Fact or Fiction? Specializing in a Narrow Niche Will Cost You Prospects and Clients

Many people believe that if you you focus on and specialize in a narrow niche that you’ll actually lose prospects and clients. Rid yourself of this myth and start getting another $2 million of assets a month.

It’s the most common self-defeating fear that holds advisors back from attracting at least two or three profitable referrals a month and adding $2 million of assets a month. They fear a niche will cost them business because they narrowed their pool of prospects.

I know how you feel. I used be scared to death of that tiger. I used to work so hard trying to find prospects for my coaching business. I tried to coach anybody. And my business was going down the tank. I was able to turn my business around when I discovered… that fear is a paper tiger.

You will not lose business, you’ll gain business. Let me quote:

“Specialists have more profitable businesses than generalists in virtually every profession. The brain surgeon or kidney specialist makes more than the general practitioner. The divorce attorney or mergers and acquisitions lawyer makes more than the generalist attorney.”
Michael Kitces, noted thought leader in the financial industry.

Why would this not be equally relevant for financial advisors? Radiologists, executives in computers, plastic surgeons, etc., all have ample income and wealth to be good clients for advisors. Most advisors need no more than 100 clients to have a wildly successful business. The categories we just listed have thousands if not tens of thousands of people in each. You’ll generate significantly more profitable referrals by clearly defining a niche and conveying it to clients and affiliated professionals.” Having a niche enables you to:

• Position yourself as the expert
• Create a compelling value proposition
• Be top of mind
• Strongly bond and engage your clients
• Makes you highly referable

For this system to work, you have to put all the ingredients together. It’s like baking a loaf of bread. You must use all the ingredients. Some of you already have all or most of the ingredients you need. Most of you have ideal clients. Some of these ideal clients congregate in easy-to-find groups and you prospect these groups.

Most of you have a value proposition. And some of you boldly proclaim you specialize in certain types of clients, such as top executives in a specific company.

Do you have everything in place so you attract at least two or three profitable referrals a month so you are able to add $2 million of assets a month?

Or do you only have some of these things in place?

I started a series of blogs covering everything you need to have such a practice. If you missed them, click here.