by IIFL sub-broker or Franchise is not a very old company in the sub brokership business. Still, it has successfully managed to excel in its franchise business in less duration. There has been a notable growth of the IIFL sub-broker business in the last three years.
Being a prominent full-service stockbroker in India, IIFL provides a number of features to its stakeholders such as different products for making an investment, platforms for trading, support for the partners or customers etc. All these make it a trustworthy brand in the stockbroking industry.
There are a number of business models on which IIFL partnership business runs.
Its branches are spread across a large number of cities in India that count to more than 900. There are over 4000 IIFL sub-brokers, franchise as well as partner offices. According to the latest records of NSE, Â the employee count of IIFL is in excess of 8000, which includes the relationship managers along with an active client base of 2,35,241.
IIFL Sub-broker Partnership models:
With IIFL, you will get the option to select from among a number of business models, all of which are explained below:
IIFL sub-broker:
The main function of the IIFL sub-broker is to acquire new clients at the local level. When new clients get added, they get the services from the sub-brokers themselves. A particular target on a monthly, quarterly or yearly basis, is assigned to each sub-broker according to which he gets the percentage of remuneration.
There are different needs, understandings of the business, potential to grow as well as the responsibility of each of the sub-broker and the Franchise model of any full-service stockbroker.
But this is not the case with IIFL as it considers both these models in a similar way. This is the reason why the names IIFL sub-broker and IIFL Franchise are used interchangeably.
IIFL marketing associate:
In this partnership model of IIFL, you need not make any expenses. In case you are an experienced person in the financial selling or financial services sector and already have an active client base with whom you are operating, then this is the perfect option for you.
IIFL Entrepreneur
If you intend to set up your own business, then you can opt for the IIFL entrepreneur model, so as to fulfil your dreams. This needs you to have a minimum experience in the Indian financial industry of 3 to 5 years.
Besides this, you should be actively operating in the capital market segment in order to become the perfect candidate for this partnership business model.
IIFL Remisier Direct Sales Agent
This model is considered to be the simplest and the easiest of all. If you are doing the job or already having some business in which you are engaged in, then also you can be a part of IIFL and this is possible through the Remisier model. It doesn’t require you to leave your job or specifically focus on this one by pausing all other works.
All you need to do in this case is to refer new clients to the broker on a regular basis. Thus there are no expenses associated with the Remisier Direct sales agent model as you need not set up your own office for working.
IIFL sub-broker Initial Costing:
For security reasons, you need to make a deposit of ₹50,000 to ₹200,000 initially, a sub-broker. There are a number of factors that affect this amount but you can use your skills to negotiate it. Like the other broking houses in this sector, you do not need to spend any other amount for setting up the front office.
The security deposit will be returned at the end of your tenure or once the sub-broker agreement terminates. The main purpose of this security deposit is to act as the principal brokers’ insurance against any chances of the default by the sub-brokers.
This may occur if they do not pay the margin money or else fail to obey the statutory regulations that ultimately penalise IIFL.Â
If you want to go for a business association with the broker, the charges won’t be a worry. Well, rest assured the IIFL sub broker charges are pretty much as per the industry standards.Â
IIFL Sub broker Commission:
The revenue share that the IIFL sub-brokers get, meets the industrial benchmark, though IIFL is just a newer player in the sector. It ranges from 50% to 75% as IIFL considers that the sub-brokers play a major role in accomplishing their functions and carrying out their responsibilities.
We can even say that this percentage is on the higher side when compared to the other players in the sector.
On the basis of the expected volume of business, the experience of the partner, the initial amount invested in the business, the risk associated in the case of the sub-broker, etc., the revenue sharing percentage can be negotiated.
By the way, feel free to ask for any help. You will find the contact form at the bottom of this review.
Benefits of various partnership models of IIFL:
The advantages that you will get with various models of IIFL are explained in the following sections:
IIFL sub-broker:
Here are the privileges you can enjoy as an IIFL sub-broker:
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- You will be provided with tips for intraday trading and precise reports regarding fundamental research.
- The development manager will help in setting up the business in the initial period as well as a guide for resolving any potential concern arising in the business operations, i.e BAU or Business as usual. For implementing this practice, you will be allowed to be a part if the interactions and discussion with these managers.
- Clients will be provided training so that they carry out their functions properly. Besides this, you will also have access to the back-office solution.
- Since IIFL has a very good brand image, you can use it for marketing purposes which will easily help you acquire potential customers with ease.[/su_list]
IIFL Marketing associate:
Its advantages are as follows:
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- It involves faster onboarding and engagement in business.
- You will get marketing support through both online as well as offline channels.
- On a regular basis, training will be provided to you as well as your team whenever a situation demands this.
- You can get regular business revenue from the day of joining the business.
- New clients will be attracted owing to this well-established brand name of IIFL.
- You get to offer a number of products for trading and investment purposes, which will increase your client base. Thus the net revenue generated from each client will also increase.[/su_list]
IIFL Entrepreneur:
The benefits of being IIFL entrepreneurs are described below:
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- The revenue you earn will depend on the growth of your business. The best thing about it is that it doesn’t impose any limit on the overall revenue that you can earn from this partnership.
- You can provide your clients with a number of investment and financial products
- There is no need of having an initial investment to begin this partnership.
- The business model can be customized depending on your experience, level of comfort, the strength of your team, expertise etc.
Remisier Direct Sales Agent
Its benefits are:
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- Commissions can be earned on the basis of referral, after which the broker carries out the remaining functions such as acquiring the customers, trading, providing them with various services, etc.
