Streamlining Multiniche Approaches for Large Advisory Firms

When a large advisory firm decides to implement a multiple-niche approach, it's important to set clear guidelines for each niche. First, every niche should align with an overarching theme. For example, if the overarching theme of the company is retirement planning, then each niche should be focused on retirement planning (e.g., Retirement Planning for Federal Employees, Retirement Planning for Business Owners).

Second, the firm must ensure that all niches fit within the company’s fee structure. If the company charges based on assets under management (AUM) and has a minimum account size of $1 million, then every niche must adhere to this standard. Changing the fee structure or adding new options should be done strategically for the entire firm, not just for one niche.

Having guidelines helps streamline a multiniche approach by ensuring that all niches reinforce the company’s core mission and messaging while maintaining operational efficiency.

Strengthen Your Bonds with the 7-11-4 Rule

To strengthen your bonds with people in your niche through content marketing, apply the "7-11-4" rule from Daniel Priestley's book, Oversubscribed: How to Get People Lining Up to Do Business with You. This strategy is based on three key ingredients for forming bonds: time, interactions, and locations.

• Time: Have your audience engage with your content for at least seven hours. Research shows that this number moves relationships from feeling like acquaintances to feeling like friends.

• Interactions: Engage in at least 11 interactions. Frequent exchanges (e.g., marketing emails, videos, social media exchanges) build connections, increasing the likelihood of converting interactions into appointments.

• Locations: Engage your audience in at least four different locations. Seeing people in varied settings (e.g., social media, email marketing, online events, in-person events) strengthens bonds and builds trust.

By maximizing these three elements, you create deeper, more meaningful connections with your audience. This approach helps you stand out, fosters trust, and makes you part of your niche's tribe.

Source: Oversubscribed: How to Get People Lining Up to Do Business with You, Daniel Priestley, page 31.

Stay Accountable: Keep Your Marketing Plan Visible

If you want to ensure your marketing plan is executed effectively, keep an accessible copy in front of you and review it regularly, ideally daily or at least weekly. Whether you prefer a printed copy on your desk or a digital version on your tablet, like an iPad or ReMarkable, having your plan readily available serves as a constant reminder of your commitments. This practice keeps your goals and strategies top of mind and helps you stay accountable to your daily, weekly, and monthly marketing routines. By consistently revisiting your plan, you reinforce your dedication to achieving your marketing objectives and can quickly adjust your actions as needed.

Strategically Schedule Your Content for Optimal Engagement

Plan your content around the calendar. It's important to post consistently, especially when your audience expects it. However, there are specific dates, like holidays, when engagement typically drops. Let the calendar guide your content strategy. Reserve your best material for when you're likely to have the most eyeballs, and opt for filler content on days when capturing people's attention is more challenging.

How to Use Social Media Most Effectively

I'm often asked how to use social media effectively. The key is active engagement. While it's important to post content, you’ll see real progress when you involve yourself more deeply.

Comment on others' posts, engage with your connections through comments and messages, and take the time to contribute to groups related to your niche. Engaging in these ways not only increases your visibility but also strengthens relationships.

Originally termed “social networking,” these platforms were designed for people to connect, share information, and build communities. Although now referred to as “social media” due to the emphasis on content creation, the fundamental aspect of networking remains its most valuable purpose.

The Best $20/Month You Can Spend on Marketing

If I had only $20 a month to spend on marketing, I would invest it in a paid subscription to ChatGPT. This tool can help you craft blog posts, social media content, email campaigns, video scripts, and PowerPoint presentations. It can assist with search engine optimization, brainstorming ideas, and conducting market research. While it may not create flawless content every time, it will enable you to produce marketing content and campaigns quickly and efficiently. Plus, it can generate basic graphics. With ChatGPT's assistance, you can maximize your marketing efforts, making it the best $20 you can spend each month.

Creating Service Names That Speak to Your Niche

When naming your services, make them resonate with your niche by using specific, relevant language and terms they recognize. For example, for multi-generational families, instead of “estate planning,” use “Family Legacy Planning.” For federal employees, instead of “retirement planning,” use “FERS Retirement Planning.”

Ensure names are clear, descriptive, and concise. This approach not only makes your services more appealing to your niche but also positions you as an expert who truly understands and caters to their specific needs.

Maximize Your Summer for Fall Success

Summer is an ideal time for financial advisors to prepare for their fall marketing efforts. With clients typically taking vacations and the pace of business slowing down, advisors can take advantage of this quieter period to plan and handle much of the heavy lifting for fall campaigns before September.

Start by reviewing your marketing efforts and assessing what worked well in the first half of the year and what you would like to do differently in the second half. Use this time to tackle any marketing projects you’ve meant to get to or do the legwork for campaigns and events planned for the fall.

By dedicating time in the summer to plan and prepare, you can hit the ground running in the fall with a strong marketing push for the rest of the year. This proactive approach ensures you're ready to make the most of the busy season ahead, positioning yourself for success.

Breaking Through the Capacity Crossroads

The following tip is adapted from the article “How Advisory Firm Owners Can Overcome the Marketing ‘Capacity Crossroads’ and Options for Continuing (Sustainable) Growth” by Sydney Squires posted on Kitces.com on May 27, 2024.

In the early years of establishing an advisory firm, advisors must aggressively market themselves through time-intensive methods like networking, asking for referrals, managing social media, and cold calling. At this stage, advisors usually have ample time to focus on these efforts.

As the firm grows, advisors face the "capacity crossroads," where managing the firm and serving clients consume their schedule, hindering their ability to maintain effective marketing. Initially effective tactics, such as networking, become time-consuming obstacles as the advisor's time becomes more valuable. To address this, advisors have three options:

1. Automate tasks like scheduling social media posts or sending meeting reminders.

2. Delegate tasks to employees, contractors, or agencies to reduce the time burden.

3. Eliminate non-essential tactics to free up time and resources.

By shifting to marketing strategies that require less of their own time, advisors can continue to grow their firms sustainably while avoiding burnout.

How to Define Your Niche

The following tip is adapted from the article 10 Factors to Determine If Your Potential Niche Is Really Viable (And How to Finetune If Necessary) posted on Kitces.com on May 20, 2024.

Defining your niche involves moving beyond general demographics (e.g., women or pre-retirees) and occupational groups (e.g., business owners and doctors). Instead, drill down to the specific group of people and address the one pressing problem that compels them to seek specialized financial advisory services. Use the formula One Client + One Problem:

• Attorneys (one client) who feel trapped in their careers and want to quit (one problem)

• Tech company employees (one client) exercising stock options post-IPO (one problem)

• Foreign-born citizens and residents (one client) needing to plan for their own finances and those of their family back home (one problem)

Using this formula provides a clearer picture of the niche you want to serve and gives you more direction on how to market to them.