This is a question that is asked daily, as well it should be. You’re making a decision that can affect you and your family’s future. Regardless of what anyone tells you, the truth is, the income is different for everyone.
As a freight broker agent, you will be contracting to an existing freight brokerage that will allow you to work under their license, as an independent contractor. This means that you will be your own business. Self-employed. As with any business, including the freight broker with which your contracted, no sales equals no income.
A freight broker agent earns a commission on each load they successfully move. The standard commission for a freight broker agent is 60% of load net (gross net, load profits…). This means that if you have a shipper that has agreed to pay $1000 to move a load from point A to point B, and a truck agreed to move the load for $700, the load net would be $300. Your commission would be $180 (60% of the $300).
Are there loads with nets this high? Yes, and higher. Is every load net going to be this much? No. Some load nets may be as low as $100 or even $50. Every load is different, every shipper is different, every truck is different. Lots of variables.
You will have to build your business. This means obtaining shippers that will allow you to work their loads. We tell everyone that for the first several months of operations you will be making a lot of sales calls. Using the telephone for sales calls is an acceptable practice as a freight broker. Since your territory will be the 48 contiguous states, it would be hard for you to make sales calls in person.
As you make these calls you should begin to obtain shippers. These shippers will make their loads available to you on a first come first served basis. This means the one who gets a truck first gets the load.
As you gain time working as a freight broker agent and working with your different shippers you will begin to learn their loads. You will begin to know the loads you can move, and commit to those loads prior to having a truck. This is experience.
Don’t be disheartened, nearly every freight broker agent making a six-digit income started the same way. They found shippers, gained the experience, and built their business. It didn’t happen overnight, it took time. Think years.
But that tells you what you can make in the future, not today. The reality is you shouldn’t expect to move a load your first month of operation. You need to be making sales calls obtaining shippers. This isn’t to say you can’t make money your first month, just shouldn’t expect it.
The second month you should begin moving loads and by the third month be able to project your income. This income could be a few hundred to a few thousand dollars. This will depend on the work you’ve done the previous two months. Did you make your sales calls? Did you follow up? Did you provide good customer service? Did you do the little things required to be successful?
So, how much money can you make as a freight broker agent? No one can answer that question. But, a new freight broker agent should be able to earn $35,000 – $45,000 their first year. Keep in mind that you have a start-up period where you are seeking customers and building your business. So, the bulk of this income will probably come toward the latter half of that first year.
Your second year you should be able to project and meet your projection of doubling your first-year income. If you earned $40,000 your first year you should be able to double that to $80,000 your second year. The second year you have no start-up period, you have established customers, created a carrier following, and are adding new customers.
Your third and subsequent years, as a freight broker agent, you should be able to add to your income by 10-20% per year. Of course, there are no guarantees as this is your business, and everyone operates their own business in their own way.
In closing, I’m reminded of a client from several years ago. A year after their training they called to let me know how they were doing and to chat. I had expected them to be producing $2000 or more in weekly load nets to learn that they were only doing $1000 in weekly load nets.
This concerned me and I asked why so low? They explained that they had decided to put themselves on a salary of $500 per week. If they made enough to pay this salary to themselves on Monday, they took off the rest of the week. Not how I’d do it, but he was happy and it was his business to operate as he wished.
The bottom line is that the amount of money you make is 100% determined by you.
Thanks, and talk soon…