81% of financial advisors (Putnam Investments) use social media for business. However, most advisors are not going to use Snapchat, Instagram or musical.ly. FINRA and the SEC have published explicit rules and regulations on social media for the financial services community and most broker dealers take a conservative approach. Due to it’s professional appeal and audience demographics, the platform of choice is LinkedIn.
Almost 80% of advisors have used social media to get a new client. One advisor even landed a $70 million account just using LinkedIn. Successful advisors know how to use this robust tool to land new clients, improve relationships and impact their bottom line: revenue. Here are the secrets successful advisor use.
- Don’t Sell – People love to buy, but they hate to be sold to. As soon as some professionals connect with someone, they see dollar signs. Use social media to build and cultivate relationships. Social media (even LinkedIn) is still “social.” Don’t forget, the rules for selling securities through digital media (e.g. – websites, social media, message boards, etc) clearly regulate communication between clients and advisors. Tip: After connecting, try to provide value added resources, approved content and schedule introductory meetings.
- Complete Your Profile – Your profile begins with a professional picture (Raymond James). These should be head shots from the shoulders up. Don’t forget to smile and wear a suit. No pictures of you with your spouse, girlfriend / boyfriend or any other friend cropped out of the picture. Include your summary, education and experience. List honors and awards as a way to express technical competence. Include your personal hobbies and interests. These should show that you have a life away from work. It may be a way to connect with them on a personal level. Tip: Turn off notifications to prevent from spamming people with every profile change.
- Connect – There are two ways to look at connections: a) a close circle of people to stay in touch with, or b) a larger circle that allows for more networking opportunities. To build your network, look to immediate friends, family and coworkers. Association meetings and networking event are great ways to meet a diverse group of professionals. Even if they can’t help you right now, they may know someone later who could be an ideal client. Remember to send personalized invitations that remind them where you met and why you’d like to connect.
- Engage – Social media is not just a numbers game. Stay in touch with your connections. Birthdays, job changes and promotions are great reasons to reach out. Many people shy away from engagement because they don’t know how long it will take. Schedule 15 minutes in the morning and evening to respond to invitations, check status updates and post company approved information. Most large firms don’t allow advisors and wealth managers to endorse skills or give recommendations, so check company policies first.
- Don’t Quit Networking – Just because an advisor starts using social media, they don’t have to stop meetings, phone calls and emails. Social media is an additional leg to add to the stool of success for advisors. Use LinkedIn as a way to begin conversations and cultivate relationships. One advisor solely uses it as a way to meet people, schedule meetings and sign prospects up for his company newsletter.
Successful advisors know their success and growth is a function of the relationships they have built with their clients. Some studies have shown that millennials will inherit more than $30 trillion (Bloomberg) over the next 20 years. Therefore, to keep relevant, invest in the tools of the future and use social media.
Scientifically Speaking, of course…
