The insurance niche is about to explode

Among the least competitive, most profitable market niches in Medicare, the fastest growing is expected to expand from 4% to 12% of the market by 2030.

We are extremely excited to bring you the first episode of our new Stay paid food designed specifically for finance and insurance professionals! And to kick us off, we have guest Tony Merwin, CEO of Avila Medicare Solutions and one of the founders of the 7,400 member Facebook group “The Insurance Syndicate. “

Among the many takeaways from Tony’s interview is a lesson in data-driven decision making. In fact, we speak with him at length about his niche market selection among the many Medicare-eligible recipient groups, how that decision was a matter of research and doing the math, and the niche marketing strategy he uses to reach and convert prospects.

How to find a profitable niche market

There are countless reasons why a business may fail, but the one that spells certain doom from the start is failure to choose an appropriate niche market. That’s why knowing how to research a niche market and what to look for is a critical first step in starting a business.

Tony did some research and found that his ideal client would be Hispanic, Spanish speaking, with an income just above the Medicaid threshold and just turned 65, meaning they would be new to Medicare and all that it entails. He consulted government websites and census data to find that the Hispanic community currently represents 4% of the Medicare-eligible population (about 60 million people) and is expected to reach 12% by 2030. He dug deep to find zip codes with the largest populations of Spanish-speaking residents and focused its marketing to those areas.

For a multi-state licensed Medicare insurance broker looking to expand its team, Tony’s choice for the Latino community meets all the necessary criteria for a profitable niche, including:

  • High demand and specific needs: A profitable niche market must demonstrate a clear demand for products or services that meet specific, pressing needs. The more urgent and specific the needs, the more potential the market has for profit. In his interview, Tony describes why the Hispanic community fits this criteria and how he tailors his marketing strategy to meet their needs.
  • Limited Competition: Although a profitable niche market must have a sufficient customer base, it must also have less competition. Tony explains how the lack of competition for his audience allows him to establish Avila Medicare Solutions as an expert and leader, making it easy to capture significant market share. This factor has also resulted in a higher profit margin because there are fewer brokers and agents vying for the same clients, and because his preference for telemarketing allows his marketing dollars to go further.
  • Ability to reach and serve the target audience: There’s 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 can imagine, Tony conducts business in Spanish and English, heavily targets his niche with Facebook ads, meets face-to-face with potential clients in places the Hispanic community frequents, and even has a direct cultural connection from family living in Colombia, which contributes to the functioning of his business.

There’s a lot more to Tony’s interview that you’ll want to hear. In addition to learning how to find a niche market and the vast opportunities within the Hispanic population for Medicare agents, you’ll get a history lesson in the digital evolution of the insurance industry and a 90-day strategy to increase sales.

We hope you enjoy this episode and act on the advice Luke offers at the end. We would also appreciate it if you could take the time to leave us a 5-star review and comment for Apple Podcasts. (We read them on air!) Thanks for listening!

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.

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