by Elite Wealth associate is one of the franchise business in India with a good reputation. Ravinder Prakash Seth established it in the year 1990 and it has its headquarters located in New Delhi. Being a new player in the stockbroking industry, it is not very huge in size, which is really okay for a new business.
Despite this, it has successfully attained the goodwill of people through its products and service offerings.
This stockbroker supports the growth of small entrepreneurs because it considers such business ventures would create a win-win situation for the firm as well as the sub-broker.
The best thing about this stockbroker is that the clients can get service customization to suit their requirements. Its customer-centric approach enables it to flourish in the business.
In this article, we have covered various aspects of this stockbroker such as the business models, initial investment, revenue sharing ratio, offers, advantages, and drawbacks.
This will provide you with a complete idea about it which will be quite helpful in deciding if this is the best option for you to invest in
Elite Wealth Partnership models:
There are various partnership models of Elite Wealth that it provides its potential clients so that they can opt for the one that best suits their requirements.
These are explained in the following section:
1. Elite Wealth sub-broker or Business Associate
It is also referred to as the authorized person. For running the business in this partnership model an Elite Wealth associate has to acquire new potential clients. An office has to be set up with the necessary facilities where client meetings and other business operations can be carried out.
The main broker guides the sub-broker in various steps of the business operations and this includes providing him with trading and research tools, providing marketing support, technical support etc.
The sub-broker has to make a certain security deposit before starting his business operations.
2. Elite Wealth Introducer:
This is also referred to as the Remisier model. It does not have as many responsibilities as that of the Elite Wealth associate. You just need to introduce a potential customer to the firm after which the remaining processes will be looked after by the company.
In other words, we can refer to this as a lead generation role.Â
It is suitable for someone who already has some firm or business set up with a decent client base. You do not need to set up any infrastructure if you are an introducer of this stockbroker because it gives you the convenience of working from any place you like.
It can be the broker’s office or even at the comfort of your home.
3. Financial centre:
This is quite innovative in nature and is something beyond simple trading and making an investment. We can say that is a higher version of the business associate model.
The model is suitable for someone who is interested in client service as well as advisory services.Â
In this model, various financial planners and investment advisors who serve the clients are led. You need to set up a proper office infrastructure and acquire clients for the stockbroker.
It varies from the Elite Wealth Associate in terms of the service offeringsÂ
Elite Wealth Initial Investment:
You need to make a certain investment in the beginning while starting any business model. It varies with the partnership form you are opting for and is negotiable in nature.
These are enumerated below:
1. Elite Wealth sub-broker or Business associate or Authorized person:
You need to be prepared for a minimum security deposit of ₹1,00,000 if you want to become an Elite Wealth associate. Besides this, another ₹2,00,000 – ₹3,00,000 is needed as the working capital in order to generate a reasonable revenue.
This is refundable in nature. You can get it back when you decide to quit the partnership with the firm.
2. Remisier or introducer:
This model needs a somewhat lesser initial investment, i.e security deposit in the range ₹15,000 – ₹30,000.
It doesn’t need any infrastructure investment or working capital for running the business.
3.Financial centre
It needs an initial security deposit of ₹5,00,000 along with working capital of ₹3,00,000 – ₹3,50,000 for the business operations till any revenue is generated.
The reason why security money is charged from any of the business models is to make up for any nonpayment or delay in payment during the course of the partnership.
Whenever you get a refund of the security money while quitting the partnership, the non paid amounts will be deducted from it.
For more information, you can check this detailed review on sub-broker fees.
Elite Wealth Revenue Sharing:
The revenue share which you can earn from various partnership models will be affected by the size of your client base and the total revenue generated.
These are explained as follows:
1.Elite Wealth associate:
In this model, the sub-broker is entitled to a revenue share of 50% – 80% and the remaining 20% – 50% goes to the main broker. This model offers a higher revenue share owing to the fact that a lot of operations are carried out by an Elite Wealth associate.
The exact revenue share depends on the security deposit made by him/her in the beginning, previous experience, the revenue earned, size of the client base and the negotiation skills of the person.
How much a sub-broker earns, depends a lot on your negotiation with the broker executive.
2. Remisier:
Just like other stock broking houses in the industry, an introducer or Remisier of this stockbroker can get 20%-30% of the revenue share as he has to carry out the least functions.
The remaining 70%-80% goes to the main broker because once the new client is introduced, the rest of all the functions are carried out by the introducer.
3.Financial Centre:
This business model has almost the same revenue sharing ratio as that of the Elite Wealth associate as the roles of both are the same.
Since some extra services are offered by the financial centre, the upper limit of its revenue-sharing range can be as high as 90% of the total earned revenue.
For more information, you can check this detailed review on sub-broker income.
Elite Wealth Associate Eligibility criteria:
Here are certain eligibility conditions which you need to fulfil in order to opt for the sub-broker model or any other partnership model of Elite Wealth:
- You should be at least 21 years old.
- Office space of a minimum of 300 square feet has to be set up in the prime location of your region. Do not rent or set it up in a remote area as it will be difficult for the clients to spot it out and may also cause them to change their decision regarding choosing your stockbroking firm.Â
- The minimum educational qualification must be at least 12th pass, though higher educational qualification with previous experience in the stockbroking industry is an added advantage that can help you flourish in your business easily.
- There should be no criminal records such as involvement in fraud or any kind of dishonesty to be a partner of Elite Wealth stockbroking firm.
- You must be registered as a business associate or authorized person with SEBI. This registration needs payment of an application fee.
- In case you want to be a part of the Elite Wealth associate, you should have security money of ₹1,00,000 ready and in case of the financial centre model, be prepared for an investment of ₹5,00,000. Besides this, you should be capable of investing another ₹3,00,000 -₹5,00,000 as working capital, in order to earn revenue.
