Using Web 2.0 and Social Media to Build Relationships

[Marie Swift1]

Participation in social media—LinkedIn, Facebook, Ning, Groupsite, Twitter, blogs, YouTube—is now a workplace reality. These new media forums are not a fad; in fact, the number of social networks is growing every day.

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 relied on social media generated at least 16 leads per year. The results were based on responses from 331 FPA members.

While some advisors may scoff at social media's usefulness in building a successful business-and may therefore be missing some great opportunities to build relationships-other advisors may be spending so much time online that they're skimping on face time with prospects, clients and centers of influence. All advisors need to understand the basics and pick one or two new media methods sanctioned by their firm to supplement their current website.

How are you using Web 2.0 and Social Media to Build Relationships and Generate New Business?

What questions do you have about this topic?

Ask me anything! I'll be moderating this discussion thread between these dates: January 25 - 30, 2010.

Marie Swift
Marketing Communications Coach
for Financial-Planning.com

[Zek, The Grand Nagus]

How do you propose to get "Web 2.0 and Social Networking" past the various compliance departments with an "approved" and not a "declined"?

Mike Vick

[Marie Swift1]

Check this out: Socialware - SaaS that helps advisors with their compliance needs. Recently brought to my attention by Matt Peterson of MIAGD, a knowledgeable webmaster who specializes in working with FAs.

1. http://www.socialware.com//products/risk_manager-package.php
2. http://www.socialware.com/knowledge/FINRA_Compliance.php

Marie Swift
Marketing Communications Coach
for FinancialPlanning.com

[Zek, The Grand Nagus]

My question was not "what tools do you have that I can sell to my compliance department, so I can waste my time thinking they are going to say yes, when we all know it's going to be a no."

My question was "How do you propose to get "Web 2.0 and Social Networking" past the various compliance departments with an "approved" and not a "declined"?

If you had any knowledge of "sales prevention", you would know that all answers are a "no", unless a "yes" is in the compliance manual.

Vick

[Community Manager]

Marie,

This is a tremendous discussion and a topic that is QUITE timely.

We posted a story this morning about how Bank of America's new marketing campaign includes some "digital" media efforts.

I am just going to ask that everyone check out our "Rules of Conduct" and "Etiquette" as they post to this discussion (and all discussions.)

My question, Marie, is what does this use of "social media" for networking mean for more traditional means of networking?

Thanks!

[Marie Swift1]

How do you propose to get "Web 2.0 and Social Networking" past the various compliance departments with an "approved" and not a "declined"?

Mike Vick

Hi Mike,

Just got this from an industry compliance expert:

Regulatory Notice on Social Media Just Released -Hot off the press

http://www.finra.org/web/groups/industry/@ip/@reg/@notice/documents/notices/p120779.pdf

To answer your question more directly:

My firm, Impact Communications, has been working with independent advisors for some time now, helping them get their digital communications approved. While I do not know which broker/dealer or company you're with, I can tell you that many compliance departments are allowing:

1. Blogs and Twitter (which is basically micro-blogging) as long as the posts are pre-approved and archived (just like any other piece of information on the web)


2. LinkedIn profiles as long as the "endorsements feature is turned off and the profile content is preapproved (just like any other biographical information or promotional material)

3. Multimedia including:

* Audios (sometimes called podcasts and placed on websites, blogs and/or syndicated on iTunes)


* Videos (sometimes placed on websites or blogs or posted on YouTube)


* Voice over Power Point (sometimes created via Brainshark and linked to from websites or blogs or posted on SlideShare, 4Shared, etc.)

Here's an example of a "planned blog" - meaning it's all pre-approved by the broker/dealer (which in this case is Securities America) before it's posted online: http://www.kidsfinancecoach.com. Notice the videos and content on the site - all of it is compliance approved.

Here's another example of a "planned blog" and Twitter feed:
http://familyinvestmentcenter.blogspot.com/ and https://twitter.com/family_finances.

Notice the videos on the blog and the outbound links on the Twitter page.

Tell me more about your particular situation?

