The when, why, and how to become a moving broker related questions are all the same. For a smart, capable, and willing salesperson, the moving broker business can be lucrative.
Americans are moving now more than ever and there are numbers to prove it. According to a recent survey, at least 31 million people moved in the United States this year . So it’s not surprising that the demand for moving companies has also increased significantly.
Here’s the real skinny of it. If you’re planning to start a business in the moving industry, to take a piece of that proverbial pie, then starting an actual moving company is not the smart… move.
1 – You’re going up against a lot of competitors that already established themselves
2 – You’re going to need your own equipment and your own fleet could take up a lot of your budget and a high risk merchant account—if not all of it.
3 – Why not become a moving broker instead? Make money on the moving industry and avoid all the heavy lifting, literally.
First, what’s a moving broker?
As a moving broker, you simply act as a middleman between the moving company and the client. You don’t need to buy trucks, invest in moving equipment or have a full-time moving staff to get some business.
Basically, you need to find clients that need help with moving and connect them with the right moving company.
What are the legal requirements?
Although you will not be moving the goods yourself, you still need to be registered with the Federal Motor Carrier Safety Administration, the governing body that educates and regulates carriers, brokers and other professionals on different laws and safety protocols covering the moving industry.
Application may vary depending on your state, but it usually takes six weeks to process and you’ll need to pay a fee of $300 to get your registration number.
You’ll also need to have some insurance of at least $75,000 in the form of a trust fund agreement or surety bond. Some states may also require additional insurance coverage to allow you to write contracts with clients .
What else do you need how to become a moving broker?
Aside from the legal requirements, you should also need to provide clients more proof of your credibility.
This includes the FMCSA Your Rights and Responsibilities When You Move booklet, a list of moving companies you work with and a written agreement with these movers. You should also be able to provide your client with an estimate of the cost of the move for transparency purposes.
You’ll also need a high risk merchant accounts for moving brokers to ensure you can collect payment without unnecessary account freezing.
What is expected of you as a moving broker?
When you’re a moving broker, you need to take care of your client while making sure that you also get business to the moving companies you work with.
In that respect, it’s very important to have some experience in sales and customer service. This will help you find the right carriers for your clients and make sure that all their needs are taken care of.
At the end of the day, becoming a moving broker is just like running any kind of sales or customer service oriented business. You need to maintain good relationships with at least 10 moving companies to give your clients enough options and make sure that you have a company ready to fulfill their needs.
Of course, you also need to make sure that every client is satisfied with your service to build your credibility in the industry.
Need to know more? Contact First Card Payments directly and we can get you started.
: Migration Policy Institute – Frequently Requested Statistics on Immigrants and Immigration in the United States
: FMCSA – Movers vs. Brokers