- There should be a basic interior decor with the necessary furniture and a good ambience with proper hygienic conditions so as to create a good initial impression on the potential clients visiting your office.
- You must have a stable internet connection as the moth of the operations are carried online, desktop or laptop, printer, scanner, telephone connection, etc, to carry out the business processes smoothly.
- You might need to appear for a sub-broker exam, however, you may check with the broker executive whether this is a mandate or not.
Elite Wealth business models Benefits:
There are various advantages of the different business models of Elite Wealth which are mentioned in the section below:
1.Elite Wealth associate Â
A sub-broker can use all the tools and technologies used by the main broker. The broker provides research reports which can be beneficial in taking the right trading and investment decision.
They can provide the reports with their clients also. The brokerage of the clients can be fixed by the sub-broker and this model lets them become an entrepreneur. Thus, they can establish a career in the stockbroking industry.
2. Introducer:
This business model needs the least security deposit and has the lowest workload. It can be carried out as a side business in the free time to earn extra income.
You do not have to stop focusing on your primary business if you are opting for this model.
3. Elite Wealth Financial Center:
In this model also, you can access the tools and technologies of the firm. It has a lucrative revenue sharing ratio that attracts potential clients.
You can fulfil your dream of setting up your own business with this business model.
Elite Wealth partnership models Drawbacks:
Here are the disadvantages of joining the partnership models of this stockbroking house:
- Since it is a new player in the market, it doesn’t have the trust of the customers as in case of the other well-established players in the stockbroking space.
- Its initial costing is on a higher side when compared with its peers.
Elite Wealth Associate Offers:
The offers which you can get on opting for Elite Wealth sub broker model are as follows:
- It provides extended credit period
- The revenue sharing ratio can be negotiated.
- Clients of the sub-broker can ask for the customization of the available plans.
- They will get research and advisory services free of cost.
- There is increased margin money for the clients of a sub-broker.
For more information, you can check this detailed review on some of the latest sub-broker offers.
In case you are looking to become a sub-broker or a stockbroking partner in any form, let us assist you in taking the next steps ahead. Just fill in a few basic details to get started:
Elite wealth Associate FAQs:
When you are trying to choose the best partnership model to enter into the stockbroking space, you may come across various questions in your mind.
To make things easier for you, we have answered all the frequently asked questions related to the Elite wealth sub broker model as well as other models in the following section:
1. What are the services offered by Elite Wealth?
The services which Elite Wealth offers its customers are:
- Wealth management
- Portfolio management
- Investment advisory
- Corporate financingÂ
- Financial services include wealth advisory, portfolio management, wealth management, and financial planning
2. What are the stock exchanges of which Elite wealth associate is a member?
NSE, BSE, MCX, SEBI, MSEI to CDSL, IREDA, NSDL, and FMC are the exchanges of which Elite wealth is a member.
3. What kind of support Elite Wealth provides its clients?
Elite wealth provides the following support to its clients:
- It helps is marketing by advertising the business in different ways.
- When you are using its trading platform, and facing any issue, you will get complete technical support for it,
- You can access the monthly, quarterly or yearly reports whenever needed, through excellent back office support.
- In order to make sure that the client generates higher revenue and trades profitably, you will be provided with the training.
- You will be able to make the right trading and investment decision with the help of the efficient research team which provides weekly reports for this purpose.
- The clients remain properly connected with the business partners through the relationship managers appointed by the stockbroker. They provide all the necessary information about the business whenever needed.Â
4. What is the process of registration of Elite Wealth associate?
There are some simple steps that need to be followed to register for the sub-broker model of Elite Wealth. These are as follows:
- The lead form needs to be filled up on the website. It asks all your basic details. Once this is done, you will get a call from the call centre for the verification of your interest in the partnership model.
- There will be a second call in which an appointment will be fixed for a face to face meeting with the executive of the company in which you will get further details about the venture.
- In the face to face meeting, you can ask any questions about the business model, such as anything about the initial investment, revenue share you are going to earn, eligibility criteria, any offers and benefits of joining it. This will eliminate any ambiguities regarding the hidden charges, so you can start it with a clear mind. Once you agree to all the things, you will be required to submit relevant documents along with the security deposit cheque.
- The documents will be sent for verification purpose after which an account ID will be generated for starting the business
- You may also need to sign a sub-broker agreement with the stockbroker, the terms and conditions of which are decided by the latter.
5. How long does it take for the process to complete?
It takes 3-5 days for the whole process of registration to be over if you have submitted all the necessary documents. In case any information is found missing during the verification process, the process will take much longer to be completed.
For more information, you can check this detailed review on sub-broker registration.
6. What is the duration needed for the sub-broker code activation?
A period of 35 days is needed for the activation of sub-broker code. The payout time is approximately 20 days.
7. What are the reasons to choose Elite Wealth over the other stockbrokers in the industry?
Here are some reasons to choose this sub-broker:
- The sub-broker will be able to leverage the brand name and reputation of the company to enhance its existing client base.
- The firm provides assistance in setting up the office and workplace.
- It provides timely support and meets the needs of the clients through customization and personalization of services.
- The operations of the firm are not done on pen and paper, which prevents the hassle of filling up the forms and submitting them physically. All these are done online, which saves a lot of time.
- It has flexible brokerage plans which attract the clients easily.
- Unlike certain stockbrokers, it doesn’t offer a single business model, which provides options to the people to choose the one that best fits their business goals and requirements.
- The chances of client retention increase as it provides a variety of investment products and services. Thus, they do not look out for better options.
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