The trucking industry is seeing more veteran drivers leaving the profession largely due to the over-regulation of the business. Coupled with 100,000 baby boomers approaching retirement age, along with a younger generation that sees the trucking lifestyle as unacceptable, many will find themselves out of the business, unemployed or refusing to grasp onto a vocation that offers long hours, low pay and a great lack of respect from their peers.
Many will leave the industry due to the hardships placed on them by the regulations and even those retiring from years of driving, may still look for a way to remain in the business in some fashion due to having spent their entire lives in what was a tough job, but nevertheless, one that they loved: transportation.
What has proven to be one of the best work-at-home opportunities for many is that of a freight broker/logistics agent, but it does not come easy. It takes work, dedication and commitment to make your new business work. One will need to be licensed by the Office of Motor Carriers and to carry a $10,000 surety bond or trust, and along with a computer, high-speed internet access, a fax and copy machine, a telephone and broker software, you will be in business.
Although a government exam or official training is not required, training is highly recommended for fully understanding how the freight broker industry works and having the assistance from veteran brokers or agents. Learning the system is vital in success such as:
- Freight Broker Authority
- Freight Broker Business and Finances
- Cost of operating a freight brokerage
- Federal broker requirements
- Necessary documents
- Setting up a customer base
- Customer negotiation
- Establishing a customer base
- Sales techniques
- Using dispatch software
Establishing any business takes time and effort and the work does not come to you, you have to go get it; but successful freight brokers can easily average $40,000 annually and many see yearly revenue in the six figures. Discussing this work-at-home opportunity with several brokers, they have all mentioned one thing in common for their success: they worked for it.
Speaking with a recent “school graduate” out of Texas, he told me:
“One has to be willing to see this business as a real and viable business; they have to see it as their business. You have to be willing to jump on the phone on the first day after training is complete and keep on the phone day after day. It takes a lot of work, but it can be done. I got my first load two weeks after training and got back my return from training within six weeks. I may be the exception, I don’t know, but I do know that anyone who is willing to put in the effort can see it happen.”
Freight Broker Over-saturation
The best candidate for their own freight broker business is one who has experience within the transportation industry, such as a former truck driver. With an understanding of how the system operates and former contacts with shippers, it can only make sense, but is the market already over-saturated with brokers? Not by a long shot . . .
With over 500,000 trucking companies in the United States pulling in an annual revenue of $880 billion, there is only about 8,000 freight brokers at one given time that is handling this massive movement of freight. Each one of these brokers holds no more than 4% of the market share individually, leaving a large room for future freight broker entrepreneurs.
Those understanding transportation such as drivers, have potential product customers everywhere within an industry that employs 8.9 million people:
Within these customer models, the products needing transported are limitless:
- Food: annual revenue, over $285,000,000
- Motor Vehicles: annual revenue, over $151,000,000
- Pharmaceuticals: annual revenue, over $258,000,000
- Beverages: annual revenue, over $134,000,000
- Fuel: over 54 billion gallons consumed yearly
The transportation industry is so huge, customers can be found by those willing to do the work. I have not even touched on other aspects such as conventions, trade shows and even export and import sites on the web. Building a successful freight broker business will not happen overnight, but it can be done if you want it bad enough. It is a very real opportunity for retiring truck drivers or those who have had enough with the regulations or having to call it quits for other reasons such as medical, etc.
Freight Broker Training
Now the question is, where can you find an honest and reputable freight broker training school?
AskTheTrucker recommends GRD Logistics Training, based out of Baker, Florida. With an earning potential of $40,000 to $200,000 per year, they clearly point out that this is “dependent on time, effort and dedication of yourself”, exactly what I have tried to make clear through this post. Their integrity further comes through by way of their statement:
“Your success depends upon your dedication and effort put forth by you. We can only provide the tools. The rest is up to you.”
As in any business, the “rest is up to you.” Are you out of or will be getting out of truck driving but would still like to work in the industry with your own freight broker business? I can help in providing you with the information but . . . the rest is up to you.
© 2013, Allen Smith. All rights reserved.