How to Make Money in Towing Without Owning a Tow Truck

The dispatch broker model explained

There are two ways to make money in the towing industry: own trucks and do the physical work, or coordinate the work and earn a margin on every job. The second model — dispatch brokering — is the one that requires no trucks, no CDL, no heavy equipment, and no six-figure investment.

A dispatch broker operates exactly like a freight broker in trucking. Freight brokers don't own semis — they connect shippers with carriers and earn a margin on each load. Dispatch brokers don't own tow trucks — they connect businesses that need towing with operators who provide it.

The economics work because both sides benefit. Operators get steady job volume at fair rates without spending time on sales and marketing. Clients get reliable, documented dispatch service without calling around. You get $20-50 profit per job for connecting them.

What changed in 2026 is the technology barrier. Running a dispatch operation used to require a physical office, a phone system, dispatching staff, and accounting. A modern dispatch platform replaces all of that for $39/month.

The math: how much can you actually make?

Let's run the numbers on a realistic scenario in a mid-size metro area.

Your client rate for a standard local tow: $110. Your operator payout at 70%: $77. Platform fee: $3. Your net profit per job: $30.

At 20 jobs/month (very part-time, 5 clients): $600/month profit. At 40 jobs/month (active side hustle, 10 clients): $1,200/month profit. At 100 jobs/month (full-time focus, 20-25 clients): $3,000/month profit. At 200 jobs/month (scaled operation, 40+ clients): $6,000/month profit.

Your fixed costs: platform subscription ($39/month), business insurance (~$50-100/month), phone and internet (~$100/month). Total monthly overhead: under $250.

That means at just 9 jobs per month, you've covered all expenses. Everything after that is profit. And because you're not buying trucks, fuel, or insurance policies for vehicles, your margins stay clean as you scale.

The top 10% of dispatch entrepreneurs in metro areas clear $8,000-15,000/month by managing multiple networks across different coverage zones.

What you need to get started

The barrier to entry is remarkably low. Here's your complete startup checklist.

A dispatch platform subscription ($19-39/month). This is your entire business infrastructure — dispatch routing, GPS tracking, photo documentation, pricing engine, and payment calculation.

A business entity. Register an LLC in your state ($50-500 depending on the state). This protects your personal assets and gives you a professional business name for client invoices.

General business liability insurance ($50-100/month). This covers your dispatch operation — not the towing itself (operators carry their own insurance for that).

A phone and internet connection. You probably already have both.

Total startup investment: under $500 for the LLC, insurance, and first month of platform subscription. Compare that to $60,000-150,000 for buying a tow truck, commercial insurance, and the equipment to start an actual towing company.

Building your operator roster

Your operators are your product. The quality of your service depends entirely on the quality of the operators in your network. Here's how to recruit the right ones.

Start with Google Maps. Search for towing companies in your target area. Look for companies with good reviews (4+ stars), professional websites or listings, and photos showing well-maintained equipment.

Make 15-20 calls over two days. Your pitch is simple: "I'm building a dispatch network. I'm signing up body shops and dealerships as clients. Jobs pay retail rates, $95-125 for a standard tow. You get dispatched via text — no app, no exclusive contract, no fee to join. Interested?"

Screen for these minimums: active general liability insurance ($1M), active auto liability insurance ($1M), at least one well-maintained truck, and professional phone manner (if they're rude to you, they'll be rude to your clients).

Of 15-20 calls, expect 5-8 operators to join your network. That's plenty to start. You can always add more as you grow.

Finding and signing clients

Client acquisition is where the money starts flowing. Your ideal targets in order of priority:

Body shops and collision centers: highest volume, most consistent, value documentation heavily. Every body shop needs towing daily. Walk-in visits work best.

Independent auto repair shops: need towing for vehicles that can't be driven to the shop. Lower volume than body shops (2-5 jobs/week) but there are more of them. Walk-in or cold call.

Small and mid-size dealerships: need towing for customer breakdowns, trade-in transport, and auction pickups. Higher volume (5-15 jobs/week) but harder to get a meeting. Ask for the service manager.

Used car lots: need transport between lots, auction pickups, and customer vehicle delivery. Moderate volume, easy to approach.

For all client types, the sales strategy is the same: offer a free first job as a demo, deliver exceptional service with full documentation, and let the platform sell itself. The GPS tracking, timestamped photos, and clean pricing breakdown are your best salesperson.

Day-to-day operations: what the work actually looks like

The daily reality of running a dispatch business is much less work than most people expect. Here's a typical day.

Morning: check your platform dashboard for any overnight job requests or issues. Review yesterday's completed jobs and ensure all photos and documentation are complete. Send any pending invoices. Total time: 15-20 minutes.

During the day: respond to client texts and create jobs on the platform. Each job takes about 2 minutes to set up — enter the pickup address, drop-off address, service type, and vehicle info. The platform handles driver selection and notification. Monitor active jobs via GPS if you want, but the system runs itself. Total time per job: 5 minutes including follow-up.

End of day: review completed jobs, check that all documentation is in order, and update your records. Total time: 15-20 minutes.

At 40 jobs per month (about 2 per business day), your actual working time is roughly 1-2 hours per day. The rest of your time is available for business development — signing new clients and recruiting operators.

This is why the dispatch model works so well as a side hustle before becoming a full-time business. The operational demands are genuinely light when the platform handles dispatch, tracking, and documentation.

Common mistakes to avoid

Most dispatch business failures come from a few predictable mistakes.

Starting too broad. Don't try to cover an entire metro area on day one. Start with a focused 15-20 mile radius where you have 3-5 operators with good coverage. Expand only after you've proven the model.

Underpricing to win clients. Body shops and dealerships don't choose towing based on who's cheapest — they choose based on who's most reliable and best documented. Charge market rates and compete on service quality.

Neglecting operator relationships. Your operators ARE your business. Pay them fairly, pay them on time, and communicate respectfully. An operator who leaves your network takes their coverage area with them.

Not getting documentation right. The photo and GPS documentation is your competitive advantage. If operators skip photos or the platform isn't capturing data correctly, fix it immediately. This is what makes clients stay.

Giving up too early. The first 30 days are the hardest — you're recruiting operators, pitching clients, and dispatching your first jobs simultaneously. By month 2-3, the flywheel starts turning and growth becomes much easier.

Frequently Asked Questions