Best Way To Do A 50/50 Split?

Hi all.

I was offered a driving position with a 50/50 split.

My questions are:

What should I pay & what does the owner of the truck pay? (Fuel, insurance, etc).

Should the split be before or after expenses?

Owner said I can self dispatch. (They don’t know how to really negotiate.) Should this be included in the 50/50 or a separate fee?

Lastly, w2 or 1099 pros/cons.

Info... The owner is not sure on any of this and basically bought a truck and previously had someone else running it for him. That person was skimming off the top so the guy got rid of him. The owner has their authority for awhile now and their truck is paid off.

Never take a job where the boss can't explain how he determines your pay. It will never work out to your liking.

I've never heard of a 50/50 split, but it sounds messy. How much experience do you have? Who have you worked for before this? Why are you no longer working there?

We don't know what you should pay or what the owner should pay. Personally, I'm not paying for anything I don't own.

Do you know how much ROI a truck produces? Not a lot. We're talking single digits and that's if you're lucky. With the price of fuel going up and parts in limited supply, a 1 truck shop is in for a lot of headaches.

Neither one of you are ready for an arrangement like this.

Hi rollinglt

Let me start by saying it's hard for me to believe that someone bought a truck and had someone run it for them and just completely out of the day to day. There are many things that have to be reported and things to be paid throughout the year.

Generally, it's somewhere close to a 80/20 split, depending on who's paying for the truck, fuel, maintenance, and insurance. 50% of the rate would not pay for these things so I'm not sure what's going on, it doesn't make sense.

If I would give you a suggestion I would say to pass, but if you want to work for them, make sure you're doing it as a w2 employee with benefits, and you get to see all the rate contacts, which you should since you will be self dispatching. Good luck.

Hello Banks I know that it’s weird that Im asking questions about FedEx Freight on this topic but I don’t know how to navigate through this website. I was wondering if you were still at FedEx Freight? I am supposed to be starting on Thursday but I am extremely nervous. I work for the post office as of right now as a mailman and have been here for about 6 years but I cannot take the summer weather anymore so I started looking into getting a CDL Permit in which I was able to obtain. I love driving and wanted to do something that would allow me to do so. I was able to land the Driver Apprentice Program job at FedEx Freight and I was just wondering if you think that the program is good for someone that doesn’t have any experience at all? And in your person observations if you payed attention to it were there a lot of people failing? I’m just asking because I don’t want to fully leave the Post Office and move on to FedEx just to fail and be left as a part time dock worker.

I've never heard of a 50/50 split, but it sounds messy. How much experience do you have? Who have you worked for before this? Why are you no longer working there?

We don't know what you should pay or what the owner should pay. Personally, I'm not paying for anything I don't own.

Do you know how much ROI a truck produces? Not a lot. We're talking single digits and that's if you're lucky. With the price of fuel going up and parts in limited supply, a 1 truck shop is in for a lot of headaches.

Neither one of you are ready for an arrangement like this.

I went into FedEx freight with no experience in driving a stick and the only time I spent in a truck was on a ride along with G-Town. I was bad.... Really really really really really bad. Some of the guys still laugh about how bad I was and bust my chops about it.

FedEx expects it and they do a good job of helping get through it. You get it out of it what you put into it. If you're defeated and ready to quit, they're going to be defeated and ready to quit. Losing wasn't an option so I didn't lose.

I'm still at FedEx and very happy. I hit a rough patch a few months ago and started testing the waters. I couldn't find a single company that matched the compensation package FedEx provides. The time off, the 401k match and the pay structure is top notch.

I don't know what building you're out of, but you don't escape the weather at FedEx, especially on the dock. It's colder than it is outside in the winter and hotter in the summer.

I don't think the one foot out one foot in approach works. A safety net gives you the confidence to quit and there will be days you want to quit. There were days I would get there early because I knew I was going to need 10-15 minutes to convince myself to go in. I also don't know if the scheduling would work. As an apprentice you go into a queue and work the dock until it's time to train. That can take anywhere from a few weeks to a few months.

