Can You Be A Freight Broker Part-Time?
Looking to transition into the freight industry but can’t commit to a full-time role? Many aspiring freight brokers face the same challenge.
But, is it even possible to be a freight broker part-time?
In this article, we answer that question in detail and cover other important information like the pros and cons, what’s involved in part-time brokering, and plenty more.
Is It Possible To Be A Part-Time Freight Broker?
Yes, it’s possible to work as a part-time freight broker. This can manifest in two primary ways: starting your own brokerage part-time or securing a part-time position with an existing firm.
However, it’s important to note that the feasibility and potential success of a part-time brokering career are dependent on several factors:
Industry demands
The freight industry operates around the clock. As shipments occur at all hours of the day and night, brokers usually need to be readily available to coordinate with carriers, communicate with shippers, and address any issues that arise.
So, working as a freight broker typically requires you to be available outside of standard business hours. Naturally, this can be a challenge if you’re working on a part-time schedule.
Yet, if you’re able to organize your schedule so you’re available to handle various tasks and emergencies, you may still be able to meet industry demand while working part-time.
Client expectations
As a freight broker, your most important relationships will be with shippers and carriers. These clients will expect you to be accessible to manage unforeseen circumstances like delays or rerouting needs.
If your availability is limited, it could affect your ability to provide timely solutions. In turn, this can negatively impact your client relationships and the reputation of your freight broker business.
Income potential
You also need to bear in mind that commissions will be your primary source of income as a broker. As a result, if you have limited working hours, you may struggle to generate significant revenue. Plus, working part-time can make it more difficult to build a substantial client base.
Ultimately, the commission-based nature of the role tends to reward those who dedicate more time to securing and managing shipments.
What Does A Part-Time Freight Broker Do?
Essentially, a part-time freight broker has the same responsibilities as a full-time one. The main differences are that your tasks will be condensed into a smaller number of working hours, and you’ll typically work with fewer clients and shipments.
The most important responsibilities of a freight broker include:
- Researching and vetting carriers.
- Negotiating rates between shipping companies and carriers.
- Tracking shipments and monitoring the progress of deliveries so you can address any issues during transit.
- Handling all necessary paperwork like invoices, contracts, and compliance documents.
Pros & Cons Of Being A Part-Time Freight Broker
Before you decide to become a part-time freight broker, you need to weigh up the pros and cons:
✅ Pros | ❌ Cons |
Flexibility: Working limited hours allows you to balance other commitments and to gradually transition into the freight industry. | Reduced income potential: A freight broker’s earnings are usually commission-based. So, working fewer hours typically results in lower income. |
Potential for lower overhead costs: If you work part-time, you may have lower expenses related to things like utilities, office space, and other business costs. However, this will most likely be balanced out by the fact that you don’t make as much revenue as you would working full-time. | Limited availability: The constraints of a part-time schedule can limit your accessibility during important hours when clients expect you to be available. |
Skill and knowledge development: Working part-time allows you to learn your trade and develop your skills without the immediate pressure of full-time operations. | Harder to build client relationships: Additionally, when your availability is limited, it’s more difficult to establish trust and credibility with your clients. |
How To Become A Part-Time Freight Broker
Before you set up your own freight brokerage or apply to work for an existing firm part-time, there are several steps you need to take to become a licensed freight broker.
Complete a training course
You don’t need any formal training or education to start operating as a freight broker. However, if you enter the industry with little knowledge, you’ll struggle to succeed.
That’s where the 90 Day Freight Broker course comes in.
Over 100 hours, you’ll learn everything you need to know to have a long and rewarding career in the freight industry. This includes modules on:
- Accounting practices like cash flow management and invoicing.
- Learning how to efficiently dispatch loads.
- Gaining an understanding of Transportation Law.
- Negotiating rates and finding shipper niches.
- How to identify and vet carriers.
