How much does it cost to become a freight broker/agent?
As 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.
- You can file for your freight broker authority through the FMCSA or…
- 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
- 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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