Specialists Win More Referrals

A better approach for her would be to say to you, "I'm a life insurance agent who specializes in executive benefits, specifically for tradespeople. My passion, in my insurance practice, is to deliver executive benefits packages to owners and managers of contracting firms so that they're able to retire effectively with tax-protected investments and be able to sell that business."

This way, she addresses a specific need you may have, but she's not trying to assassinate all of your long-standing relationships. She presents herself as an expert in an area where you need expert advice, rather than a generalist with broad but superficial knowledge.

You may still not be convinced that narrowing your focus is a good idea. You may think that if you present yourself as a specialist, you limit your potential referrals and future business; that is, you can't do business outside your niche.

The truth is, whether you're a true specialist or a generalist presenting yourself as a specialist in order to facilitate easy referral, you're not limiting yourself by doing so. People are actually more likely to refer a specialist than a generalist.

If you're like most specialists, although you generally do only one or a few kinds of business, you still offer related products or services. Yes, you've narrowed down your business to the things you like to do or do best, or bring you the most profit, but you can do other things. And one good way to attract long-term business is by stepping outside your niche and taking on the occasional odd job that can win you a loyal customer for future business.

One last point: If you sell everything, you're not selling on value; you're selling on price. That makes you a provider of commodities. And that strategy can work for you -- but only if you're Wal-Mart(WMT Quote).