Bank-based financial advisers just about kept their heads above water in August, with average transaction plus fee revenue of $26,786, down 7% from July's $28,868, according to the Bank Insurance and Securities Association's latest Monthly Productivity Report.
July's numbers look better in part because that's when quarterly fees hit, explained Scott Stathis, chief operating officer and managing director of Kehrer-Limra, the consulting firm that compiles the data for the association. "Given the August heat and all the vacations, I'm not surprised sales were flat," he said. "In fact, I'm surprised they weren't down further."
Commission-based sales, which signify new product sales by advisers, rose 6% in August, to $15,651, from $14,734 in July, even though commission rates are dropping as product providers strive to make their products more attractive to consumers, particularly in fixed annuities.
"Commission rates are going down, which means the incentive to sell is also going down," Stathis said. Or it would be if the market wasn't making every sale so difficult. In fact, strong producers are leaving no stone unturned in their effort to keep their numbers up.
"The most successful reps are out there selling other products, such as life insurance and fixed annuities," Stathis said.
"Those products are really making a difference to the top 15% of reps."
