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How Many Advisors Can You Handle?
By Steven Miyao
Most Asset Managers realize that their wholesaler cannot cover 1,200 advisors, but what is the right number and what is the right rotation?
In the last couple of months I have helped a number of Asset Managers focus their wholesalers on their key advisors. The thing that struck me was that it was so hard for the wholesalers, as well as their mangers, to give up advisors in their territory. The disagreement is usually around how often and how in depth the visit needs to be. But unless firms want to continue to push product rather than build true relationships, wholesalers will have to spend time with the advisor to build these relationships.
The coverage issue also depends on the kind of advisor you are dealing with. Most wires don't allow you access more than four times per year. But some firms truly help independents optimize their business, and are starting to bring the advisor numbers down to even 50 per wholesaler.
Companies need to evaluate their coverage model. Relationship-selling firms have to bring down the advisor target, otherwise they are just paying lip service, not building relationships.