I didn’t intend to write an article about niches for financial advisors. I expected to conduct a search for financial niches and find a list for a client. But I couldn’t find such as list! Amazing. Why? Shouldn’t every financial advisor (and business owner) nitch?
Plus my previous niche marketing research had suggested that niching originated in the financial sector. Some of you might not remember but there was a time when as an individual, you went to a personal bank for your needs and had a personal banker who knew you and visa versa. If you were a business or CEO of a corporation, you might have also gone across the street to a commercial bank. Brokerage firms also came in two flavors: retail houses or institutional firms.
Looking at Niches
Niches are very broad segments of who your ideal clients are. It’s about a community of people or businesses you’ll work with … not their about AUM (although some advisors advertise that they work with affluent or high net worth clients). Their AUM or the revenue they generate yearly comes into play — after all, you’re in business, but be open to niches that describe a community of people. Their AUM or generated revenues can easily be part of the step after you choose your niche — creating an ideal client profile
I recommend choosing a niche based on system I developed called the 3 P’s of Niching: passion, population, or products/services.
Niches can be categorized by general characteristics such as an occupation, a passion/hobby, or by the type of product or service consumed. In many cases, the categories overlap. In this step, “finding or redefining a niche” has little to do with who can afford to pay you what you’re worth. Now the secret to niching is NOT choosing just one of the 3 P’s as you choose a niche. Find your niching sweet spot by choosing a niche based on the intersection of the 3 P’s.
Below is a representation of the 3 P niches for financial advisors.
NOTE: This article started out with 67 niches in 2012. It is updated once a year. Last updated 01/2016. If I missed your niche post it in the comments section.
Population Characteristics Population may be a “person” or a “profession”.
- Athletes
- Couples
- Corporate Executives, Managers, Supervisors or Employees
- Men/Male
- Women/Female
- Retirees
- Business lawyers
- Divorce attorneys
- Divorced Women
- Divorced Men
- Military
- Defense Industry
- Academics/Teachers/Educators/Professors
- Widows
- Widowers
- Dual Income Families
- Single Income Families
- Families taking care of their Parents
- Industry-specific professionals (executives, CEOs, etc.)
- Professional couples with children
- Unmarried women professionals
- Physicians specializing in a particular human or animal practice area
- Older women married to younger men
- Older men married to younger women
- Partners in a second marriage, with or without children
- High net worth individuals or couples
- Children of wealthy clients
- Nonprofit organizations
- The Affluent
- The Super Affluent
- Specific religions
- Specific nationalities
- Specific sexual orientation
- Scout leaders
- Unemployed with 401K plans
- Middle market executives
- Women CEOs
- Registered Investors
- College Alumni
- Members of a club you’re a member of
- Estate attorneys
- Franchise business owners
- Under-40 business owners
- SAHM
- Business owners in a specific industry or in a specific stage of their business (rapid growth, 20 years from retiring, etc.)
- Chefs
- Family-owned businesses or corporations
- Restaurant Owners
- Individuals who own animals
- LGBT individuals and/or couples
- Families with a disabled child or children
- Families with children who have a specific disease
- New Parents
- Parents of school-age children
- Special needs parents
- Empty Nesters
- People who have had serious personal injuries
- Athletic Coaches
- Professional Coaches
- Therapists
- Adventure Enthusiasts
- Accountants
- Advertising Professionals
- Architects
- Art Directors
- Bankers
- Computer/Technology Specialists
- Consultants
- Controllers
- Artists
- Engineers
- Engineering Companies
- Environmental Planners
- Fitness or Weight Loss Instructors
- Fund Raisers/Corporate Developers
- Headhunters
- Health Care Administrators
- Human Resource Managers
- Interior Designers
- Internet Consultants
- Management Consultants
- Manufacturing Companies
- Marketing Professionals
- Media Executives
- Museum/Cultural Administrators
- Physicians
- Real Estate Executives
- Freelancers
- Franchise Owners
- Sales Executives
- Systems Analysts
- Traders (at firms or home traders)
- Wall Street Executives
- Web Designers
- Writers
- Parents of Adopted Children
- Parents or individuals with ADD/ADHD, Asthma, Allergies, Autism, Cancer, Diabetes, etc.
- Unions
- Clergy
- Co-Parenting Parents
- Interracial Couples
- Holistic Couples
- Couples dealing with infertility
- Grandparents
- Individuals who built their own homes
- Farming/Ranching
- Hospitality
- Individuals/couples dealing with a loss
- Nurses
- Politicians
- Public Relations Professionals
- Real Estate Professionals
- Singles
- Social Media Professionals
- Veterinarians
- Socially Conscience Organizations
- Christians
- Horse Training
- Dog Owners/Showing/Breeders
- Your Countries Residents Who Currently Live in a Specific “Other”Country
Passion/Hobby This is a specific area you can connect with clients such as you have a passion you share with a majority of your clients such as:
- Golf
- Boats
- Wine enthusiast
- Football fan with season tickets
- Other sports
- Fishing
- Travel
- Home beer brewers
- Quilters
- Chess players (or other games)
- RV-ers
- Pet owners/breeders (dogs, cats, snakes)
- Chocolate lovers
- Car restoration/collectors
- Coin collectors
- NASCAR fans
- In Recovery Programs
- Bird Owners/Breeders
- Gardeners
- Cat Owners/Breeders
- Christians
- Horse Training
- Dog Owners/Showing/Breeders
Product/Service Consumed
- Wealth management
- Socially conscience investments
- Life planning
- Fee-based financial planning
- Business planning
- Business succession planning
- 401K retirement planning
- Tax reduction strategies
- Insurance
- Self-directed plans
- Education/college planning
- Personal financial planning
- Profit sharing
- Retirement distribution planning
- Estate planning & conservation
- Investment management planning
- Socially responsible investments
What Niches Should You Stay Away From?
You may have noticed a few niches I’ve left off my list. Specifically, Baby Boomers, Generation X, Generation Y (The Millennials) and Generation Z. Why? They’re very much in vogue but think about it. Thirty years from now, a firm that niched to work with boomers will have how many clients? And the first will be worth how much? If you’re currently branded in any of these four groups, create a sub-niche you can use in your branding, too. Or do what one firm who works with XY’ers. oXYGen Financial (as you see in their name) highlights their niche in their firms name. But their brand will also outlast the test of time.
Niched Website Examples: Most financial advisors’ websites aren’t niched. They very general in verbiage, photos, and design. If you don’t make your best clients important on your marketing materials, you’ll attract more “clients from hell”.
© 2012 Elevating Your Business. Updated 2013, 2014, 2015, 2016 Maria Marsala is a Business Advisor to Financial Advisors growing firms with teams. Advisors seeking her help are looking to simplify business, advise more, and live better Maria has been published in Financial Planning Magazine, Investment News, RIA Biz, , Dow Jones, The Street, Entrepreneur Magazine, and numerous other trade journals and magazines. She’s the author of more than two hundred articles and speaks internationally on practice managment topics.
