Third Party Marketing

I worked for years as a third party marketer for hedge funds and in the following video I am going to explain what third party marketing is and the role of third party marketers.

Video Transcript/SummaryThe strategies and tips provided within this video module include:

  1.  The definition of third party marketing is the hands-on capital raising and marketing of investment funds by independent consultants that work outside of the fund.
  2. Third party marketers typically receive 20% of the fees that are billed on the assets raised although this number and structure varies by fund and contract.
  3. There are low barriers to entry for third party marketers and it can be very lucrative.
  4. Third party marketing firms typically take on 3-5 clients at one time.
  5. Some third party marketing firms work on a retainer as well as a percentage of the fees on the assets raised.
  6. The other model is to not charge a retainer but the third party marketing firm will take on many more clients, often across a broad spectrum of strategies.
  7. A growing trend in third party marketing is to have the firm focus on a single distribution channel such as endowment funds, pension funds, etc.
  8. Be very detailed in your contract negotiating to avoid later disputes.  

I hope that this video has provided you with a completed definition of third party marketing as well as some tips for evaluating third party marketers.

Your friends here at http://FinanceTraining.com


 

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