According to Treasury Department statistics, only 5.9 percent of the U.S. population — about six and a half million households — have annual incomes in excess of $150,000. Only 6 percent! And yet most agents or advisors are singularly focused on selling and marketing to this relatively elite demographic, which of course makes it highly competitive and limits your sales potential.
And with so much competition, these prospects have become increasingly more difficult to approach and engage, and even more resistant to conventional selling and marketing like seminars and advertising.
Middle income markets
However, 31 percent of our population — those with household incomes between $60,000 and $150,000 — represent 35 million prospects — a market almost five times bigger. And the next 40 percent of our population
, with an average income of $38,663, represents 46 million prospects that account for #1.8 trillion of earnings.
These two sectors of American households represent 71 percent (that's 81 million prospects) and comprise a relatively untapped market with little or no competition.
Smaller insurance sales – but they're easier and more abundant
This market is too often neglected or grossly underserved, simply because they don't have the discretionary income to pay big premiums or the liquidable assets on which to pay substantial management fees. But they need insurance products just as much as the affluent market does. They might not have the discretionary income to overfund an indexed UL policy
, and they certainly don't need to insure expensive cars or homes, but these people do need major medical, term life insurance and disability income coverage. And these products pay you well and generate volume.
What's more, middle income households
(individuals and families) are much more likely to refer you to their own friends, neighbors and coworkers, which makes perpetual prospecting in this market easier, too.