Zerodha Franchise: Partner Program and Dealerships

Are you thinking of owning a Zerodha franchise? Are you also someone who is not sure whether Zerodha offers a franchise? Although it's not a traditional franchise where you buy rights, Zerodha does offer a franchise model. As an Authorized Person (AP), you can earn money by suggesting clients and assisting them in trading with Zerodha. It's a partnership program instead. Through their referral program, you can also recommend customers and receive a 10% income share. In this article, you will get to know how you can benefit from Zerodha as a business and its dealership.

Understanding Zerodha’s Business Model: An Overview

Founded in 2010, Zerodha's affordable brokerage concept has caused an enormous disruption in the Indian stockbroking sector. By providing affordable trading services, this strategy aims to increase the number of investors who can participate in the stock market. Zerodha mostly uses a flat-fee business model, in contrast with traditional full-service brokers that impose percentage-based commissions on every deal.

The Zerodha Franchise Program may be the answer for you if you've ever thought about making money from the stock market without actually trading. With good reason, it's one of the most talked-about prospects in the Indian broking industry. In the fiscal year that ended in March 2024 (FY24), Zerodha's consolidated revenue increased 37.16% from INR 6,832.8 Cr to INR 9,372.1 Cr. The startup's overall revenue for the reviewed year increased to INR 9,994.5 Cr after accounting for INR 622.3 Cr in other income.

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India's top discount brokerage, Zerodha, has transformed the trading industry with its affordable services and easy-to-use platform. In addition to individual trading accounts, Zerodha provides opportunities for organizations and people to collaborate with them through their Partner Program, which is frequently referred to as a franchise or dealership model. This enables partners to get paid for bringing customers to the platform.

It's crucial to make clear that Zerodha mostly uses a Partner Program, sometimes called the Associate Program, as opposed to a conventional franchise or sub-broker model, which comes with significant initial costs and infrastructure needs. Their strategy is primarily centered on income sharing and referrals.

Why Choose Zerodha?

• Reputation: The most reliable stock broking brand
• Support: Committed assistance with marketing, training, and back office
• Flexibility: Work whenever and wherever you choose.
• Technology: Referrals are made easier because clients adore their slick dashboard and app.
• Zero Risk: You are not trading, and your money is not at risk; you are merely referring.

Understanding the Zerodha Partner Program

Through the Zerodha Partner Program, you may refer customers to open trading accounts with Zerodha and receive commissions. To put it simply, you assist others in opening Zerodha accounts, after which they trade or invest, Zerodha gets brokerage, and you receive a portion of that brokerage. The Zerodha Partner Program is designed for people or organizations that can recommend new customers to Zerodha's trading platform. In basic terms, you serve as a source of referrals as a partner, earning a portion of the brokerage that the clients you enroll create.

Key Features of the Partner Program:

• Revenue Sharing: Under Zerodha's brokerage-sharing model, partners can receive a significant portion of the brokerage fees paid by their referred clients, usually between 30% and 40%. Depending on the amount of business created, some publications even suggest as much as 50%.
• Recurring Money: You will receive a portion of the brokerage that your referred clients make as long as they keep trading with Zerodha, potentially generating a steady flow of money.
• Low to No Initial Investment: Compared with traditional franchises, Zerodha often doesn't demand a substantial initial investment or security deposit for the Partner Program. A small one-time registration fee is mentioned in some publications, but the main emphasis is on your capacity to attract customers.
• Flexibility: Due to Zerodha's fully online platform, partners can frequently operate from home or their workplace. Maintaining a real office place is not required.
• Marketing Assistance: Zerodha gives partners access to their partner dashboard to monitor revenue and referrals, as well as various marketing resources and tools.
• No Trading Needed: Partners do not have to trade on behalf of clients; instead, their primary responsibility is client acquisition.

Step-By-Step Guide to be a part of the Partner Program

You need to be a client

If you want to be part of the Partner Program, you need to be a client of Zerodha. So if you don’t already have an account, then first open an account.

Check Your Eligibility

Make sure you fulfill these general requirements if you're an individual:

• You are a current customer of Zerodha.
• You can get clients without using paid advertisements due to an organic lead source.
• A graduate degree or its equivalent is in your possession.
• Your financial history is spotless.
• You are certified in Equity Derivatives (NISM Series VIII).
• Entity Requirements: If you are a corporation, limited liability partnership, or firm, all of your directors and partners must fulfill the individual requirements, and one of your entity's goals should be to engage in the securities industry.

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Prepare Your Documents

To guarantee a seamless application procedure, collect the required paperwork in advance:

• Aadhaar cards, PAN cards, passports, driver's licenses, and voter IDs are examples of identity proof.
• Address Proof: Utility bills, bank statements, or the same as above.
• Age Proof: Found in the documents mentioned above.
• Degree certificates are examples of educational certificates.
• A copy of your NISM Series VIII certificate is required.
• For Entities: Memorandum of Association (MoA) or Partnership Deed.

Submit an online application

Go to the Partner Program's webpage: Go to the "Partner" or "Associate Program" area of Zerodha's official website.
Complete the application: Provide correct information about your background, lead development tactics, and contact details in the online application form.

Send in Your Documents

Upload Scanned Copies: The online portal will probably want you to upload scanned copies of the documents. Make sure the documents are readable and clear.

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Verify the information and sign the contract

• Review by Zerodha: Your application and the supporting documentation will be examined by Zerodha's staff.
• Verification Procedure: They may get in touch with you to ask for more information or confirmation.
• Partnership Agreement: Should your application be accepted, a partnership agreement detailing the terms and conditions, income sharing structure, duties, and other important information will be sent to you. Before signing, carefully read it. Most likely, this will be an online contract.

Activation of the Account and Partner ID

Following the verification of your documents and the processing of your payment:

• Your official Partner ID will be given to you.
• Access to the Zerodha Partner Dashboard will be granted to you.
• Additionally, a Relationship Manager will be assigned to you to help you.

Begin Making Client Referrals

• You are now prepared to start!
• Give clients access to your special referral link.
• Assist them in opening Zerodha trading and demat accounts.
• Monitor your commissions and their activity in real time.
• Zerodha takes care of compliance, KYC, and onboarding; you concentrate on expanding your network.

Track Performance

Keep an eye on your referrals, their trading activities, and your profits by using the Zerodha Partner Dashboard.

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Get Payouts

Depending on a minimum payout threshold, Zerodha normally has a monthly payment cycle during which your earned brokerage is credited to your account following TDS deduction.

How Much Can You Make?

Let's look at a straightforward (but realistic) example from someone who is actively managing a Zerodha partnership:

• You bring in 300 active clients, each of whom generates ₹1,500 in brokerage per month on average.
• Total brokerage = ₹4,50,000/month
• Your share (let's say 40%) = ₹1,80,000/month
• Deduct basic expenses like rent, staff, etc. (~₹60,000)
• Profit = ₹1,20,000/month

That's pretty good, don't you think? Yes, it is possible, but like any business, you will need to work hard to expand your customer base.

If you’re looking to earn in the stock market without actively trading or investing, the Zerodha Partner Program is a smart and low-risk way to start. One of the easiest and biggest business opportunities in India's expanding financial sector is Zerodha's Partner Program. With a small investment and the support of one of the leading companies in India, you can create a reliable and expandable revenue stream. The Zerodha franchising idea is worth taking a close look at, regardless of your level of experience or desire to grow your financial services company.