The transportation Industry, and particularly the Freight Brokerage Industry is growing at an incredible pace, especially given the current economic conditions in the U.S. Some have even labeled becoming a Freight Broker one of the most promising small business venture opportunities in the country.
With its low cost of entry and unlimited earning potential, the freight market is red-hot. The only problem is that not just anyone can wake up one morning and decide to be a broker. Being successful in this industry requires training and an education on the subject. But training can be expensive. Luckily there are several options recently made available to significantly cut your out-of-pocket expenses, and even potentially pay for all of your education.
Recently legislation has been passed making huge amounts of money available to Americans in the form of Financial Aid and assistance, stimulus money, and grants. Much of this money is made available to stimulate the economy and invest in our workforce by helping individuals gain education and training needed to qualify for good-paying, stable, and reputable jobs.
· The Workforce Investment Act, for example, provides funding to put individuals through occupational skills and entrepreneurial training. The funding is free and distributed by state agencies.
· VOC Rehab is a similar program available to people in need of assistance either learning skills necessary to fulfill job requirements or rehabilitation after injuries sustained while in the military and similar situations. VOC Rehab is also administered by state agencies, therefore policies and regulations vary.
· VA Educational Benefits provided under the GI Bill provide funds to assist Military Veterans in gaining proper training and vocational assistance. This program is administered by the department of Veterans Affairs.
Assistance from all of these programs can be utilized to gain training, education and experience in the freight brokerage industry. Freight Brokering has been recognized as one of the best opportunities to start up one’s own business at very low cost. Many brokers make a 6-figure income during their first year of operation.
Do your research to find the best freight brokerage school and counsel with your adviser at your state employment agency or with the above-mentioned assistance programs directly. Many will have recommendations on excellent schools that they have worked with in the past. The freight brokerage business is a fast-growing industry and provides many opportunities for dedicated and hard-working individuals, while requiring little education or specialized training on the subject.
Get freight broker training today.
Friday, November 5, 2010
Wednesday, November 3, 2010
Why Use Load Boards?
When you attend freight broker training courses Load Boards are always part of the discussion. Here is a little more info on load boards for you to digest.
Load boards are usually websites dedicated to posting information regarding freight that needs to be moved from one place to another. These boards are used by three distinct groups, shippers, carriers, and intermediaries. Shippers are the companies or individuals who have goods or products which they need to have moved from one point to another. Most often the shippers who use load boards are companies not capable or who do not have the resources of moving the freight on their own, or who have specific clients they usually ship with, but for some reason or another have extra or cannot get a particular load moved, so they seek to find others willing to move it for them. These are basically extra or exception loads.
Carriers are the Truck Drivers (Owner Operators or Trucking Companies) who watch the boards to find loads to move. Many times when a driver carries a load from one side of the country to another, he’ll find himself with a long, expensive drive home ahead of him if he isn’t able to find a load to carry back with him. The cost of operating a truck can add up over several thousand miles with fuel prices as high as they are. So faced with finding a load or deadheading back home, most drivers will watch load boards to find loads which will take them back in the direction they need to go. This will minimize the time they spend driving empty and make them some money or at least cover their costs while they are at it.
Intermediaries such as freight brokers also often watch load board. Since brokers make a living by matchmaking between shippers and carriers, load boards are a perfect place for them to hang out and hopefully intercept an occasional load. Most established property brokers have lists of clients that they have done business with in the past to draw most of their business from. Some even spend very little to no time developing new leads. Load boards are an excellent venue to find new customers, develop relationships, and grow a brokerage. Much like online dating or classified ads, mostly one night stands or single transactions will result, though the occasional long-term relationship can result if things work out and both parties are happy with their experience.
Some Load boards are free, while others charge a subscription. Others provide some services for free, while charging for other premium services. There are other sites that will compile listings from multiple load boards, which can provide almost unlimited numbers of opportunities. The best way to get familiar with load boards is to log on and try them out. They are generally quite intuitive and can be very useful for almost anyone in the transportation industry.
We hope this information was useful to you. It may have even covered a piece of the industry that may not have been discussed if you attended a different freight broker training course.
Load boards are usually websites dedicated to posting information regarding freight that needs to be moved from one place to another. These boards are used by three distinct groups, shippers, carriers, and intermediaries. Shippers are the companies or individuals who have goods or products which they need to have moved from one point to another. Most often the shippers who use load boards are companies not capable or who do not have the resources of moving the freight on their own, or who have specific clients they usually ship with, but for some reason or another have extra or cannot get a particular load moved, so they seek to find others willing to move it for them. These are basically extra or exception loads.
