Q&A: external Wholesaler

Hi everyone, I'm an external wholesaler in a major metro market. I saw a number of posts regarding this field so I figured I'd do a Q&A to help those interested in this field. fire away! Just an FYI, don't get discouraged if after a week or so it takes me a little while to respond, I'm In sales...quota is king!


 

Attention to detail is the biggest advice I can give, miss a quote by a basis point....you're out. There are not too many strategies to hit quota...its basic sales techniques, but you'd be surprised how many people do not follow up on leads. As for promotions from the desk; hit your numbers, be easy to work with and be a team mate to your external, just not an admin jockey.

 

Was it a rough year for you in terms of inflow for 2016? Do you sell passive products or all actively-managed? Did you begin your career right out of school as a wholesaler internal/external? Do you think selling actively managed funds for one of the large mutual fund families could still be a good career for someone coming out of college soon? Do you sell to RIA's or Wirehouses, or both? Thanks for doing this!

 

Flows dont' really affect me, I'm on the 401(k) platform side of the business. Overall most wholesalers saw a flat year, a few firms saw upticks depending on what they were selling. I started out in the service center for a fund company, then moved to inside sales and finally the field where I've been since. I definitely think active management is here to stay and a good move coming out of college. That being said, this job isnt for everyone and its high stress due to carrying a quota every day of your life. I sell into all channels so I get to speak to all types of advisors.

 

Favorite part? -Winning a deal when going head to head against a competitor....nothing beats it.

Skill set- be likable, competent and trust worthy. No one likes a pushy wholesaler and follow up when you say you will follow up!

 

Have you ever heard of anyone successfully landing an external role from another position (i.e. not internal to external)? Is it even possible? I would imagine not having the licenses is a barrier to entry for others in the finance industry that want to make the potential move into sales.

How do you see the role evolving over time? Do you think salespeople will decline and coverage territory will expand for each?

"Give me a fucking beer", Anonymous Genius
 
Best Response

Its extremely hard to transition from another role especially if you are not licensed. Most people go from a desk to the field, once you are in the field and you hit your numbers you can move around a bit but the competition for jobs is still extremely high.

I dont think sales people will decline, there will always be a value for those who do our job well. How much they continue to pay us what they do is another story, but who knows for certain. I think my job is a bit better protected as mine is extremely complex involving investments, compliance, DOL law etc, I'm a 401(k) wholesaler which is a little different. The problem with big territories is that you are only seeing the big guys and the smaller guys can get ignored.

 

Yes, I figured the transition would be extremely difficult. Some potentially dumb questions here. Is there any workaround the licenses? Does being a CFA charterholder exempt me from anything? I have seen postings but you have to already have your licenses which seems impossible if you are not already in that industry.

I am an investment analyst (fixed income) and was hoping to try making the switch having a technical background instead of just straight sales. But what I have seen is everyone wants sales experience and the licenses which obviously make sense. I am outgoing and joined toastmasters. Not sure what else I can do besides go the internal to external route which I am not thrilled about.

I appreciate the color. Thanks. +1

"Give me a fucking beer", Anonymous Genius
 

Product Manager at a top 25 firm here. I'd say that the best way to get an external job, besides being an excellent internal, is to find yourself a position where you can constantly work with the externals and their manager. We have a handful of regions, and an equity specialist for each. I'd say that the ones who've gotten in well with the externals and the region manager would likely be able to beat out the internals for an open external job in their given regions.

The only difference between Asset Management and Investment Research is assets. I generally see somebody I know on TV on Bloomberg/CNBC etc. once or twice a week. This sounds cool, until I remind myself that I see somebody I know on ESPN five days a week.
 

Hey, I've always been curious about internal/external jobs, so thank you sir!

Let's say hypothetically...what does a company like BlackRock look for when hiring a young (new) internal 401k guy? I actually was just looking at such a posting yesterday and was curious as to who is considered and what an entry level position entails?

I'm a young guy about to be both a CPA/CFP and while I don't have a super prestigious background, I'm wondering if I fit in anywhere within bigger banking/Asset Management co's... If anyone else reading this has any ideas, please feel free to share

 

BlackRock is obviously a great company, they don't have 401k guys like me but they do have DCIO wholesalers who concentrate on the retirement marketplace and trying to get their funds into the plans guys like me ultimately set up. The CFP would be attractive as you'll be able to relate to the advisors and what they are doing day to day.

 

My market is a bit different as I'm in the retirement side which is its own unique animal...most guys don't want to do my line of work which is annoying but it is what it is. The biggest thing I hear is the DOL rule looming over everyone, and that's regardless of firm.

 

Currently in institutional consulting, mostly corporate retirement plans and interested in wholesaling. I successfully got through interviews at a large IM, but left the offer on the table hearing from people that there had been a lot of turnover in the staff and some flagship funds having a bad year last year. I'm trying to learn more about the various channels and what the key differences are. Advisor vs Broker Dealer? In DCIO, are you selling to plan sponsors or advisors/consultants mostly? What are the differences to between institutional vs retail in general besides mandate size and sales volumes?

 

DCIO it's mostly to advisor but on very large opportunities you'll be talking to investment committees directly. Retail wholesalers are directly speaking to advisors and occasionally doing presentations for advisors clients usually in group settings.

As for channels it's really wirehouse vs independents and RIAs.

 

Have you seen you comp increase, decrease or stay flat during the past few years? I understand you work with 401k plans, but I would imagine plans using passive strategies would equate to less commission for you?

 

I'm not comped on the type of funds with my company...some of my competitors are different though. I'm comped on the overall assets I bring in, my quota is $100MM and have a base and then paid basis points on what I move. My comp was flat last year due to the DOL rule putting the brakes on lots of advisors doing my type of business, annuity wholesalers had it even worse. I'm expecting a lift this year and already have a decent start. We will see though, it's only the 1st quarter!

 

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