How an Authorised Partner Franchise Business Works?

The AP signs an agreement with the stockbroker to operate as its franchise. All the terms and conditions relating to the business are mentioned, and AP is bound to follow the rules.

The AP uses the broking brand name, platform and the back office support to start the business operations. The brand name plays a crucial role in gaining the trust of customers.

APs acquire clients, guide them with the process of opening a demat and trading account. Also helps them to guide how to add funds to the trading account and demat account to buy/sell shares.

After onboarding the clients, APs provide ongoing support by informing clients about the opportunities available in the market and build relation to understand the client's investment goals.

APs earn commissions from the brokerage generated by the clients. The revenue-sharing model becomes the backbone of the franchise business. Once the clients actively start to trade, it starts to generate recurring revenue.

The franchise conducts seminars and runs digital campaigns on social media to build a strong local client base. Marketing keeps the APs in the spotlight, which helps to acquire new clients from social media.

AP follows all the regulatory and compliance requirements set by the stockbroker and the regulator SEBI. It helps to keep transparency and prevent penalties.

AP tracks whether the client is active or inactive through the broker's back-office systems. If inactive, then APs try to connect with the client to understand the pain points, so that the issue can be resolved and the client becomes active again.

The franchise can hire staff or appoint sub-partners to expand the reach and client base. Scalability is easy when sub-partners add to the franchise network.

The AP in the franchise business puts continuous efforts to solve the client queries and assist them whenever they are stuck. It helps to build long-term business relationships with clients.

To start an Authorised Partner Franchise Business, an individual is required to pay a nominal security deposit to the stockbroker. It's affordable, compared to the fees and infrastructure required to start a SEBI-registered stock broking business.

Initially, an Authorised Partner can operate from their home, as the work can be managed online. A trading platform is already available, which is provided by the stockbrokers. APs only have to onboard clients and convince them to trade.

APs work as independent professionals under the supervision of a stockbroker. They are allowed to work on flexible hours and can schedule the work timings as per their needs.

This business can be easily scaled just by adding more clients. The business can operate in autopilot mode for a long-time with timely checking of clients' activity.

Earning potential depends on the number of clients acquired and how many are actively participating in the market. If acquired clients remain active market participants, the revenue from brokerage keeps increasing over time.