1st Tier Retirement Services Distributors Enjoy Significant Economies of Scale.

Business Editors

RICHFORD, Vt.--(BUSINESS WIRE)--Nov. 1, 2000

1st Tier Retirement Services Companies spend over $100,000 more in total sales costs per wholesaler than 2nd Tier Companies, according to a DGL Consultants report.

The comprehensive industry study, Cost of Distribution: Retirement Services Sales Forces, newly published, provides key findings separating 1st Tier from 2nd Tier Companies, including numerous cost of distribution benchmarks.

Managing the huge cost of a sales force has become a top priority for retirement services distributors. Study data was obtained from completed questionnaires and interviews representing nearly 70 retirement services companies that wholesale intermediary sold retirement products.

DGL Consultants categorizes retirement services companies as "top" and "average" performing companies based upon sales production per wholesaler. In order to make valid comparisons, distributors are divided into two peer groups - 1st Tier and 2nd Tier Group Companies.

Research found that 1st Tier Companies average almost 300% more sales production for each sales dollar spent per wholesaler; and that 1st Tier Companies employ over 70% more staff/management per wholesaler.

Previous to this study companies have had a great deal of difficulty in securing relevant peer group cost of distribution data, said Don Lariviere, President of DGL Consultants. While other reports deal with cost of distribution generally, we compare the top vs. average performing retirement services distributors in each tier group.

Established in 1984, DGL Consultants is a retained executive search and management consulting firm based in Vermont that helps its clients nationwide. Clients are exclusively Mutual Fund, Annuity, Managed Money and Retirement Services Companies.

For more information, methodology and universes may be viewed at www.dglconsultants.com/cod_rssalesreports.html.