When you start your own business you set the bar at an obtainable goal, but in the back of your mind you want to grow your business into an empire. In the car shipping industry most new companies that start up are either going to brokers companies or carrier companies. This is just going to focus on the broker side of the business.
New car shipping broker businesses are usually a person who worked for another company and left because they thought they could do it themselves better or just wanted more money in their pocket. Either way, they know about the business in some form or fashion and think they can make their own business. I applaud you for venturing out on your own, but please make sure you learn about all the things needed to run a successful business. Make sure you know how to use jTracker FULLY and know how to use Central Dispatch FULLY. I cannot tell you how many times people did not configure their employees logins correctly and it was a circus.
For those of you who know a vast majority about the industry and are looking to grow you business ethically, is it worth the money? I am going to break it down for you and you can decide. Majority of new brokers in this industry are going to find a lead generation website and purchase their leads. This is the easiest and fastest way to get your business off the ground quickly.
What NOT To Do
You can buy the cheap leads for a buck, but please avoid these leads. Please stay away from these because they are not going to grow your business. Buying $1 leads is going to make your business be stale and stagnant. Most companies range between 3.5% – 5% conversion rates on $1 leads. That means for every 100 leads an employee has they will close 3, 4 or 5 of them. Normal brokers give their employees about 500 leads monthly. At a 4% conversion rate (just going half way between the normal percentage range) your employee is going to book about 20 deals each month. Usually companies like to quote to make a profit of about $150-$200 per order. If each deal is booked with a $150 deposit the employee will bring in $3,000 monthly for the company. Usually companies will give their employees about a 40% commission. So you give your employee $1,200 that month. That leaves you with $1,800 left over. After paying $500 for the leads you just made $1,300. In theory that is a great profit margin for your company. The problem is the $1,200 for the employee. Who is going to stick around for $1,200 a month. That is a horrible paycheck.
Two Options To Consider To Grow
The only two real options to grow your business is buying more premium and expensive leads or performing SEO services and generating your own leads. Lets diving into the Premium leads first.
Buying a more premium lead will be a better scenario then the generic $1.00. These premium leads will go out to less companies and in return your company will book more orders. Some of the premium leads out the are about $2.25 per lead and they go out to 5 or 6 companies. The average conversion rate on these are 6% – 8%. Lets do the math on these leads. If you give that same employee from before 500 Premium leads and they converts 7% of them they will have 35 deals that month. If they has an average deposit for $150 per deal that employee will generate $5,250 for the company. Paying them the standard 40%, the employee will make $2,100 a month. That sounds MUCH better than the BS $1,200. Now after you pay for the leads your company profit will be $2,025 per employee. Does that sound MUCH better. The same number of leads, but the employee will generate your business more money per month. It is a no brainer that it can grow your business in a much more stable way.
The next idea would be to perform your own SEO services to generate your own business. If you do not know how to do this you’ll have to hire a company to perform this task. They usually charge $100 – $150 an hour for their services. It will include articles, linking, social media, pictures, site speed, branding, etc.. This is the #1 way to grow a business that will be sustainable. It takes some money and time, but it the end it is the best way to grow. When a company is receiving their own leads from their website the conversion rate is about 25% or higher. Lets just take a low number and use that figure so we do not over inflate our numbers. If you give that same employee only 250 leads and they close 25% of the leads they will have about 62 deals each month. At the normal $150 deposit they will make the company $9,300 each month. After paying out the 40% commission of $3,720 to the employee the company will be left with $5,580. You didn’t pay for any leads, so the company profit per employee in $5,580. That is a staggering amount! Now do you see why I said doing SEO will be the best way to grow your business?
You can grow your business in this industry, but you have to do it the right way. When you first start out buy the premium leads. Get some cash flow going. Then start investing in the business and having SEO service done for the business. Give it about 6 month or a year and you’ll start raking in the money. Being an overnight star doesn’t exist in this industry. It takes hard work and a great business plan. I just gave you the perfect one right there. Use it and you’ll have a gold mine.