During a Beyond Insurance class, Nick, a new producer from the Southeast, expressed his interest in making art museums his niche, citing his passion for art. However, when questioned about the number of art museums in his mid-sized town, he admitted there were only two, but emphasized there were nine within an hour's drive, aiming to connect with the curators of all nine of these establishments. While Nick's enthusiasm was admirable, Beyond Insurance advised him that nine potential leads were too few, and his chosen niche might be overly narrow for sustained success.
So, how do you go about picking the right niche? Here are five criteria to consider.
By carefully considering these criteria, you can pinpoint a niche that aligns with your strengths and interests while meeting the unique needs of your target clients. Remember, selecting a niche doesn't mean limiting yourself – it's about focusing your efforts to become the go-to expert in your chosen niche. So, take the leap, embrace your niche, and watch your insurance career soar to new heights.
Quantity is important in choosing a niche. When you first decide on your niche, aim for a substantial number of potential clients within your chosen niche – think 50 to 75 as a minimum, but don't hesitate to go up to 100 or more. The greater the pool, the more opportunities you have, preventing the risk of relying on a handful of clients who may be content with their current insurance arrangements for years.
Allow the niche to unfold organically, observing how your efforts filter out and identifying what resonates best with you. Embrace the potential for geographic expansion, breaking free from self-imposed limitations to truly capitalize on your chosen niche's opportunities. If your chosen niche is too small, think of a related niche that you could also specialize in.
For example, in Nick’s case, he could expand his niche by adding historical builds and monuments, cultural institutions and galleries, other types of museums (science, discovery), libraries and archives, and even historic homes and estates that serve as museums. All of these properties would need coverage for preservation, restoration, and liability. Nick could become an expert in the unique risks associated with maintaining and preserving these properties.
- Evaluate the obtainability of a list associated with your niche through NAICS codes and relevant associations. Delve deeper into these niches by actively participating in platforms like Meetup.com, LinkedIn, NextDoor, and Facebook groups, forums, and local events. Building relationships within these communities can be instrumental in establishing your expertise.
- Ask yourself: Is it worth it? Consider your capacity to manage clients effectively and set a target that aligns with your goals.
- Assess whether you or your agency possess a competitive advantage within the chosen niche. Leverage any unique strengths, whether it's your agency's affiliations, your personal industry background, or exclusive markets. Collaborate with experts within your agency to enhance your knowledge and rapidly become an authority in your chosen field.
- Evaluate whether the individuals within your chosen niche are enjoyable to work with, as building strong relationships is crucial in the insurance industry. Can you envision having coffee or lunch with them?
Statistics show that the most successful producers specialize in a niche. Remember, you can still welcome one-off referrals while reaping the benefits of a focused and strategic approach. So, take the leap, explore your niche, and let your insurance career flourish.