specific challenges and opportunities in freight brokering. Whether it's mastering new logistics software, improving negotiation skills, or understanding market trends, our customized training is designed to make you more competitive.
Our support doesn't stop there. Armstrong’s dedicated Agent Success team is committed to your long-term success, providing ongoing assistance that helps connect you to the back-office resources you need to streamline operations and stay ahead in a competitive industry. This includes smooth onboarding, assistance with transferring your book of business, guidance on customer acquisition and retention, and training on our user-friendly, proprietary TMS and other tools. Our agent success program also provides a comprehensive training component, led by an expert with extensive brokerage and operational experience, designed to provide you with the insights and skills needed to excel.
In a busy, competitive industry, find partners who function as strategic allies. They should offer more than support, helping you unlock new opportunities.
Flexibility is crucial if things don’t work out. Review a sample agent agreement to understand specific obligations and ensure fair terms without restrictive clauses. Knowing the process for leaving the program and any post-exit restrictions is essential for planning a fair exit strategy.
To keep growing, you need a program that supports expansion plans. Look for programs offering team-building and business development support. Ask for examples of agents who have successfully scaled their business with the program. Support in expanding areas of expertise, such as LTL and Mexico Cross-Border, can provide valuable growth resources.
Mitigating risks protects your business from potential threats. Understand how the program handles cargo claims and processes for mitigating risks. Look for a dedicated claims department and proactive strategies. Inquire about liability protection for agents to ensure support for legal issues. Armstrong agents take advantage of our blanket all-risk cargo insurance policy, which provides comprehensive coverage for your shipments, ensuring peace of mind and financial security.
Why Make the Jump?
Becoming an independent agent or partnering with a new brokerage offers several benefits. Greater autonomy allows for decision-making freedom without corporate constraints. Higher earning potential, with competitive commission structures and no holdbacks, significantly boosts earnings. Customizable support, including tailored growth strategies and comprehensive back-office support, allows you to focus on business expansion. At Armstrong Transport Group, we understand the value of this autonomy and provide the necessary support to help you achieve it.
Ready for Change?
If your current program lacks growth opportunities, it might be time to look elsewhere. Limited growth opportunities and inadequate support can hinder potential. A new program can offer a competitive edge with access to advanced technology and tools. Independent ownership allows for a better work-life balance, aligning with personal and professional goals. Armstrong Transport Group offers these advantages and is ready to discuss how our program can meet your unique needs.
Considerations for Making a Switch
Switching programs isn’t always the right move for everyone. Consider how a new program might help expand your carrier network while maintaining existing relationships. Compare your current system with newer alternatives. Review your contract for exit clauses or negotiation points. Calculate the impact of higher commission rates or better payment terms. Consider how your business might benefit from access to services -- like LTL, cross-border, or heavy haul – or grow with advanced technology. At Armstrong Transport Group, we are willing to have a conversation to provide the information you need to make a well-informed decision that fits your business.
Choosing the right freight agent program is a significant decision. The best choice boosts your earnings, provides robust support, and offers the freedom to grow your business. Always conduct thorough research and seek advice from industry professionals before making a significant change.
At Armstrong Transport Group, we understand the complexities of switching programs. Contact us today to discuss how we can help you benefit from higher commissions, improve your operational efficiencies, and access advanced technology. Let’s ensure your business continues to grow—Get started now!
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