A specialist will always beat a generalist. In the internet age, this brand of thinking is truer than ever. People have an unprecedented amount of access to different products and services, and it has never been easier for folks to conduct research and find a solution that is tailored to them.
As a financial advisor, you want to become that tailored solution for the right kind of client. Here are three niches that you can work with in 2020 that will help you narrow your outreach while broadening your AUM.
For any financial advisors looking for a sustainable niche, younger generations are a great idea, because the demographic is only going to grow over the coming decades. Millennials have a unique set of challenges, such as student loan debt, and are more interested in the ethics of their investments than previous generations. But they still value stellar service like any other demographic.
Your best source for these prospects will be utilizing other generations you already work with. Reach out to your current clients and ask them about their children and grandchildren. Remind them that it’s never too early for someone to start investing in their future. For an in-depth approach, check out our e-book, How Financial Advisors Can Connect with Millennials.
Pick a certain industry and build out your contact list with those types of professionals. Most geographic regions have certain businesses that flourish. If you’re in Detroit, you want to work with auto-executives. If you’re in Silicon Valley, you want to tap into the tech industry. In the Greater Philadelphia region, there are a ton of wealthy individuals in the pharmaceutical space.
If working with an entire industry is too broad, consider focusing on a specific company. You can use LinkedIn to work up a list of top employees at a company that employs hundreds of people in your area.
The richest niche, retirees have always been a coveted demographic. One way to be more successful is to start your outreach process with people who are still ten years away from leaving the workforce. By the time someone actually ends their career, they usually are already working with an advisor. By building rapport with prospects long before they take the leap, you can turn them into clients long before they retire.
Consider using a direct mail campaign that targets recipients based on age instead of geographic location. You can also market to specific 55+ and retirement communities.
Take a look at your current book of business and see if you have any clients who fall into one of these three categories. If you do, then reach out to them and see if they are willing to refer their connections to you. Network is net worth and riches lie in niches. Do everything you can to cultivate a specialty in an effort to provide a higher degree of service and distinguish yourself from the competition.