I had a recent conversation with one of the top executive search firms that focuses on recruiting Wholesalers and National Accounts folks. I asked how busy they were, and they highlighted they were taking more incoming calls than making outbound calls. Specifically, they were getting inundated with unemployed wholesalers looking for work. He mentioned that this is, by far, the worst environment they have ever seen, and then we both agreed it was only going to get worse. I pressed him to provide a guesstimate of the decline of the wholesaler population, and he said it was down 15% from its peak.
I have “blogged” before about margin compression and the affect it will ultimately have on the wholesaler population. Unfortunately, this is happening a lot quicker than I imagined, and it will probably continue to snowball. This exodus is also bleeding into National Accounts where there have also been lay-offs. The sad reality is that asset managers are no longer putting these vital sales roles on a pedestal and are reacting accordingly.
If you are an unemployed wholesaler, you have very limited options, and, to make matters worse, the pool is getting drastically larger. It pains me to have conversations with these folks because I do not have a bright outlook. I have heard of a few opportunities, but almost all of them require dramatic pay cuts and working for firms that have little/no brand recognition.
What if you are still employed? Be afraid, very afraid. I can almost guarantee you that there is a whiteboard in your home office with your name on it, and senior management is having very open discussions on how best to interface with their clients (FA’s, home offices, etc.). They are determining where to shift resources, and they are playing a headcount rotation game. What if we get rid of a few wholesalers and hire some internals? What if we get rid of a few wholesalers and bulk up marketing? The reality is this exercise has to be net-neutral from an expense standpoint; so they are making decisions based on expected revenue generation vs. cost. And, most firms believe that fintech and marketing will be a more significant driver of sales than “feet on the ground.”
My advice for 2020:
- Acknowledge that you are dispensable, and we have reached the point where it is a game of survival.
- Focus on your activities – meeting count, new producers, million-dollar producers, etc.
- How are you distinguishing yourself from your peers? How are you adding value?
- How often are you interfacing with your Sales Manager? If the Sales Manager feels like they are mentoring you and providing insight, then you have a special bond with that person. Trust me on this point.
- Don’t give them a reason to fire you. No short-cuts, no delay in T&E reports, use the CRM system, etc. NO excuses.
- SAVE YOUR MONEY. I can’t tell you how many people in this industry live beyond their means.
- Network like mad – inside your firm, with your FAs, with your competitors, etc. If people think highly of you, they will go out of their way to help you.
2020 is going to be a brutal year for lots of sales folks in the asset management business. As I have always said, there are only two things in this world you can control: your activities and your attitude. Good Luck!