My niche’ market is and always has been rich people with liquid $$. It’s a strong niche’ with very little competition. I would suggest other advisors find these people too.
I concur with bond guy that this “nice marketing” concept for trainees is a set-up for failure. I’m sure it’s not intentional, but you should understand what it takes to be succesful. Much of that info is on these threads. Read the 500 day war, for example.Generally, the first 2 years are spent doing a little of everything. Cold calling, lunches with centers of influence, joining every chamber of commerce, rotary, etc that you can join, teaming up with others for seminars, asking for introductions from friends and family. Everything you can think of, most of which will feel like it's failing. Eventually, if you work your rear off, after about a year a couple of these marketing activities will begin to have some traction and you will focus you energies in these activities. Thus you become somewhat of a marketing expert in year 2 or 3. Finally, in year 3 or 4 you may realize that these focused marketing efforts are leading to very similar clients and that there are certain of these clients that you really enjoy working with. A niche is born.
I don’t know, some of it may be bunk, but there is some validity as well. Taking a macro view, you are trying to set yourself apart from your competition- making yourself unique through how you approach prospects. And your initial approach is in part based on something they are involved in. Generic cold call with a generic pitch has a low probabilty of success. Targeted message to people you know already have an interest in your message increases your chance of success.If you knew someone always bought bonds, would you show them a small cap stock, or a bond ? If you knew someone owned a McDonalds franchise would you show them the packaged product of the day or something based upon their McDonald's involvement ?
I understand what you are saying UBS, but I agree with Northfield, in the beginning you just try to survive, but after a few years and assets, you start to notice a trend who your best clients are and where they come from.
I also agree with advisorcontrol, at the end of the day I am looking for investors who want to work with me, if it’s a corp exec or a garbage man, as long as they have the minimum to get in and WANT my advice, I have no problems
Specific niche marketing does work and is what separates top advisors from everybody else. Driving deep and narrow is the best way to go but you need to have a great niche. Just starting out you shoud identify a niche you would like to focus on but be realistic about the fact that it will take years to develop the relatioships and centers of influence that will make it possible to be successful in it. An example I use is working with CPA’s who specialize in a certain field. I have a tax and estate planning attorney I have built a referral relationship with since we both focus on CPA’s in this field. I have introduced him to CPA’s he didn’t know and vice versa. I don’t know what industries are in your area but that is something that you should write up to present to your manager. Eventually you will get to a point with enough assets you can focus more time on a niche like this but three years is probably how long it will take to be ready for this kind of marketing.
As far as I can tell the most successful niche market is former pro ball players that blew out knee and now works as FA under a old fart. Still has his $750k under the old guys number and he courts his old buddies for said old fart and hangs around the bars and ballfields for a couiple of years playing golf and slappin hookahs. The old guy tires of his 10am to 1pm work ethic hung over and unkempt then the $750k goes to another wire while ex mudd hen splains to buddies why they are down 45% on arcs and have to go hock new wire to country club and dads of the next sure thing out of slippery rock state lefty bullpen ace block head. He may go in the 24th round you know.
Rather than looking at niche marketing from a client group/affinity group POV, look at it from a product POV. For example my niche is tax free bonds. It’s not the only thing i do but it’s what do the most. I seek out bond buyers or create bond buyers out of prospects who will benefit.Becoming a product expert and then finding clients who fit the product is a way to build a very big business. It may sound ass backwards and probably is, but its the way most sales organizations work. As an example, my product solves a problem that rich folks have. Coincidentally, rich folks have the money to invest in my product. So, as you can see there is a nice fit there. I can solve one of their problems, paying more than their fair share of taxes, and they can solve one of my problems, my need to feed my family. Gotta love it when a plan comes together! Building a business based on products is the way it use to be done. Does it work? Hmmm? That would be yes!