How to Become a Moving Broker
This article was published on December 2, 2019 and last updated on April 20, 2023.
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.
Here’s how to become a moving broker:
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.
A moving broker is a professional who connects customers with moving companies, helping them find the best service at the best price. Moving brokers do not perform the actual moving services; instead, they work as an intermediary, providing valuable information and resources to customers.
Is becoming a freight broker worth it? The answer depends on your personal interests and goals. If you enjoy working with people, have excellent communication skills, and are detail-oriented, then becoming a moving broker could be a rewarding career choice.
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 .
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.
Set Up a High Risk Merchant Account for Moving Brokers
Which is a perfect segue into our industry. As a moving broker, you’ll likely need a high risk merchant account to process payments. High risk merchant accounts are necessary for businesses in industries that are considered high risk due to factors such as higher chargeback rates or potential legal issues. Learn more about setting up a merchant account and the methods for accepting payments as a moving broker.
We have seen too many customers lose their ability to accept payments suddenly and without warning. The issue is that moving brokers are considered high risk by tradtional banks which means they can end payment processing services if they beleive your account violates too many of their terms (chargebacks for example).
Establish Relationships with Moving Companies
To provide your customers with the best possible options, you’ll need to establish relationships with reputable moving companies. Research and reach out to moving companies in your area, negotiating agreements, and understanding their pricing structures. This will enable you to offer your clients a range of options, ensuring they find the perfect fit for their needs.
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.
Create a User-Friendly Website & Market!
Your website is often the first point of contact for potential customers, so it’s essential to create a user-friendly, professional site. Be sure to include information about your services, pricing, and a simple way for customers to request quotes. Optimize your website for SEO to make it easy for potential clients to find you online.
Then it’s time to market on that website. Developing a marketing strategy is key to attracting customers to your moving broker business. Use a combination of online and offline marketing tactics, including social media, search engine optimization, and local advertising. Remember to track your marketing efforts to determine which methods are most effective for your business. We beleive that online is the easiest and most effective way to find more customers!
Stay Informed About Chargeback Prevention and Management
Chargebacks can be a significant concern for moving brokers. Understanding how to prevent and manage chargebacks is crucial to maintaining a healthy business. Familiarize yourself with the reasons for chargebacks and implement best practices to minimize their occurrence. Learn more about the many chargebacks to avoid and how to protect your moving broker business.
The moving broker industry is constantly evolving, and it’s essential to stay informed about new trends, regulations, and best practices. Attend industry conferences, join professional associations, and network with other moving brokers to stay up-to-date on the latest developments. By continuously learning and adapting, you’ll be better equipped to grow your moving broker business and achieve long-term success.
In conclusion, becoming a moving broker can be a rewarding and profitable venture if you’re well-prepared and dedicated to providing exceptional service. By following the steps outlined in this guide and securing a high risk merchant account for moving brokers, you’ll be well on your way to launching a successful moving broker business.
Provide Excellent Customer Service
Providing excellent customer service is crucial for any business, and moving brokers are no exception. Ensure that you are responsive to customer inquiries, provide accurate and timely information, and address any concerns or issues that arise. By prioritizing customer satisfaction, you’ll build a positive reputation in the moving broker industry, leading to repeat business and referrals.
What’s The Bottomline?
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.
|What’s a Moving Broker?||A moving broker is a professional who connects customers with moving companies, helping them find the best service at the best price. They work as an intermediary, providing valuable information and resources to customers. Becoming a moving broker can be a rewarding career choice if you enjoy working with people and have excellent communication skills.|
|Legal Requirements||Moving brokers need to be registered with the Federal Motor Carrier Safety Administration, and may need to pay a fee and have insurance coverage. They should also provide clients with proof of credibility, such as the FMCSA Your Rights and Responsibilities When You Move booklet, a list of moving companies they work with, and a written agreement with these movers. A high risk merchant account for moving brokers is also necessary for payment processing.|
|Set Up a High Risk Merchant Account||Moving brokers require high risk merchant accounts to process payments, as they are considered high risk by traditional banks due to factors such as higher chargeback rates or potential legal issues. Setting up a merchant account and understanding methods for accepting payments is essential for a moving broker business.|
|Establish Relationships with Moving Companies||Creating relationships with reputable moving companies is crucial for providing customers with the best options. Research and negotiate agreements with moving companies in your area to offer a range of options to your clients.|
|Create a User-Friendly Website & Market||Develop a professional, user-friendly website that includes information about your services, pricing, and a simple way for customers to request quotes. Optimize your website for SEO and use a combination of online and offline marketing tactics to attract customers.|
|Stay Informed About Chargeback Prevention and Management||Understanding how to prevent and manage chargebacks is crucial for maintaining a healthy moving broker business. Familiarize yourself with the reasons for chargebacks and implement best practices to minimize their occurrence. Continuously learn and adapt to stay informed about new trends, regulations, and best practices in the industry.|
|Provide Excellent Customer Service||Providing excellent customer service is essential for any business, including moving brokers. Be responsive to customer inquiries, provide accurate and timely information, and address any concerns or issues that arise. Prioritizing customer satisfaction will help build a positive reputation in the moving broker industry and lead to repeat business and referrals.|
: Migration Policy Institute – Frequently Requested Statistics on Immigrants and Immigration in the United States
: FMCSA – Movers vs. Brokers
Joyce Hope is a writer who specializes in merchant accounts. She has worked for First Card Payments since 2017.