Marie Swift
Marketing Communications Coach
FinancialPlanning.com

[Marie Swift1]

My question was not "what tools do you have that I can sell to my compliance department, so I can waste my time thinking they are going to say yes, when we all know it's going to be a no."

My question was "How do you propose to get "Web 2.0 and Social Networking" past the various compliance departments with an "approved" and not a "declined"?

If you had any knowledge of "sales prevention", you would know that all answers are a "no", unless a "yes" is in the compliance manual.

Vick

Vick,

Please tell me more about your particular situation. Also read my post below. I've been working with financial advisors for over 20 years and have lots of experience with compliance offers at all the major b/ds. Many of them are finding ways to say "yes" (as long as a few conditions are met).

I've asked compliance expert Nancy Johnson Jones (www.compliancemaze.com) to chime in on this discussion board so she can add her opinion.

What company are you with?

Marie Swift
Marketing Communications Coach
FinancialPlanning.com

[Marie Swift1]

This quick and fun video 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.

http://www.youtube.com/watch?v=a-VeQCxYKJM&feature=player_embedded

[Marie Swift1]

How do you propose to get "Web 2.0 and Social Networking" past the various compliance departments with an "approved" and not a "declined"?

Mike Vick

Hi Mike,

Just got this from an industry compliance expert:

Regulatory Notice on Social Media Just Released -Hot off the press

http://www.finra.org/web/groups/industry/@ip/@reg/@notice/documents/notices/p120779.pdf

To answer your question more directly:

My firm, Impact Communications, has been working with independent advisors for some time now, helping them get their digital communications approved. While I do not know which broker/dealer or company you're with, I can tell you that many compliance departments are allowing:

1. Blogs and Twitter (which is basically micro-blogging) as long as the posts are pre-approved and archived (just like any other piece of information on the web)


2. LinkedIn profiles as long as the "endorsements feature is turned off and the profile content is preapproved (just like any other biographical information or promotional material)

3. Multimedia including:

* Audios (sometimes called podcasts and placed on websites, blogs and/or syndicated on iTunes)


* Videos (sometimes placed on websites or blogs or posted on YouTube)


* Voice over Power Point (sometimes created via Brainshark and linked to from websites or blogs or posted on SlideShare, 4Shared, etc.)

Here's an example of a "planned blog" - meaning it's all pre-approved by the broker/dealer (which in this case is Securities America) before it's posted online: http://www.kidsfinancecoach.com. Notice the videos and content on the site - all of it is compliance approved.

Here's another example of a "planned blog" and Twitter feed:
http://familyinvestmentcenter.blogspot.com/ and https://twitter.com/family_finances.

Notice the videos on the blog and the outbound links on the Twitter page.

Tell me more about your particular situation?

Marie Swift
Marketing Communications Coach
FinancialPlanning.com

PS - while Web 2.0 is all about creating 2-way activity, you do not have to participate on the "sending end" if your compliance department won't allow it. Just following other people on Twitter, LinkedIn, Facebook, Blogs, via Google News Alerts, etc. can give you market intelligence.

For instance, I follow several journalists via their blog postings and Twitter feeds - this gives me insights into what they are writing about, interested in, etc. Sometimes, they even ask for suggestions for story resources via their blogs and Twitter postings. I also "follow" my competitors and other select people in the industry to see what they are saying about me, in general, etc.

You can do the same thing by setting up Google News Alerts for keywords (your name, your firm name, a competitor's name, a particular topic, etc.). Following discussions online, whether its on a LinkedIn Group, Twitter account, a blog or other discussion board thread, can produce good business insights.

Marie Swift
Marketing Communications Coach
FinancialPlanning.com

[Marie Swift1]

Marie,

This is a tremendous discussion and a topic that is QUITE timely.

We posted a story this morning about how Bank of America's new marketing campaign includes some "digital" media efforts.

I am just going to ask that everyone check out our "Rules of Conduct" and "Etiquette" as they post to this discussion (and all discussions.)

My question, Marie, is what does this use of "social media" for networking mean for more traditional means of networking?

Thanks!

Glad you asked!

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.

