excellence in distribution: external wholesaling

Excellence in Distribution: External Wholesaling

December, 2009

2

Benchmarking Reports from kasina

+ Costs of Compensation: Sales and National Accounts – August, 2009+ Excellence in Distribution: External Wholesaling is second in series of

benchmarking reports Survey data and secondary research Strategies and recommendations

+ Upcoming reports Internal Wholesaling – January National Accounts – 1st quarter Hybrid Wholesaling – 2nd quarter

Agenda

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Key Levers

+ Sales Force Staffing, Structure, and Selling Process

+ Territory Management

+ Compensation

+ Technology Deployment

Agenda

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33% Of Firms Cut External Wholesalers by 15%+


25%

20-25%

15-20%

6-15%

5% or less

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%

17%

8%

8%

0%

8%

If you have, or are considering reducing the number of wholesalers you have, how large is the reduction?

% of respondents

©2009 kasina

5

Externals Don’t Spend Enough Time Selling


+ 57% is spent on selling & servicing+ 43% on admin, travel, training, internal meetings

Servicing existing clients; 29%

Selling to new prospects; 28%

Administration; 9%

Training & self development; 10%

Internal meetings; 10%

In transit /travel, 13%

How wholesalers spend their time

©2009 kasina

6

Managers Opting for Large Territories Lose Focus


+ Average territory encompasses more than three states and 1,550 advisors

+ 42% of managers plan to increase territory size

Increase; 42%

Decrease; 8%

Stay the same; 50%

Do You Plan Any Changes to Territory Size?

©2009 kasina

7

Success StrategyIntegrate Technology To Drive Sales


+ Advisors who use firms’ Web sites & have wholesaler coverage average 25% more sales*

+ Train and incent wholesalers to integrate Web, e-mail, CRM in selling

+ Ensure wholesalers are training advisors online and track usage

+ Provide mobile access to Web site, Facebook, LinkedIn and monitor use

*Your Site Can Sell, Too, kasina, 2008

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Compensation is Not Aligned With Business Goals


+ 55% is commission+ 14% bonus leaves managers little discretion to incent profitable activities

Base salary; 25%

Discretionary current cash bonus; 14%Current cash commissions (variable comp.

based on % of sales) 55%

Deferred compensation; 5%Other; 1%

How is the average wholesaler's compensation structured?

©2009 kasina

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Focused, Trusted, Profitable


+ Knowledgeable and trusted business partner to advisors

+ Focused team member with motivated hybrids and internals

+ Avid promoter of Web tools and online information

+ Active contributor to CRM and community Web sites

+ Appropriately coached and fairly compensated

+ Aligned with firm’s business and profitability objectives

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About kasinaOur firm has a singular mission: Innovate distribution in financial services


For more information, please contact:

Andy Edwards Business Development Manager

e-mail: [email protected]: 646 257 4454fax: 212 349 7413

excellence in distribution: external wholesaling

Economy & Finance