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Get Your Wholesalers to Talk Up The Web

by Lee Kowarski

As part of our FA Vision service, we recently did a topical survey about financial intermediaries' online behavior. Among the findings (which will be explored further in an upcoming report entitled "What Advisors Do Online") was the fact that there was a strong correlation between the frequency with which a wholesaler mentioned their firm's Web site and the frequency of usage of the firm's advisor Web site.

• Among those advisors that had never spoken with a wholesaler about their firm's Web site, only 63.0% visited firms' advisor sites at least once a month.
• Among those advisors that occasionally discuss their firm's Web site capabilities, 74.7% visited firms' advisor sites at least once a month.
• Among those advisors that regularly discuss their firm's Web site capabilities, 87.2% visited firms' advisor sites at least once a month.

However, when I have traveled with wholesalers, I've heard some go as far as to disparage their firms' Web site by saying things like, "That information might be on the site, but it probably isn't up-to-date - you should just call me." These sentiments are typically the result of fear and a lack of understanding. Fear that a Web site would somehow replace the wholesaler and a lack of understanding that the Web actually supplements relationships. kasina's "Your Site Can Sell, Too" report found that advisors who receive wholesaler coverage and use the firm's Web site sell 25% more than those that simply receive wholesaler coverage. We are currently gathering updated data about that metric, but every analysis that we have done with clients has found a similar relationship between Web usage and increased sales.

The bottom line is that the Web can help support sales, and wholesalers are a key driver of Web site traffic. Firms need to open their wholesalers' eyes, get them to stop trashing the Web, and get them supporting it.