Ideas: Rather than host a "seminar," organize a "fireside chat" or a "lunch and learn," perhaps in April to tie in with Financial Literacy month. Less formal, more interactive gatherings are typically well received these days. Your clients and guests will value the opportunity to ask questions and get specific answers, so even if it's not in your nature, try hosting an informal meeting and reach out to people.

Here's a great new way to hold a Town Hall Meeting: Show a 1-hour docudrama called "Broke and Famous" (aired November 5, 2009 on VH1 television channel but is still available online). Read about the docudrama at http://blog.vh1.com/2009-10-05/broke-and-famous-coming-soon-to-vh1/. If you don't like this particular show, think about another movie or television show that would bring the horrors of financial illiteracy to life. Then gather your clients and other special guests for a Financial Literacy Town Hall Meeting. Stop the show at commercial breaks and discuss what's happening and why. To read about a related financial literacy campaign click here: http://www.prnewswire.com/news-releases/iafsca-kicks-off-financial-literacy-campaign-with-vh1-docudrama-65757827.html

Download client-ready invitations and talking points for your Town Hall meeting, free of charge, here: www.iafsca.com. There are also links to the "Broke and Famous" docudrama (just click the Stand Up for Financial Literacy icon - you will see it flashing on the landing page).

[MatrixOne]

You know, I dont think using Facebook or Twitter will generate consistant leads/referrals, its just for an online presence. Would I spend most of my time utilizing it? No, but I will update my status with tips and let everyone know where I'm going (ie civic events, volunteering, networking) once a day.


If we update our status every hour, are we really being productive? Making money? Serving our clients?

[Community Manager]

Marie -

This is a tremendous topic. I had a question, did you see the marketing campaign that B of A Merrill Lynch announced yesterday? They plan to use some "new" media - specifically an "interactive billboard" in Times Square and interactive websites -- how effective can these be?



(here's a link to the story)

^{_{BofA Launches New Ad Campaign on Retirement}}

[Marie Swift]

Here are several good solutions for monitoring your reputation and brand online:

http://www.cio.com/article/527159/Managing_Your_Reputation_Online_5_Essential_Tools

I tried them all and like Yasni the best.

Yasniis a people search engine that provides an overview of someone's associated networks, including contacts, pictures and other publicly available information. In searching for a name, Yasni will aggregate mentions from sites including LinkedIn, Google, Amazon, Technorati and more.

Here's another good article on proactively maintaining a good reputation online:

http://www.cio.com/article/527158/How_to_Protect_Your_Reputation_Online

Marie Swift, Marketing Communications Coach
FinancialPlanning.com

[Marie Swift]

You know, I dont think using Facebook or Twitter will generate consistant leads/referrals, its just for an online presence. Would I spend most of my time utilizing it? No, but I will update my status with tips and let everyone know where I'm going (ie civic events, volunteering, networking) once a day.


If we update our status every hour, are we really being productive? Making money? Serving our clients?

MatrixOne,

I agree with you. There are only so many hours in the day and, as smart business people, we must all put first things first.

Participation in online communities should be carefully thought out. Done right, adding social media can boost your online presence and create a credible perception. But, just as in the physical world, we can't belong to every interesting group. Picking 1 or 2 organizations and then really getting involved will create strong roots and relationships. The same is true in online communities of interest.

Web 2.0 and social media strategies should supplement - not replace - traditional networking and communication strategies. Nothing will ever replace a quality phone call or face-to-face meeting.

I am, however, hearing from advisors that, once they added Twitter feeds and a blog to their online strategy, their website traffic has increased. In addition, those who added profile pages on association sites or advisor membership sites such as Paladin Registry, NAPFA, FPA, FinancialAdviceNetwork, Google Business Directory, LinkedIn, Namyz, etc. are enjoying higher page rankings on Google and other popular search engines (by the way, did you know that YouTube is the second most popular search engine)? Some are even saying that clients are finding them on LinkedIn, Facebook, Google and Twitter.

One goal is to drive people back to your site - which should serve as a communications hub. Create a sticky site where people want to stick around and get information, request a special report, use a Roth IRA conversion calculator, add a comment to your blog, RSVP for a webinar, watch a video of you, listen to a podcast, download a slideshow, etc. The more interactive, the better. Adding Google Analytics will help you gauge where web traffic is coming from. Using a "request form" will allow you to start a dialog with people who opt in for your newsletter or free e-book.

