Geojit Franchise is India’s popular franchise business with its headquarters located in Mumbai. This stock broking house has nearly 9 lakh clients (1,62,789 active clients) and ₹34,900 crores of assets under management. It has sustained through the highs and lows of the market since the past 30 years.
In India, its presence is seen in 70% of the states. Besides this, its offices are also in the Middle East. Despite its limited geographical coverage, there is a good scope of industrial growth.
There was a significant improvement in this stock broking house’s performance after it acquired Sharekhan (read Sharekhan Franchise for reference). But still, some bits and pieces of restructuring and overhauling are needed.
In order to support the stockbroking business, the firm provides sub brokership with numerous services such as the internet, phones, emails etc. It has its own team for marketing purposes and internal application for trading. Not only this, the sub-brokers can be significantly benefited from the free research and advisory services provided by it.
Geojit Franchise Partnership models:
There are two business models provided by Geojit, which are enumerated in the following section:
Geojit Franchise model:
This is also termed as a sub-broker or associate partnership model.
In this case, an office needs to be set up by the sub-broker. Besides this, he/ she should be efficient enough for handling and maintaining a social circle.
This model doesn’t involve a lot of expenses. All you need to do is add the potential customers to the existing network of the company.
Geojit Partnership Initial Costing or Deposit:
In order to set-up a business in the stockbroking space (or any space for that matter), one needs to incur some initial capital cost. Depending on the business model, there are expenses such as refundable deposit, infrastructure cost, salaries, internet and more.
As far as Geojit is concerned, here are the details on the refundable deposits you need to provide initially:
In this model, you need to deposit security money ranging from ₹50,000 to ₹100,000.
Remisier model of Geojit:
Here, the amount of security deposit is even lesser than the previous model, i.e. ₹25,000.
Geojit Partnership Revenue sharing:
The revenue share which you can expect in each of the partnership models are explained below:
In this case, the revenue sharing ratio is 60:40 which means that the sub-broker is entitled to 60% of the revenue share and the remaining 40% goes to Geojit. As per the quality of the clients, you are bringing and your business performance, the revenue model can be altered to offer you with better incentives.
On the basis of the brokerage generated, a number of slabs of revenue sharing have been set by Geojit broking house. If the brokerage is up to ₹2 lakhs, the broker retains 60% of the amount. If it is in the range ₹2 lakhs and ₹5 lakhs, the broker is entitled to keep an amount up to 70%. If this exceeds ₹5 lakhs, then 80-85% is retained by the broker.
Remisier model of Geojit:
In this model, the sharing ratio of revenue sharing is 25:75. Where 25% is provided to the remisier partner and rest goes back to the broker.
The simple reason for this mediocre revenue sharing is that in this remisier model, the partner has a very limited role to play in order client acquisition and client servicing while the broker does all the work.
Geojit Franchise Advantages:
Here are the benefits which you can avail by entering into a partnership with Geojit:
Decades of experience:
Since Geojit is a 3 decade old firm in the Indian stock market with a huge client base, thus getting associated with such a company could be quite beneficial for you. It has over 514 offices and ₹34900 crores asset under management.
People easy trust and rely on such an olden brand compared to the newer brands popping up in the market.
Association with reputed names:
Geojit has notable shareholders whose support makes it a strong stockbroking firm. Some of them are BNP Paribas, Mr.Rakesh Jhunjhunwala, Kerala State Industrial Development Corporation or KSIDC and Mr C.J George who is Geojit’s promoter and founder.
Such renowned shareholders indicate the financial as well as operational wellness of Geojit.
Variety of products
There is a wide range of investment products which Geojit offers. Through proper training and education, the partners are made aware of these products which they can communicate to their clients for earning brokerage.
The best thing about this is that investors who want to diversify their portfolio will be easily convinced to be a part of Geojit Franchise.
Advantages for Geojit clients:
Your clients can enjoy the following benefits:
Numerous investment products:
Clients get an option to choose from a variety of investment products as per their requirements and business goals.
Lucrative brokerage plans:
Geojit provides brokerage plans that are quite competitive. This not only helps in easily acquiring new clients but also retaining the older ones.
Full technical support:
Sub-brokers get complete technical support and all the necessary resources in order to ensure efficient functioning.
Whenever an issue pops up, you need not worry as the RMs always keep a track of the sub-brokers’ activities and readily offer help.
The mobile app of Geogit is very user-friendly. Not only this, it’s trading platforms are evolving consistently to provide the users with the best experience. They are always updated to stay in line with the latest trends and technology.
Accessing the terminal from multiple devices:
You get advanced platforms that can be easily accessed from any device as the mobile and desktop from where you can use the trading terminal.
Ease of communication with higher authority:
Sometimes it happens that the clients coming under the High net worth category are not completely satisfied with the sub broker’s assistance and they may opt to communicate with those at managerial levels.
With Geojit, the HNIs can talk with the high-level authorities and crack a deal with them. This is possible because the firm has experienced advisors who are capable of providing the right information and services at the right time.
Geojit Franchise Drawbacks:
It is always a good practice to know about all the advantages as well as disadvantages before opting to join a stockbroking house.
