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Written by: Stan Mann | Results Producer
Do-everything-for-everyone planners want to have a wide net to catch everybody who might possibly be a prospect. A wide net is only good for catching tiny butterflies. If you want big clients, you’ll do much better with a narrow niche. All the pundits agree your financial advisor practice will be way more profitable if you narrow your efforts on a specific niche.
But, do you fear if you specialize in a narrow group of people (what’s called a niche), you will lose potential clients?
Do you worry, “What if I specialize in top executives at Chrysler’s and a radiologist at Henry Ford Hospital is looking for a financial advisor? I’ll lose that prospect?”
The opposite is true. If you’re a do-everything-for-everyone planner, this prospect will see you as being nothing special. If he sees your competitor’s value proposition that says he specializes in radiologists, you don’t stand a chance. Why should he consider you, a generalist, when he can go to a specialist?
If you select a niche, prospects in your niche will see you as special and be attracted to you. They’ll choose you over a generalist who works with just anyone.
And don’t worry about losing that prospect who knows you and thinks he’s an outsider. He will still see you as a specialist and ask if you can make an exception for him. Although I specialize in independent financial advisors, recently a pediatrician and a fitness training company asked if I would make an exception and coach them. (I did not make an exception because I didn’t want the extra work of learning about the pediatric and fitness training businesses. I get plenty of financial advisor prospects.)
If you insist upon using a wide net, you won’t get profitable clients because your marketing message will sound like everybody else’s. You have to know specifically who you serve, so you can craft a unique marketing message for them. Your marketing message has to speak their language, be appealing and compelling. When you know how, it’s easier than chasing butterflies.
Good marketing is not about attracting the most clients; it’s about attracting the right clients. Doing everything for everyone makes you dull. Your client won’t refer dull advisors to their friends.
So, if you ever wonder why your client get a glazed look when you ask for referrals, it’s because he doesn’t know what’s special about you; he doesn’t understand what value you provide; and he doesn’t know what clients you work best with. You’re a generalist who does everything for everybody—just another advisor. You don’t stand out from the crowd.
On the other hand, when you have a niche, your client sees you as being special. You can show what clients you work best with and what value you provide. Armed with that information, it’s much easier for your client to refer to you. Do it right and they’ll refer to you even if you don’t ask.