It's also important to publish information - both online and in print - that positions you as a subject matter expert. You can do this with a well-written blog, guest contributions to other's blogs or community forums, being quoted by third-parties and in media outlets, and having bylined content published by a respected media outlet such as Morningstar.com, Forbes.com, FinancialPlanning.com, etc. Creating content using digital media such as audios, videos and voice-over-powerpoint and then sharing the segments via YouTube, SlideShare, 4Shared, Brainshark, iTunes, BlogTalkRadio, etc. can help people get a sense of who you are - that they might like and trust you - before ever inquiring about your services. Syndicating your content or posting it online can also boost your Google Juice and add to your online presence.

Spending 1-2 hours a week interacting on social media sites and creating/publishing your own content can snowball and produce business growth.

Marie Swift, Marketing Communications Coach
FinancialPlanning.com

[Marie Swift]

How do you propose to get "Web 2.0 and Social Networking" past the various compliance departments with an "approved" and not a "declined"?

Mike Vick

Earlier this week, FINRA issued a 10 page notice that provides guidance on the use of social media sites. While every compliance department will have its own interpretation and set of rules, I believe that the notice will help firms create reasonable policies. The notice has some good news for RR's in it - most notably:

• 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 blogging, Facebook pages, etc – though FINRA does strongly suggest monitoring.
• Static vs. Non Static Content – FINRA’s distinction between “static content” and “non-static content” now makes social media a viable option for 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) does not require prior approval.

There's still a lot to consider re: recordkeeping and supervision but more and more b/ds will be looking into enterprise wide solutions such as SocialWare to help them open the door to previously feared social media tactics.

Here's a link to the FINRA Notice:
http://www.finra.org/web/groups/industry/@ip/@reg/@notice/documents/notices/p120779.pdf

[Rich and Co.]

We are finding with our clients, which include some national firms, that Twitter and Linked In are the best places to start. Compliance and the legal departments are getting pressure from sales and marketing and senior leaders to have some social media approach. These two tools are very simple and pretty much fool proof. So the first steps can be taken.

That said, since most of us in financial services are Type-A guys, social media does take some finesse to do successfully so caution is advised. Remember it's "social" media not "sales" media.

As Marie references, videos (short ones) are probably THE most effective new media tool. What we see we believe. But - that takes another level of skill.

Believe us, none of this is really very complicated. If it was, so many people wouldn't be using it.

richandco@richandco.com

PS - We recommend staying far away from Facebook.

[Peterb6086]

Marie
All of the posts I have seen here and in other forums deal with B/D Reg Reps since the discussions involve FINRA.



I am a solo Fee Only Financial Planner, RIA in state of NY. Too small for SEC registration. I use Trade PMR as my Custodian and use ETFs, Mutual funds for all client assets.

I have a website and blog thru that site, mostly monthly newsletters. The newletter service I use gets all their material pre approved by FINRA since I assume they have a lot of B/D subscribers.

I also use some services to promote my website such as Merchant Circle, Google local, etc.



I use LinkedIn to gain contacts and have a Static Info page there. I also have a Static info page on Facebook. I do not Blog on either site, though I would like to. However, I am hesitant since I have seen nothing from NYState regarding social media and am worried how far I can go in using such media in case I get audited by the state. I am still confused as to how far I can go in blogging.



For compliance, I print and maintain complete copy of the website and any postings I do.



I would be interested in your thoughts.



Thx

[Marie Swift]

Here's a good article that wades into the water re: the new FINRA guidelines on social media: In the Game - New Rules for Social Media

By Stacy Schultz - Financial Planning magazine, January 29, 2010

Experts give advice for using FINRA’s new social media rules as a guide to building your book of business.

http://www.financial-planning.com/news/Swift-Luke-FINRA-Twitter-2665645-1.html

[Marie Swift]

We are finding with our clients, which include some national firms, that Twitter and Linked In are the best places to start. Compliance and the legal departments are getting pressure from sales and marketing and senior leaders to have some social media approach. These two tools are very simple and pretty much fool proof. So the first steps can be taken.

