To niche or not to niche?
During your career you have probably heard a lot about niche marketing and wondered whether or not you should niche and, if so, what your niche should be.
I think you should niche, but probably not the way you usually think of it or how it’s typically taught to financial advisors.
Traditional niches are occupational or demographic. Occupational niches are criteria like dentists, highly compensated executives, or business owners. Demographic niches are criteria like people between the ages of 50 and 70 with $500,000 of investable assets.
Instead I suggest that your “niche” is your Ideal Client Profile. Let’s first discuss what an Ideal Client Profile is.
Your Ideal Client Profile consists of two parts: Personality and Economic Viability. In other words, you want to work with people you like who have the ability to pay you enough money to make it worth your while to have them as clients.
For example, how would this be as an Ideal Client Profile: People who are serious about achieving their goals, want comprehensive financial services, have a delegator personality, and are willing and able to pay $ / year to have a Trusted Advisor help them make smart choices about their money.
For clarity, a delegator personality is someone who truly values the advice of a professional and consistently acts on that advice. You determine the amount of annual recurring revenue each client must pay you based on your financial needs, overhead, and how many hours of time it takes you to serve each client.
Imagine having an entire client community made up exclusively of people who meet your Ideal Client Profile? How would that impact your financial health? How would that insulate you from the adverse affects of market downturns and other events outside of your control? What would your quality of life be like?
How do you build a business of only Ideal Clients?
Step 1: Identify your current Ideal Clients. Don’t be discouraged if it’s not a large number. You can build an entire Ideal Client Community in just a few years beginning with only a handful of Ideal Clients. How do you know who your Ideal Clients are? Look at the names in your appointment calendar. The names that make you smile are probably people you like who have the ability to pay you enough money to make it worth your while to have them as clients. And the people who make you frown are likely those who you either dislike or who consume too much time to be profitable – or both. Once you are clear who is an Ideal Client and who is not, make a short list of the Ideal Client attributes. This is your Ideal Client Profile. Utilize the online exercise to help you get started (http://www.accountabilitycoach.com/bw/icp/icp1.php).
Step 2: Replicate your Ideal Clients by referral. Your Ideal Clients know others who are just like them. And if these people are serious about achieving their goals, want comprehensive financial services, have a delegator personality, and are willing / able to pay you $ / year for you to be their Trusted Advisor to help them make smart choices about their money… do you really care about their occupation or their age?
One of the most important skills you will ever develop is the ability to articulately ask for referrals, get introduced well to the people to whom you are referred, and effectively follow-up to schedule appointments. This is a skill anyone can develop with the right process, training, coaching, and practice.
If you are unclear about how our turn-key business model can help you build your Ideal Client Community in 4 years or less by referral only, thus helping you have your Ideal Life, maybe it’s time to speak with one of our Accountability Coaches. There is no charge for you to experience the Success Road Map® in an initial consultation. Whether you do business with us or not, it is something that is a good use of your time to help you get even clearer on creating a game plan for increased success.
We wish you continued success in building your Ideal Client Community.