MutualFundWire.com: FUSE Talks Wholesaler Pay
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MutualFundWire.com
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Friday, November 2, 2012
FUSE Talks Wholesaler Pay
Neil Bathon’s research firm latest report is connected to an issue all wholesalers should be interested in: how they get paid.
According to a FUSE Research Network report published this week, around 41 percent of surveyed firms have a net sales commission component as part of their compensation structure for wholesalers.
The survey also found that almost every surveyed firm as the traditional base salary and gross sales commission as part of the formula for paying wholesalers.
“Aligning wholesaler compensation with the overall business goals has been a key [challenge] facing heads of distribution,” stated Bathon, the founder of FUSE Research Network.
For more details, read the press release below.
Company Press Release
Wholesaler Compensation is Critical Fund Firm Adaptation
Higher Velocity & Lower Margins Cause 41% of Firms to Add Net Sales Component
Wholesaler compensation is one of the most challenging components of sales management.
Nearly 41% of surveyed firms have implemented a net sales commission component to their
wholesaler compensation structure, according to recently concluded research by FUSE
Research Network in its BenchMark series piece titled “Costs of Distribution 2012.”
“Aligning wholesaler compensation with the overall business goals has been a key challenging
facing heads of distribution,” noted T. Neil Bathon, Founder of FUSE Research Network. “We
believe it is one of the most important responsibilities of sales management, as issues like the
increased velocity of assets is pressuring organizations to better manage their distribution
costs.”
Nearly every firm in the survey audience implements a traditional base and gross sales
commission structure as a part of its wholesaler compensation. But increasingly firms are
looking to other metrics to measure the success of their external sales force, and net sales is
one of the top choices of our survey audience.
“Compensation accounts for a disproportionate part of a distribution budget. The median
wholesaler earns $300,000, and nearly two-thirds of that comes via commissions. For the
average Tier 1 firm with 75 field sales people, commissions account for $15 million or nearly
40% of total salary and benefit distribution budget dollars,” said Mike Evans, Partner at FUSE.
Mike added, “In today’s competitive environment, properly synching overall business goals with
the right behaviors of the salesforce requires that most firms update their compensation
structure by utilizing non-traditional metrics.”
Sales management has seen the dramatic change
over the last 3-5 years as new analytical tools and enhanced data have empowered managers
to refine segmentation and targeting so as to increase productivity and lower costs.
Compensation is just one of many topics covered in the research. It also includes comparative
items such as budgeting levels, headcount, resource management, hiring trends, among other
relevant topics topics.
FUSE partnered with Lisa Cohen, CEO of Momentum Partners, to complete the research.
Printed from: MFWire.com/story.asp?s=41888
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