We are independent & ad-supported. We may earn a commission for purchases made through our links.

Advertiser Disclosure

Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.

How We Make Money

We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently from our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What Does an External Wholesaler Do?

By K. Kinsella
Updated Mar 03, 2024
Our promise to you
Practical Adult Insights is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At Practical Adult Insights, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

An external wholesaler markets mutual funds, annuities, life insurance policies and other types of prepackaged investment products. Major investment firms employ several wholesalers each of whom is responsible for managing marketing activities within a specific region. Wholesalers attempt to develop and enhance business relationships with brokerage firms that sell investment products as well self-employed agents that are licensed to sell securities.

Typically, an external wholesaler is assigned to a particular product line, which means that within a particular region a single firm may employ one wholesaler to promote mutual funds and another to market annuities. Marketing executives create fund prospectuses and advertising materials for each product but the wholesaler must produce training materials and fact sheets to supplement these materials. Fact sheets typically contain key information such as purchase fees, the previous year's returns and details of the securities that a fund or annuity contains. Most investment firms have a wide array of products and the external wholesaler must decide which products to actively promote since investment representatives often prefer to sell a small number of funds.

In most instances, an external wholesaler works alongside an internal wholesaler. The latter is based in an office while the former spends most of his or her time traveling around and meeting clients. Normally, the internal wholesaler contacts existing business partners and prospective clients and makes arrangements for the external wholesaler to have in-person meetings with these groups or individuals. Within a single day, the external wholesaler may be asked to make presentations to several groups of clients.

During a sales presentation, wholesalers explain the key features and benefits of particular investment funds. The fund prospectuses and fact sheets are given to sales representatives who attend the presentation and these individuals are provided with an opportunity to ask the wholesaler questions about funds and products at the end of the session. Representatives who are interested in the products can order additional copies of the sales materials through the wholesaler. If representatives are unimpressed with a certain product then the wholesaler may make another presentation that involves a different fund.

Securities laws in most countries mean that wholesalers have to be licensed to sell securities and many of these individuals also hold insurance licenses. In some instances, a wholesaler may conduct a joint meeting with a sales representative during which the sales person attempts to sell products to a client. Typically, wholesalers receive commission whenever a representative sells a product so both parties have an incentive to ensure that sales meetings are successful.

Practical Adult Insights is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.

Discussion Comments

Practical Adult Insights, in your inbox

Our latest articles, guides, and more, delivered daily.

Practical Adult Insights, in your inbox

Our latest articles, guides, and more, delivered daily.