With that in mind, advisors would be well served to consider a variety of factors when screening potential wholesalers.

First, advisors should seek out wholesalers who take time to learn about their practices. Does the wholesaler want to push the latest hot product or does s/he take the time to understand an advisor’s needs and then recommend appropriate products?

A skilled wholesaler should ask about the nature of the advisor’s business, the advisor’s background, and the advisor’s client base. Only then can a wholesaler begin to deliver value by offering investment products and other services that are suitable.

At the same time, advisors should ask wholesalers if they have a specialty within their product offerings and ensure that the specialty is appropriate for their needs. Advisors who focus on tuition planning, for example, will want to work with advisors that are experts with 529 plans, rather than those who work extensively with group retirement programs or individual retirement accounts. In a similar manner, advisors that have strong aggressive-growth products may be inappropriate for advisors who focus on helping retirees generate income from their savings.

The significance of appropriate product offerings is multi-dimensional, of course. While the nature of a product offering is crucial, wholesalers that focus on appropriate products may have valuable insights regarding prospecting for clients and strengthening existing relationships.

A wholesaler who works extensively with advisors who focus on generating retirement income, for example, may provide helpful tips and information on networking opportunities for finding clients who need to shift their investment focus away from capital accumulation. In many cases, wholesalers may gather such insights from other financial planners and then pass that on to their clients. The information can be highly valuable for advisors, especially when wholesalers have learned of novel approaches to solving financial planning problems.

Wholesalers may also have additional insights into marketing to targeted audiences. Wholesalers that are involved with non-profits may provide expertise on networking and the best way to approach prospects within that niche. They may help advisors understand industry lingo and issues that will help advisors gain trust from prospects within their target market.

Wholesalers who have previously worked in other industries—such as education--may have expertise on the needs of school teachers or principals. In another example, wholesalers who have worked for corporations that reward employees with company stock may have firsthand experience with managing the risks associated with having a large position in a single security, especially when the stock is restricted. Former accountants and tax preparers, meanwhile, may be a strong fit for CPAs who also offer investment advice.

Advisors should also evaluate wholesalers’ credentials. Wholesalers with the CFA designation may be helpful for explaining the nuances of specific products to clients and how the product may fit in with an overall investment program. In a similar manner, wholesalers with a CFP designation may offer financial planning solutions that can help differentiate advisors from their competition. Designations can also illustrate if a wholesalers is dedicated to the same niche as an advisor. In one example, wholesalers with retirement planning designations may be a good match for advisors that work with group retirement plans, IRAs and annuities.