When it comes to determining the best franchise options from the leading full-service stockbrokers in the country, Prabhudas Lilladher Franchise comes at top. Prabhudas Lilladher is considered one of the oldest broking firms in India. The most remarkable thing about the stock broker is its client-centric approach.
On franchise front, the stockbrokers offers a number of business models that can be chosen to partner with the firm. All the business models are diversified in terms of your business aspirations and expectations. At the time of reporting, Prabhudas Lilladher franchise has a strong presence across 120 cities and towns across the country along with 500+ business hubs.
Considering the above mentioned figures, it can be derived that Prabhudas Lilladher has maintained a remarkable presence among small and medium stockbrokers in the country.
Prabhudas Lilladher Franchise Details
It was the year 1944 when Prabhudas Lilladher came into existence. Headquartered in Mumbai, the economical capital of India, the full-service stockbroker offers an extensive range of services including equity, derivatives, investment banking, loan against shares, and web-based trading etc.
This review post encompasses all the details related to various business models offered by the full-service stockbroker including pros and cons of every model, revenue sharing & charges, the primary investment, existing offers, benefits of partnering with Prabhudas Lilladher and several other aspects.
Prabhudas Lilladher Franchise Services
The full-service stockbroker offers a wide range of services to its clients.
- Derivative Trading
- Online Trading
- Structured Products
- Private Client Group
- Margin Funding
- NRI Services
Prabhudas Lilladher Franchise Business Models
When it comes to choosing business opportunities to associate with Prabhudas Lilladher, there are primarily three business models to choose from. The selection of a specific business model depends on your specific business aspirations and investment capability.
Prabhudas Lilladher Sub-broker
This is the most generic franchise model that is offered by various broking firms today. A sub-broker is supposed to set up an office and arrange all the elements to setup a trading platform.
The working of this model is quite simple. A business partner is supposed to look for a prospective customer, chase him, and persuade him to become a client. Basically, your job would be to explain the offering of the stockbroker to the client.
It is not just the job done. Once the client is acquired, the partner should maintain a continuous connection with the client to understand is trading needs and issues. This can be attributed to servicing the client in the best possible manner. From replying to queries, listening their concerns, explaining services, and providing customer support, he needs to take a 360-degree approach to client management.
Prabhudas Lilladher Remisier
This business model is more like a sub-broker, but with a bit of difference. The main difference lies in their role and function as somewhat less than that of a sub-broker. For example, they are not meant to setup an office.
Similar to a partner, a remisier needs to chase the client and convert him into a customer. All the remaining things are handled by the primary broker.
There is no limitations in terms of products for the remisier. They are authorized to offer all the products & services to the clients basis their understanding.
Prabhudas Lilladher Introducer
Compared to sub-broker and remisier, the role and responsibilities of an introducer are quite less. As its name indicates, their main job is to find prospective clients and bring them to the broker. All the remaining tasks are handled by Prabhudas Lilladher.
Prabhudas Lilladher Revenue Sharing
Considering the efforts applied by its various business partners, Prabhudas Lilladher decides the revenue sharing ratio. It simple means that there are three different ratio options for all three business models.
Prabhudas Lilladher Sub-broker:
A sub-broker is on the line of the primary broker. So, its revenue sharing is at the top as 30%-70%. A sub-broker can get at least 30% and a max of 70% of revenue accrued by them. This revenue sharing ratio is crossable and on that basis, it may go up to 80% also.
Prabhudas Lilladher Remisier:
For a remisier, revenue sharing ratio is 20%-30% with an average figure of 25%. As their role is restricted, this ratio seems just okay.
Prabhudas Lilladher Introducer:
An Introducer’s job is to act as a bridge between the broker and customer, they receive revenue on the basis of account opening by the customer. It means if a customer is turned into a client for the broker then the Introducer will get a 50% share of the account opening.
Prabhudas Lilladher Franchise Initial Deposit
A sub-broker is obliged to deposit ₹1 Lakh as security money with the primary broker. This amount is used against any monetary need which is not met by the sub-broker at the given time. However, this security amount is refunded at the time of termination of the agreement.
A remisier and an Introducer need not deposit any security money. But, given the situation they may be ask to deposit a minimal amount as security money.
Pros and Cons of Prabhudas Lilladher Franchise
Some of the major pros and cons of Prabhudas Lilladher Franchise are:
- Excellent revenue sharing ratio
- A great chance to become your own boss
- High initial deposit requirement
- Compulsion to set up an office
- No obligation to set up an office
- Zero security deposit.
- A great way to generate extra income
- Not so good revenue sharing ratio as compared to sub-broker
- Less scope for growth
- Opportunity to earn with minimal efforts
- Zero initial investment
- Extremely limited role
- Low revenue sharing as if a customer doesn’t open an account with the broker, zero earnings are made
Prabhudas Lilladher Franchise Offers
The full-service stockbroker offers a number of benefits to sub-brokers including:
- They offer a minimal investment cost to sub-brokers. So, that they can kick-off their business feasibly.
- Lucrative revenue sharing model.
- A sub-broker gets an offer to open free DEMAT accounts.
- They offer impressive brokerage plans for the clients.
- Offers 24*7 customer support to you and your clients.
- All financial products are easily accessible.