Financial Advisor Success Ep 171: Transitioning From Successful Wholesaling To Financial Advisors To Becoming One Instead with Tom Kennedy
Apr 7, 2020
Tom Kennedy, a wealth advisor who moved from a decade as a wholesaler to advising roughly 400 households. He recounts leaving wholesaling for deeper client work. He explains how he evaluated firms, structured a purchased book deal, and used his networking skills to grow quickly. He also reflects on compensation shifts, early client reactions, and building an operations team.
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Fee Compression Hits Distribution First
- Fee compression at asset managers often hits distribution first, squeezing wholesaler budgets and compensation.
- Consolidation and ETFs amplify the pressure, changing wholesalers' roles toward consultative base pay models.
Save Liquidity And Plan For Salary Shift
- Expect wholesaling comp to shift toward base salaries and consultative goals rather than pure basis-point flow pay.
- Plan exits accordingly: save liquid nonqualified assets to fund transitions if you want mobility.
Wholesaler Income Resets Annually
- Wholesaler pay is volatile because compensation is based on upfront flows with no trails, so income resets each January 1st.
- This creates high short-term earnings potential but long-term unpredictability and career stress.