Many stockbrokers plan to start their stockbroking journey by partnering up with Motilal Oswal which is not incorrect because this company has been in the industry for more than three whole decades.
When it comes to experience, services, product variety and charges, Motilal Oswal is one of the best choices for trading stocks. They are also the type of service providers who stick with their clients throughout their journey earning them the spot of having the best reputation and customer care.
Read ahead to find out more about the integrated ecosystem of Motilal Oswal.
About Motilal Oswal Franchise
Motilal Oswal is a known brand name in the financial service sector. The complete support they provide to their clients and partners is one of the features which make it stand out in the crowd. They also have multiple franchise plans bringing flexibility into the scenario, especially for stockbrokers looking to partner up.
Motilal Oswal Franchise has over 1500 active sub-brokers network. When it comes to products, they have IPO Investments, mutual funds, insurance, SIP, etc. And by creating multiple types of accounts for it, one can easily figure out the process. To name a few, it could be a trading account, a Demat account, or even an intraday trading account.
Types of Business Models
There are 4 types of partnership plans under Motilal Oswal:
Sub-broker
The sub-brokers are like retail stores where they act as the organisation’s representatives and undertake all the roles and responsibilities of providing services to the clients.
Their major responsibilities are contacting potential clients, understanding their requirements, helping them make investment decisions, performing trading activities on their behalf and also successfully retaining the clients in the long run.
A stock broker providing similar types of the franchise model is Sharekhan Franchise.
Remisier
Under the remisier model, the partner acts as a referrer. They do not have major responsibilities like trading on behalf of the clients. The role of a remisier is to become the link between clients and Motilal Oswal. As they refer potential clients to the organisation, they receive revenue for each referred client.
This partnership model is best for people who cannot commit on a full-time basis to Motilal Oswal.
Employee to Entrepreneur Program
This model is concerning the partners who are already employed by Motilal Oswal. So, basically in this model, an employee internally gets turned into a partner. Their responsibilities will be determined based on their previous job description. Thus, this is a great opportunity for employees to further grow their careers.
Channel Partner
Becoming a channel partner means focusing on one particular product say equity or derivative and helping the clients diversify more in the same said product. Most individuals who already have a well-established range of clients under them opt for this business model.
This is a good way to both grab on new opportunities and also multiply the earnings.
Revenue Sharing
The revenue sharing from the brokerage earned is different for all the business models depending on the responsibilities undertaken by the individuals.
| Partnership Model | Commission | Revenue share |
| Sub Broker | 40%-20% | 60%-80% |
| Remisier | 85%-70% | 15%-30% |
| Employee to Entrepreneur | 40%-30% | 60%-70% |
| Channel Partner | 30%-10% | 70%-90% |
Sub-Broker: the commission received in this model is somewhen between 40%-20% and the revenue sharing ranges from 60%-80%.
Remisier: Since remisier only performs the responsibility of referral, their revenue sharing is limited to a mean of 20%.
Employee to Entrepreneur: This model asks the partners to perform all the responsibilities of the stockbroker which also means taking a risk when investing in different products. This is why they have a greater share in the revue amounting to 60% to 70%.
Channel Partner: Channel partners are the ones who bring in the maximum number of clients as they already have strong networking in the industry. To repay these, the organisation pays them a hefty revenue of around 80% of the commission received.
Investment
The infrastructure requirement is similar to any other sub-broker. To run proper operations, there should be access to trading platforms, a decent workspace for 2-3 staff and strong internet connectivity.
Based on the office’s location and city, the investment amount will differ. However, there is a set amount that the business partners need to deposit with the organisation as a security deposit.
| Partnership Model | Security Deposit |
| Sub Broker | Rs.25,000-100,000 |
| Remisier | Rs.10,000-25,000 |
| Employee to Entrepreneur | Rs.25,000-100,000 |
| Channel Partner | Rs.100,000-1,000,000 |
In case of any issues, this money will be used to recuperate the damage.
Conclusion
Motilal Oswal is a supportive organisation which provides proper training material and guidance to its partners to help them provide accurate services to their clients. From both the customer’s and partners points of view, Motilal Oswal is one of the most sorted organisations to associate with.