The idea of creating a niche to grow your book of business for insurance agentsis certainly not a new idea.

However, I often hear from insurance agents wanting to findtheir niche market, but unsure of where to start.

This is a common question as there is no perfect science toestablishing yourself as an insurance expert in a particular niche.While that may seem frustrating, discovering a niche market thatmay work for you only requires four key components.

If you can tie these four components together, you will be wellon your way to becoming an industry leader in a niche you love,understand and provides long-term opportunity.

1. Passion

Passion for a specific industry or type ofcoverage is how most agents begin the process of discoveringtheir niche. I agree that this is the most important aspect, butit’s not the only qualification.

Having passion or love for a certain industry or segment isvital because you will be spending most of your timeunderstanding, serving, and working directly inside this niche.

If your only reason to develop this niche is for commission, youwill soon be chasing your tail in an industry to you don’t enjoy orrelate with. That’s no fun.

So how do you even know what you are passionateabout?

Ask yourself a few question

The easiest way to find your passion is to ask yourself a fewquestions.

• What type of industry (restaurant, computer service, doggroomers, etc.) do you personally enjoy dealing with? Why?
• What types of business do your frequent or research mostoften?
• What industry or business segments has you the mostcurious?
• If you could go to a trade show event (not in the insuranceindustry), which one would you choose?

When you answer these questions you will soon discover specifickey industries and segments that stir your passion.

Related: Go outside to grow your agency'sbusiness

This is so important because if you follow my marketing strategy, you will be living andbreathing this industry or segment. You will have a burning want tohelp those within this niche. You will have enthusiasmto serve with excellence and give new insurance ideas andservices to help their businesses succeed. Now that is fun!

Although having passion for a niche is imperative, it iscertainly not the only reason. Let’s talk about the second aspectof finding and developing a niche in your insurance business.

2. Ability

Ability can come in various forms. Let me explain. Let’s sayyou are newer to the insurance industry, but spent 10 years runninga restaurant. Although you are not a restaurant insuranceexpert (yet), you are still certainly a high level expertwithin restaurant industry.

Remember with any niche it's just as important, checkthat, more important, that you understand theindustry you are serving as the insurance nuances that go with thatindustry.

Related: If everyone is a specialist, how can you bespecial? Learn 3 ways

Does this mean you can get away with being an insurance dunce?Of course not! You must learn the terms, coverages, and policylanguage.

Ability can also come from handling multiple accounts in acertain industry or segment. Maybe you write a few accounts withinan industry segment, but haven’t really focused your time in thismarket. If you enjoy that industry (passion), have access totop-notch policies (insurance markets), you may have alreadystarted a profitable niche.

The last aspect of ability is actually not having anyexperience at all. Now this may sound counter-intuitive, butlet me explain. If I hired a new producer with no businessexperience (I like challenges:), I would highly considerfinding a niche or two that would be their focus. This wouldbe in correlation with their passion, available markets andopportunity.

I would have that agent research the ins and outs of that nicheor segment both from insurance coverage and industry knowledgeperspective. I would make them write blog posts or social mediaupdates (approved first) about that niche and how they canserve them. Not only will they learn a great deal about thespecific coverages and insurance nuances, but they will begin todevelop credibility and deeper knowledge of that industryquickly.

Related: 6 myths about choosing an insurance targetmarket

In my opinion, most new agents try to learn everything all atonce. This often results in low knowledge retention and lack ofcredibility.

I’m aware that this approach may not work in all situations asthis process can take longer to development long-term momentum, butis well worth it.

The point with these examples is that ability can come invarious ways. You don’t have to be an expert on day one, but you dohave to begin to place yourself as the expert and push forwardevery day.

So you have passion for a specific industry or segment andability. What’s next?

3. Markets

You can have all the passion in the world and ability, but if youhave no markets to use, you have just wasted a considerable amountof time.

You need to partner with at least 2–3 quality insurance markets that canserve, support, and help you market your niche business.

I have seen agents go gangbusters with one insurance carrieronly to see that program disappear after a time. That is not onlysad, but it’s disastrous.

If your markets can see your passion and ability in a particularniche that they specialize in, you will have their support. If notright away, definitely after you write a few accounts withthem.

Accessing multiple markets

Accessing multiple markets also allows you to serve your niche at ahigher level. Not every insurance company program is the same andyou can design insurance programs with the insurance market thatbest fits your customer’s needs. You can’t be a one size fitsall insurance agent.

This goes well beyond the typical marketing approach ofinsurance agents were the key value proposition is you have accessto multiple markets. As a niche market expert in your industry orsegment, you will already be building relationships and havecredibility. Now you also will be providing the absolute bestinsurance company and coverage options designed specifically forthat niche.

That is where you can fully leverage the power of yourniche.

Passion, ability, markets . . . here is one last step before youstart collecting all those commission dollars.

4. Opportunity

Before you fully commit to your niche marketing strategy, you needto understand the opportunity and do your homework.

This requires asking yourself more important questions:

• How many potential customers are in this niche?
• What is my geographical reach?
• What is the average premium per client for these industries orsegments?
• Who are the key competitors, how much market share do theyhave, are they utilizing the same insurance markets?
• What is the best way to reach these businesses (locally,online, events)?
• What is the sales cycle for this industry or segment (fromattraction, to sales, to policy delivery and service)?

The answers to these questions will spell out the fullopportunity of working with this niche.

Bottom line

This entire process does take time and forethought, but is vital tomake sure you target a niche will excite and sustain you.

Find your passion, leverage or develop your experience, find thebest markets, and understand the opportunity.

Once you have these four satisfied, you are ready to jump in,become a trusted expert, have fun and make some money!

Related: 7 phases of the perfect clientfunnel

Brent Kelly is keynote speaker, trainer, coach, andcertified partner with the John Maxwell Team. He providesinspirational and purposeful business growth for insuranceprofessionals. You can connect with him at www.brentmkelly.com or email himat [email protected].