An outside wholesaler persuades licensed agents to sell investment firm products. They must obtain securities and insurance licenses, have sales experience, and knowledge of the securities industry. Wholesalers sell mutual funds or life insurance products and receive commission. Investment firms prefer to hire people with finance degrees and prior experience as investment representatives. Wholesalers work with agents across a large geographic area and must have a driver’s license and good organizational skills.
An outside wholesaler is a sales representative employed by an investment firm charged with persuading licensed agents to sell the firm’s products and services. Someone looking to become an outside wholesaler must obtain a securities license, and anyone applying for one of these roles must have gained some prior sales experience. Most companies also require wholesalers to have an extensive knowledge of the securities industry.
Wholesalers often sell mutual funds or life insurance products. In most countries, people must attend securities training classes and pass a licensing exam before they can sell mutual funds. Additionally, in some countries, laws require insurance sales agents to attend a separate life insurance training course, which culminates in an exam. Typically, investment firms require that anyone wanting to become an outside wholesaler have obtained both a securities license and an insurance license, even if the representative only sells one of these types of products, because many companies sell hybrid products that contain elements of securities and insurance.
From a legal standpoint, anyone who passes the licensing exams can become an outside wholesaler, even if they never graduated from high school or college. However, many investment firms prefer to hire people who have completed degree programs in finance, economics or related subjects. Some securities firms organize college fairs on major university campuses, during which graduates are recruited for these sales jobs. When compared to other finance-related jobs, wholesalers are relatively well paid, which means that competition for these jobs is often intense. Therefore, someone who wants to become an outside wholesaler must have above-average college grades.
In addition to having knowledge of securities and finance, wholesalers receive most of their remuneration in the form of commission, which means that people employed in these roles must have strong sales skills. Finance firms typically require applicants for these roles to have prior experience working as client-facing investment representatives, as people in these positions have a good understanding of the types of products and features that investment clients are typically looking for. . In addition, investment representatives are used to working in a high-intensity sales environment, similar in nature to the environment in which a wholesaler must operate.
In most cases, wholesalers work with agents employed by multiple investment firms that work across a large geographic area. Therefore, most companies only employ wholesalers who have a driver’s license, since travel is an essential component of the job. Furthermore, people employed in these roles have minimal daily interaction with their managers, which means that investment firms reserve these roles for motivated people with good organizational skills.
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