That said, since most of us in financial services are Type-A guys, social media does take some finesse to do successfully so caution is advised. Remember it's "social" media not "sales" media.

As Marie references, videos (short ones) are probably THE most effective new media tool. What we see we believe. But - that takes another level of skill.

Believe us, none of this is really very complicated. If it was, so many people wouldn't be using it.

richandco@richandco.com

PS - We recommend staying far away from Facebook.

Hi Elmer,

Thanks for your post. I agree with you - 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 - is problematic.

Creating a comprehensive marketing plan (one that incorporates Web 2.0 and Social Media tactics) is the best way to start.

You are also right: None of this is really complicated. It does, however, take some time and planning. Brand extension and consistency is also important (watch for my article on branding in the March issue of Financial Planning magazine).

I also agree with you that, once the comprehensive marketing plan is laid out, Twitter and LinkedIn are the best places to start - assuming the firm already has a good, sticky website and/or blog. I, too, 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.

Once a good website has been established, most advisors should set up a LinkedIn profile next. But just setting it up is not enough. They must build a network, join and participate in a few groups, RSVP for Events, etc. LinkedIn is probably the easiest social networking site to get compliance approved. The static content will need to be pre-approved, and the testimonials / endorsement feature should be turned off. Wall posts via group discussion boards do not have to be pre-approved but care should be exercised when participating.

Then adding a branded Twitter page makes sense - I say branded because every online page is an opportunity to convey a message or a visual identity. Compliance will want to approve the Twitter background and static profile info. Then, according to the new FINRA guidelines, the dynamic posts do not have to be pre-approved. Still, an advisory firm should be careful about outbound links and implied endorsements.

Examples of professionally branded Twitter pages:

http://twitter.com/Lindner_Capital

http://twitter.com/Family_Finances

http://twitter.com/lizweston

http://www.twitter.com/marieswift

Twitter and LinkedIn posts can drive traffic to the advisor's website and/or blog (as well as third-party published articles, blogs, discussion boards).

A branded blog can also help create a more robust web presence. Good examples:

http://familyinvestmentcenter.blogspot.com/

http://keenerfinancial.com/buying-a-hom ... tax-credit

http://www.kidsfinancecoach.com

fpatwitterlive.blogspot.com

Like you, I am not a fan of Facebook for business purposes. It doesn't hurt to have a profile there and to "friend" certain people in your life but professionals should remember that business associates and clients can see/read anything they post if allowed into their Facebook circle. Most compliance departments are hesitant to allow Facebook pages for FAs.

As compliance departments digest the new FINRA guidelines, they will issue their own rules and guidelines. FAs reading this discussion board will, of course, want to check with their b/d compliance officers to see what their guidelines are. RIAs have a bit more flexibility in that they do not typically submit materials to a compliance officer, however, they should speak with their attorney or a compliance expert such as Nancy Johnson Jones (http://www.compliancemaze.com) to make sure they understand pitfalls related to social media and online tools.

[Marie Swift]

Marie
All of the posts I have seen here and in other forums deal with B/D Reg Reps since the discussions involve FINRA.



I am a solo Fee Only Financial Planner, RIA in state of NY. Too small for SEC registration. I use Trade PMR as my Custodian and use ETFs, Mutual funds for all client assets.

I have a website and blog thru that site, mostly monthly newsletters. The newletter service I use gets all their material pre approved by FINRA since I assume they have a lot of B/D subscribers.

I also use some services to promote my website such as Merchant Circle, Google local, etc.



I use LinkedIn to gain contacts and have a Static Info page there. I also have a Static info page on Facebook. I do not Blog on either site, though I would like to. However, I am hesitant since I have seen nothing from NYState regarding social media and am worried how far I can go in using such media in case I get audited by the state. I am still confused as to how far I can go in blogging.



For compliance, I print and maintain complete copy of the website and any postings I do.



I would be interested in your thoughts.