The fully comprehensive course costs $890 and you’ll be entitled to a full 30-day refund if you aren’t satisfied. We also provide you with sample templates for common contracts and documents to enhance your knowledge. Plus, the course is available in text, video, and audio formats.
Sign up for the waitlist now, and in 90 days or less, you’ll be ready to set out on your new career.
Federal and state-level requirements
You also need to ensure you meet all federal and state-level requirements before you start to operate as a part-time broker, which are:
- Registering your business: If you want to start your own brokerage, you’ll need to establish a legal business entity such as an LLC or corporation. Then, you must obtain an Employer Identification Number (EIN) from the IRS.
- Obtain freight broker authority: You don’t need to get a specific freight broker license to operate, but you must obtain authority from the Federal Motor Carrier Safety Administration (FMCSA). To do this, you’ll have to submit an OP-1 form and pay the required $300 fee.
- Post a surety bond: You also need to secure a $75,000 surety bond. This ensures you’re legally compliant and acts as a mechanism by which clients can recover losses if you ever fail to meet your contractual obligations.
- Designate process agents: Finally, file Form BOC-3 with the FMCSA to designate process agents in each state where you will operate.
Invest in freight brokering tools
If you plan to work for an established firm, they’ll provide you with the tools you need to perform your role. On the other hand, if you start your own business, you’ll need to invest in these tools yourself.
Load boards
A load board is arguably the most important piece of tech for a freight broker. It allows you to post freight, find an available trucking company, and communicate directly with a carrier.
Often, a reliable load board can be the difference between a good freight broker and an outstanding one. So, make sure you do some research before choosing one. Some of the best load boards include:
- DAT Load Board
- Truckstop
- 123Loadboard
- Trucker Path
- Direct Freight
Customer Relationship Management (CRM) software
CRM software is important for any broker, but it’s possibly even more vital for part-time brokers. This is because CRM software helps you keep on top of managing things like deal history, shipper contacts, and follow-up reminders within your reduced working hours. Some of the best options include:
- Tailwind TMS (with built-in CRM)
- Zoho CRM
- HubSpot CRM
Communication tools
As a freight broker, responsiveness is crucial to the success of your business. This means you need reliable communication tools for handling business calls, emails, and texts professionally.
It’s often a good idea to invest in paid services that offer VoIP business lines, call routing, and voicemail transcriptions. For example, Grasshopper and RingCentral are popular options among brokers.
Plus, using communication platforms like Microsoft Teams or Slack is helpful for staying in touch with shippers and carriers.
Strategies For Succeeding As A Part-Time Freight Broker
Once you’ve taken all the necessary steps to become a part-time freight broker, there are a number of strategies you can use to ensure success within the transportation and logistics industry:
- Focus on a niche market: As you’ll probably be dealing with fewer clients than a full-time broker, concentrate on specific industries or types of freight so you can build expertise and streamline your operations.
- Use automation: Utilize the tools we covered earlier to automate time-consuming tasks like scheduling pickups and load matching. This will help you maximize your productivity within limited working hours.
- Partner with other brokers: Partnering with other brokers gives you backup coverage when you’re unavailable. While this means you may have to split commissions, it helps you maintain good relationships with your clients.
- Consider subcontracting: If you subcontract specific functions like customer service or dispatching, you can focus on other tasks such as negotiating rates and relationship management.
- Set realistic goals: Working part-time means you’re unlikely to be closing multiple loads every day. So, set achievable goals like moving one or two loads a week during the early stages of your career. This prevents you from overextending yourself and ensures you don’t underperform.
- Consider working for an existing brokerage: Working part-time for an existing firm means your colleagues can cover you when you’re not available. It also means you won’t have the legal and financial responsibilities of running your own business.
- Effectively manage your time: Time management is crucial for part-time brokers. Make sure you schedule blocks of time for tasks like prospecting and doing paperwork; otherwise, your workload can quickly get on top of you.
