For APs this is good news. Earlier AP used to put in the time, effort and money to get clients on boarded to the broker. Then the client sees that there is referral commission if he refers another client. So he opens an account in his wife, parents name under his referral. Client trades with this account to pocket the 20% commission. Win Win for the broker and client. AP loses out.
Also this referral scheme was used by Finfluencers to sell dreams and hope. Someone is opening shop to sell hammer candle, someone is selling MACD, someone is selling straddles and strangles⌠Watt bas retail ki hi lag rahi dhi.
@PravinJ In such a short period, youâve achieved a lot compare to other start-ups into fintech industry. I also read the Care ratings report on Moneylicious. Itâs good to receive BBB- Stable category in such a short span. Also profitable in FY24 against the net loss in FY23.
But there was one line mentioned in Care report and that is - The Company has been focusing only on broking business. Do plan to enter into Mutual Fund Distribution, Fixed-Deposit, Online Bonds Platform, AIFs, SDIs and allow your partners to distribute. They can bring more business than direct acquisition.
Mutual Fund Distributors like me do look for online platforms to distribute Mutual Funds and other products but currently the sharing offered by these platforms discourage us to distribute. For Micro investors it is the best way of savings and they do need advice about where to invest. If possible, do launch a Distributor platform where the MFDs can be onboarded and it will definitely contribute into the revenue of company.
Well I have many things to suggest but since I am not registered as AP, I would be more happy to suggest in Partners meeting.
@PravinJ why not come up with referral rewards. Since brokerage commission is already being stopped Dhan is getting full brokerage fee I am sure this can be done. There should be some incentives for people who bring new traders to Dhan otherwise there wonât be a driving zeal for traders to recommend Dhan to others. For example Kotak is giving cash, mstock is also giving cash payoutâŚetc
Or, reduce the brokerage to Rs 10 or 15 or 20% of what was given as commission share. Brokerage is killing most small traders.
Yes. I also feels the same. Dhan stopped Women offer and Referal offers when they get more customers ( Once they said those offers are lifetime). I also suggest to reduce brokerage.
True. I simply donât have the energy to share the refer link any more When we bring clients for a business house, it should reward us. In real estate an agent bonus is always considered. Like wise when we are helping assist a business house, we should get a share of it. All brokers should ask Sebi to revoke its decision. Some brokers like IndMoney are still giving 40% share as referral commission.
Hi @thetribaltrader These are two different topics; referral rewards we will revisit when we introduce a new referral program.
I understand there always will be some brokerage house that wants to grow faster and they will give incentives like cash payouts what you have mentioned. Thats fine in our opinion, we are not in a race to open accounts - Dhan focusses on building a better trading & investing experience, even when we are small we were investing a lot on product, tech and infra; results of which we see today. And we will continue to invest.
On brokerage, expect the same to go high instead of coming down. While Stock Broking businesses are intensely competitive, the working capital requirements for them are also very high.
@RandRtrader The AP charges are fixed by the exchanges and goes to the exchanges. Stock Broker is just collecting from the AP and giving to the exchanges. There is no scam here.
Referral marketing is often run as a side hustle. AP is meant to be run as a business by people with long term goals, and entails problem solving and cultivating relationships, which helps in garnering stickier clients for the broker.
What I donât understand is that if Dhan had to stop referrals, then how Angel one is still giving out âš200 voucher for referrals?
If referral bonus/incentive can be given out in kind then Dhan can also implement such thing right @PravinJ ?
Upfront payouts for referral programs donât usually work, many use this just to create fraudulent accounts and donât trade ever. Increases compliance, operational work and overheads for us. We donât intend to have such rewards.
@PravinJ Sir how about keeping the same structure as earlier, but instead of crediting the 20% brokerage to bank accounts you issue gift cards of same value to them.
Regarding this quote, assuming if I referred a Person named Rahul. He joined Dhan and never traded, I wonât be earning any referrals. But since itâs a new account atleast for a year the compliance will be there. Though comparatively less than active accounts but still.
Not trying to argue or counter. Peace
Hi @PravinJ@Dhan, its been nearly 5 months since the referral program is suspended (for other than Authorised persons) and there is no update on new refer n earn program. Authorised person registration may not be compatible for everyone. So, is there any update on new refer n earn program? Or it wonât be introduced at all.
Watt bas retail ki hi lag rahi dhi.
When we bring clients for a business house, it should reward us. In real estate an agent bonus is always considered. Like wise when we are helping assist a business house, we should get a share of it. All brokers should ask Sebi to revoke its decision. Some brokers like IndMoney are still giving 40% share as referral commission.