I can provide more information if I knew what building you're going to and if you're going road or city. Hope I was able to help.

I will be working out of the Delanco New Jersey branch. I live outside of Philadelphia. I’m really a go with the flow type of person so I can adjust to the schedule. I’m just worried of failing for the most part. Do you have information on that station?

I went into FedEx freight with no experience in driving a stick and the only time I spent in a truck was on a ride along with G-Town. I was bad.... Really really really really really bad. Some of the guys still laugh about how bad I was and bust my chops about it.

FedEx expects it and they do a good job of helping get through it. You get it out of it what you put into it. If you're defeated and ready to quit, they're going to be defeated and ready to quit. Losing wasn't an option so I didn't lose.

I'm still at FedEx and very happy. I hit a rough patch a few months ago and started testing the waters. I couldn't find a single company that matched the compensation package FedEx provides. The time off, the 401k match and the pay structure is top notch.

I don't know what building you're out of, but you don't escape the weather at FedEx, especially on the dock. It's colder than it is outside in the winter and hotter in the summer.

I don't think the one foot out one foot in approach works. A safety net gives you the confidence to quit and there will be days you want to quit. There were days I would get there early because I knew I was going to need 10-15 minutes to convince myself to go in. I also don't know if the scheduling would work. As an apprentice you go into a queue and work the dock until it's time to train. That can take anywhere from a few weeks to a few months.

I can provide more information if I knew what building you're going to and if you're going road or city. Hope I was able to help.

Ok here is what’s going on and answers to the questions.

My experience: 5 yrs total. 4 yrs OTR (reefer) & Regional 1 yr (dry van).

Have I done a 50/50 split before: yes. Once before. Only lasted about a month since their transmission went out (it was an older truck) and they went back to using their 2nd truck. During that time, we only split the fuel and loads. I self dispatched and he did a few. (Owner was on vacation so he didn’t bother me too much or seemed like he cared much about it as he was getting paid regardless.) I would bring about $4000 take home from this little “venture” until it went belly up.

The owner bought a truck with no idea: Yep. They are in another career field and apparently have $ to spend. The truck has been sitting for 6 months and the owner is just paying insurance because of no drivers.

About me: was working as a company OTR driver previously but started being told to do some illegal crap so I gave notice and said I was going elsewhere to run legal or atleast not feel like I would end up in jail each day. Parted on good terms (rehirable) and went home.

Did my research on how to pick loads, what my truck costs should be based on affordability, shaved every bill I had (no debt), set up my LLC, business account, EIN, DUN number, established good personal credit (no business credit) as of yet. Filed & received DOT & MC (not active on MC as no insurance on file). Basically saved $$$ and legally set up everything then went to buy a truck and the pandemic hit so no outrageously priced trucks were available. Decided to sit down somewhere and wait it out.

Then started getting calls to drive from others since I normally stay out 3 months at a time OTR and folks knew I was “truckless” and a money maker.

Hope that answers some questions. I’m all ears on what your opinions are.

I will be working out of the Delanco New Jersey branch. I live outside of Philadelphia. I’m really a go with the flow type of person so I can adjust to the schedule. I’m just worried of failing for the most part. Do you have information on that station?

That's the Cinnaminson building. I've been there before, I believe it's an end of the line center based on it's size. If I had to guess, you'll be doing your training in Chester Springs. The yard in Cinnaminson is too small for learning how to back.

An end of the line center deals with freight specific to that building that goes out with a city driver for delivery. The freight a city driver picks up gets put into pups and road drivers take them to a hub to get sorted based on destination. As a road driver at an end of the line center, you'll be doing shuttle runs. They are under 200 miles one way and you work the dock at your destination.

My opinion is run from a 50/50 split. Why should you be paying part of the owner’s bills?? That is exactly what you would be doing. They should just pay you as a driver either fixed per mile or percentage. I pay mine percentage. The loads pay well enough the driver makes money. I have a great deal where the pay is up and the miles are low, in comparrison to alot of rates I see out there. Every situation is different so you have to look at any offer in its totality.