You're tired of spending 15 hours a week on loadboards. Your back hurts. You're missing your kid's baseball games. You just want to drive.
You see an ad: "Professional Dispatch Services - Keep Your Trucks Loaded 24/7!"
Sounds perfect, right?
Three months later, you're worse off than before:
- Rates are mysteriously lower than what you could get yourself
- They won't show you broker rate confirmations
- You're locked into a contract you can't escape
- They're charging weekly fees even when your truck sits idle
- You've lost $8,000 you'll never get back
How did this happen?
You missed the red flags. And now they have your money.
Based on extensive research from owner operators who learned the hard way, here are the 7 critical warning signs that signal you should RUN from a dispatch service.
Red Flag #1: won't show broker rate confirmations
What it looks like
You: "Can I see the broker rate confirmation for this load?"
Dispatcher:
- "We don't share those with carriers."
- "That's proprietary information."
- "Just trust us - we're getting you the best rate."
- "The broker doesn't want us sharing that."
Why it's a red flag
Transparent dispatchers have no reason to hide rate confirmations.
What they might be doing:
- Skimming extra money off the top
- Taking more than disclosed percentage
- Pocketing detention pay without telling you
- Operating outside the bounds of a legitimate dispatch service
Real example from forums
Owner operator quote: "Found out my dispatcher was getting $400 less for loads than I could negotiate myself. When I asked to see confirmations, he got defensive and said 'that's not how we operate.' Fired him immediately."
What transparency looks like
Good dispatcher: "Here's the load: [Origin] to [Destination]
- Broker rate: $3,200 (see attached confirmation)
- Market average: $2,850
- Our fee (7%): $224
- Your net: $2,976
We got you $350 above market. Want it?"
Everything visible. Nothing hidden.
The bottom line
If they won't show rate confirmations, they're hiding something.
Walk away immediately.
Red Flag #2: weekly minimum fees (even when truck is idle)
What it looks like
Contract clause: "Carrier agrees to pay $300/week minimum dispatch fee, regardless of loads moved."
What this means:
- Truck breaks down for a week? You pay $300.
- You take time off? You pay $300.
- No loads available? You pay $300.
- They can't find freight? You still pay $300.
Why it's a red flag
This incentivizes them to:
- Charge you whether they perform or not
- Not try hard to find loads (they get paid anyway)
- Keep you locked in even if they're terrible
Good dispatch services charge:
- Percentage of loads moved (5-10%)
- Only when you make money
- Zero fees when truck doesn't roll
Real impact
Owner operator story: "Signed up with a dispatcher charging $250/week minimum. First month was great. Second month, freight dried up - got 2 loads total. Still owed them $1,000 for the month while I barely covered expenses."
The bottom line
Weekly minimums regardless of performance = They profit even when you don't.
Only pay when you make money.
Red Flag #3: long-term contracts you can't exit
What it looks like
Contract terms:
- "12-month minimum commitment"
- "Cannot cancel until anniversary date"
- "Early termination fee: $5,000"
- "30-day notice required, but we can drop you anytime"
Why it's a red flag
They know they're not good enough to keep you voluntarily.
Good dispatchers:
- Month-to-month or 30-day notice
- Confidence you'll stay because they provide value
- Easy exit if it's not working
Bad dispatchers:
- Lock you in legally
- Make it expensive/impossible to leave
- One-sided contracts (they can drop you, you can't drop them)
What forum members say
"I was locked into a 1-year contract with a terrible dispatcher. They stopped finding good loads after month 2. I was stuck paying them for 10 more months while they barely tried."
The bottom line
Long-term lock-in + high exit fees = Trap.
Look for: 30-day notice, both sides.
Red Flag #4: unrealistic promises & guarantees
What it looks like
Marketing claims:
- "Guaranteed $200,000+ per year!"
- "Exclusive high-paying lanes!"
- "We GUARANTEE rates of $3.50/mile minimum!"
- "You'll NEVER have downtime!"
- "Make $10,000/week easily!"
