Profitmart Franchise is a relatively new franchise business in the stockbroking industry that started in the year 2010. In order to bolster its position among the various contenders, it strives to enhance its client base and expand its existing network. The franchise program by Profitmart has been mainly launched to ensure rapid development through its business expansion in different areas of the country.
Clients can avail numerous trading products with Profitmart Franchise, which includes Initial Public offering (IPO), currency, F&O or Derivatives Trading, equities, mutual funds, commodities, and real estate. They can carry out trading through its robust platform and efficient tools for investment purpose. If you are in search of an opportunity to start an enterprise with the low initial investment, then you have selected the right stockbroker.
In this article, we have discussed the business models, revenue sharing, investment, offers, advantages and disadvantages of the partnership model of this stockbroker. Read on to know the details.
Profitmart Business models:
There is only one business model of this firm, namely the sub-broker model or the franchise model.
Being a new market player in India, the Profitmart provides 100% franchise sharing. By keeping a single business model, the firm is playing safe because a single partnership model enables them to manage the business efficiently.
Profirmart Franchise Cost:
In the Profitmart Franchise, you will not have to make a huge investment in infrastructure. The security deposit needed is just ₹20,000 to ₹50,000. You will get back your security money once you decide to leave the partnership.
The deposit policy of the firm is quite liberal as you can negotiate it. In order to make sure that the work is deliverable at the right time by completing the targets, it asks its sub-brokers to have a stable internet connection along with a workstation.
This helps in trade execution without facing any issues.
Profitmart Franchise Revenue sharing:
Being a new entrant in the market, the firm tries to generate higher revenue so that the customer base can be enhanced. To attract more customers, it offers a lucrative revenue sharing ratio which ranges from 40%-70% and it can even be 100% in certain cases.
A certain subscription charge has to be paid to the broker every month. It is always advisable to use your negotiation skills while setting the revenue share before the documentation begins.
Having said that, the sub-broker earnings may vary depending on multiple factors such as geographical area, client base, type of clients, size of the team and so on.
Profitmart Franchise Eligibility criteria:
There are certain eligibility criteria which need to be fulfilled for starting this franchise business. These are enlisted in the following section:
- A thorough understanding and essential skill set to run the franchise business are important if you want to start it. An entrepreneurial bent of mind would be great in this case.
- In the Indian stockbroking firm, you should have been a broker, trader, sub-broker or a client in the past for at least 2-3 years.
- You should have an educational qualification of at least 12th standard, though the higher qualification is obviously preferred.
- It is necessary for you to have better connectivity with the local market as it will help you in easily acquiring more clients.
Profitmart Franchise Advantages:
You can enjoy the following advantages of starting this franchise business of Profitmart:
- Clients can avail the free and advanced tool for trading purposes.
- It provides 100% revenue sharing which is its unique feature. In general, its revenue sharing is 40%-70% which can increase to 100% in certain cases.
- Clients can get numerous products such as equities, commodities, mutual funds, IPOs, etc.
- One can easily afford to make the initial investment as it is not very high like certain other players in the stockbroking industry.
- You can get complete back office support along with risk management.
- The referral plan enables you to acquire new customers which will ultimately enhance the company’s network and your revenue share.
- Clients can make use of the latest mobile app for trading as well as stay updated with the latest tools and techniques.
- By offering a single business model, the firm can focus on its business fully to make the venture successful.
Profitmart Franchise Drawbacks:
Here are a few drawbacks of this business, which you need to know before deciding to join it:
- Since it is a new player in the market, it has not left a strong impression in the minds of its customers.
- Owing to the single business model, the expansion of client base gets restricted and so is the revenue generation.
Profitmart Franchise Offers:
You can avail the following offers in this franchise business with Profitmart:
- In order to attract potential clients, the firm offers brokerage cashback.
- Compared to other brokers in the industry, Profitmart has less requirement of margin money which is essential to create a strong stand as well as ensure profit.
- The extended credit period provided by the firm attracts potential clients.
- You can choose the brokerage plan as per your requirement and convenience.
- Sub-brokers get the offer to open the Demat account for free.
In case you would like to become a sub-broker or a partner in the stockbroking space in India, let us assist you in taking the next steps forward:
Profitmart Franchise FAQs:
We have answered a few frequently asked questions in the following section related to the franchise business of Profitmart so that you can understand the process easier while choosing to opt for the partnership model:
How many business models does Profitmart provide its potential customers?
You get a single business model with Profitmart, i.e the franchise model only, in which you need to acquire clients as well as provide them with the necessary services.
What is the initial investment I need to make in order to start the Profitmart Franchise?
This business model demands very less initial amount which can be easily afforded by anyone. It is only ₹20,000 to ₹50,000 which is refundable in nature. Once you decide to quit the firm, you will get your money back. The reason why it is taken is to make up for any non-payment or delay in payment during the course of your partnership.
Why should I choose Profitmart Franchise?
Since Profitmart is a new player in the stockbroking industry, it strives to strengthen its business by providing attractive revenue schemes to its customers. Its trading software is efficient enough to ease the process and enable the client to get maximum profits.
It ensures complete back end support whenever the clients need it. With an efficient support system, the partners can successfully run their business. This business model is perfect for those who have a low initial investment budget but still want to enter into the franchise business. With the right skills and training, you can easily become an entrepreneur.
What is the process of registration in the franchise business of Profitmart?
This sub-broker registration process involves a few simple steps which are explained below:
- The basic details need to be filled up in a registration form in the beginning, for your reference. After this, you will get a call regarding the verification of your interest in the venture. The person will also explain you the process.
- A face to face meeting will be fixed as per your convenience in the location and time of your choice. During this meeting, you can ask any doubt. Also, you must try to negotiate the revenue share to get more benefit, as no one will tell you to do so. But you need to use your negotiation skills tactfully to bring things in your favour.
- Once everything is clear, the relevant documents need to be submitted. You can do some of this using the soft copy and some bu physically attesting the hard copies as asked by the company’s executive.
- You can pay the initial registration fee and other payments in the online mode, through cheque or by cash, for which you will get a receipt. After this, your documents will be sent for verification purpose.
- When the backend team completes the verification process after processing the documents, a Profitmart Franchise ID will be generated. It may sometimes be needed to validate the details by calling you.
Now you can start your business operations with the help of the support provided by the firm.
What are the documents needed for the registration process?
You will need the following documents for submitting during registration:
- PAN card
- Aadhar card
- Proof of your residential address.
- Certificates showing your educational qualification.
- Your past experience certificates.
- Personel certificate that has been authorized by SEBI.
- A cancelled bank cheque for the bank account details.
- A few passport size photos.
What are the locations where Profitmart Franchise can be spotted in India?
Basically, the franchise business of Profitmart is in Central India, East and Western part of the country, though it strives to expand to the other parts too. Currently, it is located in Mumbai, Pune, Hyderabad, Bangalore, Ahmedabad, Siliguri, Nasik, Kolkata, Guwahati, Delhi, Kolhapur, Raniganj, Chennai, Baripada, Surat, Kolkata, Ichalkaranji and Patna.
What support does ICICI Direct program provide to ProfitMart Franchise?
Profitmart Franchise gets the following support from ICICI Direct:
- It acts as a research advisory.
- It provides training regarding the using of trading platforms.
- It enables product selling.
- It provides assistance in marketing as well as client acquisition.
- It provides financial assistance.
- It helps in getting the registration from stock exchanges.
If you wish to find out information about other stockbroking businesses in the industry, here are a few reference links for you: