| What's the Difference between a Freight Broker and | | | | Most of the agent's time is spent searching for new |
| a Broker Agent? And which way is the best way to | | | | customers and finding trucks. |
| go? | | | | Third, most freight brokers are seeking experienced |
| These are common questions from those interested | | | | agents. There are a few who will accept new |
| in this industry. Let's try to shed some light on these | | | | inexperienced agents but these freight brokers are |
| questions. | | | | far and few in between. If an agent is new or |
| 1. A freight broker is fully self-employed and is | | | | inexperienced, the freight broker normally does not |
| required to obtain his or her broker authority. A fully | | | | want to spend a lot of time training or "hand-holding". |
| self-employed freight broker will do his or her own | | | | To recap, as a broker agent, you don't need your |
| invoicing to customers and will pay the motor carriers. | | | | broker authority. You work under the authority of |
| Essentially, the freight broker is running a complete | | | | another freight broker. It's possible to begin as either |
| business. | | | | a freight broker or broker agent and then switch to |
| 2. A broker agent works for another freight broker | | | | the other. The two fundamental differences are the |
| and does not need to obtain a broker authority. The | | | | scope of the duties and responsibilities and the fact |
| agent works under the authority of his or her freight | | | | that the broker agent does not need their authority. |
| broker and is not responsible for invoicing or paying | | | | Regardless of whether you work as a freight broker |
| the trucks. | | | | or broker agent, you may work out of your home. |
| There are pros and cons to each option. | | | | And you will meet and work with customers and |
| First, a fully self-employed freight broker is required | | | | carriers over the entire country. |
| to get their broker authority but they retain 100% of | | | | All you need to get started is: |
| the profit on each load. Further, the freight broker is | | | | |
| totally responsible for invoicing the customer and | | | | 1. A good computer with a high-speed internet |
| making collections as well as paying the motor | | | | connection, |
| carriers. Having sufficient capital and good cash | | | | 2. Preferably two telephone lines (one could be either |
| management skills are an absolute necessity. Since | | | | a cell phone or internet telephone), |
| time is required to run an entire business, the freight | | | | 3. A good fax machine, |
| broker has relatively less time to search for new | | | | 4. Proper education and the drive and determination |
| customers and find trucks. | | | | to succeed. |
| Second, a broker agent is not required to get his or | | | | For both freight brokers and broker agents, good, |
| her broker authority and, therefore, this option is less | | | | comprehensive training or on-the-job experience is |
| costly. But the broker agent splits his or her | | | | absolutely essential. |
| commission on each load with the freight broker. | | | | |