Owner Operator Pay

So I've been considering becoming a driver and although premature... I've looked into trucks (I know you need experience before tossing 100k at a truck). But the numbers being presented are nuts. Some sites say 200k a year. Is this just a false leader? Or is this truly doable for most owner operators?

Others will jump in here shortly with more facts about owner operators, however that 200k you're seeing is GROSS. Out of that you need to pay for maintenance and increased taxes. Steer clear of it. You can make the same amount of take home pay being a company driver once you prove yourself to be a safe, reliable driver without all the added stress.

Jason, you simply can't believe the numbers and here's why. In business there is a huge difference between what is called revenue and what we can count as actual income. The places where you are seeing these big numbers are companies who want you to lease on your privately owned rig to their company. Those numbers are quite possible from a technical definition of revenue, but far from what your actual income will be.

Now consider this: A realistic average of profitable trucking companies shows this industry to be making around 3% profit margins. The ones who are doing that are the biggest, brightest, smartest ones in the world of trucking!

You can do the math. If you can generate 3% on 200,000 dollars of revenue (which is extremely unlikely) how much money can you make? Or what if you don't have a clue as how to compete with the sharks who are already hardened and experienced? How much can you stand to loose?

I am a long time business owner, who produced annual revenues in the millions. When I decided to get out of my business and become a truck driver, I figured out real quickly that the owner operator scam was being pushed hard by the big players in this business. Now, why would the most successful companies out there encourage others to go into competition with them?

I am a very successful company driver, and I have run the numbers every which way I can. I say don't do it.

Here's some more information...

When Is The Best Time To Become An Owner/Operator

Confessions of an Owner Operator

Welcome Jason.

Get educated: Confessions of an Owner Operatot

There are several other articles in the blog section on the O/O topic.

Once you read that, here is our starter kit:

• Truck Driver's Career Guide
• Brett's Book: The Raw Truth About Trucking (free online version)
• High Road CDL Training Program
• CDL Practice Tests

The starter kit is a primer designed to assist with building a realistic set of expectations, accurate knowledge base and the HighRoad CBT enables an easier time passing the CLP exams.

I feel the need to make a slight correction to the 3%. Price of freight is up and the biggest, best and brightest are doing better. 6% is more the average. XPO is out there boasting 14% last time I checked. Than again I have seen the trucks leased onto XPO. I already know who is taking the shaft to boost their profit margins.

To answer your 200k a year ad. It is very possible for a tractor to generate 200k of GROSS REVENUE. Now, you need to take truck payment, fuel, insurance, scheduled maintenance, unscheduled maintenance fund, taxes (federal, state, fuel, and others), pay your accountant, lawyer retaining fee, and pay yourself out of that money. Don't forget to set aside some more money to replace your truck in 3-8 years. Otherwise you will just keep playing the credit game. Don't forget your application fees for DOT and MC number. Your membership to OOIDA , Trailer rental or lease payments. The list keeps going.

Bottom line, you will be lucky to be able to pay yourself what a company driver can make without hurting your business. You can always do what a lot of drivers do. Rob Peter to pay Paul. Take money to pay themselves ridiculous wages by hurting the sustainability of their company. Than in 3-8 years have the bottom of the glass house fall out from under them.

I feel the need to make a slight correction

Unfortunately I now have the need to make a huge correction.

Here is the most recent quarterly financials for XPO. Notice a few things:

1) Their revenues are up 14% - that's not their profit margins

2) Their profit margin was actually 4.88% which is up 502% from last year, meaning last year's profit margin was below 1%

3) Their "net change in cash" is -$76.2 Million, as in they have $76.2 Million less cash on hand than they had the previous year

I stand corrected.

I drive with CFI as a company driver. In my first six months I grossed a little more than $24k. Since then I am currently at $10k for the next three months. Here is a link to my pay as a rookie solo driver. I have a friend who works with me. He has been driving for three years with CFI and in 2017 he grossed a little over $65k. Also, as a company driver, you always drive newer equipment that the company maintains.

Are there owner operators who make a good living? Yes. Are there owner ops who are happy? Yes. For anyone desiring becoming an owner op, I would recommend they be a company driver for at least five years. That way you can learn the business without the risk. This is truely a lifestyle and one must love it to be able to be successful as a company driver or owner op. Good luck.

So I've been considering becoming a driver and although premature... I've looked into trucks (I know you need experience before tossing 100k at a truck). But the numbers being presented are nuts. Some sites say 200k a year. Is this just a false leader? Or is this truly doable for most owner operators?

heres a real breakdown from my boyfriends settlement. He is in a lease to own and team trains a few students a year.

Gross: $230,000

Operation costs: $147,000

that leaves $88,000

federal taxes were $15,000

which leaves $73,000

health insurance leaves $63,000

if you break down pay by miles you get

average load is $1.29 average operating costs are .75

that means he is making 54cpm i make 46cpm and get average fuel bonus of 4cpm driving solo.

keep in mind, as a lease op he pays about 10cpm less to the trainee than he would an experienced team driver.

so him team training about 8 months a year and rarely going home equates to a few cents more per mile than my company solo pay and i go home every 4 to 6 weeks. since Nov the guy went home a total of 7 days including christmas and worried about that truck payment the whole time.

Now when I team train, my pay is bumped up and i have made the same if not more than him. i have made more than him during some solo weeks too.

some lease ops will then blame him: hes not checking fuel costs or hes running toll roads.

i know for a fact he checks fuel costs cause he asks me to do it for him. he only runs tolls if im there and we can meet up. its the nature of the beast and you need to know what you are getting into before you leap.

Most lease and owner ops i know either team with their spouse or train. you have to. do different companies pay higher on loads? sure.

but i would want real numbers from real drivers. there is one friend i have that gave me her numbers and out of 5 who did, she and her hubby do the best. but it took them changing through 4 different companies to do it.

so do you want a 20% chance of doing better than a company driver?