Why it's a red flag
No one can guarantee specific high rates because:
- Markets fluctuate constantly
- Rates vary by season
- Lane availability changes
- Capacity impacts pricing
The truth: "Market rate for Atlanta to Dallas is $2.40-2.60 this week. We consistently negotiate 15-20% above average. Some weeks are better, some are slower."
Forum wisdom
"If it sounds too good to be true, it is. Any dispatcher promising guaranteed high rates is either lying or operating illegally by controlling your freight (making them a broker, not a dispatcher)."
The bottom line
Guaranteed high rates + Exclusive lanes = Lies.
Look for: Realistic expectations and historical proof.
Red Flag #5: no online presence or verifiable reviews
What it looks like
You search for them and find:
- No website (or a sketchy one-page site)
- No Google reviews
- No presence on TruckersReport, Facebook groups, etc.
- No verifiable testimonials
- No business registration you can confirm
- Only contacted you via text or phone
Why it's a red flag
Legitimate businesses have:
- Professional website
- Verifiable business registration
- Reviews (good AND bad - all businesses have some bad ones)
- Social media presence
- References they'll provide
Scammers avoid:
- Digital footprints (can't be held accountable)
- Review platforms (would expose their scams)
- Professional presence (costs money)
What to look for
Before signing with ANY dispatcher:
- Google their business name + "reviews"
- Search TruckersReport.com for mentions
- Check Facebook groups for feedback
- Verify business registration (Secretary of State website)
- Ask for 3 current client references
- Check Better Business Bureau
If you can't verify they exist and have satisfied clients, assume they're shady.
The bottom line
No digital footprint = No accountability = No trust.
Only work with verifiable, established businesses.
Red Flag #6: pressure to sign quickly or "limited spots available"
What it looks like
High-pressure tactics:
- "I only have 2 spots left, need your decision today!"
- "This special rate expires tonight!"
- "Sign now or you'll miss out!"
- "Can't send you the contract to review, just verbal agreement"
- "Just give me your MC number and let's get started, paperwork later"
Why it's a red flag
Legitimate services:
- Want you to take time to review contracts
- Encourage you to ask questions
- Provide references to call
- Respect your decision timeline
- Put everything in writing upfront
Scammers:
- Prevent you from thinking clearly
- Stop you from doing research
- Get commitment before you realize it's bad
- Avoid written agreements (harder to prove fraud)
Forum warning
"Dispatcher pressured me to 'start immediately, sign the contract later.' Found out later the contract had terms we never discussed. Always read before signing, no matter the pressure."
The bottom line
Pressure = Predatory tactics.
Good services give you time to decide.
Red Flag #7: taking broker payments directly (operating outside legitimate dispatch services)
What it looks like
Dispatcher: "To make things easier, we'll invoice the broker and pay you weekly."
Or:
Dispatcher: "Add us to your factoring so we can manage the payments."
Or:
Dispatcher: "The broker will pay us, then we'll pay you minus our fee."
Why it's a major red flag
This can create serious legal and financial risks.
According to FMCSA guidance (2023): Handling money exchanged between shippers and motor carriers is a strong indicator that an entity may need broker authority. While not automatically illegal, dispatchers who handle payments face significant classification risk.
Potential issues:
- May require broker authority depending on other factors
- Creates opportunities for payment diversion
- Complicates payment disputes
- Reduces your control over receivables
- Can expose you to financial liability
Standard dispatch services:
- Do NOT take payments from brokers
- Brokers pay YOU directly
- You pay dispatcher from your receivables
- Clear, transparent money flow
Real consequences
Forum member experience: "Dispatcher was taking broker payments, skimming extra without my knowledge. When broker didn't pay, dispatcher disappeared. I lost $8,000 and had no recourse because the broker thought they paid (they paid the dispatcher, not me)."
How it should work
- Dispatcher finds and negotiates load
- Shows you rate confirmation
- Broker pays YOU (the actual carrier) directly
- You pay dispatcher from your income
Money NEVER flows through the dispatcher.
The bottom line
Dispatcher controlling payments = Legal risk + Financial risk + Loss of control.
Work with dispatchers where YOU receive broker payments directly to maintain control and reduce risk.
