Wednesday, July 13, 2011

Freight Broker Start Up

I recently got an email from a great sounding guy interested in finding out about freight brokering. Here’s his email and my reply.

Good Morning Jeff,

I am seriously contemplating the start up of a freight brokerage out of Buckeye, Arizona. I have been in the transportation industry for the past 12 years as a driver, dispatcher, and General Manager. I feel I have a good grasp of the industry, I have a great deal of experience with QuickBooks software and I understand the equipment required to move various types of freight.

I was hoping you might give me some insight into how loads are acquired and the potential for revenue flow. Is it possible to start as a broker and realize decent income within 90 days? I know when I had my own end dump trailer, I worked for someone who dispatched jobs for me and took 7.5% of my gross. Is 7.5% a realistic brokerage fee? How many loads would a 1-man brokerage need to dispatch daily to realize a decent income?

I am out of work presently and going to your school is not financially possible. Lastly, is starting out as an agent better, and do you know anyone looking for an agent? I appreciate any help you can provide.
My response:

Good morning -

I understand your financial situation but your chances of making it without school and back up cash are slim. I advise all my students to have 6 months worth of living expenses saved before starting their business. It takes awhile to build the relationships needed to be a trusted broker. Our school teaches you a process that works. In a tough economy it is even more important to know your stuff. This is not a get rich quick business but over time it is a business that has an incredible potential.

Capacity is tight, but I just got an order for 90 loads last week. We will get them all covered. The average broker makes 12%. The average agent makes 6%.

This is the best business to start up if you learn how to do it and if you are prepared. Freight brokers are always needed because goods always need to be moved across the country.

90 days is not enough time to start making enough money to live on. (Read the testimonials on I know several companies looking for trained agents but none who are looking for untrained agents. All our graduates are introduced to those companies who are hiring. Driving a dump truck and transportation experience. will not help you open a brokerage or be an agent if you don't know the process. I have been in the brokerage business for 20 years but could not open a trucking company. They are like night and day.

You will end up either broke or in legal trouble or both without proper training. I am just telling you what I have seen in the decades I’ve been in this business.


Jeff Roach

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