Common Mistakes Part-Time Freight Brokers Need To Avoid
As with any career, working as a part-time freight broker comes with a wide array of potential pitfalls. The good news is that once you know what they are, you should be able to avoid them.
Treating it like a side hustle
One of the biggest mistakes a part-time broker can make is treating their work like a side hustle rather than a “real business”. Even though you may only invest 15 to 20 hours a week in brokering, you need to ensure those hours are structured and intentional.
If you only sporadically engage with brokering, you’ll miss plenty of opportunities and create a disjointed experience for your clients.
To avoid this, create a basic business plan that includes your goals and your target niche. Plus, you should allocate your time in advance as you would if you were working full-time.
Poor communication
In the freight industry, things move very quickly. This means your clients expect you to respond within minutes, not hours. Therefore, if you’re rarely available during peak shipping times or you have no plan for handling after-hours issues, you can easily lose business and credibility.
One solution is to use tools like Google Voice to separate and manage your business calls. You should also make your clients aware of your response times and stick to them.
Failing to build relationships
Many part-time brokers become too focused on transactions and neglect the relationship-building side of the business.
To avoid this common error, schedule regular check-ins with your clients. Even five-minute phone calls can be an effective way to touch base and keep your relationships strong.
Taking on too much, too soon
When you’re a part-time broker, it’s easy to become fixated on generating as much revenue as possible within your limited working hours. As a result, it’s tempting to agree to every shipper or load you come across.
But since you’re limited on time, taking on too much can quickly lead to carrier issues, missed pickups, and overall client dissatisfaction.
Instead, focus on quality over quantity. Before scaling your business, build a solid foundation with a few steady clients and gradually expand your business from there. This will position you for long-term growth if and when you decide to go full-time.
How To Measure Success As A Part-Time Broker
Part-time brokers are often juggling other responsibilities. For this reason, they can lose track of their progress and the stage they’re at in their careers. However, tracking progress is important so you can assess your growth and refine your strategy.
Consider using some of these indicators of success:
- Monthly revenue: Your monthly revenue goals will vary depending on your niche and various other factors. Still, it’s always beneficial to set minimum monthly goals. For example, you may aim to achieve $3,000 per month in commissions after six months.
- Load volume: You should also set realistic goals for the number of loads you aim to move each week. For part-time brokers, this may be 1-2 loads per week in the first three months and 3-5 loads per week once you’re more established.
- Quote-to-booking ratio: This metric allows you to track the number of quotes you send before you secure a booked load. If your quote-to-booking ratio is low, it might mean you’re missing out on follow-ups or your pricing is too high.
FAQs
1. Can you work as a part-time freight agent?
Yes, it’s also possible to work part-time as a freight agent. In fact, as agents don’t need their own operating authority, it’s even easier to start working as a part-time agent than as a broker.
2. Do part-time freight brokers usually work from home?
This depends on your own preferences and requirements. For example, if you start your own brokerage, you can choose to operate from a home office or a commercial office space. If you work for an established firm, they’ll decide whether your role is fully remote, fully office-based, or a hybrid of the two.
3. Can I switch from part-time to full-time freight brokering later on?
Absolutely! It’s common for part-time brokers to transition into full-time work once they’ve built up their experience and client relationships.
Final Thoughts
So, it is possible to work as a part-time freight broker, and there are some advantages to this career path. However, it’s also important that you’re aware of the challenges, like limited availability and reduced earning potential.
The best way to get started is to enroll in the 90-Day Freight Broker course. Join the waiting list now and you’ll be perfectly prepared for your new part-time career.
Sources:
- https://digitaldispatch.io/can-you-be-a-freight-broker-part-time
- https://www.youtube.com/watch?v=1r1FGtuN0Dc
- https://truckstop.com/blog/freight-broker-software/
- https://www.indeed.com/career-advice/finding-a-job/how-to-become-freight-broker-no-experience
- https://www.dat.com/resources/8-steps-to-get-your-freight-broker-license
- https://www.dat.com/resources/freight-broker-software-solutions