Topics Discussed: How do freight brokers make money?

1. Broker contacts shipper
2. Provide the shipper with a freight quote
3. Ship tenderers load to broker
4. Approve the vendor’s credit
5. Broker posts load on load board
6. Find a truck
7. Send the broker-carrier-setup packet to the carrier
8. Carrier send back signed broker carrier agreement
9. Broker sends rate conformation
10. Carrier signs and returns rate confirmation
11. Broker dispatches driver into pickup location on day of load
12. Check calls
13. Broker monitors delivery
14. Carrier sends invoice to broker
15. Broker invoices shipper with copy of a signed copy of the bill of lading
16. Broker going to pay the carrier
17. Broker receives payment from the shipper

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Episode Highlights:

[00:00] How do freight brokers make money

[01:04] #1 – Contact your shipper either by phone, email, or face to face. Start the conversation.

[01:29] #2 – Provide the shipper (or potential shipper) with a quote for a load or freight.

[02:06] #3 – Assuming the shipper accepts your quote and accepts you as their broker, they will tender you a load. Tender simply means they will send you an offer for a load. You will need to accept that offer to make that load yours.

[02:52] #4 – Assuming they are a new customer, you will need to approve their credit.

[03:34] #5 – Once you approve their credit, you will then need to post that load on your favorite load boards; 123 Load Boards, Truckstop, Direct Flight are some examples. Post details on that load, this will create visibility for carriers searching for loads.

[04:08] #6 – Find a truck to cover that load. This will come in the form of inbound or outbound calls. Either a carrier will call you or, if you see a truck that matches that load, you will call them to negotiate.

[04:53] #7 – Send the broker carrier setup packet to the carrier

[05:12] #8 – The carrier will then send back a signed copy of the broker carrier agreement with proof of insurance.

[05:45] #9 – You will then send a rate conformation to the carrier, assuming they have been fully vetted. It includes details about the load; origins, destinations, pick-up times etc.

[06:10] #10 – Carrier then signs and returns rate confirmation

[06:17] #11 – Broker dispatches driver into pickup location on day of load to make sure the carrier will pick up the load on time.

[06:34] #12 – After pickup, the broker will do daily check calls on the load to touch base with driver. This is to make sure the driver is on time for delivery.

[06:59] #13 – The broker is responsible to make sure the freight delvers on time, in good conditions, and with no damage.

[07:15] #14 – Carrier will send an invoice to the broker. This should include a signed copy of the bill of lading and any other shipping documents.

[07:32] #15 – Broker invoices shipper with a signed copy of the bill of lading

[07:49] #16 – Broker is responsible to pay the carrier on time based on terms of invoice or agreements, typically no more than 30 days.

[07:58] #17 – Broker receives payment from the shipper

[08:40] Recap of the 17 steps

[10:37] Cheat sheet: How freight brokers make money

DOWNLOAD Free Cheat Sheet at https://www.freightbrokerbootcamp.com/money

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