Do Starting Brokers Really Make that Little

ironpony

Professional Pot-Stirrer
Supporter
Thank you for the information. Its a good idea but I cant find anyone who is hiring and decided to learn as much about it as possible.
Its basically sales. Go get some books on sales, get a job selling... anything. The basic approach is the same no matter what it is you're selling. You can make this work.
 

Mike

Well-Known Member
Staff member
I have always been told that you need enough money to run 90 days before you show any profit.And
shoot for 19% or better instead of 15%....you need that 19% margin
1.5 a mile won`t move much freight either
now about the legal stuff,what if you broker out a load and the guy wrecks?Do you know how to handle it?
Do you have the work ?
I have seen guys call 75-100 places a day, trying to talk to whoever is in charge trying to get their foot in the door and all they get is answering machines.Day after day,week after week..
It is hard to get loads to move and some shippers look for a newbie broker to crap on also..What if a customer don`t pay you?
there is a lot of stuff to consider outside of moving loads ,getting them,and keeping them is of the utmost importance.

there is a few factoring companies who factor start up brokers
if you could build yourself a 1,000,000 book of business a year you could join the big boys like Landstar and work under their name

brokering is easier said than done,going to work for one as a freight agent may be a option and it gives someone a chance to learn the business before they jump in
Good advice, but this guy isn't even brokering. He's just wanting to monitor the loadboard and dispatch drivers via the loadboard. Not sure why he is referring to it as brokering when it is nothing more than dispatching.
 

zhenuk

Member
Thank you. I do plan to get an MC number. It appears that
dispatching may be a good stepping stone to becoming a broker.
Is industry moving towards large monopolized brokerages,
technology platforms, with dispatchers substituting small brokers?
Any help on what is needed to run your own dispatching service?

For Tommyh
Thank you for your inputs. I did not realize margin was almost 20%. Eye opener.
I do have to gain experience and understand that its hard to get loads to move.
But given the size of the industry would be happy to squeeze in somehow.
J&B for instance pays in 2 days and I would be careful to do one load at a time at the start so as not to get stuck
in non payment world?
Read that factoring is a huge money waster. True?
I thought broker insurance and shipper insurance covers wrecks.
Would be happy to net 2k/month and learn all the insides and outs fully realizing
that it is tough work. No one will give me a shot to join as a freight agent too learn the business. Even
if they do, just like you said every dog for himself.
More questions than answers as a newbie. :0)
 

Mike

Well-Known Member
Staff member
It appears that
dispatching may be a good stepping stone to becoming a broker.
Is industry moving towards large monopolized brokerages,
technology platforms, with dispatchers substituting small brokers?
Any help on what is needed to run your own dispatching service?
Dispatching is not a stepping stone to becoming a broker. It's two entirely different things. Being a dispatcher as you described, is actually handling part of the carrier's job.

There are already several large brokers, and thousands of small brokers.

To run your own dispatching service, you need negotiating skills that will allow you to provide better rates and better loads for the carrier than what the carrier can get themselves. In other words, provide value.
 

VA804

New Member
I started brokering and am having a hard time getting any customers to let me broker their freight.
 
And is it really that simple to get 10 jobs per month? I assume the carrier rate is 1.5/mile

If you have any dignity... I wouldn't ask ANY driver to haul a load for less than $2/mile.... that is very insulting to those of us that have payments AND families to feed
 
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