The Insurance Niche Poised to Explode
How to Find Your Niche Market
Among the least competitive, most profitable niche markets in Medicare, the one growing the fastest is predicted to expand from 4% to 12% of the market by 2030.
We’re super excited to bring you the first episode of our new Stay Paid feed made especially for professionals in finance and insurance! And to kick us off, we’ve got guest Tony Merwin, executive director of Avila Medicare Solutions and one of the founders of the 7,400-member Facebook group “The Insurance Syndicate. “
Among the many takeaways of Tony’s interview is a lesson in data-driven decision-making. In fact, we speak with him at length about his choice of niche market from among the numerous groups of Medicare-eligible recipients, how that decision was a matter of research and doing the math, and the niche marketing strategy he’s using to reach and convert prospects.
How to find a profitable niche market
There is a countless number of reasons why a business may not succeed, but one that spells certain doom from the beginning is failing to choose an appropriate niche market. This is why knowing how to research a niche market and what to look for is a critical first step in starting a business.
Tony did his research and discovered that his ideal client would be Hispanic, speak Spanish, have an income slightly above the threshold for Medicaid, and just turning 65 years old, which means they’d be new to Medicare and all it entails. He consulted government websites and census data to find out that the Hispanic community currently accounts for 4% of the Medicare-eligible population (about 60 million people) and is expected to reach 12% by 2030. He dug deeper to find zip codes with the highest population of Spanish-speaking residents and focused his marketing to target those areas.
For a Medicare insurance broker licensed in multiple states looking to grow his team, Tony’s selection of the Hispanic community met all the necessary criteria for a profitable niche, including:
- High demand and specific needs: A profitable niche market should exhibit a clear demand for products or services that address specific, pressing needs. The more urgent and particular the needs, the more potential the market has for profitability. In his interview, Tony describes why the Hispanic community meets this criterion and how he specifically crafts his marketing strategy to meet their needs.
- Limited competition: While a profitable niche market should have a sufficient customer base, it should also have less competition. Tony explains how a lack of competition for his audience allows him to establish Avila Medicare Solutions as the expert and leader, making it easier to capture a significant market share. This factor has also led to a higher profit margin since there are fewer brokers and agents vying for the same customers, and since his preference for telemarketing allows his marketing dollars to go further.
- Ability to reach and serve the target audience: There is no point in choosing a target market if you don’t have the ability to effectively reach and serve your audience. You need the means and channels to connect and communicate with them, whether through marketing, distribution, or other engagement strategies. As you might imagine, Tony conducts business in Spanish and English, heavily targets his niche with Facebook ads, meets face-to-face with prospects in places the Hispanic community visits, and even has a firsthand cultural connection from having family living in Colombia who contribute to the operation of his business.
There is much more to Tony’s interview that you’ll want to hear. In addition to learning about how to find a niche market and the tremendous opportunities within the Hispanic population for Medicare agents, you’ll receive a history lesson in the digital evolution of the insurance industry and a 90-day upsell strategy.
We hope you enjoy this episode and act on the advice Luke offers at the end. We’d also appreciate it if you took a moment to leave us a 5-star review and comment on Apple Podcasts. (We read them on air!) Thanks for listening!
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