kasina Excellence in Distribution: Hybrid Wholesaling slide_share

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In its fifth Excellence in Distribution report, kasina dives into Hybrid Wholesaling, how firms are using it - including benchmarking data, a prognosis for its future, and presents three models for how firms should be using it optimally.

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kasina Excellence in Distribution: Hybrid Wholesaling slide_share

  1. 1. Excellence in Distribution: Hybrid Wholesaling<br />April, 2010<br />
  2. 2. Benchmarking Reports from kasina<br />Costs of Compensation: Sales and National Accounts – August, 2009<br />Excellence in Distribution: External Wholesaling – December, 2009<br />Excellence in Distribution: Internal Wholesaling – January, 2010<br />Excellence in Distribution: National Accounts – February, 2010<br />Excellence in Distribution: Hybrid Wholesaling – April, 2010<br />Entire series to be repeated annually<br />2<br />
  3. 3. Excellence in Distribution: Hybrid Wholesaling<br />Why Use Hybrids?<br />Hybrids can add scale while managing costs<br />Hybrids can pursue underserved markets<br />47% of advisors prefer phone or e-mail communication over personal visits<br />Firms gain options in alternative career paths and work-life balance<br />3<br />
  4. 4. Excellence in Distribution: Hybrid Wholesaling<br />Majority of Firms Has Hybrid Wholesalers<br />kasina introduced concept 10 years ago<br />Franklin Templeton among first to introduce hybrids <br />Average tenure of hybrid implementation at firms is 4 years<br />43% of those without Hybrids are looking to add them <br />4<br />
  5. 5. Excellence in Distribution: Hybrid Wholesaling<br />Three Recommended Models for Hybrids<br />The Opportunistic Model <br />Hybrids plug temporary gaps or address <br /> new opportunities: vacant external position, <br /> retention of assets, or a new geography<br />The Spinoff Model<br />Team of hybrid wholesalers pursues a new channel or product (RIA, DCIO) <br />The Team Model<br />Manage a territory which segments advisors by profitability level and service preference<br />5<br />
  6. 6. Excellence in Distribution: Hybrid Wholesaling<br />46% of Firms Source Hybrids Only from Sales Desk<br />Must know how to sell over the phone and able to form in-person connections<br />Leverage technology to sell and service<br />Be willing to travel<br />Career choice or stepping stone?<br />Hybrids are entrepreneurs – wide array of skills needed<br />6<br />
  7. 7. Excellence in Distribution: Hybrid Wholesaling<br />Firms Have 5 x Externals as Hybrids<br />Increase number depending on model<br />For Team Model, consider balancing ratio with more hybrids and internals to manage costs, increase reach, add flexibility<br />7<br />
  8. 8. Excellence in Distribution: Hybrid Wholesaling<br />Territories Are Not Focused or Manageable<br />8<br />
  9. 9. Excellence in Distribution: Hybrid Wholesaling<br />43% Miss Opportunity to Incent Beyond Sales Results <br />Structure compensation to fit opportunity<br />Greater selling opportunity = greater variable component<br />Modest selling opportunity = smaller variable component<br />Tie bonus to profitable activities<br />Asset retention<br />Teamwork<br />Substantive meetings<br />9<br />
  10. 10. Excellence in Distribution: Hybrid Wholesaling<br />Hybrids Increase Scale, Flexibility, Cost Management<br />Use hybrids to increase scale and manage costs<br />Meet shorter- and longer-term goals for addressing new sales & servicing opportunities<br />Choose hybrid models to target opportunities in underserved markets <br />Flexible territory design and management<br />Identify, train and mentor technology-savvy salespeople <br />Based on ability to sell and service in a technology-driven environment<br />Evaluate and compensate hybrids in alignment with firm goals<br />Adjust variable component to match sales opportunity<br />Integrate hybrid wholesaling in firm’s overall distribution strategy<br />Transition to new models when appropriate<br />10<br />
  11. 11. How kasina Can Help Optimize Hybrid Wholesaling<br />kasina drives financial services leaders to answer two questions: What’s next? and What should we do better today?<br />11<br /><ul><li>Structure and staffing models
  12. 12. Coordination and alignment with external and internal wholesaling
  13. 13. Focus firm identification and territory planning
  14. 14. Metrics and compensation
  15. 15. Excellence in Distribution series, benchmarking data, research and recommendations on Compensation, External, Internal and Hybrid Wholesaling and National Accounts.
  16. 16. What Advisors Do Online
  17. 17. FA Vision service with in-depth, strategic data on advisor preferences
  18. 18. Executive Peer-to-Peer Roundtables for open, collaborative discussion</li></li></ul><li>Contact<br />12<br /> Andy Edwards<br /> Business Development Manager<br />e-mail: aedwards@kasina.com<br />phone: 646 257 4454<br />fax: 212 349 7413<br />kasina<br />581 Avenue of the Americas, 5th Floor<br />New York, NY 10011<br /> Tel. (212) 349-7412<br />Fax (212) 349-7413<br />info@kasina.com<br /> <br /> <br />Visit our Web site: www.kasina.com<br />Read kasina’s Blog: www.kasina.com/blog<br />Follow us on Twitter: @kasinaUS<br /> <br /> <br />For more information, please contact:<br />

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