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making money

FedEx Routes: How Much Can I Make?

As the owner of a FedEx route, you have an amazing opportunity to forge your own way, with the comfortable backing of a worldwide brand (with a trusted service and a reliable product). Effectively, you become a steward of that brand and stand to benefit along the way. But, what about the expenses? Or, how much can you expect to make? Owning a route is an investment, so before you put your money where your mouth is let’s consider the numbers…

The Revenues

When you own a FedEx route and operate as a contractor, you can get paid in multiple ways. This level of diversification helps because it ensures that if the market ebbs and flows you can remain on your feet. Instead, what you can expect is:

  • Money coming in from a flat annual rate.
  • Payments for services (whether for delivery or pick up).
  • Bonuses based on performance (like customer service).

All these factors in mind, the average annual profit for a FedEx route has been reported at between $30,000 – $40,000. While it might not seem like your on your way to becoming a millionaire, the best part about owning a FedEx route is that you don’t have to own just one!

In fact, the best business people own multiple FedEx routes. If you have routes in different locations, with different employees, you can continually profit from business in different areas. All of a sudden $40,000 can start to look a lot like $400,000!

The Expenses

While you definitely do not have to worry about marketing, brand recognition, or business, there are some expenses that come with owning your own FedEx route. The main ones include:

  • The capital you will need to buy the route.
  • Paying and keeping hold of employees to help run your route.
  • The vehicles you will need to put on the road.

The average FedEx route costs approximately $100,000. At the same time, you can expect to employee approximately between 7 – 10 people. From there, it’s all about the little things: trucks, uniforms, decals, and software. While it might seem costly at first, it is now your business, with a consistent process, business, and brand that is going nowhere on the global market.

Making Money With FedEx Routes

Want to know the best part about owning your very own FedEx route? It’s yours. You get to own it, you get to run it, and you get to reap the spoils of your success. That is why FedEx routes are so great for both beginner and experienced investors, it all depends on your own ability to hustle. Believe in your work ethic? Well, then you’re in the right line of work.

How much can you make? It’s up to you.

Buyer Demand (by State) For Your FedEx Routes

With an average of 150+ routes sold each year, we have aggregated a considerable list of buyers for FedEx routes across over 70 transactions.  With every transaction, we take note of each buyer’s search parameters in an effort to ultimately find them the exact set of routes they are looking for.  Over the years, we have collected data from over 3,000 buyers who are specifically interested in purchasing FedEx routes all across the country.  Our database contains the buyer’s financial capability, geographic preference, ground/home/linehaul preference, etc. Continue reading Buyer Demand (by State) For Your FedEx Routes

FedEx ISP Workbook

As previously noted, FedEx is currently undergoing a nationwide transition to an “ISP” model and contract.  Over the next 4 years, FedEx IC contractors will be gradually transitioning to this new contract according to the timeline FedEx has set forth.  FedEx contractors who are unfamiliar with the new ISP contract will naturally have many questions about what this new contract will mean for their business.  FedEx has put forth a comprehensive workbook which details the the new ISP Agreement and corresponding differences from the old contract.

Continue reading FedEx ISP Workbook

A Guide to Financing Your FedEx Delivery Route

If you’ve decided that investing in a FedEx delivery route is a sound option for your career and lifestyle, congratulations! You may have just made the most important financial decision of your life. However, there is still a lot of work to be done before you can begin profiting from this business model. For starters, you may need to secure financing for the routes.

Continue reading A Guide to Financing Your FedEx Delivery Route