7 Perks of Working For Yourself as an Independent Freight Agent

7 Perks of Working For Yourself as an Independent Freight Agent

Have you ever been frustrated with the rigid schedule, in-office requirements, or limited earning potential of a role as a freight broker at a large brokerage firm? If so, you may have started to research how to work for yourself and discovered the option to become an independent freight agent.

Experienced logistics and freight professionals are increasingly drawn to agency life as a way to break free and take control of their careers. There are few ways to work for yourself that provide as many supportive advantages and flexible opportunities alongside limitless earning potential. Here are a few of the biggest perks.

1. The Freedom to Set Your Own Hours

As an independent agent, you have the total freedom to enjoy a flexible work schedule and decide where, when, and how long you want to work. Unlike traditional freight broker employees, you aren’t bound to the 9-5 or required to work on the premises of the company. Enjoy the convenience of organizing work around your life — rather than the other way around.

2. High Commission Percentages

Brokers, who are salaried employees, are normally only entitled to a small commission in the range of 10%. This may seem predictable and safe, but provides little incentive to excel. Sales-minded freight professionals can instead opt for the commission-powered freight agent lifestyle at Freight Flex to enjoy 70% commission on every transaction and realize tangible benefits from each day of hard work.

3. Control Over Who You Work With

Many freight agents treasure the ability to build fruitful longstanding relationships and choose their own clientele. Whereas freight brokers generally work with clients decided by the larger brokerage, an independent freight agent isn’t bound to work for whoever makes it onto their plate.

You can choose your own clients and build a book of business that reflects the types of people and organizations that you enjoy doing business with. Furthermore, since the choice to work (or not work) with them is up to you and you alone, there’s no concern about your brokerage ending a relationship that’s been good for you without your say in the matter. Brokerages also have the ability to discharge their employees at will, ending any relationships you’d have with the brokerage’s clients and leaving you out to dry. As an independent agent, you’re the one in the driver’s seat.

4. No Limits On Your Income

Unlike with a salaried role, a freight agent’s income isn’t pre-determined by the boss regardless of the actual work completed each year. A drive for hard work makes it possible to maximize your earning potential and set ambitious earning goals for yourself. Nothing is stopping agents who make the most of their large commission percentage from substantially out-earning normal brokers. The only limit on your income is the one you choose to put in place yourself.

5. Dodge Major Brokerage Start-Up Costs

It costs a lot to start your own freight brokerage. You might be looking at ongoing annual costs such as:

  • $100k for TMS software
  • $8k for a load board (like DAT or Truckstop)
  • $35k for carrier onboarding staff
  • $70k for procurement staff
  • $80k for safety/claims staff
  • $10k for cargo insurance
  • $6k for a sufficient freight broker bond
  • $8k for marketing material
  • $6k for credit score monitoring

These are all ballpark figures, but you’re looking at $320k (or more) in annual expenses from back office costs alone. When you operate as an independent freight agency with Freight Flex, all of these functions and services are provided to you at no individual cost. Working as an independent agent saves you big time and arms you with all of the plug-and-play support and technology you need to dominate your industry.

6. It’s a Tax Savings Vehicle

It’s true that independent freight agents, who report their own taxes, are required to pay the same FICO tax percentages as their brokerage employee equivalents that operate under a form W-2. The difference is that freight broker employees have their taxes withheld from their paychecks, whereas agents must take care of paying those taxes on their own.

The tax advantage that independent freight broker agents have is that their health insurance premiums can be deducted from their taxable income. In effect, this means that freight agents have a lower taxable income — and pay lower taxes — than traditional employees of a freight brokerage.

7. The Autonomy of Being Your Own Boss

There’s something to be said for being your own boss. Independent freight agent programs provide all of the support that the agents need to maintain full autonomy and capability without the unwanted oversight and control of an employer/employee relationship. If you value flexibility, uncapped earning potential, and decision-making power, life as an independent freight broker agent may be for you.

Learn more about our freight agent opportunities at Freight Flex and unleash your earning power today.

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