Beginner passive income professional#
Beginner passive income free#

On average, a FedEx route is worth between 2.5 times and 3 times the free cash flow that it generates. A route owner is limited only by their resources and their level of determination to grow their business. There is no set limit on how many FedEx routes you can own. To determine profitability, you will need to deduct expenses from revenue.Īccording to Buyermarketinc, the annual profit per route is between $30,000-$40,000 and the average cost per route is $100,000. They do not reflect deductions for operating costs. These revenue figures represent, for each business owner, the revenue coming from all routes owned by that business owner. There are 3,233 route owners that generate revenue of $1 million or more and the top route owner has $17 million in revenue. How Much Can You Make Owning a FedEx Route?Īccording to FedEx, the average revenue for a FedEx route owner is $1.5 million. Note: As with all numbers used in this article, they are averages or estimates: your results may differ. With the same gross revenue, you can expect to make a profit of $400,000 to $450,000 per year if you own a FedEx Linehaul route with team runs. If your gross revenue is $1,000,000 and you own a FedEx Ground P&D route, you can expect to make a profit of $100,000 to $250,000 per year. Ok, so based on these figures, let’s go through an example of potential profitability. Team runs are much longer routes that involve multiple drivers. Solo runs are shorter routes that involve a single driver. In the chart above, I have notations for “solo” and “team” runs for FedEx Linehaul routes. Here is a chart showing expected profit margins for various types of FedEx Routes: Profit margins will be lowest if you operate a FedEx P&D route and will increase if you operate FedEx Linehaul routes. Profit margins run between 10%-45% of gross revenue. How Profitable Are FedEx Routes?įedEx routes have outstanding profit potential. You should also bear in mind that these routes may be a bit more unpredictable and the risks may be greater, depending on the type of linehaul route you purchase. If you are interested in a FedEx linehaul route, they will entail a bit more risk, but also can provide stronger profits (more on that later). This article focuses on buying P&D routes, as they are the simpler to buy and manage. The P&D route is localized and usually serviced by vans and box trucks. These routes cover dedicated territories that are determined by FedEx. The linehaul route spans many miles and is serviced using tractor trailers. There are two types of FedEx routes: (i) a FedEx Ground Pickup and Delivery (P&D) route which delivers to homes and businesses within the designated area and (ii) a FedEx Ground Linehaul route which provides long-distance transport.

What Is a FedEx Route?Ī FedEx route is a FedEx Ground delivery route offered by FedEx to independent businesses.

Beginner passive income professional#

You should seek the advice of a qualified professional before making any investment or other decisions relating to the topics covered by this article. It is not a recommendation to buy or invest, and it is not financial, investment, legal, or tax advice. The information contained in this post is for informational purposes only. We’ve got a lot to cover, so let’s dive into this! Part 3: Pros and cons of owning FedEx routes Part 1: Introductory questions about FedEx routes This article will consist of three parts: This beginner’s guide will give you an overview of the FedEx route buying process, including (i) where you can buy these routes, (ii) how much they cost, (iii) how much you can expect to make, (iv) FedEx contracting requirements, (v) what you need to look out for when evaluating these routes, and (vi) how you can finance your purchase.Īnd of course, there is also a section below entitled “ Passive Income Potential” that is devoted to how you can make a FedEx business as passive as possible, so you won’t want to miss that. You may want to consider buying a FedEx route. Want to earn passive income with a great ROI and partner with one of the most well-known and respected brands in the world?