Bonus red flags
Red flag 8: no transparent fee structure
Vague pricing:
- "We'll work out rates as we go"
- "Depends on the load"
- "Industry standard"
- "We can discuss that later"
Clear pricing:
- "7% of gross line haul on all loads"
- "No hidden fees"
- "Here's the simple fee schedule in writing"
Red flag 9: won't provide a written contract
Sketchy: "We work on trust, no need for contracts."
Professional: "Here's our standard service agreement. Please review and let me know if you have questions."
Red flag 10: asking for upfront fees before proving value
Warning sign:
- "Pay $500 setup fee"
- "First month payment upfront"
- "$1,000 deposit to get started"
Normal:
- "No upfront costs. We get paid when you do."
- "Pay at end of first week based on loads moved."
Red flag 11: defensive or hostile when questioned
You ask: "Can I see the broker confirmation?"
Bad response: "Why don't you trust me? If you're going to question everything, this won't work."
Good response: "Of course! I send confirmations on every load. Transparency is how we build trust."
How to properly vet a dispatch service
Step 1: Initial research (30 min)
Search "[Company Name] reviews" Check TruckersReport.com forums Verify business registration Look for BBB complaints Check their website for transparency
Step 2: First conversation (ask these questions)
Question 1: "What's your fee structure?"
- Red flag: Vague or changes
- Good sign: Clear percentage, no hidden fees
Question 2: "Will you show me broker rate confirmations?"
- Red flag: No, evasive, or "we don't do that"
- Good sign: "Absolutely, on every single load"
Question 3: "What's your contract term?"
- Red flag: 12+ months, can't exit, high fees
- Good sign: "30-day notice, month-to-month after first month"
Question 4: "How do payments work?"
- Red flag: "We collect from broker and pay you"
- Good sign: "Broker pays you directly, you pay us from that"
Question 5: "Can you provide 3 current client references?"
- Red flag: No, makes excuses, only past clients
- Good sign: "Sure, here are three drivers you can call"
Question 6: "What's your average rate improvement over market?"
- Red flag: "We guarantee $4/mile!" or vague
- Good sign: "Historically 12-18% above DAT market averages, which varies by week"
Step 3: Call references (critical!)
Ask the reference drivers:
- How long have you worked with them?
- Do they show you rate confirmations?
- How do their negotiated rates compare to what you could get?
- Have they ever had issues with transparency?
- How's communication and responsiveness?
- Any surprises or hidden fees?
- Would you recommend them?
Listen for: Specific examples and honest feedback (not rehearsed)
Step 4: Review contract carefully
Before signing, verify:
- Fee structure is clear and simple
- Contract term is reasonable (30-60 days max)
- Exit clause works both ways
- No weekly minimums when truck doesn't run
- You receive broker payments directly
- Dispute resolution process is fair
- All verbal promises are in writing
Get a lawyer to review if:
- Contract is over 3 pages
- Terms seem complex or one-sided
- You don't understand something
- Big commitments or fees involved
Step 5: Trial period
Before committing long-term:
- Request a trial period (2-4 weeks)
- Evaluate their performance
- Verify transparency (do they show confirmations?)
- Compare rates to what you could get
- Assess communication and support
Then decide: Continue, negotiate changes, or walk away
What good dispatch services look like
Green flags (what to look for)
Complete Transparency
- Shows every broker rate confirmation
- Explains fee structure clearly
- Open about how they operate
Reasonable Contracts
- Month-to-month or 30-60 day notice
- Fair terms for both parties
- Easy to understand
Proven Track Record
- Verifiable reviews and references
- Established online presence
- Professional website and communication
Realistic Expectations
- Honest about market conditions
- Doesn't promise guaranteed rates
- Shows historical performance data
Performance-Based Fees
- Only pay when you earn
- Percentage of loads moved
- No weekly minimums when idle
Professional Operations
- Proper licensing and insurance
- Written contracts
- Clear communication
- Responsive support
Respect for Your Autonomy
- You make final decision on loads
- No forced dispatch
- Presents options, you choose
Real-world comparison
Bad dispatcher example
First conversation: "We guarantee you'll make $8,000/week! Only 3 spots left, need your answer today. Our fee is industry standard. Can't show you broker confirmations - that's proprietary. Just trust us, we've been doing this for years (no website or reviews found). Sign this contract for 12 months and send $500 setup fee."
