Excellence in Distribution: Internal Wholesaling

January, 2010

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Benchmarking Reports from kasina

+ Costs of Compensation: Sales and National Accounts – August, 2009+ Excellence in Distribution: External Wholesaling – December, 2009+ Excellence in Distribution: Internal Wholesaling is third in series of

benchmarking reports Survey data and secondary research Strategies and recommendations

+ Upcoming reports National Accounts – 1st quarter Hybrid Wholesaling – 2nd quarter

Agenda

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Key Levers

+ Sales Force Structure and Selling Process

+ Technology Deployment

+ Territory Management

+ Compensation

Agenda

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Internals Spend 54% of Their Time Selling & Servicing

Excellence in Distribution: Internal Wholesaling

+ Externals spend 57%*+ Internals are no longer primarily administrative

* Excellence in Distribution: External Wholesaling. kasina. 2009

Servicing existing clients (talking to them, researching, etc.); 30%

Selling to new prospects; 24%Administration; 17%

Training & self development; 14%

Internal meetings; 11%

In transit /travel, 13%

How does the average internal wholesaler spend the work day?

©2009 kasina

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Success StrategyStaff up with Hybrids & Internals

Excellence in Distribution: Internal Wholesaling

+ Aim for 60% hybrids & internals supporting 40% externals Internals cost 28% of externals. Hybrids cost 47% of externals* Gross sales production levels of hybrids range from 50 – 100 % of externals, depending

on firm size **

* Costs of Compensation: Sales and National Accounts. kasina. 2009**The Truth About Hybrid Wholesaling. kasina. 2008

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Success StrategyIntegrate Technology To Drive Sales

Excellence in Distribution: External Wholesaling

+ Advisors who use firm’s Web sites and have wholesaler coverage average 25% more sales than advisors with no Web site use*

+ Train and incent wholesalers to integrate Web, e-mail, CRM in selling

+ Ensure wholesalers are training advisors online and track usage

*Your Site Can Sell, Too, kasina, 2008

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Internals Cover Territories > 2K Advisors at 42% of Firms

Excellence in Distribution: Internal Wholesaling

+ ~100 calls/day to reach each advisor 1x/month

fewer than 1,000; 25%

1,000 - 1,999; 33%

> 2000, 42%

Number of advisors covered by internal wholesaler©

2009 kasina

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Only 53% of Firms Measure Internals on Gross Sales

Excellence in Distribution: Internal Wholesaling

+ But, all firms allocate an average 37% of compensation to commissions

# of calls made (dials)

Teamwork and/or peer feedback

Product knowledge

Talk time

CRM input (quality and/or quantity)

Gross sales

# of calls completed

Call quality

Presentation skills

Leadership skills

# of funds sold, product mix

Training or self-development

Quality of documentation

Net sales (gross sales less redemptions)

Other, please specify

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

88%

76%

71%

65%

59%

53%

53%

53%

53%

53%

35%

29%

24%

12%

12%

Which metrics are used to evaluate your internal wholesalers?

% of respondents

©2009 kasina

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Recognized, Responsible & Rewarded

Excellence in Distribution: Internal Wholesaling

+ Knowledgeable and trusted business partner to advisors

+ Equal, valued team member with hybrids and externals

+ Avid promoter of Web tools and online information

+ Active contributor to CRM

+ Clear path to greater authority, responsibility and reward

+ Aligned with firm’s business and profitability objectives

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About kasinaOur firm has a singular mission: Innovate distribution in financial services

Excellence in Distribution: External Wholesaling

For more information, please contact:

Andy Edwards Business Development Manager

e-mail: aedwards@kasina.comphone: 646 257 4454fax: 212 349 7413