Thx

Hi Peter,

RIAs are wise to check with a compliance expert such as Nancy Johnson Jones (www.compliancemaze.com). Also, here's a discussion board specifically for RIAs that might help: http://www.riabiz.com/a/22050.

Marie Swift, Marketing Communications Coach
For FinancialPlanning.com

[Marie Swift]

In the Game: New Rules for Social Media – Part 1
By Stacy Schultz / Jan. 29, 2010
http://www.financial-planning.com/news/Swift-Luke-FINRA-Twitter-2665645-1.html


In the Game: New Rules for Social Media – Part 2
By Stacy Schultz / Feb. 5, 2010
http://www.financial-planning.com/news/FINRA-twitter-facebook-2665723-1.html

[Marie Swift]

Good podcast from FINRA on blogs and social media sites

http://www.accelacast.com/programs/FINRA_podcasts/FINRA_Podcast_Social_Networking.mp3

[Roy G]

Try getting an Independent Broker Dealer Compliance person Happy. It is not that they want to say NO (which they will), it is just that the regulatory authorities are very harsh on the independents and why should they be the pioneers? What is in it for them when the legal costs of just saying NO are zero and the cost of being a pioneer and inviting problems does not help me as a Rep and as an Advisor.


That is my opinion. The big boys end up setting the rules with the regulators and we small fries work our personal relationships.

[Rich and Co.]

Nice job Marie on an important topic. As marketers, we find our clients have few problems with the compliance issues. Any successful advisor, already has in-place comprehensive compliance and archives. The FINRA guidelines are pretty clear.

The real challenge is using the social media tools and establishing a voice. That is a very big challenge for all of ur Type-A folks, especially the guys. It self-serving to say but outsourcing and ghostwriting is mandatory in most cases.

For example, we found a recent post by a very successful advisor who is held up as a social media guru: "5 Reasons Why Not to Hire Me." !!??

Since social media is generally not private communications, it takes professional levels skills and technology savvy to do well.

[Marie Swift]

Rich,

You are so right. Communication, whether in person or online, is an art. Developing a voice is vital. So is proofing posts twice - or, better yet, having a fresh set of eyes look over any important content - BEFORE the "submit" button is hit.

Your point about hiring a ghostwriter or communications professional is a good one. Busy advisors don't usually have the time, energy or patience to come up with creative, compelling content on demand. And, thinking beyond the written word, today's digital world allows us to create and add multimedia content in quick, affordable fashion. Scripting and rehearsal is, however, essential for most people - very few have "the knack" without lots of practice.

I recently returned from leading the first ever Web 2.0 and Social Media Boot Camp powered by FPA and Impact Communications (Dallas, Feb. 28, 2010 - a pre-conference offered in conjunction with the FPA Business Solutions Conference). I had 20 eager "students" in the class.

Talk about fun! They learned how to set up professionally branded blog and Twitter pages. They learned what they can and can't do compliance wise. They learned about planning and having a trusted partner proof and give the nod on content before it is posted. They learned how to record a simple audio greeting and loaded it onto the blog. They filmed their first video interview and uploaded it to their blog. They left with the essential elements in place and ready to continually populate, based on the strategy they'd developed (and will hopefully follow).

You can see one of my star pupil's work here: http://www.andymillard.blogspot.com. He's doing pretty well, don't you think? The author of two books and a former teacher / principal, Andy has a knack for creating clear, compelling content - and he's given his blog a totally different voice (more casual) than the one used on his website (more formal).

Here are a couple pics taken that day. Hopefully, we can repeat the Boot Camp in the near future.

Nice job Marie on an important topic. As marketers, we find our clients have few problems with the compliance issues. Any successful advisor, already has in-place comprehensive compliance and archives. The FINRA guidelines are pretty clear.

The real challenge is using the social media tools and establishing a voice. That is a very big challenge for all of ur Type-A folks, especially the guys. It self-serving to say but outsourcing and ghostwriting is mandatory in most cases.

For example, we found a recent post by a very successful advisor who is held up as a social media guru: "5 Reasons Why Not to Hire Me." !!??

Since social media is generally not private communications, it takes professional levels skills and technology savvy to do well.

