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Go it alone or allow us to represent you. Below are some items we pay close attention to when vetting brokers and forwarders for our purple squirrel freight talent candidates.

One Size does not fit all

When considering a partnership with a brokerage as a freight agent, it's crucial to thoroughly vet the potential broker to ensure a solid fit. Recruiters often approach former freight agents to pitch the brokerages they represent, but agents seek an unbiased advocate rather than a typical recruiter. To effectively vet a potential brokerage partner, it's important to ask about various aspects such as support ticket response time, shipper credit, bad debt responsibility, insurance claims, and NSA language. The answers to these questions can significantly impact the success or failure of the partnership, as even a slight increase in the promised split could result in substantial financial loss if the wrong decision is made.

Freight Agent support tickets

One of the essential questions to ask a brokerage is about their agent support ticket response time goal and the time zone of their agent support. This is crucial as delayed responses can potentially lead to lost business or customer dissatisfaction due to the lack of timely support. Time kills all deals!

Shipper Credit

Another important question relates to whether the brokerage self-underwrites or self-insures shipper credit, or if they utilize 3rd party factoring. Self-underwriting is often associated with mature and financially stable brokerages, resulting in quicker customer credit decisions and larger approved credit lines. The freight brokers’ financial model affects your agency’s growth and bottom line.

Nickel and dimes add up

Another item to consider is whether the agent is responsible for bad debt, which is closely related to the previous inquiry about shipper credit. As an agent, being accountable for bad debt reserves can significantly reduce the agent's gross commission split, raising concerns about why the agent is responsible for debt if the broker approved the credit.

Can I have your digits?

An additional question to ask when evaluating a potential broker partner is about their MC/DOT number, which provides crucial details that can influence the future of the partnership. This includes government or military freight opportunities, whether they are legitimately asset-based, and the number of trucks they own or control.

Researching the MC number can reveal additional information about a company, such as their years in business and whether they have limited or no business credit as a startup. Carriers and their factoring companies may be hesitant or decline to haul loads for you if the freight brokerage is new or has limited business credit history. This can create challenges in covering those loads until the broker's credit reputation improves. A quick search using DAT or Ansonia can provide insight into the company's assets and fleet size, which is crucial for enterprise shippers who prioritize real assets. It's important to consider whether the company is asset-based or non-asset based, as it can impact the business relationship.

Insurance (s) –
are you on the hook?

When it comes to insurance deductibles in the event of a cargo claim, it's essential to carefully review the agent agreement before signing to determine the responsible party. Are you held responsible for insurance deductibles, are they split between the agent and the broker or does the broker pay the full expense?

Free or Captive Agent?

Freight agents should carefully evaluate whether a potential broker partner expects them to sign an exclusive agent agreement, especially if the brokerage cannot offer 100% of the resources the agent needs.? Our professional opinion is it’s best to keep your options open as a free agent as your book of business evolves.

Mutual Non-Solicit?

Considering how long a brokerage can pursue an agent's customers if the agency leaves, it is an important factor to consider when looking for a new broker partner. It's crucial to be wary of hidden clauses that could allow a brokerage to pursue a departing agent's customers, as it may impact the agent's livelihood. Read the fine print and know what you’re signing.

Tools of the Trade

In the freight industry, it's essential to be mindful of unusual delivery destinations. For instance, delivering to a Native American reservation in NM with only basic coordinates for the pick or drop poses unique challenges. Ensuring effective communication with drivers to navigate such unique origins & destinations is crucial for successful freight operations. Does the new potential broker partner offer more than just one tracking solution?

Reviews- Legitimate or BullSh%t?

When it comes to online reviews, it's important to consider the time gaps between reviews and the nature of them. Questions arise around whether the reviews are genuine and from satisfied customers or if they are mostly fake 5-star reviews posted by employees and partners. Inconsistency and questionable integrity in reviews can raise red flags when considering a new business partner. While no company is without flaws, it's crucial to avoid engaging in practices that may be seen as deceptive by your shipping customers. Choosing the right broker to partner with is essential to protect your reputation.

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