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It can take three years before a niche focus takes off for your financial advisory business. This article covers seven marketing steps for year one to ensure you lay a solid foundation for success.
In his article, “Building a Niche Advisory Business: It Takes 3 Years for People to Know, Like, and Trust,” Michael Kitces presented the idea that it “takes about three years for the exponential growth of a niche to really start to take off.” That has been my experience when working with financial advisors as well.
Why does it take so long to build a niche advisory business? Kitces says that it takes “time to be known, liked, and trusted in the first place, especially as a financial advisor in our low-trust industry of financial services.” But once you gain this trust and become the go-to person in a niche, the business takes off, and marketing becomes much easier.
How fast you will grow depends on your engagement within a niche. Kitces stated that advisors who already have some connection to or presence with a niche can grow faster, while firms brand new to a niche will grow slower.
To master a niche, how should you spend your marketing efforts over those three years? In this article, we’ll look at what to do in year one.
The first year of building a niche business should be spent creating a marketing foundation. In his article, Kitces said this is the year you should focus on becoming known and do business with anyone in your niche you can.
What does marketing in that first year look like? It means solidifying your message, establishing your expertise, and talking to everyone you can in your niche. Specifically, here are the steps you should take in your first year:
1. Define your niche
This step may seem obvious, but it is critical to get clear on who you serve. The more you “niche down” and become specific, the better. For example, “executives” is too broad. Niching down to “director-level and higher in the STEM field with equity compensation issues” will serve you better in the long run.
2. Craft your message
Develop a clear and specific message that resonates with your niche. Your message should directly address their greatest financial concern or highest financial aspiration. This message needs to be simple and consistently communicated on your website and in your elevator pitch, marketing materials, and online profiles.
3. Build a landing page
Once you have your message, develop a webpage dedicated to your niche on your existing website. If you are ready to go all-in from the start, then focus your entire site on the niche. This will serve as the hub for your future marketing efforts. It will also house all content that positions you as an expert. Finally, it provides a way for people to schedule appointments with you.
4. Blog
Position yourself as an expert as quickly as possible. The best way to do this is through a blog. Not only does writing force you to learn what you need to know to be an expert in a niche, but it’s also the best way to showcase the expertise you are learning.
Having this content on your website gives you credibility with anyone researching you online. You can also submit blogs to other publications or websites as guest posts to help get you in front of more people. Finally, if optimized for search engines, blogs can drive significant traffic to your website.
5. Build your network
Networking in the early days of your niche strategy accelerates the timeline for results. Tell everyone you know in or associated with your niche what you are doing. Ask them to make introductions to other people in the niche – not for referral purposes, but just to expand your network. And then add all those people to your email marketing list.
The goal is to meet as many people as possible as quickly as you can. You will learn so much and start to get opportunities you can’t even imagine exist. And hopefully, your efforts will help you get your first few niche clients.
6. Nurture your network
Staying top of mind with your niche community will yield enormous benefits in future years. Create an email newsletter featuring content specific to your niche (usually your blog). Continuously build a list of every contact, prospect, and client who fits into your niche community, and send the newsletter at least once a month (more often is better).
7. Present to groups
Try to find as many groups as you can to present to during your first year in a niche. Presenting to groups early on will open more speaking opportunities in the future.
Develop one presentation that addresses your niche’s primary financial concern or highest aspiration, and give them the steps to solving their problem or achieving their goal. Use this same presentation for the entire year, making tweaks along the way.
The groups you speak to don’t have to be formal. You can start by presenting to a handful of clients you already work with. Or maybe you just present to friends who fit your niche. Smaller groups are better in the beginning because they allow you time to work through and perfect your material.
Final thoughts
The first year of a niche focus will be the slowest and most frustrating, but stick with it. By staying on top of your year-one marketing plan, you lay a solid foundation for your niche advisory business. With your dedication and a solid niche, your efforts will be rewarded in year three and beyond, when your marketing becomes effortless because your ideal clients seek you out.
Kristen Luke is the president of Kaleido Creative Studio, a marketing agency that helps transform Registered Investment Advisors and their employees into experts in a niche, making it easier for them to stand out from the competition and attract ideal clients. Over the past 16 years, Kristen has consulted with hundreds of financial advisory firms and shared her marketing expertise via industry conferences and publications nationwide.
Read more articles by Kristen Luke
Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.