In the case of Geojit, there is only one disadvantage, i.e it has a fairly average offline presence. This could be a business decision, however, from a competitive point of view, the broker has a lot to work upon.
Geojit partnership models Eligibility criteria:
Each of the Geojit partnership models, i.e Geojit franchise or the Remisier model has some eligibility criteria that need to be fulfilled, which are explained below:
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- Your minimum educational qualifications should be no less than 10+2.
- The minimum age when you are eligible to apply for Geojit Franchise or Remisier is 21 years old.
- An experience of 2 or 3 years in the financial product selling or servicing sector is a preferable criterion.
- It is necessary for you to be SEBI’s certified Authorized personnel.[/su_list]
Geojit Franchise offers:
As a sub-broker or Franchise of Geojit, you can avail the following offers:
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- Equity, commodity, mutual funds, IPOs, custody accounts are the range of financial products that will be available to you for trading.
- The revenue sharing model is quite flexible.
- Training is provided to keep you updated with the latest tools and techniques whenever such need arises.
- You can avail its online services in a hassle-free manner.[/su_list]
If you are looking to become a sub-broker or a stockbroking partner in any form, let us assist you in taking the next steps forward.
Just fill in some basic details in the form below:
Geojit Franchise FAQs:
When you opt to join Geojit, a number of questions will come up in your mind. We have answered all such frequently asked questions to simplify the process for you:
What partnership models are available with Geojit stockbroking firm?
There are two partnership models available with Geojit from which you can choose the one which specifically meets your requirement. These are the Geojit Franchise and Geojit Remisier model.
Do I need any initial investment while applying for the partnership models with Geojit?
Yes, an initial investment of ₹50,000 – ₹100,000 is needed to become a sub broker in Geojit and in case of Remisier model, it is ₹25,000.
Can anyone join Geojit?
No, specific criteria have to be fulfilled in order to enter into a partnership with Geojit. These include an age of 21 years, minimum education of 2 or 3 years, SEBI certification and experience in product selling sector is also preferable.
What documents have to be submitted for the registration purpose?
Here is the list of some documents that must be submitted so as to begin the sub-broker registration process:
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- PAN card
- Certificate showing your educational qualification.
- A cancelled cheque of the bank.
- 2 photographs of passport size.
- The rental agreement of your office space or such relevant related documents.
- Adhaar card.
- Certificate showing date of birth.[/su_list]
Why should I partner with Geojit stock broking house?
Geojit is the first of its kind to launch an online payment, different gateways, facilitate transactions through phone etc. This firm is the first one that began its joint venture with the west Asian countries. Another interesting fact about it is that it was the pioneer for beginning online commodities exchange for trading pepper, cardamom, silver and gold.
It has a very long experience in the broking industry and its brokerage tariffs are also quite low. Moreover, it provides its partners with in-depth research and other technological facilities in the form of newspapers, emails, reports etc.
Since renowned persons are its shareholders, it is quite evident that the firm is financially healthy. People trust this brand as it always ensures complete transparency at the client level. Also, it is quite simple to get enrolled in its business model. It strictly adheres to the SEBI instructions regarding all the procedures.
What steps are involved in the process of registration as a Geojit franchise of Remisier?
The steps which you need to follow for completing the registration process to be a part of Geojit are enumerated below:
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- A sub-broker agreement needs to be signed once you agree to the terms and conditions.
- After this, you need to make the payment of the security deposit and registration fee with cash or cheque. The sub-broker needs to bear other expenses for setting up the office.
- When the business formalities will be completed, you will get a business code.
- Another essential step is the stock exchange’s recommendation that has to be submitted to SEBI, which will be examined on the basis of various parameters. If you successfully get this recommendation, you can become Geojit’s sub-broker.
- The details included in the certificate are the member’s trade name, the Clearing Corporation’s name of which the member is an applicant, the Clearing Corporation’s date of admission, the member’s address, contact numbers such as fax number, phone number of home or office and the email id. Other details include the applicant’s PAN, documents showing his net worth, type of organisation such as Sole proprietorship, partnership, corporate body, financial institution etc.[/su_list]
How long do I need to wait for the Geojit Franchise set-up process to complete?
You will have to wait for about 15 days in order to get the code for beginning your operation as a Geojit Franchise. After getting this code, all the support and benefits can be availed from the stockbroking house.
Does Geojit provide any training to its partners?
Yes, you will be eligible to get training after getting the sub brokership. This will be provided by the relationship managers who will guide you in the client acquisition process as well as enhancing the brokerage.
The training is needed for you to get a clear idea regarding the trading platforms, software, online cash management, carting out the business processes smoothly etc. You will get access to the firm’s own software and CRM tools in order to do trading and analysis.
Besides the training, reports and recommendations will also be provided consistently for carrying out the trading and investment efficiently. Whenever any technical glitch arises suddenly, immediate support from the back office team can be availed.
What does Geojit do to acquire more clients?
Certain events or education session are organised by the sub-brokers for client acquisition. For this, enough financial, as well as other supports, are provided such as visiting cards, flex, banners, leaflets etc.
If you are looking to know more about other sub-broker or franchise reviews, here are a few references: