Selling mortgages is not rocket science ... The truth about nichesDave Hershmanniches
I can't tell you how many times a salesperson has come to me
after a speech and asked me about the viability and advisability of
marketing within a certain niche. The niche could be immigrants
from a certain country or those purchasing million-dollar
properties. Should I focus on these areas? In order to deliver a
valid answer to these inquiries, we need to take a step back and
make some important points about niches.
First, yes, you should have a niche. Having a niche will help
you establish your business in several ways:
- You must differentiate yourself from your competition. If you
are trying to be all things to all people, you will simply be
copying what your competition does. It is tough to present yourself
as different when you are, in fact, not being different.
- Typically, market leaders are known as experts. Once again, you
can't be an expert in everything. By identifying a niche, it is
both easier to gain expertise and to spread the word about that
- Marketing to the world is very expensive. Identifying a niche
makes it very easier to focus your marketing plan so it can be more
effective. For example, if you live in a metropolitan area of two
million people, but your niche is comprised of seniors looking to
downsize their homes, the number many be more like 200,000. It is
easier and cheaper to reach this market segment through others who
Second, there are no bad and good market niches. Some may be
hotter at particular times or in certain areas of the country. For
example, there is no doubt that the most recent and projected
growth of the immigrant population has created an opportunity to
focus on particular segments of homebuyers.
While it is important whether or not a niche is hot - for
example, when helping people with foreclosure situations when the
real estate market slows down - it is just as important to make
- The niche is sustainable in the long run. You don't want to
expend the effort to conquer a niche in order to achieve only
short-term gains. True market leaders are in the game for the long
haul. Get-rich-quick schemes almost never pay off, as all worthy
goals are achieved one step at a time.
- You fit well within this niche. Your fit is more important than
the niche itself. For example, if you are a 23-year-old rookie in
some segment of real estate, why would you be focusing upon
seniors? Do you even know many seniors?
It is this last point which is the most important. Niches can be
based upon property types, locations, purchaser characteristics,
transaction types and more. But in each case the key is a fit.
How should the niche fit your profile?
- Do you have experience or skills within this segment? For
example, do you speak the language of a particular immigrant group?
Or are you an experienced real estate investor if you are focusing
on that aspect of real estate?
- Do you have an interest in servicing this segment? Not everyone
is interested in serving a certain class of transactions or people.
If you are not really interested in this type of work, it is easy
to see why you will not be able to sustain the drive needed to
succeed in the long-run.
- Is your sphere of influence packed with prospects? If your sphere
is full of blue collar first-time buyers and you want to service
rich doctors, does that make sense? If you are changing your
sphere, how easily could you integrate this change?
You are achieving something greater than picking a niche. You
are focusing on a part of your life. If you must change your life
in order to serve this niche, you are much less likely to be
successful, unless you are very driven to make this change. Your
marketing plan may have to include the steps necessary to gain
expertise, such as learning languages or studying taxes. It may
mean joining different organizations. This is why your interest
level must be high.
Any changes to your life require a high level of energy, and if
you are not driven to make these changes, you are much less likely
to be successful effecting the changes. In other words, the niche
should come from within you instead of you finding a good niche and
asking, "Is this a good one?"
Dave Hershman is the leading author and a top speaker for
the mortgage industry with six books - including two best sellers
for the Mortgage Bankers Association
of America. His mortgage school is the only comprehensive
advanced curriculum in the industry. For a schedule of classes,
free marketing samples, speaking information and articles by Dave,
call (800) 581-5678 or e-mail email@example.com.