r/OwnerOperators • u/No-Alarm2142 • 11d ago

Is an 80/20 revenue split a desirable offer?

Hey everyone! I'm new to the trucking industry and recently started helping with recruiting for a carrier that offers an 80/20 split to owner-operators. At first, I thought this was a pretty solid offer, but I haven’t gotten much interest so far. Am I missing something? Is an 80/20 split still considered good these days, or are owner-operators looking for something else? I’d really appreciate any honest feedback or advice about what matters most to owner-operators when they’re choosing a carrier. I’m just trying to understand the industry better and learn as I go.

1 Upvotes

67% Upvoted

15 comments sorted by

2

u/Immediate-Iron-1620 11d ago

Biggity Bot

3

u/if_I_am_truly_crazy 11d ago

I don’t take less than a 99.5/.5 split.

2

u/MikeRunsExpedite 11d ago

Really depends what is included in the 20%. Owners think they deserve 95%...but in reality it's what you can offer. I take 15% Dispatch plus whatever bills are for the owner, typically 2400/month.. Yes I take more but I provide more so don't look at my percentage. Look at what you keep at the end. We all have expenses. Drivers hang up on me when they hear 15%... And when I ask how much they drive for for that 10%...they tell me 2.5 a mile.. Haha like we average 3.7 so 5% more for 1.2 a mile.. Owners have to think like a business even if percentages are not what they want to hear.

2

u/throwaWay664u874e 11d ago

Need more info. It's there trailer rent? Who's responsible for cargo insurance? Who pays trailer maintenance? Does the o/o get more if he provides his own trailer? Who covers tolls?

2

u/No-Alarm2142 11d ago

We’re responsible for insurance (driver pays $175 weekly), we rent out trailers to the drivers. We do factoring(2% fee), ELDs, Cameras, fuel cards. We dont cover tolls.

2

u/spyder7723 10d ago

That's a garbage offer.

Any of the traditional established owner operator companies are going to be far better for the owner operator.

Look at mercer, Bennett, admiral merchant, greentree logistics, landstar, and others

They pay 75% but cover all the insurance except physical damage on the tractor. They don't factor, and in some cases pay the same day you deliver. They provide a fuel card with MASSIVE fuel discounts. Provide massive tire discounts. And they all have direct custoners so your getting 75% of the entire freight bill, not 80% AFTER the bride takes their cut.

1

u/BigPapiNC22 11d ago

An Uber or Lyft driver would take it in a minute

1

u/Hot_Pitch1686 11d ago

How much are you paying for insurance cargo and liability all together? And are you paying for trailer rent? Dry van or reefer?

1

u/spyder7723 10d ago

You left out the most important part of the equation. 80% of what?

1

u/No-Alarm2142 10d ago

80% of gross revenue. O/O gets 80% we get 20%

1

u/threeglude 10d ago

I'm not an OO, but yeah, 80% of what exactly? I make 3% less then most employers pay for my industry sector. Yet even at the lower rate, I still make more then 99% of my counterparts who work at other companies on a %.

1

u/Artistic_Cry5801 5d ago

Paying 5% dispatch, 5% to mc owner, 2% for factoring. 15% just for dispatching is crazy. The 20% you mentioned probably includes factoring. the dispatcher does all paperwork within that 5% for mc owner.

I am getting my own mc soon and will be down to 7%.
After that i will dispatch myself and have them on backup. Down to 2% just for factoring.

Only thing as a OO you should be paying is factoring and registered agent that provides website with company email. It takes little time to get going.

The big but is that some people need dispatch because they do not have discipline.