10 Benefits of Becoming a Freight Broker Agent | First Star (2024)

Let’s face it, the logistics and transportation industry keeps the world turning. We need trucks, trains, and ships to get food on our table, put a roof over our heads, and power almost every aspect of society. If you want to make a difference in the world and sharpen your logistics skills, a career as a freight broker may be a good fit for you.

For those still on the fence, here is a list of 10 reasons you should become a freight broker.

1. NO DEGREE REQUIRED

Finding a career that does not require a higher education degree is rare. To be a freight broker, you only need a high school diploma or GED. Associate’s, bachelor’s, or master’s degrees are not required. Most importantly, you possess the skills, enthusiasm, and commitment to the job. Some professionals enter their careers as interns or trainees. Other professionals transition from different roles in the freight logistics industry.

2. LOW START-UP COSTS

Since you are not required to spend years at a university to apply to be a freight broker, you don’t have to worry about taking out student loans for this career. Also, freight brokers, particularly those working for a logistics company, don’t need much to start working. All the equipment you need to start your career as a freight broker is an internet connection, a phone, and a reliable computer. You will also need a license, insurance, surety bond, and process agents, but if you work for a logistics company, you don’t have to handle those costs alone. The best logistics companies will manage those expenses for you to have everything you need to succeed.

3. MINIMAL MONTHLY OVERHEAD

Freight brokers do not need a lot of equipment or space to do their job – just a phone, computer, internet connection, and transportation management system. If you work for a company, the monthly overhead costs are covered. If you work independently, you will need to pay for these expenses. However, the overhead is still low compared to many other entrepreneurial jobs.

4. SOLID STARTING SALARY

According toIndeed.com, the average national salary for freight brokers is $62,105 plus about $28,000 in commission per year. The average starting salary is solid, too, at around $40,000, with unlimited opportunities for commission.

5. JOB SECURITY

Freight brokers provide the essential services of connecting shippers and carriers to move goods. No matter the state of the economy, freight brokers are in high demand.

6. CREATE YOUR SCHEDULE

Freight brokers have the luxury of setting their hours so you can achieve the work-life balance you deserve. You earn commission based on the loads you cover, and the amount of time it takes to arrange a load depends upon your work ethic and the market.

7. WORK FROM HOME

Freight brokers can work anywhere with a reliable internet connection. You can work at home, in a dedicated office space, or while traveling the world.

8. UNLIMITED GROWTH OPPORTUNITIES

Freight brokers have unlimited growth opportunities. You choose when and how much you work, and there are no commission caps. Freight brokers also gain valuable experience they can take to other careers.

9. VALUABLE WORK

As the vital link between shippers and carriers, freight brokers are essential societal members. As a freight broker, you can feel fulfilled knowing you help keep supply chains flowing.

10. REWARDING AND FUN WORK

On any given day, a freight broker’s job includes strategizing, creativity, problem-solving, and ultimately saving the day. It’s natural to feel a rush of excitement when you thwart an impending disaster or arrange the perfect solution in a seemingly impossible quandary. Many freight brokers find the work both rewarding and fun.

If all of this sounds great, you may wonder how to become a freight broker.

BECOME A FREIGHT BROKER WITH FIRST STAR LOGISTICS

First Star Logistics is a unique asset-based global brokerage company with over 60 years of experience. We are looking to expand our brokerage department by hiring enthusiastic individuals wanting a fast-paced career in the logistics industry. We empower you to succeed by allowing you to create your goals, networks, and make your own money. Ourfreight broker trainingprogram allows you to start out as a trainee, or as an experienced broker. We provide the right amount of training for each individual. Our team members enjoy the highest commissions in the industry, weekly pay, proprietary software, potential sign-on bonus with book of business, 24/7 agent support so you can be as productive as possible, and more customer saturation. To join the First Star Team,applytoday.

10 Benefits of Becoming a Freight Broker Agent | First Star (2024)

FAQs

10 Benefits of Becoming a Freight Broker Agent | First Star? ›

Many Profit Generating Opportunities. Motivated, confident, and skilled freight agents have unlimited opportunities for generating and increasing profits. There is no limit to the amount of money you can earn when working as a freight agent.

What are the 6 steps to becoming a freight broker? ›

Here are the most common steps to become a freight broker:
  1. Attend freight broker training school.
  2. Register your business and prepare your business plan.
  3. Find the right carriers.
  4. Meet licensing requirements.
  5. Obtain freight broker bond.
  6. File your BOC-3.
  7. Develop a marketing strategy.
Mar 10, 2023

Is becoming a freight agent worth it? ›

Many Profit Generating Opportunities. Motivated, confident, and skilled freight agents have unlimited opportunities for generating and increasing profits. There is no limit to the amount of money you can earn when working as a freight agent.