Carriers are the Truck Drivers (Owner Operators or Trucking Companies) who watch the boards to find loads to move. Many times when a driver carries a load from one side of the country to another, he’ll find himself with a long, expensive drive home ahead of him if he isn’t able to find a load to carry back with him. The cost of operating a truck can add up over several thousand miles with fuel prices as high as they are. So faced with finding a load or deadheading back home, most drivers will watch load boards to find loads which will take them back in the direction they need to go. This will minimize the time they spend driving empty and make them some money or at least cover their costs while they are at it.
Intermediaries such as freight brokers also often watch load board. Since brokers make a living by matchmaking between shippers and carriers, load boards are a perfect place for them to hang out and hopefully intercept an occasional load. Most established property brokers have lists of clients that they have done business with in the past to draw most of their business from. Some even spend very little to no time developing new leads. Load boards are an excellent venue to find new customers, develop relationships, and grow a brokerage. Much like online dating or classified ads, mostly one night stands or single transactions will result, though the occasional long-term relationship can result if things work out and both parties are happy with their experience.
Some Load boards are free, while others charge a subscription. Others provide some services for free, while charging for other premium services. There are other sites that will compile listings from multiple load boards, which can provide almost unlimited numbers of opportunities. The best way to get familiar with load boards is to log on and try them out. They are generally quite intuitive and can be very useful for almost anyone in the transportation industry.
We hope this information was useful to you. It may have even covered a piece of the industry that may not have been discussed if you attended a different freight broker training course.
Tuesday, October 26, 2010
Financing and Cash Flow for Freight Brokers
As with most startups, one of the biggest challenges new freight brokers face is the lack of cash flow to keep their business alive. Just like the body needs a constant flow of blood to keep it nourished and alive, a business needs a constant supply of cash coming in to pay for the expenses encountered in normal operation.
In the freight brokerage industry the carriers who move your freight will usually expect to be paid within about 21 days of delivering the load. The companies that pay you to broker their freight will often pay you anywhere between 30 and 60 days. The time in between, which is often several weeks up to a couple months you will need to front the money while waiting to be paid. Problems arise when you are moving numerous loads each week, the several thousand dollars per load adds up to a lot of money. So where do you come up with this money?
Factoring companies buy other companies’ receivables, basically being paid the debt when it comes due, and taking on the risk and slower pay in exchange for a percentage or fee off the top of the receivable. Though this will eat away at your profits slightly, while getting started, this is a great option for new brokers who don’t have the credit or cash available to finance it on their own.
Some factoring companies don’t do factoring for brokers, or may even carry a minimum amount which may be beyond the amount that most beginning brokers will need. There are several out there, though, that specialize in factoring for smaller companies and even some that specifically target carriers and freight brokers. These companies will be experienced in your type of factoring, and will likely know your specific needs and conditions better than many of the other, larger companies out there. They may even have special services tailored to fit brokers.
There are other ways to gain financing, including gaining approval and access to a revolving line of credit from a bank or other financial institution. This may also be a good way to go, but can be more difficult to qualify for, especially with the recent tightened lending practices we are experiencing in the economy today. Credit cards can also be used if your credit limit is high enough. If you are able to pay it off quickly enough, you may pay no interest with some credit cards. Keep in mind that credit cards generally carry very large interest rates though, which can quickly deplete your margins if you aren’t careful.
Every person will have to weigh out the options for him or herself. No one solution is the best for all freight brokers, but one or the other may be better for your current circumstances. Do your research and decide. It's just like choosing a the right freight broker training. You have to make the call. One thing is for sure; cash flow will either make or break you in the brokerage industry.
In the freight brokerage industry the carriers who move your freight will usually expect to be paid within about 21 days of delivering the load. The companies that pay you to broker their freight will often pay you anywhere between 30 and 60 days. The time in between, which is often several weeks up to a couple months you will need to front the money while waiting to be paid. Problems arise when you are moving numerous loads each week, the several thousand dollars per load adds up to a lot of money. So where do you come up with this money?
Factoring companies buy other companies’ receivables, basically being paid the debt when it comes due, and taking on the risk and slower pay in exchange for a percentage or fee off the top of the receivable. Though this will eat away at your profits slightly, while getting started, this is a great option for new brokers who don’t have the credit or cash available to finance it on their own.
