How do Freight Brokers make their money?

A broker gets a load of freight from a shipper (or another broker) for X dollars. Then finds a Trucking company to haul it for Z dollars the difference between X and Z is the brokers gross profit.

 

No, the difference between X and Z is the brokers gross revenue.

 

By cheating as many drivers as possible out of as much money as possible!
At least that's the way 99% of them are doing it. I'm sure that there just as many good brokers as there are GOOD LAWYERS!

 

Is there a difference between gross profit and gross revenue? Perhaps just a word. There is a difference between gross profit and net profit.

 

Gross revenue..... all the money you bring in before you pay your bills.

Gross profit..... the money you have left after bills and before wife gets ahold of it.

 

Freight brokers are just like realtors or stock brokers. They are licensed to do business and many companies will use them to pair trucks with freight.

They'll negotiate with the shipper to haul let's say a cross country load for $6000. Then they'll find a trucker/trucking company to haul it for $5000 or the lowest price possible. $1000 bucks in their pocket for minimal work.

Many work from home and make six figures. Then their are big outfits like CH Robinson.

There are bad brokers out there that are slow to pay or don't pay at all. I seen some close shop and pop up the next day under another name.

The public looks down on truckers and truckers look down on greasy slimeball brokers.

 

Many brokers make some extra bucks by scalping off the fuel surcharge. Last time I checked, the brokers weren't the ones buying the fuel.

My understanding is double-brokering (a broker taking a load off another broker's board and selling it as if it was his) is kind of frowned on.

 

well i have had the broker get the load for 2500 offer it to me at for 2300 and still get his commision on top of that. witch at the time was 12%

 

An honest broker? Isn't that the same thing as military intelligence, santa claus and the easter bunny?
There is no such thing!!!