MRL #020- How To Pick Your Niche

One of the biggest mistakes I made early on as a Producer was that I pivoted.

A lot.

One day, I chased aviation... the next auto dealers... the next landscapers.

You name it and I probably chased them at some point in my first 3 years.

I learned a lot in that time. Mainly, who to chase and who not to chase.

My failure can be your teacher, though.

Here's my 5 question framework for picking your first (or next) niche:

1. Are They Big Enough?

The first question you should always ask yourself when deciding on a niche is, "are they big enough".

Or think of it this way, "are they worth my time?"

For example, let's say you're looking at subcontractors.

Does the average subcontractor in your area meet your agency's minimum? If your agency doesn't have a minimum, is the average subcontractor in your area worth your time?

Think of your book of business like your golf bag. You can only carry so many clubs, right?

The same is true with your book of business. Most mid-market agents can only handle 50-75 clients at a time.

Is the average subcontractor in your market worth taking that limited spot in your golf bag (book of business)?

I'm not here to decide for you. Only you can make that call.

2. Are There Enough Of Them?

Next, you need to determine whether there are enough of them in your area.

Again, using the example of subcontractors... "are there enough subs in my area worth chasing?"

You don't want to niche down into an industry if there's only a handful of them in your area. You will exhaust your list quickly and be left twiddling your thumbs. Then, what?

Instead, find a niche where you can build a list of 300-500 names.

If you're in a rural area consider broadening your geographic area to allow for more targets.

3. Are There Lists Of Them?

Next, you need to determine how easily you can find a list of them.

Ask yourself, "are there lists of subs I can find?"

Best case scenario, your agency has some sort of database you can use like MiEdge or ZoomInfo to find a list of names using SIC codes.

Other good options are associations or groups you can join and pull member lists from.

Worst case scenario you can always use Google.

I've used all 3. And I've had success with all 3.

Use what you have.

Again, shoot for 300-500 names.

4. Do You Have An Advantage?

Next, ask yourself "do I have an advantage with subs?"

Having an advantage isn't mandatory, but it's super helpful if you do.

Maybe you have an exclusive market no one else has. Maybe your agency has expertise writing subcontractors. Maybe you come from a construction background and you speak the language.

All are viable "advantages".

Again, not necessary. But, helpful.

5. Are They Your Kind Of People?

Finally, ask yourself "are subs someone you'd want to grab a beer with? Or play a round of golf with?

You're going to be spending a lot of time with them in person and on the phone. Better, that you get along with them than not.

The cool thing about our business is we get to choose who we work with.

Don't over look this important distinction.

Who you choose to work with matters.

A lot.

So, choose wisely.

Ok, That's It For This Week

Hopefully, this clears up some of the confusion around choosing a niche.

Find a niche that checks all 5 of these boxes and you're ahead of 90% of other Producers.

See you next Sunday.

Kick ass take names,

Maximus F. Revenue IV