Asset management firms without hybrid wholesalers are missing out on opportunities to pursue additional business opportunities affordably—and profitably, according to Kasina’s study, “Excellence in Distribution: Hybrid Wholesaling.”
While hybrid wholesalers are as effective as field wholesalers, only 42% of asset management and insurance companies use them.
“Hybrids—wholesalers that are a blend of traditional internal and external wholesalers—help firms extend reach with flexible deployment at lower cost,” said Lee Kowarski, principal and co-founder of Kasina. “Our research shows that, when integrated into the firm’s distribution strategy, hybrids produce 82% of an average field wholesaler’s annual gross sales for compensation averaging 40% of an external wholesaler.”
Kasina maintains that hybrid wholesalers are knowledgeable about products and competitors, and skilled at selling and providing service over the phone.
A typical hybrid wholesaler travels 42% of the time, communicating with advisers primarily over the phone and computer. They can work either in the firm’s main or satellite office.
“Firms that have used hybrids for a few years have moved from isolating them in opportunistic and spinoff models to integrating hybrids in team or even sophisticated flex models, where wholesaling resources are matched to specific opportunities,” Kowarski said. “For these firms, the success of hybrids has been well established. In fact, 77% of firms with hybrids plan to increase the size of their hybrid wholesaling team.”
Kasina’s analysis is based on a survey and interviews with executives from 23 firms, and includes best practices and benchmarks.