[Marie Swift]

Hi Virginia,

Keep the faith! Many IBDs are looking at social media and Web 2.0 mediums with a fresh eye. They are finding ways to help Reps protect their practices AND build a strong online presence. I work with and speak to plenty of IBD reps who are blogging, tweeting, participating on discussion boards, using LinkedIn, multimedia, etc.

If you are pleasantly persistent, you may eventually get the nod. Asking other like-minded reps to campaign with you could be helpful. The pioneers are already "out there" proving that there are ways to appropriately navigate the new terrain so having some examples of how other IBDs handle web-based communications might be good.

Here's an example of how Brett Ellen, Securities America's #1 Rep, is using the Web 2.0 to build relationships and position himself as a caring professional:

• Kids Finance Coach - Brett Ellen's Blog
• American Financial Network - Brett Ellen's Website
• Financial Advice Network - Brett Ellen's personal profile page with mega Google Juice

Here's one more tool that you might want to run by your compliance officer: BoulevardR's Advisor-Branded Marketing Platform.

Hope this helps,

Marie Swift
Marketing Communications Coach
For FinancialPlanning.com

Try getting an Independent Broker Dealer Compliance person Happy. It is not that they want to say NO (which they will), it is just that the regulatory authorities are very harsh on the independents and why should they be the pioneers? What is in it for them when the legal costs of just saying NO are zero and the cost of being a pioneer and inviting problems does not help me as a Rep and as an Advisor.


That is my opinion. The big boys end up setting the rules with the regulators and we small fries work our personal relationships.

[Scott23]

We are finding with our clients, which include some national firms, that Twitter and Linked In are the best places to start. Compliance and the legal departments are getting pressure from sales and marketing and senior leaders to have some social media approach. These two tools are very simple and pretty much fool proof. So the first steps can be taken.

That said, since most of us in financial services are Type-A guys, social media does take some finesse to do successfully so caution is advised. Remember it's "social" media not "sales" media.

As Marie references, videos (short ones) are probably THE most effective new media tool. What we see we believe. But - that takes another level of skill.

Believe us, none of this is really very complicated. If it was, so many people wouldn't be using it.

richandco@richandco.com

PS - We recommend staying far away from Facebook.

I agree that these videos are a great tool to get ideas across quickly. But, what are the compliance requirement to be able to send an email to a client with a link to a short video? My B/D is telling me he needs a FINRA letter for each video. Is that true?

[Marie Swift]

Scott,

I am not a compliance expert and do not know who your b/d is, but in my experience working with hundreds of IBD reps and b/d compliance officers over the years, I can tell you that the advisors my firm works with are allow to create and post videos to their websites and blogs (and also to email links to clients). They simply submit the video to their compliance department once it's produced (and sometimes they even submit their script to compliance before they shoot the video). They have had great success in getting approval. Posting to YouTube is more difficult, in my experience, because of the comment feature that's built in to YouTube.

As Rich said, LinkedIn is oftentimes the easiest and most foolproof way to start down the social media path. Most compliance departments, in my experience, will allow LinkedIn use if certain guidelines are followed. Twitter is still a "no" for many of the registered reps I work with, but as new enterprise wide solutions become available, that will probably change. Blogs are an easy way to extend your online prescence - just follow the same compliance rules as you would for your website (but consider making the content on your blog a bit less formal in tone and a show a bit more personality and greater range of topics than you normally would on your website). Here's a good example of a blog "done right" - http://www.andymillard.blogspot.com.

Marie Swift
Marketing Communications Coach
For FinancialPlanning.com

We are finding with our clients, which include some national firms, that Twitter and Linked In are the best places to start. Compliance and the legal departments are getting pressure from sales and marketing and senior leaders to have some social media approach. These two tools are very simple and pretty much fool proof. So the first steps can be taken.

That said, since most of us in financial services are Type-A guys, social media does take some finesse to do successfully so caution is advised. Remember it's "social" media not "sales" media.

As Marie references, videos (short ones) are probably THE most effective new media tool. What we see we believe. But - that takes another level of skill.

Believe us, none of this is really very complicated. If it was, so many people wouldn't be using it.

richandco@richandco.com

PS - We recommend staying far away from Facebook.

