The eLearning Center for Gatlin Education Services

Entrepreneur Magazine has rated the freight brokerage business as one of the top home-based businesses to own, and a recent Wall Street Journal article cited freight brokering and logistics as the largest growing sector of the transportation industry. Written by freight brokerage specialists, the freight broker/agent training course will provide the student with the knowledge and resources needed to break into the $400 billion plus shipping industry. Freight broker professionals are in demand. No matter the state of the economy, goods will always need to be shipped. A motivated and disciplined freight broker or freight agent, who has received the proper training, can build up his or her business into a six figure earning potential. It is an ideal home business for a self-starter who enjoys fast-paced work. Become a part of the exciting trucking, freight logistics, and transportation industries as a licensed freight broker, or as a freight broker agent. Students will learn the “how-to’s” of building up a freight brokerage or agency. From licensing to operations, to sales and marketing, students learn the basics of how to run a freight brokerage or agency. This course arms graduates with the information needed to succeed in the freight brokerage business, and can help lead to a rewarding career in this field.

FAQs

What is a Freight Broker?
A freight broker is legally a “property broker”, which is the term established by the Federal Motor Carrier Safety Administration (FMCSA), a division of the United States Department of Transportation. It describes licensed individuals, or corporations, that help make a shipper and an authorized motor carrier successful in the transporting of freight.

What are the requirements to be a Freight Broker?
There are three legal documents needed to operate as a freight broker. They are:

  · A Broker’s Authority – through the FMCSA - $300 fee. You fill out Form OP-1 and file for your authority to operate as a broker.
  · Surety Bond or Trust Fund – obtained from a bank or bonding company. The cost varies depending on your personal credit. You are required to carry a $10,000 bond or trust, but if your credit is good, some companies will put up your bond for you for a fee (normally $500 to $700 per year). The form filed with this is BMC-84 or BMC-85.
  · Processing Agent – This runs approximately $50, with form BOC-3.

Is this a growing field? Is it in demand?
As of this writing, there are approximately 15,000 licensed transportation brokers in the nation, but a large number are inactive. This is still a relatively new industry, as there were only around 70 brokers in 1970. It is estimated that freight brokers accounted for over 10% of the shipping industry, or roughly $40 billion out of $400 billion, in revenues. A recent article in the Wall Street Journal cited freight brokerage and logistics as the fastest growing sector of the transportation industry.

Is there another way to get into the industry without having to get a bond and license?
Yes. You can open a freight agency, or become a freight broker agent, with little risk, and without obtaining your own licensing. In that case, you would operate as an agent, under the umbrella of another broker’s authority, and you would do a split with the broker on your profits.

What equipment will I need to get started?
If you want to open a freight brokerage or agency, you will need a computer with high speed internet, a fax machine, a telephone and service with inexpensive unlimited long distance. If you are opening a brokerage, you will also most likely want to purchase a transportation software program. If you are an agent, you will use your broker’s software system.

Is this a job that I can do from home?
Absolutely. Most agents and many brokers work out of their home office.

How long will it take for my business to become profitable?
It will take some time to build up your customer database, just as with any business that you start. Typically it can take 3 to 6 months of disciplined work to show a substantial profit – sometimes it takes much less, sometimes more. But once you begin securing customers, they normally have residual shipping, so the sale repeats itself over and over. Your level of success depends on many factors, such as your level of determination, your tenacity, and your genuine desire to help your customers succeed.

How much money can I make as a freight broker or agent?
Again, your individual earnings will depend on your personal abilities and how determined you are to succeed – how much focused energy are you willing to invest in your own success? As a full-time broker or agent, you can make from $40,000 to well over $200,000 or more. The potential is virtually unlimited as you grow.

How do I find customers?
In the course, we go into detail, showing many different tools for locating your shippers. Some of these sources are publications, reference sources, internet sources, etc.

How do I decide whether to start my own brokerage or become an agent?
There are many factors in making this decision, which we go over in detail during the course. Three major factors are money, time, and experience, among others. Either way, you will need 3 – 6 months worth of living expenses or a supplemental income while you establish your business. If you open your own brokerage, you will also need additional start-up money for cash flow and start-up costs.

How long does it take to complete a course?
All of our courses are self-paced and open enrollment. You can start and finish the course at your own pace. When you register for a course, you are given an 180 days (6 months) to complete the course. If you need more time, extensions are available.