What makes a successful freight broker? ›

To be a successful freight broker, you can't stress about the things you can't control. When an issue arises, act quickly, solve what you can and communicate your solution with all impacted parties.

Why do freight brokers make so much money? ›

Freight brokers make their money in the margin between the amount they charge each shipper (their customer) and what they pay the carrier (the truck driver) for every shipment. Although it varies from one transaction to the next, healthy freight brokers typically claim a net margin of 3-8 percent on each load.

Can freight brokers make 7 figures? ›

Yes, freight brokers can indeed make 7 figures – many have successfully grown 6, 7 and even 8 figure businesses.

How do I market myself as a freight broker? ›

Start social media accounts for your brokerage on platforms like Linkedin, Facebook, and Instagram to find potential clients and referrals. Include in your profile bio a one-liner about your areas of specialty, locations you service, and if you have a particular niche e.g. oversized loads to reach your target audience.

Is it better to be a freight broker or agent? ›

Freight agents have less liability in comparison to a freight broker. Freight agents need freight brokers to operate, whereas freight brokers can operate without freight agents. A freight broker will have a more consistent brand look and feel across its office(s) versus freight agents that operate under the broker.

Which is better freight broker agent or dispatcher? ›

If you are a shipper looking for the best rates and services, a freight broker may be the best option for you. If you are a carrier looking to manage your transportation operations more efficiently, a freight dispatcher may be the best option for you.

How do freight agents make money? ›

You might be wondering; how does an Independent Freight Agent get paid? Independent Freight Agents are contract workers paid through commissions via 1099 from their licensed freight broker, based on the gross margin or net revenue they produce. Your commission rate will depend on the freight broker with whom you work.

How do freight agents get customers? ›

Freight Brokers use prospecting to expand the size of their sales funnel. They'll reach out to leads (potential shipper contacts) and nurture them into “opportunities” (leads who have been warmed up over time).

How to stay organized as a freight broker? ›

Stay organized and efficient

As a freight broker, you need to be organized and efficient in order to be successful. This means keeping track of all your shipments, communicating effectively with everyone involved in the process, and making sure things run smoothly from start to finish.

How stressful is being a freight broker? ›

Yes, being a freight broker is stressful.

This, combined with the significant amount of work it takes to organize and manage shipments, often results in freight brokerage being a stressful job. However, many people find this stress worth it for the money they earn and the freedom of being their own boss.

How do brokers find loads? ›

Below are just some of the ways that freight brokers find loads.
  1. Load Boards. This is one of the most common ways brokerages find loads. ...
  2. Referrals. ...
  3. Actively Seeking Out New Shippers. ...
  4. Cold Calls. ...
  5. Warm Calls. ...
  6. Online Tactics. ...
  7. Targeted Marketing Campaigns. ...
  8. Partner with BlueGrace.

Why choose a freight broker? ›

They're Experts in the Industry

They know the industry, stay up to date on the freight market, and are constantly aware of changing regulations. By using a freight broker, you get to take advantage of all that knowledge.

What kind of brokers make the most money? ›

High Paying Brokerage Professional Jobs
  • Broker. Salary range: $45,000-$131,500 per year. ...
  • Commodity Broker. Salary range: $97,500-$112,500 per year. ...
  • Energy Broker. Salary range: $60,500-$78,000 per year. ...
  • Associate Broker. Salary range: $44,000-$73,500 per year. ...
  • Stock Broker. ...
  • Broker Assistant. ...
  • Brokerage Clerk.

What is the most a freight broker can make? ›

Freight Broker Salary in California
Annual SalaryMonthly Pay
Top Earners$97,210$8,100
75th Percentile$74,000$6,166
Average$71,405$5,950
25th Percentile$47,400$3,950

Can you make a lot of money as a freight broker? ›

The national average salary for a freight broker in the United States is $62,105 per year , with an average additional compensation of $28,000 per year for commissions.

What does a freight broker need from a carrier? ›

Insurance Documents: Carriers must provide proof of insurance coverage, including liability, cargo, and workers' compensation insurance. These documents assure brokers and shippers that carriers have adequate coverage to protect their interests.

Are freight brokers making money? ›

Though it may surprise some, on average, brokerages are making a net margin of around 3-8 percent per load (source). So if the load was billed at $100, the brokerage would make $3-$8 on that load. When you're managing a high volume of loads, this small number grows quickly. For example, in 2021, C.H.

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