Some factoring companies don’t do factoring for brokers, or may even carry a minimum amount which may be beyond the amount that most beginning brokers will need. There are several out there, though, that specialize in factoring for smaller companies and even some that specifically target carriers and freight brokers. These companies will be experienced in your type of factoring, and will likely know your specific needs and conditions better than many of the other, larger companies out there. They may even have special services tailored to fit brokers.
There are other ways to gain financing, including gaining approval and access to a revolving line of credit from a bank or other financial institution. This may also be a good way to go, but can be more difficult to qualify for, especially with the recent tightened lending practices we are experiencing in the economy today. Credit cards can also be used if your credit limit is high enough. If you are able to pay it off quickly enough, you may pay no interest with some credit cards. Keep in mind that credit cards generally carry very large interest rates though, which can quickly deplete your margins if you aren’t careful.
Every person will have to weigh out the options for him or herself. No one solution is the best for all freight brokers, but one or the other may be better for your current circumstances. Do your research and decide. It's just like choosing a the right freight broker training. You have to make the call. One thing is for sure; cash flow will either make or break you in the brokerage industry.
Thursday, May 27, 2010
How much money can I make as a freight agent or broker?
A lot of people that consider the freight brokerage business ask this question. We wanted to take a moment to post some information about that topic since it is so popular.
First and foremost, set want to set an income goal for yourself. Setting your income goal is a motivator and a measuring tool to help gauge your performance. Setting your income goal should be a fun process as there is no limit to your income potential. Here are some helpful steps for effective goal setting.
1. Consider your current income. Write it down.
2. Consider your desired income level. Don't set a goal to "make more money" or "get rich". Be specific. Be realistic. How much a year do you want to make? Write it down.
3. Put your income goal in writing. Why is this your goal? What will it take to reach it? Understanding why you want to make the amount you want helps put your goals and priorities in order.
4. Set a deadline. How much time do you have before retirement? When would you like to retire? Create benchmark deadlines to help keep you on track and give you something to gauge your success against.
Complete these steps until you feel you have a realistic income structure. Next week we will give you a formula on how to achieve your income goal after you complete freight broker training.
First and foremost, set want to set an income goal for yourself. Setting your income goal is a motivator and a measuring tool to help gauge your performance. Setting your income goal should be a fun process as there is no limit to your income potential. Here are some helpful steps for effective goal setting.
1. Consider your current income. Write it down.
2. Consider your desired income level. Don't set a goal to "make more money" or "get rich". Be specific. Be realistic. How much a year do you want to make? Write it down.
3. Put your income goal in writing. Why is this your goal? What will it take to reach it? Understanding why you want to make the amount you want helps put your goals and priorities in order.
4. Set a deadline. How much time do you have before retirement? When would you like to retire? Create benchmark deadlines to help keep you on track and give you something to gauge your success against.
Complete these steps until you feel you have a realistic income structure. Next week we will give you a formula on how to achieve your income goal after you complete freight broker training.
Saturday, May 15, 2010
Freight Brokerage School Testimonial
"Good Freight Broker training goes a long way!"
Here is a brief testimonial from an England Logistics Freight Brokerage School attendee. You'll read first hand what this student and others are saying about our school.
I recently attended an England Logistics training/seminar. I have been to a lot of training classes and lots of seminars but this was the first training that I have ever received that the company or instructor actually did what they were teaching. Most of my instructors in the past were knowledgeable people, but seemed to lack real life experience. One of the first things I noticed as I showed up for the class is that this company not only does what they teach they have a passion for it. Not to mention they do very well financially with their own brokerage office. They have given me an opportunity to do, from the comfort of my own home, what they do every day in the England Logistics office.
I have known several Freight broker/agents in my day and all of them have done very well financially. I have asked several of them what they do and how they do it and have asked them to train me. It seems like there is an unspoken agreement from broker/agent to broker/agent that they won’t give out the secrets of being a broker/agent. Kind of like magicians never give people the secret of how another magicians trick is done. England Logistics has gone out of the box in the sense that they are letting people that attend the England Logistics freight broker class in on what has rocketed them from the 60th largest freight broker to the 13th largest in under 5 years, mostly during in a recession!
Because they are doing this business every single day they can tell me what is working for them day-to-day. What worked last year in the freight broker business may not work today. If a person doesn’t adapt to the market they will lose business. England Logistics allows me to adapt to the market every single day and that is a beautiful thing.
