The Supernova acquisition model calls for building two niche markets. Listen to Rob Brown and Rob Knapp discuss the critical steps for getting it done.
Here’s a summary of the key points we cover during our conversation:
Niche marketing is one of the major tools I find many financial advisors do not take advantage of. There are two different ways of looking at niches. A niche is an area of marketing focus. The first side is your natural niche. This is the niche you brought with you when you came to the firm. If you came from Proctor and Gamble, Gillette, 3M or any corporation, a university, the military or an airline, you have a natural group of affiliates based on the company you came from. What we do is help you to focus on that natural niche market and learn to do what you do very well (and probably already have done but maybe not to the extent you could have) take advantage of that natural niche. If you came from Proctor and Gamble, it would be major IRA rollovers north of $1M each. This can really be all you need to do in your practice. You do well with that group because you came from the culture. You speak the language, you understand the people and you certainly understand the benefit. You know their benefit program as well as the HR director. Therefore, you are an authority. A very good example of this is Proctor and Gamble.
If you were going to focus on a niche and it wasn’t a niche you grew up in, you didn’t come from Proctor and Gamble, what would you do in order to make that a niche for you? We call that a focused niche. You literally have to immerse yourself in their culture. You have to learn the language of the Proctor and Gamble people, understand their benefits, know their stock option plan, know their stock purchase plan, know their 401k and know it as well as the HR director. You can’t do this for 15 different markets. What we suggest is to take your natural niche and exploit that to the fullest. Then select a focused niche. How? It should be where the money is. You want to fish where the big fish are. In this case, you want to first make sure the niche you are choosing if successful would generate the kind of clients that meet your minimum. If it does and you would enjoy it, then that is your focus. If you happen to grow up in a union family, then possibly prospecting unions would make sense. If you don’t enjoy those people, then don’t do it. I had one gentleman who focused on 401ks for small business. He was very successful with the practice, but he put himself out of business with all the work he had to do. The 401ks were just not worth it. He picked the wrong niche. We had 19 people who picked Eli Lily and all made a very good income. That’s the idea of focusing your niche.
In our Phase Two training we always have everyone write down their top 25 clients and ask where they came from. Were they referred to you by a center of influence? Did they come from a natural niche or a focused niche? Then we make a list of where they came from and that helps make their success a little more concrete in their own eyes. I often ask this question, What is your niche? I’m told “I don’t have one” and then we do that exercise and they do have one. There is always something people have in common unless they’ve inherited the book. Here is what we suggest doing. For example, you have 3 or 4 cardiologists in that list. Find out how many there are totally so you know your capacity and what you are looking for. Do they meet your minimums? After doing your homework and they meet your minimums, you go to your client who is a senior cardiologist and use the smart marketing technique. Dr. Smith, I’m thinking about expanding our practice with cardiologists from IU Health. Do you think that’s a good idea? He’ll spend some time explaining why it is or is not a good idea. Once you get his advice and you determine you do want to go forward, you ask a 2nd advice question. If you were me, how would you proceed to expand your practice with cardiologists? Then listen and he will tell you exactly how to do it. He knows the culture. Asking for advice is one of the most powerful things you can do. Psychologically, asking for advice is greatly appreciated as human beings and we want to help. We first ask if expanding the practice with cardiologists makes sense. It will save you a lot of time if you are in the wrong area because they will tell you. He may suggest you go to a meeting on Tues morning with him. Make sure you do your homework first. Learn the language of the cardiologist. Be the student so you can be effective when you meet with them. That is how you develop a niche.