There’s a bull market in financial services, and many people are using the optimism to start a career in the insurance industry. When first starting, there are many decisions to be made. Needless complications can delay or even prevent you from achieving success. This short guide will review the importance of choosing one vertical in insurance.
Become An Expert In One Niche
When you first embark on building your insurance empire, you’ll want to give your business plan a good deal of thought. Consider which products are natural complements and can be sold with the same licenses. For instance, specified illness and hospital indemnity policies are natural complements to health insurance. Selling Medicare or ACA plans can easily be combined with these ancillary products. This keeps you in one vertical.
Aim to be the expert in this vertical in your local area. If you can groove your bread-and-butter niche, you’ll accelerate your earnings and scale your reputation. Financial services depend heavily on reputation; the sooner you build your reputation as an in-demand expert, the sooner your sales take off through referrals. Marketing becomes easier when you’re known to be an expert, too.
Focusing on one vertical also allows you to hone your marketing and networking message. You’ll maximize sales growth without wasting your budget on distracting business ideas by remaining laser-focused.
If you dilute your brand by working in more than one vertical too early, you’ll delay this kind of positive synergy. Stay focused on your home niche early on and pave the way to later and more incredible successes.
Scale Quicker
Choosing one vertical in insurance will help you to scale quickly. Success breeds success, and since most of the insurance industry pays residual or passive income, scaling quickly in your primary field is critical. Sales lead to sales, and the more deals you have, the easier it will be to build an organization of selling agents under you. By focusing on your key area and succeeding in it, you’ll also be able to help your downline do the same, and a vibrant downline is a massive boon to scaling your business. This kind of exponential growth will make your organization highly valuable in a potential sale to a more significant entity or can allow you to begin strategic acquisitions of your own.
It’s Easier To Move Into Other Areas When You’re Already Successful In One Vertical
Consistent success in your initial insurance vertical will eventually allow you to expand into other business areas. If you initially focused on health insurance, you can also move into the life insurance space. When you have a big enough business book on the health side, you’ll have more and more life insurance conversations with clients and prospects; adding life insurance as a service offering will come naturally. Since you’re building on a successful operation, you can afford to grow your second niche slowly; you’re not dependent on rapid success in the new area. But now, you’ll have two growing profit centers, both of which pay passive income, which will put you on the path to generational wealth.
As you develop or re-develop your business, don’t forget the importance of choosing one vertical in insurance. This initial choice can help you lay the foundation for a profitable and rapidly growing insurance empire.