New Freight Brokers: How to Stay In the Business

With Covid 19 on the rise, many new freight agents/brokers are entering the industry. Who wouldn't want to learn a new career path in an industry that never dies? The unfortunate truth is, many brokers don't last. 

You should take a course or start under a brokerage for training. No matter which avenue you take to become a freight broker, the first thing you learn is to get up every morning and reach out to your prospects, even when you are discouraged, tired and depleted. Reach out and build your book of business. 

No consistency = No opportunity

There is an euphoric feeling when someone sends you a load for the first time. You usually spend an entire day getting the best bid. Keep this same energy, always. 

Don't be the agent that when the shipper returns for a new quote, you no longer do your due diligence, or quote greedily. Be fair. Pay the carrier and yourself fairly but not greedily. 

Its no secret that many carriers believe brokers are greedy taking too much commission for themselves. Remember carriers are the most important piece of the equation. A happy carrier creates a happy customer. 

People who get into bidding wars usually don't last in the industry. Correct, I did say don't be greedy but when you start off you spend probably 40 hours a week for 4-6 weeks before you even get your first bid. 

Bidding wars make you continually go back to your carrier and ask them to negotiate a lower rate. A fair freight broker will take a piece of the loss as well. You as a broker will have to either have loads everyday, multiple times a day to make the commissions worth it, or you will be looking around for the next couple of months wondering why you are making $200 a week. 

Know the value of your time and your carriers, or you wont last.

Shippers are very important, but carriers are essential! Your job is to talk and build your carrier database and be fair. When working with carriers, you will have some that are golden, keep them happy! My favorite are the ones that want to be your friend, they talk to you and communicate efficiently, they are usually on time, and  act with integrity at all times. Send them first choice on your lanes. 

When you keep these carriers running they will prefer your loads over other brokers. Every shipper has horror stories and every carrier does as well. If they like working with you, you will be the preference.

An alternative technique to bid wars, is to provide different options. This may be, team driver vs solo. My favorite alternative option is a company that has a newer authority (under a year) vs an experienced driver that has history with your company. 

Less brokerages will trust newer authorities which makes their rates to keep their truck moving lower. To be safe, you will still need vet and go over you exact expectations with the carrier. 

Always be transparent with the shipper, let them know the options and price differences. Shippers that only look at price will choose the newer driver if you make it clear they were still properly vetted, as well as it will build trust because at least you are the honest broker that tells them how you are meeting their economic expectations.