You might be wondering what is a freight broker. Or, maybe you know what a freight broker is, and just want to know how to become a freight broker, and how to break into the industry if you have no experience.
All through the “pandemic” trucks were still carrying freight, and freight brokers and freight agents were still making money. So…
Whatever your position you have landed at a good place.
The difference with the bare foot affiliate from other sites is, my recommendations require a some effort to become an income stream.
I don’t do overnight riches.
So onto the topic…
What is a Freight Broker Agent?
Freight Broker and Freight Agent are common terms in the logistics industry, and although sounding like they provide the same service there are differences.
The biggest difference is, a freight agent is typically an individual who acts as an independent contractor or salesperson for a freight broker.
A freight agent is responsible for sales and matching carriers with customer needs. Many freight agents work from their homes, under the direction and authority of a licensed freight broker.
A freight agent has little or no liability, and still, are able to earn a significant income based upon the profit their customers generate.
Freight Agents interact with both shipping customers and motor carriers in an effort to ensure their customers’ freight is picked up and delivered on time, in good condition with no problems.
Most of a freight agent’s day consists of soliciting new customers, providing freight rates, sourcing carriers, negotiating with shippers/carriers, dispatching trucks, scheduling pickup / deliveries and solving problems that could potentially delay or damage a shipment.
In a nut shell…
- Finding shippers
- Rating shipments
- Sourcing carriers
- Dispatching drivers
- Making sure the freight delivers on-time
- Freight agents are typically independent contractors and can earn between 50-70% of the gross profit on each load !
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In other words you can be busy and (importantly), make really good money. But, (there is always a but), It takes work and dedication to get to a level where it becomes profitable.
This need not be years though, with some effort and dedication you can establish a good foundation that will earn you a good income within a two or three months, sometimes less.
Being a freight agent is very popular with people new to the industry and others who do not like to do the back office administrative work such as:
- being responsible for credit
- Paying carriers
- Collections and / or bad debt / collections as well as not having to worry about
- liability, paying for bonds or licenses.
With the right tools and work attitude, anyone with the right freight agent training can become successful within the transportation industry.
What is a Freight Broker
A Freight Broker is licensed by the FMCSA (Federal Motor Carrier Safety Administration) as a “property broker” also known as a freight broker.
Their job in its simplest form is to help shippers manage and move freight from point A to point B.
Freight brokers can specialize in certain types of freight, such as equipment hauling on lowboys, oversize, bulk tanker, auto, or other types of freight transportation.
However it is important to not confuse a Freight Broker with a Motor Car Carrier.
A freight broker does not actually move the freight themselves, but simply outsources the transport of goods to motor carriers both large and small including owner operators.
Freight broker professionals are in high demand, and no matter the state of the economy, a motivated freight broker, who has received the proper training, has a six figure earning potential.
Some responsibilities of a freight broker include.
- Marketing to attract new leads and prospects to develop sales
- Locating and selecting freight service carriers that are safe and efficient that meet FMCSA requirements.
- Quoting shipping estimates for customers
- Scheduling orders with carriers
- Recording relevant activities to keep track of business
- Keeping customers up to date on shipping status and assisting with other questions and requests
- Collaborating with carriers, shippers and dispatchers to conduct collections and drop-offs
- Preparing carriers for loads
- Negotiating pricing and contracts with carriers
In addition to managing a shippers freight they are also responsible for.
- Assessing shipper credit
- Invoicing shippers
- Paying motor carriers
- Bad debt
- Freight claims
A freight broker has a lot of responsibility managing the chain of steps from shipper to receiver to make the transaction as painless as possible for the receiver.
These days (luckily?), there is software to help manage the process, and many freight brokers manage their business from home.
Freight Broker Training.
Freight brokers must understand the various transport industry trends. Having a good understanding of the transport industry gives you a head start in developing the necessary skills to become a freight broker.
There are a few different paths you can take to become a freight broker and it is common to start without any prior experience in the Logistics Industry.
There are numerous Freight Broker Training courses available from various organizations in most states. The cost of these varies and can run into the thousands, involving travel and paying for accommodation while you do elements of the course.
There are other alternatives, partly due to Covid19, ( but online courses have been around for ages), but you are able to take the complete Freight Broker / Agent courses from the comfort of your home.
The courses will include PDF manuals, Video and links to other relevant information to get you set up legally to perform this work.
For those thinking about an online course Udemy is one of the most popular sites for study courses you can do at home.
A quick search of Google will also give numerous sites where you can compare pricing, time required to do the course and some that offer job placement and subsidized payment schedules.
How to Become a Freight Broker Without Paying Hundreds or even Thousands of Dollars.
Cost to become a freight broker is a stumbling block for many people, but for less than $200.00 you can get taught by a guy who started a freight broker business in 2003 building it up to $80 million in turnover a year and now runs the Freight Broker Boot Camp.
Freight broker boot camp is run by Dennis Brown and has taught over 6,000 students during the past 10 years.
The Cost of Freight Broker Boot Camp
Gold membership is 1 year and is only $185. Platinum lifetime membership is one time investment of $389. These are a one time investment, NOT a monthly monthly payment.
The obvious question asked by many people considering this course is will they be getting the same value or better because the cost of the course is way less expensive than other Freight Broker courses.
The short answer is Yes. Plus with all the bonus’s Dennis believes it is way better value.
In Dennis’s own words ” The Boot Camp training is much cheaper because #1 it is an online training where you operate at your own pace versus a classroom training lead by a live instructor. #2 I have been fortunate in my life with several successful business ventures and I don’t need to charge you $1,000-$5,000“.
The support available to boot camp students includes an online administration support desk, and if your question cannot be answered online, arrangements will be made to contact you by phone !
The training in the Freight Broker Boot Camp includes access to all the forms and contracts you will need to become a freight broker or freight agent.
This feature alone is worth well over $500 without the training!
The Value of Freight Broker Boot Camp.
Slightly dearer than a quality pair of sunglasses, (or two pair if you are going for the lifetime membership). The Freight Broker Boot Camp has been designed to get you started on your own business in 30 – 45 days.
The lessons are concise and contain all the necessary Step by Step details that are a must to launch a start up as a freight broker or freight agent.
Although designed as a course to start your own freight broker business, either full or part time, however there are other options if you think you would be happier as a freight agent.
The Freight Broker Boot Camp will share with you the easiest and best ways to find a good broker to work with.
Other questions posed by people serious about becoming a freight broker or freight agent include many from Truckers, who want to take the next step and grow their business, and include questions about the bond requirements for becoming a broker.
Dennis answers it more comprehensively in the Boot Camp training, but a quick answer found in the FAQ’s is…
“The cost of a freight broker surety bond can vary from 1-4% for people with average to excellent credit. If you have below average credit it does not mean you can’t get your bond, it just means it could cost you more until you build up a good history with the bonding company.”
You will be provided with information on the top Freight Broker Surety Bond companies as a part of your training
The Freight Broker Boot Camp is a no nonsense course made for those serious about wanting to work on their own behalf and being their own boss.
Nothing is held back and you have full ongoing support.