Do I have to buy additional materials?
All materials are included. The cost of materials will be covered by your tuition. GES will ship all materials via UPS ground service upon registration.

What happens when I complete the course?
Upon successful completion of the course, you will be awarded a certificate of completion from the school you registered with. You must obtain a final passing grade of 70% or greater to be awarded a certificate.

Am I guaranteed a job?
GES courses will provide you with the skills you need to obtain an entry-level position in most cases. We do not provide direct job placement services, but our instructors will help you build your resume and are available to give advice on finding your first job. Instructors will also be available to use as a professional reference upon completion of the course. Potential students should always do research on the job market in their area before registering.

Who will be my instructor?
Instant Mentoring enables 24x7 access to certified instructors and Subject Matter Experts (SMEs). Instructors are Microsoft Certified Trainers (MCTs), all possessing instructional backgrounds. In addition to providing content expertise, our Mentors facilitate interaction and enhance the overall learning experience.

Can this course be taken on a Mac?
Yes.

  · Overview of the Job

  · What is a Freight Broker?
  · Requirements to Become a Freight Broker
  · What is a Freight Broker Agent?
  · Requirements of Becoming a Freight Agent
  · Why do Shippers use Freight Brokers/Agents?

  · Industry Overview

  · Overview of the Transportation Industry
  · Brief History of Surface Transportation and Freight Brokering
  · Industry Potential and Trends

  · Broker Laws & Requirements by the FMCSA

  · Legalities of Broker/Brokerage Services
  · Non-Brokerage Services
  · Laws regarding Record Keeping for Brokers
  · Laws regarding Misrepresentation
  · Broker Advertising Liability
  · Rebating and Compensation
  · Duties
  · Double Brokering Legalities
  · Laws regarding Accounting Expenses

  · Success and the Broker/Agent

  · Why Become a Broker or Agent?
  · Benefits and Opportunities
  · Traits of a Successful Broker/Agent
  · Goal Setting
  · Developing a Plan
  · Qualities of Success

  · Getting Started

  · Your Business Name
  · Setting up your Business
  · Filing for your Broker Operating Authority
  · Filing for your Surety Bond
  · Obtaining your Process Agents

  · The Next Steps

  · Ensure Cash Flow Resources
  · Business Bank Account
  · Setting up your Office
  · Transportation Software & other Software Considerations

  · Preparing your Initial Marketing Materials

  · Your Mission Statement
  · Sample Introduction Letters
  · Decide on any Initial Niche Target Markets
  · Formulate Initial Website
  · Examples/ Initial Marketing Materials

  · Terminology 101
  · Continuing the Process

  · Setting up your Shipper Packet for Prospects
  · Setting up your Shipper Packet for New Clients
  · Setting up your Carrier Packet
  · Your Customer Profiles
  · Credit Applications
  · Your Carrier Profiles

  · Begin Prospecting for Shippers

  · Finding Shippers
  · Resources
  · Getting your foot in the door
  · Problem Solving
  · Customer Service

  · Rating

  · Determining Competitive Rates
  · Resources for Rating
  · Rate Variables
  · Types of Rate Matrices
  · Fuel and Surcharges
  · Accessorial Fees

  · Building the Load

  · Load Data
  · Special Instructions
  · Rate Verification with Customer

  · Matching the Carrier

  · Load Posting
  · When to Post/What to Post
  · Checking Authority and Safety
  · Insurance Verification
  · Carrier Contracts

  · The Process Continued

  · Dispatching the Load
  · Rate Confirmation with Carrier
  · Carrier Pick-up and Delivery
  · Tracking and Verification

  · Carrier Relations
  · More on Marketing

  · Market Niches
  · Market Trends
  · Competition
  · Networking
  · Promotions
  · Your Marketing Dollars

  · More on Sales

  · Qualifying the Prospect
  · Determining Needs
  · Features and Benefits
  · Managing Objections
  · Personality Types
  · Building Trust
  · Sales Process and Growth

  · Overcoming Challenges

  · Shipper Situations
  · Carrier Situations
  · Consignee Situations

  · More Terminology
  · Financial Management

  · Staffing
  · Cash Flow
  · Auditing and Billing
  · Setting up Invoices for Payment
  · Other Brokerage Accounting

  · Insurance Claims

  · Types of Freight Claims
  · Claim Forms
  · Claim Procedures
  · Claims Laws

  · Freight Broker/Agent Resources