I agree that these videos are a great tool to get ideas across quickly. But, what are the compliance requirement to be able to send an email to a client with a link to a short video? My B/D is telling me he needs a FINRA letter for each video. Is that true?

[Consumer IQ]

There is going to be a big push for the use of social media and other tools in the coming months & years and as I've seen in many of the comments as well as experienced personally, there are many walls to climb before this effort will have a chance to bear fruit. The biggest problem with social media is that until recently the rules have been unclear and no reputable BD would allow their associates to use the system due to the issues with blue sky and licensing that would generate huge fees to the company. Additionally there is the question of what is the actual benefit of using this kind of resource vs. the old school mentality of cold calling and going down to the local chamber to hand out business cards. The reality about social media right now is that there isn't any qualification to get listed and with that wild west framework in place it will continue to be an unknown benefit and ultimately a "No" from compliance departments who have the company vs. the employee interest in mind. Lets all remember what happened in the early 2000s when internet companies were receiving huge premiums in the stock market for the promise of some huge revenue given the automated and vast reach a website can provide. In this case we are looking at the same circumstance in that yes we will get a greater reach, but ultimately the question should be who are we reaching, and do they want our services? Social media has to be one part of a multi-level marketing effort and without the other pieces in place it's not going to be any more valuable than slightly more targeted cold calls or direct mail campaigns with a 2% - 3% conversion rate. When you add in all the additional compliance effort needed to ensure that no employee takes advantage of the system along with the technology needed to convey and control the messages it will likely continue to be a while before this strategy should be considered more than just a piece of a greater marketing effort. At Consumer IQ we have implemented all the new FINRA regulations, tie in Facebook / LinkedIn / Twitter as well as links to websites and have found that the online consumer isn't any less skeptical than one you find on the streets. Just because it allows for greater targeting doesn't mean that it's going to provide greater results, or cost less as competition will eventually make these now free resources turn into pay to play. The one great thing about this from our perspective is that with the automation that can be created it allows for the employees to focus more on client services rather than daily marketing/sales calls, a benefit to everyone...

[B Smith]

I would be interested in hearing actual success stories. Are you aware of any?

To my experience, about the only value this has is reputational and perhaps generating a professional contact or two. But truthfully the time could be much better spent elsewhere. I think it makes for a great 'new marketing' story, but I see plenty of local advisors spending a lot of time on this, and I don't see or hear about any great gains in their business. In fact it's been pretty discouraging for most. I've done many sites on a consistent basis and at a very high level and received less calls than static advertisements on professional organization sites that require no time.

I think it makes a good story, but not the way to reach the types of clients you want. Some advisors might provide another answer, but I question if they couldn't make more elsewhere. I also question the ones I've seen praise this as I know them to say anything to get into the press. Real stories would be nice.

[LBA]

Many of the compliance departments within RIAs, Broker Dealers and other Financial Institutions have mandated no use of social media tools until they issue specific guidelines for their company. They have really taken their time on this issue because of the perceived risk and in many cases their lack of understanding of the tools available to their Advisors. FINRA guidelines have started the dialog in the compliance area, but the process is very slow. Unfortunately, many Advisors have launched their LinkedIn sites etc. even in organizations where a no use mandate is in place. They are realizing that it is not a passing phase nor is it a media for the younger generation, it is a very important business development tool to add to the business process. I am hopeful that compliance departments will quickly produce their guidelines and issue them to their employees so that they can follow their company protocol. Until that happens, we will continue to see many Advisors taking an apologize rather than ask approach and that is not the road to take. Another article on this site quotes an executive from a large brokerage firm's compliance department stating their employees are not allowed to utilize the sites. However, on LinkedIn alone, I found over 500 of their employees and many Advisors with a home page.


If you are with a firm who does not allow it the best strategy is to share with them examples of controlled pages where Advisors are effectively and within FINRA standards utilizing these excellent business tools! Hopefully as an industry we will catch up soon.



Best Regards,

Lana Burkhardt

Lana Burkhardt & Associates

Strategic Wealth Management Marketing