A few questions on Internal Wholesaling

Tom-Gengler's picture
Rank: Chimp | banana points 6

Hello everyone,

I am a 25 year old male very interested in mutual fund wholesaling. I am currently doing some career planning and after reading a lot of fantastic information on this website, particularly the AMA Krazyk, I decided to join. You all seem so helpful and I was just hoping to get some questions answered and some thoughts on the future of this position. Thank you for all the great information I have already gotten, and thanks in advance for any input any of you might be able to provide. Feel free to skip to the questions if you don't want my whole life story.

I am currently working a customer service/trading role at a large brokerage firm. I have been there for a little over a year and have obtained my series 7 and 63. I actually really enjoy this role for the most part, but I want to start taking step toward a more long term position that better suites me. I love the idea of internal wholesaling. Sales in general gets me excited. I love the idea of examining different peoples perspectives and the puzzle of matching their needs to various products. I also love the idea of my pay and success being a direct function of how well I do this, and how much effort I put in. I want to have those good and bad days that break up the monotony of working.

Anyways, I have a few questions that I would absolutely love some input on.

1) I understand that internal wholesales is more or less the process of getting in touch with advisors, selling them on why your product or fund should interest them, and arranging appointments with your external to close the deal. My question is, how is this prospecting done? Does this literally involve googling advisors in your area, or is there some sort of internal platform that is used? Maybe this depends on the company. Beyond this, I understand that there is a lot of administrative work as well, but I don't see how this is a full time position. I would have thought a finite number of investors would run out pretty quickly? Is this more of making a ton of calls and a bunch of shots in the dark like pharmaceutical sales, or is each and every call one less you can make later and requires more planning?

2) What type of product would you recommend selling? Obviously mutual funds are a big one, but what about REITS or MLPs? I have also heard that people whole sell private equity? Is this done in the form of investment trusts? If so, are you still selling to advisors, or is that more of institutional sales? I like the idea of selling specialized products, but I have also heard that sellers can be in trouble if they have limited offerings that are not performing well.

3) How might the new DOL fiduciary rule impart this area of the industry? I know you all might not have your crystal ball handy, but I am just looking for general thoughts or concerns. Any speculation on if certain investment products might be impacted more or less heavily?

4) Are areas in the country pretty limited for wholesalers? I know that a lot of internals work form their home office. Are these home offices limited to just a few areas of the country, or is there work in most major cities. For example, I have lived in Denver my whole life and would like to try something new, so I would love to target an area like Austin or something. I know this reduces options, but if I were patient, would this be completely unreasonable? I also understand if you move to an external, you need to be very flexible with location.

5) Based on my experience, what can I do to make my self more attractive to employers? I have a little over a years experience in a sales heavy position, and I was promoted strictly off my sales figures, but this wasn't in finance. How much would a CFP help? Or anything else? A series 65/66 maybe?

6) If you are an internal wholesaler, are you happy with your career choice?

I know it is a lot, but any input on any of these questions would be very much appreciated. Thank you all so much!

Comments (2)

Feb 19, 2018

The goal of being an internal is to get out as quickly as possible.

Of the two kids who broke into our department from the internal team, one has his Charter, the other is sitting for Level #2 in the spring. I have found zero benefit from the CFP in a non-retail role, and my company wouldn't even hold my 65.

I break things internally before we roll them out so people don't break them externally, and find data problems. I also know the story behind every one of our ETF's performance quirks back to inception. Our PMs come to me when they need help.

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Feb 26, 2018

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