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ICICI’s Direct Franchise Program was launched in the year 2003 by ICICI Direct. Since then, it has become one of the biggest hits among businessmen looking forward to working as a sub-broker. The remisier program was launched by ICICI Direct in the year 2012. ICICI Direct Franchise is a pioneer in the floating sub-broker concept in the Indian financial market.

Currently, there are around 1050 ICICI offices that are serving its customers in Tier I and Tier II cities all over India. Here is a detailed analysis of ICICI Direct Franchise Offer, ICICI Direct Sub-Broker Commission, ICICI Direct Franchise Cost, and all the other essential features of the ICICI Direct Authorized Person Program.

ICICI Direct Review

ICICI Direct is a retail trading and investment service that is offered by ICICI Securities. ICICI Securities is the largest retail stock broking firm in India. It offers a wide range of investment products and services to both its retail and institutional investors.

ICICI Direct offers online trading and investment solutions as well to over 20 lakh customers through ICICI Direct. ICICIDirect.com is an ICICI Directs website that offers a complete portfolio of financial products and services. The products offered by ICICI Direct include online equity trading, derivatives trading, mutual fund investments, IPO investments, Fixed Deposits, Bonds, NCDs, wealth management services, Home Loans, and even Loans against Securities.

The company offers a 3-in-1 account that includes ICICI Bank Account, ICICI Trading Account, and ICICI Demat Account. Above all, the company offers hassle free settlement and personalized services.

ICIC Direct Franchise Review

ICICI Direct was among the many institutions that identified the increasing trend and attraction towards the financial market and investment business. ICICI Direct Franchise program was launched by the company in the year 2003 by ICICI Direct.

The idea to offer the business program came from the realization of the fact that there is an increasing inclination towards investment products. Thus, there is the need to set up a proper retail channel that harnesses and serves the potential investors even from small cities.

The partnership was offered as ICICI Direct Franchise Sub-Broker Program to serve potential customers through increased physical presence. The other prime reason behind offering the franchise program was limited access to the internet among customers living in small cities and the lack of knowledge in the investment market.

ICICI Direct Sub-Broker Program had 212 outlets by the year 2012, out of which maximum outlets were in tier 1 cities. The franchise model was adopted to increase the reach of the services to tier 2 customers. By the end of 2012, ICICI Direct had served 428 locations with approximately 12000 franchise outlets.

ICICI Direct Franchise model is suitable for anyone who wishes to become an entrepreneur with nominal capital investment.

ICICI Direct Franchise Ratings
Criteria	Ratings
Offline Presence	7.0/10
Market Reputation	8.5/10
Brand Equity	8.0/10
Reliability	7.5/10
Experience	8.0/10
Market Share	7.5/10
Products & Services	8.9/10
Revenue Sharing	7.0/10
Holistic Support	8.5/10
Overall Ratings	8.0/10

 

Partnership Model Offered

Two partnership models that are offered by ICICI Direct to individuals interested in starting the Franchise business, including:

• Sub-Broker or Authorized Person Program
• Investment Associate

ICICI Direct Sub Broker or ICICI Direct Authorized Person Program

It is a general sub-broker program where the sub-broker acts as the principal broker for its customers. ICICI Direct Franchise Sub-Broker gets an opportunity to serve its clients with various trading and investment products. The products offered include equity, derivatives, mutual funds, currencies, commodities, IPO, insurance, and others.

ICICI Direct Authorized Person model is offered to only those businessmen who have prior experience of working in the financial market. The experience of the individual should range somewhere between 1 to 3 years. The candidate, apart from having the necessary experience, should be capable of investing capital amount for setting up the infrastructure.

The minimum age prescribed by ICICI Direct for its ICICI Direct Authorized Person business model is 20 or 21 years. The individual also needs to be educated and registered with SEBI and the relevant stock exchange. NISM certificate is also mandatory.

It is expected of the sub-broker to continuously add new clients and also to maintain the existing clients of the company. ICICI Direct sub-broker is required to communicate daily with the clients to understand their trading and investment needs and objectives, and then to assist them in making decisions and placing the trades.

