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Freight Broker Commission - How Much Can You Earn?

5:37 PM | Labels: |

So you want to make a lot of money from freight brokering?

According to Dennis Brown from Freight Broker Boot Camp, becoming a freight broker or freight agent may earn you a lot of money, but this is obviously not a get rich quick scheme.

Yes, you can make a lot of money by becoming a freight broker or agent, given that you have the proper training, a good plan and are willing to work hard. It's just like any business.

Ok, let's get back to the topic: freight broker commission.

Let's start with revenues of large freight broker firms in the U.S.

According to Transport Topics, following are the top 5 freight brokers and their revenues:

1. C.H. Robinson, net revenue $1,718.3 million/year
2. Total Quality Logistics, net revenue $445.6 million/year
3. XPO Logistics Inc., net revenue $342 million/year
4. Echo Global Logistics, net revenue $290.3 million/year
5. Coyote Logistics, net revenue $280 million/year

According to Dennis Brown, most freight brokers go with around 12% to 20% gross margins. So it means that on $5 million in revenue the contribution of gross margin would be around $600,000 and $1 million.

While for freight broker agents, the income also heavily depends on skills, good planning, resources and also work ethic (hard work).

From Dennis Brown's experience of meeting a lot of freight agents during his career, he said that that small freight agents that are still new to the freight industry conservatively earn commissions between $30,000 to $50,000/year working from home.

For freight agents with more experience, he knows those who can earn between $100,000 to $300,000 or even more annually. Top freight agents can earn commissions as much as $50,000 or more/month, depending upon customer base size and the amount of freight moved daily.

For more details on how to be a freight broker or freight agent, I recommend you get Dennis Brown's Freight Broker Boot Camp.