How much do freight brokers make off each load? (2024)

FAQs

How much do freight brokers make off each load? ›

Depending on your expertise, your salary range can be anywhere from 10% to 35% commission for each truckload. Ultimately, the average broker ends up getting margins of around 15%. This percentage is a portion of the total amount of money that customers give you. So, how much do freight brokers make?

Licensed brokers who own their own freight brokerage business, have the ability to earn a higher salary. Freight brokers typically earn between 10% to 30% profit margins on a shipment, depending upon the mode of transportation, the complexity and distance.

Freight brokers make their money in the margin between the amount they charge each shipper (their customer) and what they pay the carrier (the truck driver) for every shipment. Although it varies from one transaction to the next, healthy freight brokers typically claim a net margin of 3-8 percent on each load.

Rather, it's a percentage of the difference between the price the shipper pays and the shipping rate. According to a Freight Waves survey, the average commission is 13% to 15% of a load's net revenue. Example: A shipper pays $4,000 to a licensed freight broker to move a load.

Yes, freight brokers can indeed make 7 figures – many have successfully grown 6, 7 and even 8 figure businesses.

Depending on your expertise, your salary range can be anywhere from 10% to 35% commission for each truckload. Ultimately, the average broker ends up getting margins of around 15%. This percentage is a portion of the total amount of money that customers give you. So, how much do freight brokers make?

On average, the yearly freight broker salary in the U.S. is $71,500 ($36.67 per hour). Entry-level positions begin at $45,000 per year, while most experienced professionals earn up to $107,500 per year. As a freight broker, you can start your own trucking business and become your own boss.

Shippers and carriers tend to approach freight billing on slightly different timelines. For example, many shippers operate on net-30 or net-60 terms, meaning they'll pay a broker's invoice within 30 or 60 days. Carriers, however, often expect brokers to pay much more quickly on a net-15, net-7, or immediate basis.

Load Boards

This is one of the most common ways brokerages find loads. They look at load boards, which the oftentimes have a subscription to, and they choose loads they may be able to cover, those within their purview and available lanes, and bid on them.

What happens if commission is split between the freight broker and the brokerage? If you are hired as an independent contractor and paid using a commission split method, the commission rate will likely be between 50-65% of the gross margin. However, the commission rate varies depending on the type of brokerage.

How stressful is being a freight broker? ›

It takes a great deal of resolve and persistence to overcome the daily obstacles. It's the reason burnout and turnover for freight brokers are so high. To avoid the stress that eventually causes freight brokers to burn out before reaching their goals it is important to realize what's important and what isn't.

Firstly, they take the mileage between the loading location (starting point) and delivery location (final destination). After which, you can divide the overall rate by the number of miles between these locations to get the full truckload freight rate.

That being said, brokers can reach out to their network of carriers and other brokers to get an “in-the-ballpark” per-mile quote. Your shippers will typically give an overall rate, so you will need to do the math on the distance and cost to transport to deliver the load to determine your initial quote.

Freight type

For example, refrigerated loads (a.k.a. reefers) will generally earn more money than van freight because they require a specialized truck. Similarly, flatbed loads often have higher rates because they are heavier or larger than the average load.

Data from throughout 2020 has shown us that freight brokers are averaging around 15% overall with each load yielding around $270 in profit. I tend to find most successful brokers average somewhere between 12-18% in margin.

With more businesses emphasizing supply chain efficiency to ensure streamlined operations, demand for freight broker and 3PL solutions should remain strong. With more competition and better technology, brokers and 3PLs will keep offering economical rates, dependable work, and quicker shipping timelines.

Further, the W2 model of freight brokering shows an even more dramatic statistic. Nearly 95% of newly hired brokers turnover within the first 6 months.