| The average wholesaler determines their yearly goal by simply adding 20-30% of the previous year’s sales. There is no rhyme or reason to this number other than the optimistic feeling that they will do more last year than the current year. Whether they actually achieve this goal usually has more to do with external factors (the market, changes to your product or territory) than executing on a true week to week strategy to grow their business. The intentional wholesaler sets a realistic goal based on their current numbers and a specific week to week plan to grow these numbers. I personally like the 80/20 goal setting approach when using the VAR strategy or any similar strategy that gets advisors to commit. 80/20 Goal: You need ___ advisors doing a minimum of ____ in business. A goal like this allows you to be intentional across your business about getting these minimum commitments and monitoring your progress. A lot of factors go into determining your 80/20 goal including comp plan, product, current sales, territory maturity etc. However, when you look at your previous year’s data you can usually find a multiplier. For example, with mutual fund wholesalers it will often be 4. This means you multiply 4 by your number of advisors that did a minimum of 1 million dollars in business last year it will be pretty close to your gross sales (if eliminate top producer anomalies). So working forward, a goal of 200 million is really a goal of getting 50 advisors to do a minimum of 1 million. In your case the multiple and minimum in biz might be different, but we always find one. |
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