Have you ever thought that you might be leaving money on the table in your trucking business? Maybe you’re looking for a way to expand your trucking revenue stream?
Growing capacity is one way to grow revenue. If the new driver is a spouse, son, or daughter, read our guide to building a family trucking business before you sign for the equipment.
An owner-operator can expand a trucking revenue stream by adding brokerage authority and brokering freight alongside driving. Because you already hold a trucking authority, the brokerage application process will feel familiar, and brokered loads keep earning even when your truck is parked — without buying another rig or hiring another driver.
Adding capacity is another way to expand a revenue stream – but run the metrics first and check whether it is time to buy trucking equipment.
Before chasing new revenue, look at the lane itself: regional trucking is often the most profitable option for owner-operators.
There are a few options for expanding a trucking business.
Buying more equipment to diversify loads – but that would require a significant investment.
Buying another rig – but that would mean another driver, which will include payroll, taxes, double IFTA and IRP, and tracking licenses and medical tests.
But there may be a simpler, less expensive way.
Use your knowledge to become a freight broker.
Brokerage Authority vs. Trucking Authority
Brokerage authority is the operating authority that lets you work as the intermediary between a shipper and a truck driver, arranging loads instead of hauling them yourself. Trucking Authority and Brokerage Authority are like peanut butter and chocolate. If you already have experience in the trucking industry, you understand the important role a broker plays. In the logistics field, experience is practically king.
Building a successful brokerage authority is based on understanding the nuances of the trucking industry. If you’re an owner-operator, you’ve got a unique knowledge base. Knowing the road helps determine the right trucker for a load. Being an intermediary between a shipper and a truck driver is a critical part of the chain and every bit of insight will make the role more successful.
If you’ve got a trucking authority, getting the brokerage authority will be like deja vu. The process is very similar. There are some expenses with the applications, and like the trucking authority, takes some time. There are also requirements for separate business licenses and registrations.
Freight Brokering as a Second Trucking Revenue Stream
A second trucking revenue stream is income your business earns outside of hauling loads yourself — here, the commission you keep on freight you broker for other carriers. After driving a truck for a while, an owner operator will know shippers, other drivers, and other brokers. That network can help kick-start a second revenue stream in a trucking business. Reaching out to these people can open doors to breaking into the field. As an owner operator yourself, you’ve got credibility within the industry.
At the same time, you’ll understand that this isn’t an instantaneous uptick in the bank account. The cut a broker might get may look small to a driver used to getting a rate con with pay-per-mile. But that small cut, over time with other brokered loads, can lead to a trucking revenue stream what will make an impact on your bottom line.
Brokering freight is less seasonal than trucking itself. There are always loads to be serviced – even when your truck is out of service or on the road somewhere else. A steady flow of brokered loads, regardless of the condition of the roads or the weather will make the ups and downs of a trucking business easier to endure.
Back-Home Office Support for a New Brokerage
Many owner operators have the “back-at-home office.” The people who manage the business are experienced in the trucking industry too, and may find that adding the title “freight broker” is an option. If you’ve got a family member who is taking care of the invoices and records, managing the rate cons and the BOLs, then if they’re willing, breaking into the freight brokerage field might be a new career. It’s important that this person gets the training they need in how to work as a freight broker. There are online classes that can help them decide if this is for them – and how to do the job well.
Whatever (or whoever makes) the decision, the right software is vital to being a truck broker. That’s why TruckingOffice brokerage software is so valuable to the at-home broker. Using a brokerage software with many of the same features as a complete trucking software like TruckingOffice PRO will make that learning curve far easier.
We’re offering TruckingOffice Brokerage software for a free one-month trial. You’ll discover how to get organized in a new brokerage business
- customer management – shippers and drivers
- creating rate cons
- tracking paperwork (invoices, BOLs)
- handling the business accounting.
When you’re ready to explore expanding your trucking revenue streams, check out TruckingOffice Brokerage software!
Freight Broker FAQs for Owner-Operators
Can an owner-operator become a freight broker?
Yes. An owner-operator already understands the important role a broker plays, and knowing the road helps determine the right trucker for a load. In the logistics field, experience is practically king, and that background gives you credibility with the shippers, drivers, and other brokers already in your network.
How is brokerage authority different from trucking authority?
The two are closely related. If you already have a trucking authority, getting the brokerage authority will be like deja vu because the process is very similar. There are some expenses with the applications, it takes some time, and there are also requirements for separate business licenses and registrations.
Why add freight brokering as a second revenue stream?
Brokering freight is less seasonal than trucking itself. There are always loads to be serviced, even when your truck is out of service or on the road somewhere else. A steady flow of brokered loads, regardless of road conditions or weather, makes the ups and downs of a trucking business easier to endure.
How much does a freight broker make per load?
The cut a broker gets on a single load may look small to a driver used to getting a rate con with pay-per-mile. Over time, though, that small cut across many brokered loads adds up to a trucking revenue stream that makes a real impact on your bottom line.
What software does a new freight broker need?
A new broker needs brokerage software that handles customer management for shippers and drivers, creates rate cons, tracks paperwork such as invoices and BOLs, and handles the business accounting. TruckingOffice Brokerage software covers all four and is offered with a free one-month trial.
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