There are riches in the niches. Have you found yours yet?
Ever wonder … What are the traits of a successful financial advisor? OR what growth strategies do successful advisors use to grow their practices? If you look at the most successful advisor practices in the industry today (and we do on the regular), you’ll find the top advisors in the country tend to focus on a specific niche. They don’t try to be everything to everybody.
In our conversations with advisors, we talk a lot about the importance of pinpointing a target audience. Yet, many advisors resist—and resist hard—taking the leap from wanting to provide a smorgasbord of solutions for everyone to focusing on a smaller niche group. They don’t want to miss out by narrowing their focus!
But casting a wide net won’t yield the phenomenal results top advisors attain, which means it won’t get you into the Big Leagues. Focusing on a niche is much more effective. We’ve surveyed thousands of advisors over the years, and the really, really successful ones always fish in a much smaller pond. Their practices are exploding, the opportunities are plentiful, and they’re much happier—and their clients are happier, too.
How focusing on a niche can help propel your advisor practice to the top
Building a million-dollar advisory practice is a multi-faceted endeavor, rooted in building trust and delivering on promises made. Focusing on a specific niche is just one spoke in the wheel (we’ll discuss the other spokes in future blogs) but it’s a critical growth strategy advisors should embrace if they want to level up their businesses. Here’s why it works.
1). it’s more efficient, plain and simple.
If you want prospects to sit up and listen, you need to focus on speaking to their unique pain points and finding the solutions that best solve their problems. And guess what? Those pain points are fluid, they change with the times.
Successful advisors are proactive, they keep an eye on trends, research how changes in the economic climate are affecting their clients now and study how changes in legislation and tax law will affect their clients’ financial futures. Just think about how much time you could save if you only spent time focusing on the needs of one niche instead of many?
2). You get a deeper understanding of your audience.
You know all that research and trend watching we mentioned above? That leg work, along with the strategic questions you ask, gives you a deeper understanding of your niche and enables you to do a much better job at finding solutions for your clients’ unique problems. No skimming the surface here.
Learn more about the strategic questions to ask prospects in our recent blog: The Catalyst for Transforming Your Business Starts with One Word
Instead of doing a little something for everybody, you provide a ton of value for your niche because you know what they’re up against and how to help. More important, those clients feel heard and understood—and that really matters. Which leads us to …
3). It builds trust and your credibility factor.
Successful advisors know that building trust and getting to the point where people find them credible is really key. In order to do that, you need to demonstrate a high level of empathy, and to convey empathy, you must develop the aforementioned deep understanding of the client’s fears, challenges and goals.
If you take the time to build your expertise in a specific niche and sincerely deliver in the empathy department, that will go a long way toward building trust and growing your client base. From a big picture standpoint, building credibility in your niche over time—through the content you put out there, results you deliver for clients, etc.—will also help fuel word-of-mouth and ensure your name comes up when people search for “financial advisors who help [INSERT YOUR NICHE HERE].”
4). You face less competition.
Differentiation is key in the financial services industry. This is especially true today when location is no longer a factor most people consider when choosing a financial advisor. Most advisors take a hybrid approach to business today (both in-person and online) because the pandemic alleviated many of the roadblocks we used to face when trying to conduct business digitally.
Any advisor can cast the wide net and talk ad nauseum about the financial products and services they (and everybody else) provide for the masses. And you can bet your socks the inboxes of your niche prospects are filled with messages from advisors who do just that. Far fewer advisors can speak to the pain points of a specific niche, so if you decide to be that kind of advisor, you’ll be golden.
5). You get more referrals.
In the process of serving your niche, it’s important to hone your ability to communicate a message that makes one thing clear: How you serve your niche is unique. (Communication is another critical spoke in the wheel that we’ll discuss in an upcoming blog.)
Once you’re able to clearly explain what makes you different (your value proposition), it will be really easy for happy clients to share that message with others. And, yes, those clients will want to advocate for you because you have demonstrated that “you get it” and know how to address their unique pain points and problems.
Being niche-focused is a much more enjoyable way to run an advisor practice
Think about it … What do you love most about being a financial advisor? In what areas do you really excel? Where do most of your referrals come from today? Could it be from a specific niche? Your answers to these questions may very well reveal that the best niche to focus on is staring you in the face.
What are you waiting for? If you could grow your advisor business exponentially by focusing on what you know, do and love best, wouldn’t that be more enjoyable than trying to please everyone? Based on what we hear from the top advisors we survey, the answer to that question is a resounding YES!
At InsurMark, our Advisor Development Consultants are incredibly passionate about helping advisors go from good to great. If you want to learn how to position your advisor practice for greatness, we’re here to help! Contact us toll-free at (800) 752-0207 or connect with us online.
As an ADO – Advisor Development Organization™, InsurMark provides solutions to meet the ever-evolving needs of financial professionals with a mission to protect and enhance the financial security of every home in America.