The Circle of Trust: Breaking into an Advisor’s Wholesaler Group

by Michelle Waymire



Michelle Waywire

On March 9 and 10, I attended the Financial Research Association’s conference on Marketing Mutual Funds to Retail and Institutional Audiences. One of the more interesting panels at the event was a discussion with two financial advisors, both of whom worked for large, prestigious wire house offices.

While I don’t directly work with clients, my job as Brand Manager at BPV Capital Management involves figuring out how to get our content in front of these advisors. Mostly, we center on creating superb marketing collateral, and supplementing those traditional pieces with more eclectic and creative value-added offerings. However, I haven’t spent quite as much time thinking about the sales side of the equation, or what to do once a meeting with an advisor has been set. Thankfully, the FRA panel was helpful in shedding light on these important topics.

The Chosen Few
One of the most important insights from the panel was that many advisors only do consistent, long-term business with roughly a half-dozen or so wholesalers, who each “own” a certain category. It’s difficult to break into this inner circle. One advisor said he hadn’t taken on a new wholesaler in over a year!

These trusted wholesalers are those who consistently bring new investment ideas and products to the table, who offer access to research databases and portfolio manager meetings, and who proactively call about non-performance issues, such as the distribution of capital gains. Moreover, these chosen few are the ones who take the time to get to know the advisors book of business, so they can recommend new holdings in response to market trends, regardless of whether they’re working with the same set of assets or increasing assets under management (AUM).

Securing the First Meeting
Let’s say the list of desired qualities in a wholesaler partner didn’t scare you away. How do you get your foot in the door.

This may not shock you, but top-producing advisors are immensely busy people. They arrive at work early, eat lunch at their desks, and leave late more often than not. As such, it’s important to tailor your tactics to their schedule. One advisor said he arrives at the office as early as 6:30 a.m. or 7:00 a.m. each morning, before anyone else. Calling at this hour is a good way to get them on the phone, since they’re often the only ones available to pick it up. This early morning time is also good for informal coffee meetings, since “the really important guys tend to have slightly more free time then.” In addition, afternoon lunch meetings where you bring food to their office can be extremely effective, since advisors don’t like to take time to leave the office for lunch.

The Importance of Active Listening
Once you’ve secured 15 to 30 minutes for coffee with one of the top advisors in the area, your main goal is to not botch your first meeting. Because let’s face it: No one gets hired based on a short trip to Starbucks, but it can very much be an opportunity to rule you out.

This first meeting is an ideal opportunity to practice your active listening skills. Ask the advisor everything you can about their practice in the time allotted. How long have they been in the business? What are their clients like? What types of products do they typically use? Are there any gaps in their product lineup? What types of news or events have been on their mind recently? What keeps them up at night?

According to one advisor, the trick is to not mention your products at all during that first meeting. Remember that you’re treating the advisor as a potential partner, and you’d never suggest a product to your partner without having a complete understanding of their needs and issues they face. At the end of the meeting, ask, “Is it okay if I come back, if I see something that makes sense for you?” Then, take what you’ve learned, see if you have anything of value to offer, and attempt to set up another meeting, as long as you have something to bring to the table.

Building Goodwill
From here, the burden is on you, as a wholesaler, to find out what products to offer the advisor. However, you can facilitate the process by building the relationship and goodwill in the advisor’s office.

One panelist recommended that if you call and an assistant answers, ask to drop by breakfast or lunch for the office. That person probably won’t say no, and they might remember your name the next time you call.

Likewise, advisors tend to appreciate smaller, exclusive events where they can meet with their clients without talking business. However, a panelist noted that while wholesalers can pick up the tab for these smaller events, they can’t talk shop because advisors are trying to give their clients a chance to network.

Many advisors also value access to the portfolio manager in the form of round table events, office visits, and regular calls. One fund company, which a panelist had worked with, got together with other fund companies to throw an event with portfolio managers and open bar and hors d’oeuvres. These events are good opportunities to build goodwill, while providing advisors with the exclusive manager access they crave.

Conclusions
Many fund companies have dedicated wholesaler teams whose only job is to create strong relationships with top advisors. This is easier said than done, but building a strong foundation of knowledge about the advisor’s needs, coupled with building goodwill in the office can be a great way to start.