- On a monthly basis, you can cut the commission generated from your client’s referral which will continue to exist as long as the client is keeping the active trading account alive in running condition.[/su_list]
IIFL Sub-broker Eligibility criteria:
The sub-broker states certain eligibility criteria that you need to clear in order to become an IIFL sub-broker. These are:
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- Basic know-how of the use of trading platforms that are available through the mobile, web or desktop.
- You should be able to comprehend the operations carried out by the share market, its business terms, various types of products for investment and trading on a real-time basis.
- A team consisting of persons who are efficient enough to acquire new customers, provide timely services, handle clients properly etc. is needed. So the rate of the prosperity of your business depends on how efficiently your team performs.
- You need to have an area for office space which should be 300 square feet. Here all the business operations can be carried out. If you have one it is fine or else you can also rent one.
- This business model needs you to make an initial investment of ₹50k to ₹2 Lakh. The exact amount depends on your expectations from the business. It is just a security deposit that is refundable in nature.
- Apart from all these criteria, you will get to know a few more while meeting personally with the IIFL representatives.
- It is essential to know that you are allowed to negotiate anything which is being discussed on the table and make sure to do this skillfully. This is because, after getting documented, this won’t be possible until there is another updation.[/su_list]
IIFL sub-brokers Offers:
IIFL provides offers as well as rewards its sub-brokers based on their performance. Here are the benefits which you can avail as a sub-broker:
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- You can open a trading or Demat account free of cost.
- You can enjoy cashback on the brokerage charges.
- An extended credit period can be availed.
- The margin deposit needed is low.
- Get a higher revenue sharing percentage.[/su_list]
IIFL Partnership Benefits:
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- Once you will attain stability in your business, you can expect a minimum payout of ₹50k to ₹1.5 Lakh on a monthly basis
- The onboarding process is quite simple and it takes only 3 or 4 business days for the account to get activated.
- A section of this stockbroking house is involved in acquiring new clients and instilling trust in the minds of the people.
- It enables the coverage of a vast client base by offering multiple products and classes of investment.
- Clients can experience the best mobile trading apps of IIFL as well as the terminal applications.
- The broker ensures complete operational support and risk management capabilities for the staff.
- Negotiation is allowed on a number of fronts such as revenue sharing, the number of training sessions needed, making the initial deposit etc.
- In order to ensure a smooth process of onboarding, a business development manager is allocated to you with whom you can work to resolve issues if any.
- When IIFL begins a major promotion, consistent marketing support will be given. Currently, the Mumbai T20 cricket League is sponsored by IIFL which is among its major sponsors.[/su_list]
IIFL Partnership Drawbacks:
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- Some clients may feel reluctant to join IIFL as it asks for a little high brokerage. This has a direct bearing on its business.
- The primary partnership business available is IIFC sub-broker only. So, in case you want to opt for some other model, you will be disappointed.[/su_list]
IIFL sub-broker FAQs:
Certain common questions may come in your mind while you opt to join IIFL sub-broker business modes. We have answered all such questions in the following section, to make things easier for you:
As an IIFL sub-broker, what commission will I get?
In the case of the IIFL sub-brokership business, the revenue sharing ranges between 50%-80% which are dependent on a number of factors.
For revenue sharing, there are slabs but you can discuss this openly while meeting with the IIFL brokers. On a long-term basis, if the broker feels that you can bring good profits as an IIFL sub-broker, then in order to provide you with the best deal, a number of approvals are taken.
Such kind of step is taken in order to avoid any chances of losing potential customers to other stockbrokers in the market.
Here are certain factors on which the revenue sharing Of IIFL sub-broker doesn’t depend:
- Negotiation skills of the sub-broker.
- The visibility level of the sub-broker at the local level
- The size of the business in terms of revenue as well as the number of active clients.
Is there any initial investment needed in order to become an IIFL sub-broker?
Yes, you need to deposit a security amount of  ₹50,000 to ₹200,000 in the initial stage. This amount is refundable once you decide to quit IIFL.
What documents are needed for getting registered as an IIFL sub-broker partner?
There is the list of documents that you must submit for the sub-broker registration process, though there are some other documents about which you will come to know while discussing face to face with the IIFL business executives.
The list is:
- Aadhar card
- Passport
- PAN Card
- ID Proof
- Proof of address
- Bank Cancelled Cheque
- SEBI Registration
- Driving license
- Ration Card
- photographs of passport size
- Certificates showing your educational qualification
- Documents of the Commercial property rent or ownership
For more information, you can check out this detailed review on IIFL Sub broker Registration that explains the complete process and procedure to get started.
In how many days can I get started as an IIFL sub-broker?
The process of registration is quite simple and hassle-free and is completed in just 3 or 4 days if you provide all the relevant documents. In case some information or document is missing, the process can get delayed.
As a sub-broker, what advantages can I enjoy?
- If you are a North Indian, client acquisition becomes easier for you owing to the high brand awareness of IIFL.
- In order to keep you updated with the latest happenings in the business and financial market, you will be provided training and very good support from the back office.
- The various investment offerings available include IPO, Equity, Mutual Funds, Commodity, Â Bonds, Currency, all of which can be availed by your potential clients.
- You can choose from a variety of trading platforms that will be accessible to you, such as IIFL Trader terminal, Â IIFL Markets, etc.
- Thorough research is carried out at the technical as well as the fundamental scales.
In case you are looking to become a sub-broker or partner in any form, let us assist you in taking the next steps forward.
Just fill in some basic details in the form below to get started:
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