Advisor Today - November/December 2015 - (Page 59)
sales & marketiNg
By Bryce Sanders
Cultivating the African American Market
If you want to go after this lucrative market, start by taking the steps outlined in this article.
arget marketing makes terrific
sense when you are part of
the market you are trying
to cultivate. Suppose you learned
about a market segment with $1.1
trillion in spending power in 2015.
It's on an upward trend to reach
$1.4 trillion in 2019. If it were a
country, it would be the world's
16th largest economy. Best of all,
you have access to that market.
That market is the African
American community in the United
States. It is young (median age 32),
highly influential and represents
about 13 percent of the U.S.
population. From 2000-2009, its
share of more than $75,000 peryear-income households grew by 60
percent, faster than the rest of the
Ariel Investments has conducted
several annual surveys of attitudes
towards investing within the
African American community.
Schwab partnered with them
for several years. Unlike the
broader U.S. population, African
Americans don't have a tradition
of stock market investing dating
back generations. According to a
survey conducted by nerdwallet.
com (2013), about 81 percent of
Americans overall don't know the
type of account to open in order to
trade stocks online. An even more
compelling statistic comes from The
Economist in 2014: "80 percent of
investors seek professional advice."
African Americans want
the same things all Americans
desire; yet, they often want them
with more intensity. The Ariel
studies over previous years reveal
interesting data. For example, while
everyone wants the best education
possible for their children, African
Americans will forgo saving for
their own retirement to focus on
their children's education. They
often see retirement savings
Build success first by helping people of all ages and
from different backgrounds.
as providing for their parents'
retirement comfort today instead of
their own retirement in later years.
They often view leisurely retirement
as a luxury.
For years, African Americans
have considered real estate
preferable to conventional investing.
This changed in 2010, when 41
percent of them saw a greater
opportunity in the stock market, as
opposed to 30 percent in property.
Figures for white investors were
55 percent versus 27 percent,
How does the African American
agent or advisor start to build
his brand within his cultural
community? To begin, he can:
1. Join local community
organizations. There, he will
meet influential people and
enhance his visibility.
2. Network in business and
professional groups. When
attending events, one African
American advisor asks his
friends: "Is there anyone here you
think I should meet?" They get
the hint and make introductions
3. Build credibility by giving back.
The Nielsen Organization reports
that 40 percent of African
Americans expect the brands they
buy to support social causes.
4. Educate by seeking speaking
opportunities. Find opportunities
with local organizations to speak
or hold your own seminars.
Allow people to get comfortable
5. Cultivate accountants, pastors
and lawyers. These individuals
often know people who might
need help. Become one of their
6. Become an expert. Assuming
your firm is in agreement, write
a column for your community
newspaper. Reporters need
experts to explain complex
concepts in layman's terms. Being
cont'd on page 60
November/December 2015 | ADVISOR TODAY 59
Table of Contents for the Digital Edition of Advisor Today - November/December 2015
From the Editor
In Step with a Winner
Finding Success in the Chinese-American Market
Dealing with Client Confidentiality
Hashtag Your Way to Social Media Relevance
Starting the LTCI Conversation
From Term to Perm
Protecting the Downside with Allocation Adjustment
Jules Gaudreau: A NAIFA Success Story
NAIFA Takes NOLA
Helping Clients Cope with Market Volatility
NAIFA Government Relations
Working with Single Women
Financial Planning FAQs of Small-Business Owners
Three Retirement Conversations to Have with Clients Today
The Advent of Robo-Advisors
Moving into the Retirement Space with 401(k) and 403(b) Plans
Moving the Sales Process Forward
Cultivating the African American Market
The Lighter Side of LIfe
Advisor Today - November/December 2015