Wholesalers with only product to talk about will have trouble getting in the door, according to a recent survey of advisors asked to report on important wholesaler attributes.

Respondents to the survey, conducted by Ottawa-based financial services industry consultants Pareto Systems Inc., said successful wholesalers work at understanding an advisor’s business. “They [wholesalers] should meet the same ‘know your client’ standard that I have to in dealing with my clients,” reported one advisor. “Like me, they should segment their ‘clients’ according to the importance to their business and provide increased service to me when I warrant it.”

Terry Gronbeck-Jones, managing director of Pareto Systems, said most advisors spoke little about product and focused on the relationship between the two groups. “The best wholesalers long ago realized that with the so many similar products now available and with advice becoming more ‘commoditized,’ the only thing they can control with any certainty are the relationships they create and develop. Those with only product to talk about will have trouble getting in the door.”

While most wholesalers talk a good game about ‘value-added,’ Gronbeck-Jones said, “the most effective wholesalers know what it is that advisors value.”

The wholesaler-provided services that advisors reported as being of notable value included a number of business-building techniques and strategies, Pareto said. For example, wholesalers were commended for providing production challenges and marketing plans to meet those challenges. They were cited for offering assistance to advisors in business development and management, such as crafting client proposals, and organizing and running quarterly team meetings.

Several advisors noted that their favorite wholesalers were those who helped with hiring and training matters, such as offering “best practices” workshops that teach how to run such thing as client advisory councils and client events. Providing leads about suppliers and signing advisors up for sales magazine subscriptions were value-added services also appreciated by advisors.

Several advisors noted that the frequent change of wholesalers within some companies acted as a deterrent to a productive working arrangement. “When a company’s complement of wholesalers turns over too frequently or is right-sized, the risk of losing advisor allegiance increases significantly,” said Duncan MacPherson, co-founder of Pareto Systems.