Skip to main content

Should You Take On Clients Outside Of Your Target Market?

We all have a specific market that we would like to aim our attention to, be it business owners, single moms, realtors, or some other group of people. For me, as an example, I prefer working with small business owners, but I also do a lot of work with realtors. I didn't go looking for them, but we just have so many realtors in my area that it couldn't be helped.

There are times, however, when you find yourself working in a totally different market, That's fine because in the end a sale is a sale. I'm not going to turn away business because the client was not in my business plan. And neither should you.

When you do have someone approach you that you had not planned on helping, it's important to remember they may have different needs and budgets than what you are used to. Your usual banter may not be applicable or appropriate when talking to a new group of clients either.

A good example of this is when I recently found myself getting referred to several school employees, from the principal to the custodial staff. These were people who were getting most of their insurance from various benefits companies, but someone had put the bug in their collective ears that they needed insurance "outside of work". It was a real eye opener in a lot of ways.

First of all, a lot of these people had side hustles that were interesting. In one instance, a history teacher raised a special kind of hens that laid colorful eggs. When school was not in session, he dedicated his time to this business, which, according to him, was very lucrative.  

It also made sense that most of these people had exit strategies when it came to working in the public school system. The low pay and stress that came with the job incentivized them to start businesses they could continue after leaving the school. 

After a few weeks of meeting with many teachers, cafeteria workers and administrative people, I found that their needs and budgets were all different. This forced me to learn about new and different products other than I was used to offering because those products would not fit the bill for these people. In a way it was actually kind of fun to do something in my industry (insurance) but was different enough to keep it interesting.

I know realtors who insist that they only deal with upscale neighborhoods and clients making six figures. When a small quick sale falls into their lap, what are they going to do? Will they turn it down because it's not in their market, giving it to another realtor, or will they do it themselves and make a quick commission? After 2008 when realtors were starving, they would have been grateful for any client, no matter what size the home. 

This reminds me of a guy who bought a very successful insurance agency in a small town. He told people he was going to change the agency to only deal with higher income clients. The employees tried to explain to the new owner that the town didn't have enough "high dollar" people to sustain the business on their own, but he wouldn't listen. After a year he shut it down. 

The moral of this is that there is nothing wrong with working out of your market. When this happens, be grateful and consider it an opportunity, not a problem or obstacle. You never know who may be handing out referrals when the sale has gone through.

Chris Castanes is a professional speaker who helps sales people succeed through workshops and humorous presentations. He's also the author of "You're Going To Be Great At This!", a humorous look at sales. For booking information, click here. He's also the president of Surf Financial Brokers selling life and disability insurance in several states.

Comments

Popular posts from this blog

The Telemarketer's Leads - A Dumb Story

For a brief few months I worked as a telemarketer for a small firm owned by a young married couple. The husband was a bit of a hot head and kind of a jerk on occasion, but his wife was nice and had to put up with the guy.  One of their clients was a mobile home company that wanted people to come to the lot and see how awesome their singlewides and doublewides were. As telemarketers we offered incentives like a cooler and camera (back when they weren’t part of your phone) and other assorted giveaways. We got a small commission if we could book the client. My coworkers and I would call from a list of leads that our employers had purchased from someone. These leads were supposedly “qualified” ahead of time, meaning that they had been vetted to meet the needs of the client, the mobile home company. Unfortunately, most of the leads were useless. The people we spoke to didn’t live in the right geographical areas or their incomes were too low.  “Why aren’t you guys closing anyone?” t...

How To Prevent (Or Lessen) Momentum Killers

Have you had a great sales run, with the wind at your back as you continue to sell and make money, only to have some event or holiday slow down your momentum? It's happened to all of us. I compare it to running at full speed down a field, and out of nowhere comes a patch of mud and tar, designed specifically to slow you down and make you work harder.  An example of this is the holiday season. For some industries, the end of the year is a great time to make those last minute sales and thin out inventories. But for others, it can be horrible. Let's face it, the holidays are about spending money on fun stuff, like electronics and clothes. No one is even thinking about buying insurance, unless they have to.  "I can't spend any money on life insurance because I have to buy Christmas gifts," is what I hear each year. (Nice priorities, by the way!) Having been through this for a few years I now plan ahead. Instead of beating my head against a wall trying to get people to...

My Short Post On Social Media

Are you leveraging social media to help your business? Are you posting daily and creating content like the "experts" say to do? Most importantly, are you getting results? I've tried using most of the more popular platforms for my insurance business, as well as my writing and speaking business. To say the results are "mixed" would be generous. This may be because I really haven't invested much into advertising on these platforms.  The way I see it, when Facebook, for example, allows me to set up a free page for my business, that is like a "free trial" to see if I can get any interest in my product or service. After nearly 15 years of this trial period, I have garnered little to no business.  One can come up with two arguments here. The first is why would you throw money at advertising when you haven't seen any returns. The other side is that "you could have done better if you had quit being a tight ass penny pincher." Fair enough. But ...