Myth # 1: You need expert representation (such as a DOT practitioner,
lawyer, accountant, etc.) to file for motor carrier and/or property broker
authority.Truth: The documents you need in order to file for motor carrier and/or property broker authority
are readily available at the Federal Motor Carrier Safety Administration’s website. Instructions
on completing these forms are provided, and if additional help is required, you can contact the
FMCSA directly.

Myth # 2: An expert can get your authority faster than if you file yourself.
Truth: No matter who files for your authority, you will be given a temporary MC number instantly.
That MC number will become permanent and active after a 10 day waiting period and after you
have met the bond and BOC-3 requirements. There is no special filing method that can make
this sequence of events happen any faster.

Myth # 3: An instructor who is not actively engaged in brokering freight can
provide you with practical and up-to-date knowledge about the industry.
Truth: You should ask for the name of the brokerage (and its MC number) with which the
instructor is affiliated. You can verify whether or not a brokerage has active authority (using its
MC number) through the Federal Motor Carrier Safety Administration website.

Myth # 4: The ability to teach requires no formal training.
Truth: Teaching is a skill that requires formal training. It requires well developed skills in
curriculum development, lesson preparation, lesson delivery, and appropriate evaluation.

Myth # 5: There are different levels of broker certification
Truth: There is only one level of broker certification: The official term is Property Broker. No
matter how many schools you attend, courses you take, money you spend, or years you work,
you are still a Property Broker. A more common term used is Freight Broker. The Federal Motor
Carrier Safety Administration (FMCSA) does not recognize any other title than Property Broker.
You can contact the FMCSA at 1-800-832-5660.

Question: What is the difference in being a Freight Broker or a Freight Broker

Answer: A broker is the owner of his or her own company. They are required to meet all legal
requirements (Authority, Bond, BOC-3) to operate as a broker.
An agent works under the authority of the broker and typically receives a percentage of the
brokerage fee.

Question: Is there a need for more Freight Brokers in the industry?

Answer: U.S. Bureau of the Census County Business Patterns indicate that agricultural and
manufacturing businesses are growing exponentially every year. Today, it is estimated that there
are close to a million shippers. Needless to say, there is a very large market for brokers and
agents. It has recently been estimated that freight transportation cost in the US is well over the
multi billion dollar range annually and is rising. The amount of freight being moved by third
parties such as freight brokers is currently estimated in the 20-30% range and growing. More
shippers are using brokers & forwarders each year since it is usually much less expensive for a
shipper to use an outsource, such as you and me, than to fund and maintain an in-house staff
functioning as a transportation department. Employee-related costs are usually the most
expensive part of any business operation. Paying a broker on a performance-only basis is the
trend of the future with many shippers.

Question: How can I locate the carriers and shippers for running the

Answer: There are several different areas in which to find shippers. A number of freight brokers
purchase industry databases and member information of different industry organizations. You
can also enter into Co-Broker agreements with other freight brokerages.
The primary job function you will perform is to contact companies who ship products and
establish new accounts to use your services. You will also contact carriers in which to move your
freight through using internet load boards, carrier databases and industry associations that you
have acquired through networking.

Question: How much money can I actually make as a Freight Broker?

Answer: Earnings are determined on your motivation to succeed, and also how you adapt to the
industry. A full-time freight broker can easily make from $50,000 to well over six figures
($$$$$$). This is a recession proof business that provides unlimited income potential and a long
range customer base for the right person.

Question: What is a BOC-3?

Answer: BOC-3 is a processing agent. This is a representative upon whom court papers may be
served in any proceeding brought against a motor carrier, broker, or freight forwarder.

Question: How much is a surety bond?

Answer: You must post a bond of at least $75,000. The amount you pay for your bond depends
on a number of factors including the type of bond you choose and the programs provided by the
financial institution you choose to use.

Question: How much does it cost to apply for your authority?

Answer: The FMCSA charges $300.00 to apply for operating authority (motor property carrier,
motor passenger carrier, freight forwarder, broker). It requires that you fill out a 4 page form. You
can do it online or by mail. When filing for motor carrier authority, there is no additional fee for a
USDOT #. Notice of name change is $14.00.

Answer: You must apply for your authority from the Federal Motor Carrier Safety Administration
(FMCSA) allowing you to act as a freight broker, post a $10,000 Surety Bond and file your
BOC-3. You will also be required to complete a yearly Unified Carrier Registration.

Question: What is the difference between a freight broker & freight agent?

Answer: A freight broker assumes all legal and financial responsibilities for the movement of
cargo. They have met the requirements under the FMCSA Guidelines to legally operate as a
property broker in the United States. A freight agent serves as an independent contractor for a
freight brokerage but serves in the same capacity. Typically freight agents starting out will
receive a commission of 50% of the gross profit from every load. An agent who is established
with a book of business can command as high as 75% of the gross profit from freight moved for
the brokerage. The agent in return does not assume any responsibility for insurance, authority,
claims or collections of freight bills.

Question: What is a Freight Broker (Property Broker)?

Answer: Property Broker is the correct terminology for many names used in the business to
identify what we do. Truck Broker, Freight Broker, Freight Agent, Transportation Broker or Agent
are all interchangeable terms synonymous with Property Broker’. Property Broker Authority
allows a third-party to arrange pick up and delivery of a Shipper’s product by a Carrier without
ever having physical control of the shipment.

Question: How long is the course

Answer: The course is self-paced. There are no required study hours and course requirements.
We do offer Quizzes and Certification but this is not mandated by the FMCSA.

Question: Can I work from home?

Answer: Yes! In fact, when starting your business it is recommended that you start from a home
office to keep your expenses low while you grow and expand your business.

Question: I live in Canada. Am I required to secure a property broker

Answer: Canadian residents who wish to broker freight within the United States must also apply
for their broker authority with the FMCSA. For more information on Canada Freight Broker
License Requirements visit our Canada Licensing page here.

Question: What do I need to get started?

Answer: The following are the basic office tools required for either broker or agent startup:

  1. High speed internet access
  2. Computer
  3. A fax/copy machine
  4. A telephone with at least two lines (one dedicated to the fax, one dedicated for voice.)
  5. A high quality broker software program

Question: How much can I earn as a Freight Broker and how soon can I start

Answer: Freight brokering is an excellent business and the agents and brokers that are
successful are making anywhere from $40,000.00 to upwards of six figures per year depending
upon the decision to work as an agent or broker and whether to operate a home-based business
versus a larger office with employees. This business is based on contacts and relationships. It
takes time to build contacts and relationships and turn them into paying customers. Sometimes
it can take six months or longer to establish a solid customer base to see a profitable income,
but it can be done in less time. Overall time lengths vary primarily on the individual\’s
determination and desire to succeed in this business.

Question: Can I apply for a Freight Brokers License if I have a felony on my
record ?

Answer: Yes. having a felony does not mean you cant apply or be granted a freight brokers
license from the FMCSA. You need ONLY to be a VALID US Resident.

Question: I’m already a licensed freight broker. Can I use this to educate my

Answer: Yes. Our material is tailored in a comprehensive manner so that new freight agents not
only understand their responsibilities, but also those of the broker.

Question: Is Freight Broker Training School required?

Answer: Freight Broker Training School is not required to receive your property broker authority.
However, the failure rate for those who attempt this business without freight broker training is
high. In order for a broker to be successful in any industry (stock broker, real estate broker, etc.),
formal training is a must. Cheetah Skills will prepare you to perform broker duties in a profitable,
ethical manner, giving you the tools needed to be successful in the field.