One of the concerns I had about attending the freight brokerage school is "how in the world could I learn enough in three days or 5 days to be able to do the business." I don’t know how it happened but it did and I honestly believe that anyone can do this business if they go to the school I went to, and then do the work!!
Check out more information about the industry by checking out the Third Party Logistics TIA website at tianet.org .
Friday, May 7, 2010
Part 2 of 2:
So lets now discuss accreditation in this second part. Generally whats sets a school apart from the rest is the process. So when you want to become a freight broker you need to think it through. Is the school a broker mill, or are you learning the ropes?
In general, it is best to take the time to go and learn from an accredited school that will actually make you do what a broker does before sending you out to fend for yourself. A good school should focus on real world exercises that mimic the exact situations you’ll find yourself in as a certified broker or agent. It should include mandatory testing to be sure you are learning and following along as the class progresses. One of the best reasons to attend a freight brokerage school is, if you attend a school that actively does what they teach, you can watch that companies sales team coming to work each day, making call after call, and working through the daily issues of a freight broker. The act of seeing your future position in the works proves invaluable to a prospective students’ success rate. Without sighting a fancy research document, just consider why everything from elementary schools to colleges have career day.
For those who simply don’t have the time to travel and attend a week long course, you can utilize the weekend seminars or online courses. The weekend seminars are probably your best second option. This is simply because you have an instructor on hand who can walk you through the process and do real tests to make sure you are comprehending the material. Another big advantage to the weekend seminars is, they are usually taught in groups so you can see where the other students struggle and watch as they work through each step. When looking for a good seminar you should scrutinize the course schedule. You may want to verify they teach everything from making a sales call, bidding a lane, securing a carrier, reporting claims, managing insurance, obtaining necessary licensing, job placement, and extended training. These are only a small sample of topics each training school should cover. If you want, it should be easy to get a copy and description of a school’s class outline. If the school you’re considering cannot produce a cleaned (meaning sanitized for public display) outline you might want to reconsider your source.
If you still don’t have time or you simply like online learning you might consider the last option, online training classes. These are usually the most appealing from a cost standpoint as well. However, please be careful when subscribing to one of these courses, as they are often very short lessons filled with up-selling offers. Check the school’s course outline and ask what they sell once your there or if they have different levels of certification. Sometimes you’ll get a big list and be told you get a discount if you buy through the school. Consider this a red flag. Please consider when researching any of the three training options. Any class you take should be all-inclusive and focus only on your education, not the companies’ revenues. I highly warn you to be weary of this. That said, there are still some good online training courses and even books you can subscribe to. These learning modules are most effective for people who have done online learning in the past and are highly self-motivated learners. If you like to be guided you might find these classes hard to navigate and not worth your time or money.
No matter what type of freight agent training or freight brokerage school you attend, make sure you do your research and call the school recruiter with a list of questions you need answered. Refer to this article for help coming up with a good list of questions. Make sure your source is credible, accredited, and known within the industry. First and last, make sure your invested in your decision. No matter if you choose to take an online training class, weekend seminar, or full week freight brokerage school, if you honestly know how much effort you will put into your education, you will be able to comfortably choose the right program for you and have no regrets when its over.
So lets now discuss accreditation in this second part. Generally whats sets a school apart from the rest is the process. So when you want to become a freight broker you need to think it through. Is the school a broker mill, or are you learning the ropes?
In general, it is best to take the time to go and learn from an accredited school that will actually make you do what a broker does before sending you out to fend for yourself. A good school should focus on real world exercises that mimic the exact situations you’ll find yourself in as a certified broker or agent. It should include mandatory testing to be sure you are learning and following along as the class progresses. One of the best reasons to attend a freight brokerage school is, if you attend a school that actively does what they teach, you can watch that companies sales team coming to work each day, making call after call, and working through the daily issues of a freight broker. The act of seeing your future position in the works proves invaluable to a prospective students’ success rate. Without sighting a fancy research document, just consider why everything from elementary schools to colleges have career day.
