Internal wholesalers work for insurance companies and investment firms as salespeople. This position develops sales strategies and actively markets new investment products to external vendors and partner financial institutions. Large corporations frequently hire several wholesalers, each of whom is responsible for maintaining and growing sales in a specific geographic region.
Information about newly launched mutual funds, annuity contracts, and other types of securities is sent to an internal wholesaler. The wholesaler must thoroughly examine the information pertaining to the new securities and devise strategies for disseminating it to sales personnel who deal directly with the public. Wholesalers create sales literature that includes relevant information about new products in language that salespeople can easily relay to potential customers. Investment representatives are required law to explain the risks of investing, and any materials prepared the wholesaler must comply with these disclosure laws.
Each internal wholesaler is supported a team of outside sales representatives who meet with insurance salespeople and brokers in person. He or she usually schedules a sales representative’s meetings and frequently conducts follow-up conference calls to address any questions that arise during the sales meeting. Brokers and insurance agents can use the internal wholesaler to order investment prospectuses and sales literature, and they can also ask the wholesaler for sales ideas or information on successful sales strategies used other agents.
A regional sales manager, who oversees several sales regions, usually reports to the internal wholesaler. A wholesaler must compile sales reports for the regional manager on a daily, weekly, and monthly basis to ensure that sales targets are met or exceeded. Because a wholesaler’s salary is based in part or entirely on sales commissions, wholesalers have a strong incentive to perform well. Investment firms typically require wholesalers to meet minimum sales targets on a regular basis, and if these targets are not met, a wholesaler may be demoted or fired. Successful wholesalers frequently advance to positions as regional sales managers.
A bachelor’s degree in finance, accounting, or a related field is required to work as an internal wholesaler. Anyone involved in the marketing or sale of securities is required law to pass licensing examinations administered regulatory authorities. Before beginning work as a wholesaler, candidates must pass these exams and obtain securities licenses. Licensed securities advisers and wholesalers are required to attend continuing education classes that cover new securities laws. These sessions are usually held at least once a year.