How does one become a freight broker?

Discussion in 'Freight Broker Forum' started by Disgruntledriver, Oct 29, 2014.

  1. Disgruntledriver

    Disgruntledriver Light Load Member

    In fact, what exactly is the function of the job? Just another thing I've been researching lately, but all the info I find seems very vague. I get the jest of it, but what entices me is the so-called ability to work from home, anywhere. I like the sound of that freedom and it would be nice to live in a small town some where more exotic than just a big city. Also it seems you would have more time you can spend with family and be able to better go where you want and when you want. That definitely sounds exciting to me. I have almost two years of trucking experience, OTR, Flatbed and Intermodal. Before that I actually had a few years of clerical, office and customer service work including management experience so I think that might work to my advantage. How much do freight brokers make? Is it hard just to make a small living off of it? I figure I can survive just about anywhere on about 3,000 bucks a month.

    I browsed through this forum and didn't find much concrete info. Any info would be greatly appreciated. Sorry if I'm asking the wrong thing in the wrong place.
     
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  3. king Q

    king Q Road Train Member

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    Start by getting one of these ///.
    [​IMG]
     
  4. 315wheelbase

    315wheelbase Heavy Load Member

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    to be a broker you need shippers with freight and they work with you to hire trucks to haul the freight,to be successful you must have good rates,,pay trucks quickly even if the shipper does not pay you,,no shippers with freight then you can not be a brokers,,if you do not pay good rates and pay quickly you will not get trucks to haul your freight,,
     
  5. rollin coal

    rollin coal Road Train Member

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    If you want to go where you want when you want and see the country that's an owner operator - you should buy a truck. If you want to kick back under the sun on the beach with a cold brew in one hand a laptop and hotspot nearby - that's the broker life - all you need is a laptop and a wireless connection for that.
     
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  6. jess-juju

    jess-juju Road Train Member

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    Dunno about that my favorite agent is in mexico on vacation this week and we have had a very sad week and I can't wait until Monday when she gets back in the office!
     
  7. moraramis

    moraramis Light Load Member

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    You have to drink the blood of a broker and then die. The following night you'll come back to life as a broker with a thirst for cash. It's kinda like becoming a vampire, except you won't be as well liked. Teenage girls won't swoon over you either.
     
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  8. Florida Playboy

    Florida Playboy Road Train Member

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    Start knocking on doors at shippers.
     
  9. Disgruntledriver

    Disgruntledriver Light Load Member

    Is that really how you do it? You just randomly start calling shippers and truck drivers? Do they work for you? Do you work for an agency? I'm still very much in the dark. Where do I start, how do I go about this?

    I really have a genuine interest in this. The idea of being able to work at home, or off my laptop at a local cafe seems to be like a dream job, especially considering the knowledge I have in the industry and the fact that I've done customer service and clerical work. I really think I would be good at it. I'm very good at organizing things and paperwork, very good at talking to people, getting them to laugh and being outgoing. I feel like this is a career I could stick with for a lifetime if I knew what to do and how to go about it. I did the whole "see the world by truck" thing and I'm tired. I just want to settle down some where peaceful. I love being able to cook at home, to go on jogs and take a break when I need to. Yes, this career would be ideal for me. Any help is so greatly appreciated, thank you.
     
  10. indspirit

    indspirit Light Load Member

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    [FONT=&amp]
    [/FONT]

    [FONT=&amp]There is more to it than just setting up an office and calling shippers. If you want to start your own firm you will need:[/FONT]

    · [FONT=&amp]MC # - they cost $300 I think[/FONT]

    · [FONT=&amp]A $75,000 BMC-84 Bond OR a $75,000 BMC-85 Trust Agreement.[/FONT]

    · [FONT=&amp]A process agent for all 50 states which runs around $35-$40. You can be your own process agent but that is more work for you and time consuming.[/FONT]

    · [FONT=&amp]Unified Carrier Registration runs around $75[/FONT]

    · [FONT=&amp]Some type of Transportation Management Software which can run from $300-$500 up front cost and will probably have a monthly fee[/FONT]

    · [FONT=&amp]Load Board Access the good boards you have to pay a fee to use[/FONT]