For those who simply don’t have the time to travel and attend a week long course, you can utilize the weekend seminars or online courses. The weekend seminars are probably your best second option. This is simply because you have an instructor on hand who can walk you through the process and do real tests to make sure you are comprehending the material. Another big advantage to the weekend seminars is, they are usually taught in groups so you can see where the other students struggle and watch as they work through each step. When looking for a good seminar you should scrutinize the course schedule. You may want to verify they teach everything from making a sales call, bidding a lane, securing a carrier, reporting claims, managing insurance, obtaining necessary licensing, job placement, and extended training. These are only a small sample of topics each training school should cover. If you want, it should be easy to get a copy and description of a school’s class outline. If the school you’re considering cannot produce a cleaned (meaning sanitized for public display) outline you might want to reconsider your source.
If you still don’t have time or you simply like online learning you might consider the last option, online training classes. These are usually the most appealing from a cost standpoint as well. However, please be careful when subscribing to one of these courses, as they are often very short lessons filled with up-selling offers. Check the school’s course outline and ask what they sell once your there or if they have different levels of certification. Sometimes you’ll get a big list and be told you get a discount if you buy through the school. Consider this a red flag. Please consider when researching any of the three training options. Any class you take should be all-inclusive and focus only on your education, not the companies’ revenues. I highly warn you to be weary of this. That said, there are still some good online training courses and even books you can subscribe to. These learning modules are most effective for people who have done online learning in the past and are highly self-motivated learners. If you like to be guided you might find these classes hard to navigate and not worth your time or money.
No matter what type of freight agent training or freight brokerage school you attend, make sure you do your research and call the school recruiter with a list of questions you need answered. Refer to this article for help coming up with a good list of questions. Make sure your source is credible, accredited, and known within the industry. First and last, make sure your invested in your decision. No matter if you choose to take an online training class, weekend seminar, or full week freight brokerage school, if you honestly know how much effort you will put into your education, you will be able to comfortably choose the right program for you and have no regrets when its over.
Wednesday, May 5, 2010
Which freight broker training option should you pick?
In our last post we talked about the freight brokering business. So your probably saying now, how do I become a freight broker.
The first step like we mentioned before was to get training. We will discuss information about particular schools in a later post. We are going to discuss different training formats first so that you can know which format is going to be the best for you. The format may dictate which schools you choose. So shall we...
Part 1 of 2:
With all the freight agent training and freight broker schools available nowadays, how do you know which is the best? That is a tough question and one you probably need to explore in some detail. As we define the pros and cons of every option, we will determine which courses will put you on track to make more money, enjoy job security, and get started in one of the fastest growing positions in the transportation industry.
As you begin doing your research on the numerous freight agent training courses and freight brokerage schools currently offered, you will find yourself wondering whether you want to save time and money with an online course, take some time off to travel to a nearby school, or just sneak away for a weekend to one of the 3-day seminars held at the local hotel.
Any of these training courses can be valuable, but first you need to consider how serious you are about starting a new career. If you really want to begin a new career and work hard at becoming an established broker, you should consider making a real investment and find a good school that can offer a proven curriculum backed by a recognizable name. If you are looking for something a little more part time, or as a hobby, the seminars or online courses might be best. These classes are generally less hands on, consumer driven, and provide fewer real world situations, but cater to those who cannot get away from work, get out of the truck, or simply can’t get away for a whole week.
In the next post we will continue this discussion further especially the fact that school accreditation can be a very important factor in the business.
The first step like we mentioned before was to get training. We will discuss information about particular schools in a later post. We are going to discuss different training formats first so that you can know which format is going to be the best for you. The format may dictate which schools you choose. So shall we...
Part 1 of 2:
With all the freight agent training and freight broker schools available nowadays, how do you know which is the best? That is a tough question and one you probably need to explore in some detail. As we define the pros and cons of every option, we will determine which courses will put you on track to make more money, enjoy job security, and get started in one of the fastest growing positions in the transportation industry.
As you begin doing your research on the numerous freight agent training courses and freight brokerage schools currently offered, you will find yourself wondering whether you want to save time and money with an online course, take some time off to travel to a nearby school, or just sneak away for a weekend to one of the 3-day seminars held at the local hotel.
Any of these training courses can be valuable, but first you need to consider how serious you are about starting a new career. If you really want to begin a new career and work hard at becoming an established broker, you should consider making a real investment and find a good school that can offer a proven curriculum backed by a recognizable name. If you are looking for something a little more part time, or as a hobby, the seminars or online courses might be best. These classes are generally less hands on, consumer driven, and provide fewer real world situations, but cater to those who cannot get away from work, get out of the truck, or simply can’t get away for a whole week.
In the next post we will continue this discussion further especially the fact that school accreditation can be a very important factor in the business.
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