"Broker Entry Salary Averages $40k Per Year – SO WHAT?!"

#1: "Broker Entry Salary Averages $40k Per Year – SO WHAT?!"

This kind of simplistic statistic can be incredibly misleading and even dangerous. In the first place, what is meant by “broker”? Is this a person who calls only shippers, one who calls only carriers, or one who does both sides?  Does the role and organization structure matter? Does location in the country matter?  Does the compensation method (draw vs seat cost vs salary + incentive) matter? OF COURSE.

Here is a more accurate view of median starting salaries of entry level CARRIER SALES (calling only on the carriers to cover freight) across the country.  Please note that major metropolitan areas often see higher rates than rural areas.  For example, we know from our dataset that the Chicago median starting salary is closer to $45k than $40k even though for all of Illinois the median is $40k.

Figure 1:  Carrier Sales Median Starting Salaries by State

Data is based on the 2019 TIA Compensation Survey reflected pay data from more than 13,000 incumbents for the year 2018 using the medians of actual employee pay data not self-reported company averages.