I think GMAN tried them for a while and wasn't too impressed, maybe he'll comment further. It should come up in a search though.

 

I tried them for a VERY short time. From what I saw, rates were very cheap. Others may have had a better experience with them. I suppose it is a matter of perspective. I don't haul cheap freight. Unless I get a decent rate, my trucks don't move. I would prefer sitting than moving and not making a profit. I am amazed that there are still those who want to move freight for $1/mile. I am more amazed that there are those who will take those loads. When I looked at the Direct Freight website, there were some who posted who said that they were the shipper. If that is truly the case, their rates were much lower than I would haul.

 

There you are GMAN, hope all is well.

 

I am fine, RostyC. I have been on the road and quite busy trying to find some good drivers so I haven't had as much time to visit the forum. I am also doing some dispatching. It takes more time to find the better paying loads right now.

 

When Direct Freight load board first came out it had some decent paying loads. Almost all of the loads were from shippers. Now, they have gotten crappy, shippers on that board now think they can put loads for $1.00 a mile and brokers are starting to take over the board. It's a load board now for cheap ass shippers.

 

When Direct Freight first started, they really pushed the direct contact with shippers. I am sure that they pushed lower freight rates to the shippers by cutting out the brokers. I was initially told that there would not be any brokers on their load board. I don't really think that is the case. Regardless, I seem to do better with getloaded and internettruckstop. I also use some boards that brokers have, such as Landstar and CH Robinson, etc. I was surprised at how cheap some of the loads were on the Direct Freight board. I can get a better rate from most brokers than I was offered on that board.

 

Pretty good advice here to me. IMO, you are self employed for two reasons and two reasons only:

1. You LOVE what you do, or
2. You make so much stinking money it's better than working.

In your friends case, #2 is out. That leaves #1. Does your friend really think he will love paying someone to drive his truck until something better comes along? I'd say the trucker friend is using your buddy.

Business should provide a 80% chance of ROI in a few years, with a 20% chance of failure. Trucking is the exact opposite of that.

I'd like for you to post the numbers that your buddy has crunched that show he can make a profit by paying a driver.

 

According to my CPA, who specializes in small businesses/small real estate investors, over 80% of all the small businesses started in the U.S. fail in less than 5 years.

I'll bet it's higher in the trucking business. Thinking back to 1975 when I started with my own truck, I can only think of a handful of locals that are still in the business. Dozens, if not hundreds, have come and gone, or gotten out. Most of the people I know who are "successful" in trucking also have another source of income. A wife with a good job, a few cows, a small vineyard, a couple of rentals, anything to help pay the bills.

 

Thanks everyone, for all of the feedback! I probably wasn't clear enough about the relationship between my buddy who wants to buy a truck, and his driver friend. It was my buddy who approached his driver friend, not the other way around. As far as the numbers he was crunching, I'm not sure what he was using, but the results he came up with were WAY too rosy, with he and the driver making way too much money. That's what caused me to post here. I have lurked around the boards for a year or two now, kicking around the idea of becoming a driver. It seems every month, I see more and more about what a hard time y'all in the industry were having, so I figured he was missing some crucial ingredients in his calculations. I told him what I was seeing, and he asked if I would ask you guys for your opinions.

To my friend's credit, he has listened carefully to what I have told him y'all are saying, and has decided to abandon his goal of owning a truck...at least for a few years. He has a very good job, which pays well...he just wanted to diversify, and pursue his dream of owning his own business. Based on the comments here, he has decided to that trucking isn't the answer, so he's back to square one, looking for other business ownership opportunities.

Thanks to everyone who has generously shared their knowledge and experiences. It's much appreciated! You have been unanimous in recommending against this move...and your advice has been heeded!

 

You are very welcome! At least we didn't waste the time, what is usually happened with this type of questions! Cause most folks only hear, what they want to hear! :wink: 8)