Web 2.0 and the use of online social media is on the rise within the industry. "Online Marketing Methods: Planner Best Practices," a white paper published in May by the Denver-based Financial Planning Association, states that 43% of advisors reported using social media/online networking sites.
In addition, 32% of advisors said they used audiocasts and webcasts, while 17% reported they used blogs in their practices. Sixty percent of advisors who participated in online social networking generated at least 16 leads per year. The results were based on responses from 331 FPA members.
This quick and fun video by SocialGloo makes the point in 90 seconds: Advisors who use Web 2.0 and Social Media strategies online can build buzz and generate awareness that compliments their traditional networking and marketing strategies.
Think your compliance department won't allow any social media use? Here's some good news:
Earlier this week, FINRA issued a 10-page notice that provides guidance on the use of social media sites. Many registered reps and hybrid advisors have held back on social media use because until now the water was still pretty muddy. Regulators have been scrambling to keep up with the rapidly evolving landscape but FINRA has come out with their guidelines (released January 24, 2010) in fairly good time.
You can find the FINRA notice online.
While every compliance department will have its own interpretation and set of rules, I believe that the new FINRA notice will help firms create reasonable policies. For registered representatives, the FINRA notice has some good news for in it, most notably:
- Static vs. Non Static Content – FINRA's distinction between "static content" and "non-static content" now makes social media a viable option for many advisors. The new guidelines say that static content, like other marketing materials, requires prior approval of a registered principal, while non-static content (i.e. Twitter, wall postings on blogs, discussion boards, etc.) does not require prior approval.
-Third Party Posts – Overall, third party posts on social media sites established by advisors are not considered part of the firm's communication with the public, which opens the door for advisors to consider LinkedIn, Ning, Groupsite, blogging, Facebook pages, etc – although FINRA does strongly suggest monitoring.
There's still a lot to consider re: recordkeeping and supervision but more and more firms will be looking into enterprise-wide solutions such as SocialWare to help them open the door to previously feared social media tactics.
Here's what to be thinking about now.
Weave Web 2.0 Into Your Marketing Plan
Many financial advisors are A-type, results-driven people. Some even have what I call "bright shiny ball syndrome" – anytime a new bright shiny ball floats by, they are distracted by it. Others think that there is some "magic fairy dust" that will suddenly produce new, ideal clients. One thing is for sure: Working on impulse – especially when it comes to Web 2.0 (and even if compliance says certain elements of it are okay) – is problematic.
Creating a comprehensive marketing plan (one that incorporates Web 2.0 and social media tactics) is the best way to start. Online networking and digital communication should supplement – not replace – your traditional means of networking.
Nothing will ever replace good old face-time. So keep setting up those lunch meetings, small dinner parties, client appreciation events and community ed sessions. Use the telephone, email and a webinar service, if needed, to keep in touch in between your personal meeting opportunities.
Financial advisors must constantly strive to find new and creative ways to connect in person. With all the hoopla surrounding social media and the online world, don't forget that live marketing events can bring people together in relevant circles.
Get Up to Speed, Then Put Your Ear to the Ground
A great way to learn about basic social media tools is to watch a series of fun and short videos produced by CommonCraft.com.
Start with these:
- Social Media in Plain English.
- LinkedIn in Plain English.
- Twitter in Plain English.
- Twitter Search in Plain English.
- RSS in Plain English.
Also visit these sites to see how other advisors, firms and industry consultants are using Web 2.0 outposts to drive traffic to their primary communication hub — their website:
- Family Investment Center blog.
- Kids Finance Coach blog.
- Keener Financial blog.
- FPA Twitter Live blog.
- T3 Technology Conference blog.
- AdvisorPod blog.
Once the comprehensive marketing plan is laid out and you've studied Web 2.0 technologies for a while, revisit your website to make sure it's all that it can be. I like seeing short videos, professional sounding audios, compelling text and lots of vibrant photos or good process graphics on a site.
Anything that builds a sense of personal connection is good, and the more interactive, the better.
Add some new media to your site. Start off with a video of yourself and your business talking about what it is that you do. Put this video on the home page of your website, just to the right of the introductory message you have posted as text. A video can help to build trust and puts both a face and a voice to your a name.