ICICI Direct Authorized Person Benefits

• It offers a wide range of products and services to the clients
• The sub-broker gets an opportunity to associate with a huge brand
• Marketing support is offered to the sub-broker in the initial months
• Prestigious clients get the benefit of exclusive offers
• Revenue is shared progressively on a continuous basis

ICICI Direct Investment Associate or Remisier Model

This business model offered by ICICI Direct is limited only to the investment products. Thus, this business model can be opted for by individuals who are not willing to be a part of the trading business and are not open for taking a high risk.

Just like a remisier, an ICICI Direct Investment Associate acts only as an advisor to its clients. He merely gives advice regarding what investment products can the client choose based on his investment objectives.

Some financial instruments offered by the ICICI Direct Investment Associate include IPOs, bonds, mutual funds, or credit products like various kinds of loans. The applicant of this business model should be at least 20 years or older.

The person opting for this business model should have the capability of bringing huge customer base to the company. Also, the individual needs to have an experience of three years or more to be eligible for this business model.

Benefits of ICICI Direct Investment Associate Model

The following are the benefits offered by this business model:

• The experience acts as a plus point but is not mandatory to partner for this business model
• The individual does not necessarily need to have a hold of how the stock market works
• It is a product-focused business model
• This business model can be opted by people who are looking for an extra source of income

ICICI Direct Sub-Broker Commission/ ICICI Direct Sub-Broker Revenue Sharing Model

ICICI Direct ensures that the revenue sharing model offered to the sub-brokers meets the industry standards and is at par with what its competitors are offering. The company follows a highly rewarding revenue sharing ratios for its sub-brokers.

The ratio are determined after considering various factors like the experience of the candidate, the current revenue, projected revenue, product profile opted for, category of clients he is serving, etc.

A different revenue sharing ratio is followed for both the business models.

ICICI Direct Sub-Broker/ ICICI Direct Authorized Person Program: The revenue sharing ratio for this model is high and ranges from 50% to 75% as the functions performed by the sub-broker are quite substantial. The revenue sharing ratios are negotiable as ICICI Direct Franchise does not follows a fixed revenue sharing model. The ratio of revenue shared varies from one case to another as it takes into consideration various factors.

ICICI Direct Investment Associate: The revenue shared under this business model ranges from 30% to 70% as the model comprises of various products and each product has a different margin. The revenue shared under this model is lower when compared to the Authorized Person Program as the sub-broker acts only as an advisor.

	ICICI Direct Commission	Sub Broker Commission
ICICI Direct Sub Broker / ICICI Direct Authorized Person	50% – 25%	50% – 75%
ICICI Direct Investment Associate	70% – 25%	30% – 75%

ICICI Direct Franchise Cost

Just like any other franchise business, ICICI Direct Franchise also charges some amount of security deposit and capital investment from the sub-brokers. The amount to be deposited as a security by the sub-broker for the ICICI Direct Franchise ranges from INR 25,000 to INR 2 lac. The amount of security depends on the products that the sub-broker is planning to offer the customers.

ICICI Direct Franchise Infrastructure Cost

A sub-broker is also required to make a capital investment in the form of infrastructure cost. This is paid for the workplace and the office space that the sub-broker is required to maintain.

For an Authorized Person, the infrastructure cost is somewhere between INR 75,000 to INR 2 lakh. The amount of infrastructure cost depends on factors like the city of the sub-broker, client account being handled, and various other factors.

	ICICI Direct Franchise Cost
ICICI Direct Sub Broker / ICICI Direct Authorized Person	INR 75,000 – 200,000
ICICI Direct Investment Associate	INR 25,000 – 100,000

Bottom Line

ICICI Direct is one of the top players in the Indian financial markets. ICICI Direct franchise business can prove to be a profitable option for the sub-broker. The sub-brokers can choose between taking it up as a business opportunity or a source of extra income and thus choose any one of the partnership model offered by ICICI Direct. There is a benefit to the prestigious clients who are offered customized packages by sub-brokers.