Ask all eight
The questions
- 1. Will you put the agreement in writing? If not, walk. A written dispatch agreement is the minimum, and it should state your fee, your right to decline loads, and how either side ends it.
- 2. Do I see every rate confirmation? The answer must be yes, on every load. A dispatcher who won't show you what the broker agreed to pay may be marking up your freight and keeping the difference.
- 3. Where does the broker's money go? Directly to you or your factoring company. If a dispatcher wants broker payments routed through their account, walk away — this is also a strong indicator under FMCSA guidance that they should be holding broker authority.
- 4. Do you use forced dispatch? You hold the authority and carry the liability, so the decision on every load has to be yours. Get "no forced dispatch" in the written agreement.
- 5. What's the contract term and the cancellation fee? Long terms and exit fees exist to trap carriers who would otherwise leave. There is no operational reason for either.
- 6. Do you charge on loads I book myself? They shouldn't. Direct shippers and repeat customers you found are yours. Negotiate this out if it's in the agreement.
- 7. Is the fee charged on fuel surcharge, detention and accessorials? It shouldn't be. The percentage belongs on linehaul only.
- 8. How many trucks does my dispatcher handle? A dispatcher with fifteen trucks is clearing a queue, not negotiating. There's no magic number, but you should get a straight answer.
The wrong comparison
Stop shopping on percentage
A five percent dispatcher who books you $2.10 a mile costs you far more than a seven percent dispatcher who books you $2.80. On a thousand-mile load that's $1,995 net versus $2,604 net. The cheaper dispatcher cost you six hundred dollars.
The number to compare is net revenue per mile after the fee, measured against what you were achieving before. Anything else is noise. Run the comparison after four weeks with any dispatcher, including us, and act on what it says.
Red flags, plainly
Guaranteed rates or guaranteed weekly revenue. Upfront setup fees before a single load. Refusal to show rate confirmations. Money passing through the dispatcher's account. Long contracts with exit penalties. No written agreement. Pressure to sign on the first call.
Answers
Frequently asked questions
How do I know if a dispatch service is legitimate?
Look for a written dispatch agreement, published rates, no forced dispatch, no setup fee, no long contract, and broker payments going directly to you or your factor rather than through the dispatcher. Ask to see the rate confirmation on every load. A dispatcher who won't show you what the broker agreed to pay may be marking up your freight.
Should I pick the dispatcher with the lowest percentage?
No. A 5% dispatcher booking $2.10 a mile nets you less than a 7% dispatcher booking $2.80 a mile. Compare net revenue per mile after the fee against what you were achieving yourself. The percentage is the least important number in the decision.
Can a dispatch service guarantee me a certain income?
No, and anyone who does is either lying or planning to book you cheap freight to hit the number. Freight rates move with the market. What a dispatcher can reasonably commit to is process — countering every load, respecting your rate floor, filing your paperwork same day — not an outcome.
Rather have someone else handle this?
This is what we do every day for carriers. Dispatch from 6% of gross or $300 a week, no contracts, first week free.