A new Cerulli
report says hybrid wholesalers average 50 percent of the production of their field wholesalerscounter parts, but at 40 percent of the cost. And, perhaps not surprisingly, extra time with the hybrid model correlates to a higher commitment of personnel.
But while these figures may not convince every national sales manager of the value of hybrids, Scott Smith
, head of Cerulli's intermediary practice, said they certainly make a compelling case.
Smith also cautions that "When adding hybrids to the wholesaling team, sales management needs to clearly communicate the implication so there are no misperceptions about changes in roles or compensation."
According to the report, firms that have recently adopted a hybrid model have generally been doing so to address a discrete audience, usually RIAs, and have only built out teams of six to ten individuals to tackle a promising, but not yet productive, market.
However, early adopters of the hybrid model are much more likely to have grown to scale, averaging nearly 30 hybrids.
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