Back in 2003, before I started my freight brokerage, I had no clue what a “freight agent” even was.
Today I will answer the most common questions I get about freight agent jobs and opportunities in 2024 and beyond.
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What is a freight agent?
An independent freight agent (also called a freight broker agent) works under a licensed freight broker, helping connect shippers and trucking companies (also called motor carriers).
Unlike freight brokers who are required to be licensed and bonded to operate, freight agents DO NOT require any licensing, bonding, certification or exam in order to operate.
Freight agents help their shipping clients by finding available motor carriers, negotiate shipping rates, and make sure the transportation process runs smoothly.
Independent freight agents typically operate as 1099 contractors rather than a W-2 employee. Many freight agents specialize by serving a specific freight, industry or geographic niche.
Is becoming a freight agent worth it?
For many independent freight agents, the unlimited earning potential makes the challenges that come with owning a freight agency, well worth it.
Those with interest in the logistics industry, enjoy building relationships, and enjoy the fast-paced environment, may find freight agent jobs rewarding.
Fact is, not only can a freight agent job be financially rewarding but the economic outlook for freight brokers in the next 5+ years show strong demand and sustainable growth.
Pros of Freight Agent Jobs
- Unlimited earning potential (commission-based earnings)
- Be your own boss
- Potential for industry growth
- Low barrier of entry
- Flexibility and freedom
- Work from home
Like any job, freight agent jobs come with their own set of challenges. Enjoying work as a freight agent comes with accepting the cons as part of the job.
Cons of Freight Agent Jobs
- Full time plus commitment
- Paid on performance vs steady paycheck
- Requires small investment in training and tools to start
When deciding to take a freight agent job, do your research on the industry and the brokerage. Understand the job requirements and if your skills and needs align with the work.
How do freight agents make money?
Most freight agents are commission-based 1099 independent contractors. This means they get paid on the profit they generate for the the brokerage they operate under.
Freight agents are responsible for getting their own shipping customers, also know as building their own book of business. And are paid a percentage of the gross profit margin they generate.
Each freight brokerage structures their commission plans a bit differently, but industry standards range from 50% – 70% of gross profit margins to the freight agent and the rest is retained by the licensed freight brokerage.
For example, a freight agent who brings in $2,000,000 in yearly sales to their brokerage, at a 15% profit margin, can expect to be paid $180,000 in personal income. Assuming a 60% commission split.
- Gross sales: $2,000,000
- Average margin: 15%
- Gross profit: $300,000
- Commission rate: 60%
- Freight agent income: $180,000
Compared to the average U.S. income of $63,442, freight agents jobs can be very financially lucrative. Remember, each brokerage has its own specific policies and commission structure.
Earning potential depends on the freight agent’s skills, work ethic, market conditions and more.
What are the requirements of a freight agent?
To become a freight agent there are no certifications or licenses required to get started.
There are many qualities that make someone more likely to succeed in a freight agent job.
- Industry training
- Excellent communication skills
- Negotiation & sales skills
- Customer relations skills
- Attention to detail
- Problem-solving abilities
Most successful freight agents receive some kind of specialized training on the logistics, freight, and transportation industry before starting as a freight agent or as part of their on-the-job training.
How to find a job as a freight agent?
If you type ‘freight agent jobs’ in any search engine, you’ll find tons of job posting sites such as Indeed, ZipRecruiter, Google Jobs, and LinkedIn. Some of which require prior experience, while other do not.
Unlike some other job boards, the Freight Broker Boot Camp job board is 100% FREE and is dedicated to people looking to hire or be hired as freight agents, freight brokers, or freight sales.
We launched our freight broker and freight agent job board to help support, not only our members and community, but any freight brokers or freight agents looking to hire or get hired.
Plus here is another article I wrote about “How to Become A Freight Agent with No Experience” that might help you on your journey.
P.S. Did you know that I offer a 60 day 100% money back guarantee to students that enroll in my online Freight Broker and Freight Agent training program? Give it a try and if you’re not happy for any reason…I will personally refund your money!!!!
