Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards

Life Health > Running Your Business > Marketing and Lead Generation

The Best Niche Market for Advisors Today

Your article was successfully shared with the contacts you provided.

What You Need to Know

  • One hot niche market is… regular people.
  • Regular people owe a lot of money.
  • No matter what stock prices and interest rates are doing, you can still help people get their finances in order.

Every week we get calls from agents and advisors asking what is the best niche market? Where can I make the most money? Where can I find the best sales leads?

Our answer is always the same. If you want to be very successful in the financial services industry, then you need to learn how you can help middle-income families.

Believe it or not, middle-income families are where you can make the most money. If you look at the most successful businesses out there, they all serve middle-income families: Walmart, McDonald’s, Amazon, Microsoft, Apple, Google, Facebook, and the list goes on and on.

Two hundred years ago, John Jacob Aster, who was then the richest man in the world said, “If you serve the classes, you will live with the masses. But if you serve the masses, you will live with the classes.

Why are middle-income families the best niche market? First, it is because there are a lot more of them to work with. They make up 52% of the U.S. population. Only 1% of the U.S. population is considered wealthy… So, there are a lot less of them and a lot more competition. Plus, middle-income families are underserved. There are a lot more families that need and are looking for real help today. Most of the wealthy people out there don’t believe they need our help.

Consider: The reason why Dave Ramsey, Clark Howard, Suzy Orman, and others are so successful is because their message is focused on helping middle-income families. While we may not agree with all the advice, they give people, they are very successful because they help average people. It is their niche market.

Work The Middle-income Niche Market

If you want to be very successful today, then I highly recommend you work in the middle-income niche market just like all the people above. Middle-income families are the people that need your help the most. Learn how you can help those people to ‘find the money’ to spend, save, invest, insure, and plan wisely for the future.

It is time for all of us in the financial industry to help people to get better at managing their money. We need to help people to look at their future, so they will want to set better priorities. We need to help people to get out of debt so they will have the money to save for their future.

And I strongly urge you to look at the people you know ——your family, friends, neighbors, and clients. Because don’t they have the same problems with debt and setting priorities?

Send a letter to all of them about how you are helping families to get out of debt, so they will have the money they need to save for their future. Follow up with a monthly newsletter with articles that will help them to see the problems they face now and in the future. Then give them ideas on how you can help them to solve those problems.

Then you will want to invite them all to an educational workshop on the problems they face now and in the future. (Not about product or investments) And then let them know how you will help them to solve those problems. (online or in person)

The agents and advisors that we work with are setting sales appointments with 70% to 90% of the people they know, when they follow our simple marketing plan.

Note: When you are working with people you know it is much easier to set a sales appointment, especially now with the COVID-19 virus.

How You Will Make Money?

When you help people to get out of debt and set better priorities, the average commission per family is between $3,000 and $7,000. That is based on them getting all of the permanent life insurance they need now and in the future. Plus, buying disability insurance, annuities, and investments.

Consider: The average middle-income family has over $17,000 in credit card debt. And they are paying about 17% on that debt. So, their minimum monthly payments are about $2,890 per year. And that does not count what they pay on their auto loans. Just one auto may cost them $4,800 per year. So, if you can help them to get out of debt, then it’s easy to find over $7,000 to work with.

And that does not count the money you can help them to save on their cable, cell phone, auto insurance, and more. Which can add up to saving them $200 or more per month… $2,400 or more per year.

They may also be putting extra money towards their mortgage, into an IRA, or into a college plan, etc. So, with all of that you could have $10,000 or more money per year to work with to help families.

How You Can Help Middle-income Families?

We are great believers in using safe money concepts. We believe that permanent life insurance should be the foundation of all financial plans. Most people will need life insurance to replace their working income for their family if they die prior to retirement. And they will need life insurance in retirement to replace any loss of Social Security income or pension income when a spouse dies.

Permanent life insurance is also a great way to provide a tax-free income for families that they cannot outlive.

Once people have covered their basic life insurance needs for their family, then they can take risks with money they invest in the market. This is the best way to create a well-rounded financial plan for most families.

You don’t have to reinvent the wheel. A company like mine can help you to get off to a fast start working with middle-income families, with sales letters, newsletters, workshops, training, coaching, and sales support.

— Read The Top Secret to Closing Life Sales (or Any Sales) on ThinkAdvisor.

Jeremy NasonJeremy B. Nason, RFC, is the co-founder of the Insurance Pro Shop, an insurance marketing and sales resource center, and Found Money Management, a life insurance sales training system aimed financial professionals who work with middle-income families.


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.