How do Freight Brokers make their money?

When they offer a 5 day training class for 6k. That is how they make their money as well.

 

Unless you have a contract with a principal or run for another company (Type of broking anyway).Where are you to get your freight?If you are a Owner Operator or a small fleet can you support the infrastructure to source freight.This is what brokers are for.Broking properly is not easy as you have to keep both sides happy if you want a long successful business.If done honestly it can work.Two main problems that will never go away with broking.1You will never get top dollar as the broker knows what the going rate is and will only pay around this mark.2 The broker is almost always going to make compromises on truckers behalf to secure freight , not the other way round.

 

Me also want to know same thing...!!!

 

Yes, this is true i am agree with you(King Q)

 

Huds, if you broker SD and DD freight into ON or QC from MD, DE, PA, NY, CT, MA, VT I might be able to help you out. I'll post my spam e-mail account here if your freight matches my lanes.

 

I am going to disagree with that statement. Who wants to work for free in America? Nobody. The broker offers a carrier a rate. The carrier does not have to take that rate if he feels that it does not pay enough for his services. Now, I am not saying that brokers arent cheap by any means, but you do not have to haul it if you feel that it does not pay enough. The brokers go out and find their business just as easy as a carrier can do the same. I am a broker and a dispatcher, I play on both sides of the football, but too call a broker a lawyer is not comparable. If you dont like the brokers rates, then dont depend on them. Go get your own business, just like they did. My motto is, "if its cheap freight, dont bother with it or haul it." Find yourself some lucrative high dollar freight that you've earned.

 

I have a question. Why don't shippers just bypass the middle man and deal with the carrier directly? Also how does one get into brokering? I have been wanting to get into it for a while now but just don't know where or how to start. I am not paying $6k for a week course. Any advice for an aspiring newb broker would be great.

 

Because small carriers don't have time to sell because they are busy driving. The big boys are too big and can't manage what they have, so they broker to smaller companies like fleets of 2-10. People like me focus solely on selling. I don't own trucks, and don't want them. We secure the freight for the carriers and we secure the carriers for the customer. There are sites where people can do this but essentially what it boils down to... and I've said it time and time again... you're good at driving, something I can't do when it comes to 18-wheelers. Stick to that and let me do what I'm good at... selling.

If you want higher rates, then report higher rates because we use lane averages on spot markets like everyone else. Now, as far as becoming a broker, you have to start out at the bottom like anyone else. Start as a dispatcher for someone else, or do sales. Work your way up. It's not as easy as you think. We've had a couple drivers come be brokers and they lasted 2-3 months each. Everyone thinks its so easy until they come do the work. But honestly, if you're interested, look for jobs as a dispatcher and work your up way to an outside sales rep. Learn the ins and outs of the business and build yourself a book of customers.

 

Actually, I've wondered where those averages come from. They are way off. Who reports their rates to whom?

 

We're told its the carriers reporting their rates and the computer systems automatically average them out. We won't use the lane average if there isn't significant history of loads moved in that lane. That's why you see loads posted on load boards without a rate because when legitimate people post them because they are looking for a rate for what it would take. Again, not everyone does it this way... can't speak for any other brokerage or even any other agents where we are. We do it this way because we value integrity and our relationships on both sides of the load.