    · [FONT=&amp]Some sort of phone system to use. Running it from a land line will be expensive. A VoIP system will be better but you have to buy a phone that will work with the system and they run anywhere from $50 - $200+ for the phone.[/FONT]

    · [FONT=&amp]You will need high speed internet access to be competitive[/FONT]

    · [FONT=&amp]An attorney on retainer and accountant wouldn’t hurt either[/FONT]

    [FONT=&amp]Those are just a few of the things I know about that you will need before you even think about calling shippers. The other problem you will have starting out is if you don’t have any contacts already they will be hard to get. Shippers use brokers to save time and costs so they don’t want to have to take the time to investigate someone new. Carriers don’t have the time and resources to investigate new brokers and with so many fly by night ones out there don’t trust a lot of newcomers. So it will take you a long time to build relationships and a decent credit rating to be able to be a sustainable player in the market. On top of that you have to have some sort of revenue to be able to pay your carriers. Most of your accounts receivables will be on a 30 day bases. Your carriers will not wait that long to get paid so you have to have a way to pay them. You can look into a factoring company to do that but your shippers will have to have a solid credit rating in order for the factoring company to approve them. If the shipper doesn’t pay you in time to pay your carrier then your screwed unless you have the capital to cover it. [/FONT]

    [FONT=&amp]I’ve been driving for several years now and am retiring as a driver. Since transportation is all I know I have been looking into becoming a broker. So all of this is just from my own research in the last few months so don’t take it as the gospel truth. From what I have found out so far is that if you really want to be a broker the best route is to become an agent for a company that is already out there. Work under them for a few years get contacts and experience and then look into opening your own.[/FONT]

    [FONT=&amp]However I have found that finding an agent job with no experience is a treacherous road to travel. There are the huge firms out there that may offer you a in house job with little to no experience. They will give you a salary and bonuses. However you will have to meet their quota every week or month in order to keep your job and if you don’t they will fire you and that will not look good on your resume. [/FONT]

    [FONT=&amp]There are average firms that will pay decent all on a commission base. If they have offices near you they will charge you to use a cubicle but you have all you need provided for you or you work from you home office. However most of these firms want you to have experience and usually a book of clients already before they even think of hiring you.[/FONT]

    [FONT=&amp]Then there are the training firms. They don’t care a thing about your experience and almost prefer you to know absolutely nothing. They will give you a list of stuff you will need to buy to set up your home office and then they will charge you anywhere from $1500 - $2000 to train you. The problem is most of what they teach you is not relevant to the business. Once you’ve gone through the training you are on your own and still have to get everything I mentioned before. You may make money you may not but the training firm doesn’t care because they already got there money from you. Some of them say they offer job placement assistance as an agent but from what I have found that most of their placement rates are really low. [/FONT]

    [FONT=&amp]So you have to find a smaller firm somewhere that are willing to give you a chance. Most of these guys would rather hire someone with experience already but if you don’t have any they may be willing to work with you so you can get some. The pay may be on the lower end of the scale but that’s okay your new so why should they pay you more till you learn. If you work hard have dedication and motivation they will see it and pay you more. You will get the experience and contacts you need and they will grow as a firm. Trust me these guys are out there but you have to dig around some to find them. [/FONT]
     
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  11. moraramis

    moraramis Light Load Member

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    After you've read up on your states regulations for Brokers and become bonded and get insured you'll need to decide what kind of freight you want to move. Sometimes Brokers start out moving freight that's close to home. For you being in Los Angeles that'd probably means you'd start out moving produce and other temperature controlled goods by reefer.

    You'll also need some operating cash because Shippers pay slowly, so you'll need a pool of cash to pay drivers with while you are waiting to get paid. Once you've made contact with Shippers and done the agreements you'll be ready to find drivers to move the loads. What some Brokers do is use load boards on the internet. Drivers/Carriers will post on those boards listing their location, trailer type, and contact information. Find one near your Shipper and open up lines of communication. Or you could just post your available loads on these boards and let drivers call you.

    To drum up business will require a lot of talking over the phone, or as salesmen call it "Cold Calling". You need to sell your services to Shippers, and you need to convince drivers to move your loads. So you need to look up on youtube on how to do effective cold calls. In the beginning you'll need a script to go by when talking, but eventually once you get comfortable you won't need it anymore.
     
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