As an Independent Freight Agent you care that your work matters and is making a difference, but when it comes down to it, you probably built your business for two things: the flexibility and control of being your own boss, and the financial opportunity. So how do you capitalize on your commission split and maximize your earnings?
Let’s look at six strategies to boost your income.
Strategy 1: Nurture Shipper and Carrier Relationships
Don’t skip over this one! Building strong relationships is key to increased income. Satisfied customers are returning customers, the ones who give you repeat business and expand your network by giving warm referrals.
It is worth your time to make sure first and foremost that you are nurturing the Shippers you already have.
How? By communicating pro-actively, providing solutions, and delivering on your promises. It’s never worth it to overpromise and underdeliver.
Be sure to cultivate long-term relationships with your Carriers as well. Take time to connect with the actual people moving freight whenever possible. That human first approach will make a difference in the way your Carriers communicate with you and deliver on their promises as well.
Strategy 2: Grow Your Book of Business
While you must nurture your existing customers, never put “all your eggs in one basket.” The market is volatile and things can change in an instant. When you have lead generation as part of your daily or weekly rhythm, you build a larger book of business so you have options. You don’t want your sales pipeline to run dry.
One of the best ways to prospect is by cold calling.
We recommend you set aside an hour each day to research and make cold calls. You should be making as many calls during that time as possible, whether they are cold calls or follow-up calls.
Use a spreadsheet to keep track of all your conversations so it is easier to personalize calls and reach out again in the future.
If you’re not sure what to say, try this script or use this cold email template.
No one likes cold calling. But it is a muscle you can grow over time.
Strategy 3: Target Profitable Niches and Industries
If you aren’t happy with the current volume of your current Shippers, it might be time to consider pivoting. Certain industries and niches often enable Freight Agents to command better rates (read more here).
We recommend targeting industries such as: construction equipment, chemicals, building supplies, automotive, medical, and food/beverage.
As you are thinking about profitable industries, there are also profitable niches that require specialized training and are another way to maximize your earnings. This includes: refrigerated or cold logistics, and liquid bulk freight.
If there is an industry or niche you want to learn more about, start a simple online search. Take note of the various types of goods within the industry and make a list of companies selling these products. You might start your search with larger well-known companies, but be sure to dig deeper to find smaller companies as well. Then use your list as a springboard for lead generation.
Strategy 4: Leverage Technology
Speed and efficiency have become the name of the game in logistics. Make sure you are utilizing a Transportation Management System that allows you to see exactly where your loads are and communicate effectively with Shippers.
In addition to monitoring loads, pay attention to trends and industry forecasting to make sure your pricing is in line with current industry norms so you can bid on freight contracts with confidence.
Typically the freight brokerage provides the tools you’ll need. At Kopf, we provide TMS that streamlines operations, reduces administrative burden, and frees agents to focus on high-value sales activities.
Strategy 5: Negotiate Better
You might be leaving money on the table.
One of the most important things to keep in mind is to focus on selling your value, not just the price. What makes you unique? How have you shown yourself reliable? How will that cost less in the long-run? Position your value as invaluable.
Second, have a win-win mindset with every negotiation. Your goal should be to reach an agreement that benefits both parties involved.
Third, remember negotiating is a human interaction. People buy from people they like. It’s human nature. If they have a good feeling about you, they are more likely to trust you. Be real, personalize your conversation, ask lots of questions.
Negotiate better rates with Carriers and Shippers to increase commission earnings.
Strategy 6: Keep Learning
Lastly, this is often on the back-burner. Between nurturing your relationships, growing your book of business, lead generation, cold calling, and actually overseeing logistics, there isn’t much time left in the day. But, continuous training, mentorship, and industry insights can help keep your skills sharp and set you apart as an expert in your niche or industry thereby commanding greater trust and higher rates.
Whether you find yourself struggling with cold calling, sales, buyer psychology, communication or negotiation, the good news is you can improve. These are learned skills you can learn more about by attending training classes, or reading a book from our list of freight agent must-reads.
You can also follow trusted industry news from sources like Transport Topics and FreightWaves.
Kopf Logistics Group: Your Path to Higher Freight Agent Pay
As a Freight Agent, you can earn higher pay by prioritizing Shipper and Carrier relationships, growing your book of business through cold calling, targeting profitable niches and industries, leveraging technology, negotiating better, and continuing to learn. All of this becomes easier when you work with a brokerage that has your back.
At Kopf Logistics Group, we have an established reputation as a trusted and financially sound company which can help new and experienced agents secure business faster and more reliably. We also provide industry-leading 70/30 commission split and 24/7 business support because we want you to have every advantage to succeed and maximize your earnings.
When you’re ready to significantly boost your Freight Agent earnings, we’ll be here for you!
Read this next: A Step-by-Step Guide to Become an Independent Freight Agent