Red flags: 7+
Result if you sign: You'll regret it in 2-4 weeks.
Good dispatcher example
"Our clients typically see 12-18% above market average, which varies by week and lane. We charge 7% of gross line haul on loads we book. Month-to-month contract after first 30 days. I'll show you every broker rate confirmation before you accept any load. Here's our website with reviews, and here are 3 current clients you can call. Take a few days to research us and let me know if you have questions."
Green flags: 7+
Result if you sign: High likelihood of good partnership.
Cost of ignoring red flags
Financial loss
Scenario 1: Hidden Skimming
- Dispatcher secretly takes 20% instead of disclosed 10%
- Extra 10% on $200,000/year = $20,000 lost
- Over 12-month contract: $20,000 gone
Scenario 2: Weekly Minimums
- $300/week minimum even when idle
- 8 slow weeks in a year = $2,400
- Plus opportunity cost of bad loads: $5,000
- Total: $7,400 wasted
Scenario 3: Bad Negotiation
- They get 10% BELOW market instead of above
- Lose $300/week on average
- 52 weeks = $15,600 annual loss
Opportunity cost
While stuck with bad dispatcher:
- Can't work with good one (contract lock-in)
- Losing money every week
- Stress and frustration
- Damaged broker relationships (bad dispatcher behavior reflects on you)
- Time wasted trying to fix or exit the situation
Trust damage
Once burned:
- Harder to trust next dispatcher
- May avoid dispatch services entirely (miss out on legitimate good ones)
- Second-guess everything
- Constant stress and suspicion
How FF Dispatch avoids all red flags
Our transparency commitment
Show every rate confirmation - Before you accept any load Clear 7% fee - No hidden charges, no minimums 30-day notice contract - Easy exit if we're not delivering value Realistic promises - We show historical 15-18% above market, varies by week Professional presence - Website, reviews, references available No pressure - Take time to research us and decide You receive payments - Brokers pay YOU directly, always Month-to-month - No long-term lock-in Performance-based - We only earn when you do Never forced dispatch - You decide every load
Our challenge to you
Compare us to any other dispatch service using this red flag checklist.
We're confident you'll find:
- Zero red flags with FF Dispatch
- Multiple red flags with competitors
Because we built our service specifically to solve the problems bad dispatchers create.
Quick reference: red flag checklist
Before signing with ANY dispatch service, verify:
- They show broker rate confirmations on every load
- No weekly minimums when truck doesn't run
- Contract is 30-60 days max, easy exit
- Promises are realistic, not guaranteed high rates
- Verifiable online presence and reviews
- No pressure to sign quickly
- You receive broker payments directly (not through them)
- Fee structure is clear and simple
- They provide written contract upfront
- No large upfront fees before proving value
- Professional and transparent when questioned
- Can provide 3+ current client references
If ANY of these fail, seriously reconsider.
If 3+ fail, RUN.
Final thoughts
The dispatch service industry has bad actors.
They give the good services a bad name.
They cost owner operators tens of thousands in lost revenue.
They create headaches, stress, and broken trust.
But they're easy to spot if you know the red flags.
This guide gives you the checklist.
Use it. Protect yourself. Work only with transparent, professional services.
Your business - and your bank account - will thank you.
Next steps
Ready to work with a dispatch service that has ZERO red flags?
See our transparent pricing Read our client reviews Talk to current FF Dispatch clients Review our simple contract See actual rate confirmations from past loads
We have nothing to hide. Because we're doing it right.
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Related Posts:
- Do You Need a Dispatch Service? Decision Framework
- How Much Should You Pay a Dispatcher?
- How to Spot and Avoid Freight Broker Scams
- Best Load Boards for Owner Operators 2026
- The Real Cost of Running an Owner Operator Business
Sources:
- TruckersReport.com owner operator forums
- Transportation Intermediaries Association
- BBB dispatch service complaints
- Owner operator experiences and reviews
- FMCSA Final Guidance on Broker and Bona Fide Agent Definitions (June 2023)
- Federal Register: Definitions of Broker and Bona Fide Agents