How much does it cost to become a freight broker/agent?

Freight Broker Startup CostsAs you can imagine, I get a lot of questions from visitors to my online freight broker and freight agent training site and one of the most frequent is “How much does it cost to become a freight broker/agent?”

My response is always the same…”It depends.”  I don’t do that to be cute or funny, I do that because you have two choices.

  1. You can file for your freight broker authority through the FMCSA or…
  2. You can start by becoming a freight agent first, which does not you to get your freight broker authority.

I strongly suggest that if you are new to the industry or have limited experience to always start as a freight agent.  Why?  Because it limits your capital risk and allows you to earn while you learn and then decide if becoming a license freight broker is really for you?

Let’s start with some of the cost associated with becoming freight agent?

Freight Agent Startup Expenses

  • Phone service = $25-$50 per month
  • Printer/Fax/Scanner combo = $100-$200 one time
  • Load boards = $30-$150 monthly based upon how many load boards
  • Office Supplies (misc) = $5-$20 monthly
  • Desk/chair = $50-$200 one time

Now let’s take a look at additional start up costs in order to become a licensed freight broker?

Freight Broker Start-up Expense

  • Broker authority = $300 one time
  • Bond/trust = $500-$6,000 annually depending upon credit and the bond amount
  • Process agent (BOC 3) = $50-$150 one time
  • Insurance = $0 to $500 monthly depending upon value/type of insurance
  • Mileage software = $0 to $5,000 one time

Writing this post brings back memories of when I filed for my freight broker authority back in 2003.  Back then freight agents existed but in the last 5 years the freight agent business model has become even more popular.  As a matter of fact, I did a quick check online on one of the top job boards and found over 851 freight broker agent jobs listings! 

So as you can see the start-up costs are very low in order to become freight broker and even lower as a freight agent.  Click here to compare the costs listed above compared to buying a franchise and I think you will agree?

So regardless of your financial situation the freight brokerage industry can offer an incredible opportunity to earn six figures from home as either a freight broker or a freight agent.  The greatest part is you can get started from home without having to risk your life saving!

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Regards,

Dennis Brown
Owner, www.FreightBrokerBootcamp.com

Click here to learn more on how to become a freight broker or freight agent in 30 days!

 

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