When it comes to adjudging the best performing sub-broker programs in the country, Zerodha Franchise or Zerodha Partner Program tops the list. Essentially coming from the discount broking giant, Zerodha, there is already a positive image prevailing in the minds of people about the name Zerodha.
If you’re looking to be a part of the sub-broker program, here is a detailed Zerodha Franchise Review that will help you get to know almost everything about it from their revenue sharing model and comparison.
Zerodha is already a prominent name in the field of stock broking and offers a wide range of investment products and services to its clients in the simplest and affordable way. Launched almost a decade ago, Zerodha has come a long way in establishing itself as a leader in the field of discount broking. Its clients can choose to trade in stocks across various segments. Though most of its services are online, offline assistance is also provided through its sub-brokers, partners, and franchisers.
So, let’s take a deeper look at the world of Zerodha Franchise.
Zerodha Franchise Review
Established in the year 2010, Zerodha was launched in Bangalore with an aim to bring unprecedented levels of ease and value in the field of stockbroking. To much extent, it stayed true to its vision by offering best-in-class products and services. As per the latest reports, it is currently in 2nd position in the field of stockbrokers in the country.
Due to its client-centric products & services, Zerodha has carved a niche in the market that put miles ahead of its competitors. It offers an extended variety of products & services to both its clients as well as business partners.
With Zerodha, you can trade across various segments including:
- Mutual Funds
- Government Securities
This Zerodha Franchise review will contain information about different types of available models, revenue sharing ratio, primary investment, and several other aspects of the broker.
Zerodha Franchise Business Models
There are primary two business models that allow people to kick off their business venture with the broker. Both of them are apt for different types of businessmen given their specific needs and capacity.
- Partner or Remisier Model
- Client to Client Model
Partner or Remisier Model
This partner plan was launched by Zerodha in 2015. After that, the discount broking firm has gained nearly 1000 business partners under this package. To get started, you just need to deposit INR1500 for registration. Moreover, there is no need for any office space to work under this model.
The most crucial portion of this model is the capturing of new clients for stock trading with Zerodha. Keep in mind that there are no extra facilities offered to the partners except for profit sharing. There is no fixed profit/commission under this plan which is usually based on the brackets of revenue generated by the clients.
Client to Client Model
It is a very basic model as it allows people to earn a certain percentage of amount just by referring to his/her family members, friends, or relatives. For example, they get 10% of the revenue sharing by the discount broker. However, there is no need to pay extra charges to work under this plan.
This model can easily be compared to any other “Refer and Earn” model provides by other businesses.
Zerodha Franchise Revenue Sharing
The pattern of revenue sharing for both the above-mentioned models is different and generally depends on the revenue brackets under which a person falls.
The revenue/commission sharing ratio under this model is completely based on the brokerage accrued by the sub-broker clients. The partner receives their share as per the brokerage of Zerodha they make by their franchise clients.
Here are the various revenue sharing brackets available under this model:
- If the brokerage created by the clients of sub-broker is below ₹1 lakhs; the partner will get 20% and Zerodha will retain 80%.
- If the clients of sub-broker create brokerage between ₹1 lakhs and ₹3 lakhs; the partner will receive 30% and Zerodha will get 70%.
- If the partner’s clients generate brokerage between ₹3 lakhs to ₹5 lakhs then they will get 40% and Zerodha will get 60%.
- Finally, if the brokerage generated by the partner’s clients goes beyond ₹5 lakhs then the revenue sharing between the partner and Zerodha will become 50:50.
Client to Client Model
The model comes under a very basic category. As it requires minimal effort for revenue generation, the profit sharing gets affected accordingly.
Under this model, Zerodha gets 90% of the generated revenue while the partner gets only 10%.
Zerodha Franchise Cost
The primary investment you need to make under any of the business models offered by Zerodha is:
Under this model, a broking partner is supposed to open a Zerodha Free Demat account and a trading account with the Zerodha. There is a one-time registration charge of ₹1,500 that you are obliged to pay and enroll yourself as a partner.
A partner under this model can work by working in the office of the main broker or can also work from home. It simply means that there is no need for them to invest any money for office buying or towards infrastructure.
Client to client model:
Under this model, only the mouth to mouth publicity is found to be effective in inviting clients. Therefore, this model needs nil investment for those who work under client to client model.
Here is a quick summary.
How to register for Zerodha Franchise?
The registration process to become a Zerodha partner is not that tough. Here are step-wise details:
- Fill the registration form by providing all the details.
- A call from the representative will come to confirm your application.
- Another call will be made to schedule the meeting with the sales representative.
- If you’ve any queries about anything related to the franchise offers, you can get it right away with the Zerodha executive.
- Furnish all the required documents for verification.
- Once all things are done, an Account ID will be allotted to you.
Zerodha Franchise Benefits
There are lots of advantages of associating with Zerodha Franchise including:
- It is not too difficult to get a member as Zerodha is already a popular name
- Offers free investment education through Zerodha Varsity
- Physical network in over 75 cities in India
- Boasts of next-gen trading platforms like a web application, mobile app, and terminal software
- Option to choose 3-in-1 account with a relation with IDFC bank
- No minimum balance requirement cap in the trading account
- Clear and precise revenue sharing details
- Best-in-class Zerodha BackOffice support system that provides all sorts of help related to your partner account
Problems with Zerodha Franchise
Not many but there are some issues reported by its partners. Here they are:
- Chance to earn the maximum 50% of revenue due to a maximum limit
- Limited earning opportunity
Current Offers for the Zerodha sub-brokers
At present, Zerodha has some fabulous offers for its partners.
- An extended variety of services available for clients and business partners.
- The discount broker provides all kinds of supported trading platforms to the clients.
- Partners are not obliged to invest any amount to start a partnership business with Zerodha.
- A flexible revenue sharing ratio offers business partners a chance to earn given their capability.
- Zerodha BackOffice software to keep a watch on the brokerage and client trading activity.
Conclusion – Zerodha Franchise Review
Being a long-standing discount broking firm in the country, Zerodha enjoys a special status in the hearts of people. The flexible revenue sharing model of Zerodha Partner Program is a big plus for its members. It is mainly up to the passion and commitment of the partner that determines how much he or she can earn.