06 Jan Broker compensation analysis: What to expect long- and short-term
Variation is the watchword in any analysis of broker compensation, says Beth Carroll, managing principal of the Prosperio Group compensation consultancy and author of the Transportation Intermediaries Association’s annual compensation survey three years running.
Agent model brokers will take home typically anywhere from 40 to 70 percent of their profits after transportation costs. Say a broker does $2 million in dry van business over a given year, representing the absolute top of what a single individual is likely to handle as a full-time independent agent without a lot of paid staff. “The profit margin on dry van is around 15 percent,” Carroll says, or $300,000. Total income potential at 70 percent of that profit is $210,000.