While developing a marketing plan (read Marketing Into the New Year for ideas), many financial advisors fail to dive deep into choosing niche markets even though niche marketing has proven to be effective in growing a practice. Many financial advisors would agree, but not admit, that not finding a particular client segment to target is because of the fear of losing business. It’s safer to remain generalists, serving all kinds of people at all stages of life, but the approach can hamstring growth.
Instead of going “all in” with niche marketing, a hybrid model is an effective way to target one group while maintaining your existing client base. We all know the 80/20 rule when it comes to clients and profits, and that same rule can be applied to weaving a niche market into your practice. Here’s how it works: 80% of your time, you will continue to serve existing clients, obtain referrals and continue running the practice the same way as before. While 20% of your time, you will work on a new niche with a separate marketing plan from the rest of your practice. As your niche starts to grow, you can begin to weave it into 80% of your existing plan until it becomes a major part of your business.
If you are on board with the hybrid approach, here are six steps to get started: