What's the Scoop on being a Freight Broker for a Career?

Discussion in 'Freight Broker Forum' started by Ryan_B, Jul 21, 2014.

  1. Ryan_B

    Ryan_B Bobtail Member

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    Jul 21, 2014
    Florida
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    Hey fellas!

    I recently discovered Freight Brokering as a career choice and have been interested ever since. I've done a lot of research and read a lot from other brokers and those in the industry.

    I don't have any experience in the trucking industry, but do have past sales experience and am a recent college graduate (I received my Bachelor's in Communication).

    My main concern at this point though is, how viable is it to pursue this as a long-term career? I know it depends vastly on one's determination and work-ethic, but the reason why I'm so hesitant is because almost every time I read or hear someone (via youtube) talk about being a freight broker, it feels like a sales pitch to me. A lot of these people are enthusiastic to tell you that you can easily make hundreds of thousands of dollars a year (one even claimed $1,000,000 a year...) being a freight broker. Now, most of these people were trying to sell you their training program, so I don't put much weight in what they say. I even bought a book and the author says how he started making $120,000 after his first year of being a broker, and I thought, well this guy already got me to buy his book so why would he want to reel me in any further? But then he keeps advertising his internet blog and tries to get you to sign up there... My inner 'if it sounds too good to be true, it probably is' senses are tingling.

    But even those that seemingly can't benefit will promise you fortunes. It's either promising you fortunes, or someone telling you that you'll go broke doing it. There's no in-between.

    I'm not looking to make a fast buck or accumulate riches beyond belief like a lot of these guys promise you, I just want to make a stable income that reflects my hard work. So how about it guys and gals? Are there any of you out there that have been doing this for a while? I would love to hear from those that make 30-50k or so (as it seems the only ones making the 6 digit salaries are those that have many agents underneath them).

    Is this still a viable career path for a young buck looking to start a career?

    Thanks in advance for any replies to this post. I hope we can spark up some good dialogue about being a Freight Broker.
     
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  3. jbatmick

    jbatmick Road Train Member

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    Unless you have at least a basic knowledge of trucking, stay out of starting a brokerage business.
    Now if you can find an entry level job in a brokerage outfit and learn the ropes, you might emerge someday as a broker, but without a background in this industry, a disaster looking for a place to happen would best describe your idea.
     
  4. Ryan_B

    Ryan_B Bobtail Member

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    Jul 21, 2014
    Florida
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    Hey thanks for the advice jbatmick!

    Yeah I agree with you, I definitely don't intend to put in the resources and time into starting my own brokerage until I gain experience first. My thought process was that if I were to pursue this further, I would try to be an agent for another broker to learn the ropes.
     
  5. consolidated_logistics

    consolidated_logistics Bobtail Member

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    Jun 30, 2014
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    Ryan, you're on the right track. And, so far, you're smarter than at least 70% of the newcomers. If you don't have experience, and aren't looking to open a firm with many agents, you're right about working as an agent.

    Some industry drill-down from a 3rd party - DAT Annual Broker Benchmark Survey 2013 (6th annual, I believe?) states that the average (of their survey respondents) independent agent is receiving about $134,200 annually. This sounds like a promising number. However, a better number would be to figure out roughly what you think you'll be making.

    Using the same report, the average broker split (not agent commission) was $175 per load. If you align with a brokerage house paying 50%, that's roughly $87.50 per load handled. The rest is on you. How good are you at sales? If you're used to one-call closing, this isn't the right line of work: persistence pays here, bud.

    However, if you can deal with a month or so of frustration and "no," and find a good broker/senior agent to mentor you and help you, you very well may prosper. It's all on you. If you can close the deal with the customers, give your carriers decent rates (and most importantly, stick to your word), you'll do okay.

    Good luck, Ryan. If you have any questions, feel free to ask away. I'm always willing to help anyone.

    -Chris
     
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  6. Ryan_B

    Ryan_B Bobtail Member

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    Jul 21, 2014
    Florida
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    Hi Chris,

    Thanks so much for your insight and advice-- It was very informative! I'm glad you cited that 3rd party report as well. It gives me some confidence that this is in fact a viable career.

    My previous sales experience involved face to face interactions, so I've never actually 'cold-called' before, but I believe it's something I can learn to do effectively.

    I do have another question for you, if you don't mind.

    Once you go through the endless cold-calling routine when you start out, and you develop a client base, how often do you find yourself having to cold-call some more due to old clients leaving you? I guess another way to put it, is do you ever reach a point where you don't need to cold-call anymore unless a client leaves you? I know this would depend a lot on how good/bad you are at the job, and how much you want to expand, and other factors, but I guess I'm just curious as to how much cold-calling goes on after you initially establish a decent amount of shippers that use you on a regular basis.

    Thanks again!

    Ryan
     
  7. realsupatrucka

    realsupatrucka Road Train Member

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    You have to be knowledgeable of what you getting into....do more research take more classes....find books...anything you can find that will help you learn the industry

    alot of ppl will say dont dont it you will fail.....EFF THAT go for what you want.... Experience is the best teacher

    Look at it this way....its alot of ppl that OWN theese businesses but don't have a degree in nothing but business management..... you don't have to be a doctor to own a doctors office
     
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  8. consolidated_logistics

    consolidated_logistics Bobtail Member

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    Jun 30, 2014
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    Ryan, sorry about the delay in responding. I've been off here for a while. I never stop cold-calling. Marketing generates revenue, it's as simple as that. However, you may (emphasis on may) reach a brief period where your recurring loads generate enough revenue to carry you through. If that's enough for you, you've done well. Enjoy retirement. Otherwise, keep marketing, keep signing customers, keep calling existing customers to obtain more loads. That way, you'll watch your book of business, and end-of-quarter revenues and profit, skyrocket exponentially!

    If I can help you with anything while you're getting started, feel free to pm or email me.

    -Chris
     
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  9. Glennus

    Glennus Bobtail Member

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    Apr 15, 2013
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    Just like a lot of other business to business, well, businesses, you can focus on a particular segment of the industry, in a particular area at first. I've worked for handling and trucking companies that handle airlines, and get all their LTL business due to the fact that they offload the planes for them, but the bigger stuff they had to farm out. If you take an airport like Ohare (ORD) for example, a lot of the cargo areas, freight forwarders and airlines are right at the airport or the immediate suburbs around it. As such, it is not difficult to present yourself face to face with a lot of these customers on a weekly basis. At that point it becomes a game of account management, making sure they're happy with service your truckers are giving, and just letting them know "hey, have your operations people email me whenever you need a quote, i'd be happy to help". Drop a few bagels or donuts and you're golden. :D
     
  10. Florida Playboy

    Florida Playboy Road Train Member

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    Good luck to the OP on finding his own direct customers. Most of those Chicago air freight forwarders work with big name established brokerage firms. The new guy in town with no experience or reputation would really have the deck stacked against him. If he can survive six months with no income he might find one shipper.
     
  11. richard1948

    richard1948 Bobtail Member

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    May 6, 2014
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    the biggest thing you need to look at is the % you are left with
    many want 35-40-45-even 50 % of your net ,,,,,,, so in the real
    world , you will be left with approx.$ 35 to $ 40,000 before taxes
     
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