Understanding Distributable Revenue: A Guide for Owner Operators

As an owner operator in the relocation industry, you've likely encountered the term "distributable revenue" in your contracts. But what exactly does it mean for your bottom line? Let's break down this crucial concept and help you ensure you're receiving your fair share.

What Is Distributable Revenue?

Simply put, distributable revenue is the amount carrier-agents receive from move managers that forms the basis of your payment. However, the reality isn't always so simple. Your contract likely states that your payment will be based on "distributable revenue" – making it essential to understand how this figure is calculated.

The Payment Chain: How It Works

Move managers pay carrier-agents for completed moves
Carrier-agents calculate distributable revenue
Your percentage is applied to this figure
You receive your payment

Why Understanding Matters

Here's the critical part: if the carrier-agent is underpaid by the move manager, it directly impacts your earnings. For example, if a pass-through service like crating isn't properly compensated, both the carrier-agent and you lose out on revenue.

Common Areas Where Revenue Can Be Affected:

• Pass-through services (crating, uncrating)

• Fuel surcharges

• Additional services performed

• Long carry charges

• Shuttle services

Red Flags to Watch For

While managing 75-125 jobs annually, it's challenging to verify every payment. However, these signs might indicate payment discrepancies:

Inconsistent payment percentages
Missing accessorial charges
Unclear payment calculations
Delayed payment explanations
Protecting Your Revenue

Taking these steps can help ensure you receive proper payment:

• Keep detailed records of all services provided

• Document any additional services performed

• Understand your contract terms • Regular payment verification

• Partner with payment recovery experts

The Impact of Accurate Payments

Consider this: Even a small discrepancy of $100 per job could mean $7,500-$12,500 in lost annual revenue for an owner operator handling 75-125 jobs. That's significant money that belongs in your pocket.

Moving Forward

Understanding distributable revenue isn't just about knowing a definition – it's about ensuring your hard work is properly compensated. While you focus on delivering exceptional service, consider having experts verify your payments to protect your earnings.

Questions About Your Payments?

If you're unsure about your payment calculations or suspect discrepancies, don't hesitate to reach out for a confidential review of your situation. Professional payment verification can help ensure you receive every dollar you've earned while maintaining positive relationships with your carrier-agents.