Building Relationships with Web 2.0 and Social Media

[Marie Swift]

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 2009 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 (http://www.youtube.com/watch?v=a-VeQCxYKJM) 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.

So ... here's my question ...

I'm doing some additional research for speeches and articles I have in the works. I need fresh, new examples of how advisors like you are using Web 2.0 and Social Media to build relationships. Please post your success stories and observations - or frustrations - here. I will cull this discussion board and may contact you for an interview.

Thanks for your help!

Marie Swift
Marketing Communications Coach
For Financial-Planning.com

[JoshS]

Marie,


We are a commodites broker based in Oregon doing mostly Managed futures investing. We are rapidly expanding our use of Facebook, Twitter and blogging as a way to connect with new cleints and to put out valuable content on the web. Look forward to speaking with you.



[url=mailto:josh@gptc.com]josh@gptc.com[/url]



Josh Saunders

[EverydayTenacity]

Marie,

I have a number of examples of how social media is being used as well as offer up additional insight on some of the perceived challenges and opportunities for Investment and Asset Managers using social media on my site everydaytenacity.com (this link is to a search results page on my site for the term "social media")

Feel free to contact me through the site if you wish to use any of the content or an interview.

Adam

[Tad Borek]

Marie, an issue that arguably rules out Facebook for RIAs:

Your FB page mentions that you're an investment adviser. Someone "Likes" it, which lands on your wall. Is that a testimonial?

More obvious: their comment with the Like is "great job on our investments!"

I know there's that FINRA notice, but an RIA isn't regulated by FINRA. So is it worth the regulatory risk?

-Tad

[Consumer IQ]

The Investment Advisor Act of 1940 is really the more important guidepost to the idea of "referrals" and "testimonials" that make the use of the like button and other apps associated with Facebook a little more complicated to manage. the one idea that is really going to lead to the most amount of frustration and loss of productivity is the unfounded expectation that the use of facebook/twitter/linkedIn would be like using Google Adwords. In order to fulfill the idea of a return via these networks advisors must 1) Grow a viable network 2) Engage the audience with informative education or event invitations 3) Allow for these networks to connect to websites for the purpose of getting consultations.

For those in a compliance environment the delay in distribution of information related to FINRA approval process eliminates the ability of the "Jim Cramer" type advisors to stay relevant and publishing those types of opinions or advice is risky given the rapidly changing environment and the permanent nature of the posts.

For those who want to use these tools effectively and not lose productivity from their traditional methods of new business generation the idea is to work into the social networks slowly by growing and interacting with those who know you and using the format to help promote special engagements or announcements related to your business. Turning off applications that could lead to questions about the Investment Advisor Act or recently published FINRA regulations is ultimately the responsibility of the primary clearing house as they maintain the licenses and are responsible for the document/activity storage.

As with anything there should be a coordinated approach that maintains the integrity of your business, is focused on delivering a value for the time and effort needed to coordinate, and is compliant with SEC, FINRA, and the Investment Advisor Act of 1940. We specialize in these types of systems as a Digital Business Network Solutions company and would be happy to provide more specific examples or even participate as a consultant in your upcoming articles...

Best Regards,
Jayven M. Rappa
www.Digalign.com

[stephsamm]

We work with many advisors in helping them construct their social media portfolio, and a professional blog serves as the hub of that portfolio while the social profiles serve as the "spokes". We are seeing some great success with our advisors, but it takes time, consistency and discipline. It's a marathon, not a sprint. The reason I believe these advisors are having success is because they focus on creating their own unique thought leadership content through their professional blog and syndicate that content out to their networks. In turn, this helps to engage their connections and also offers a "social landing page" for these connections to land on and learn more about the advisor as a person.

Your blog should be built around YOU, and showcase your personality, passions, interests, and your expertise. It's important to note, however, that in order to have success, you really need all the pieces of the portfolio. This includes not only having a presence on all of the major social networks but also contributing content in a variety of formats; text, images, video, audio, presentations, webcasts, etc. It's just like allocating a client's portfolio. Diversification amongst the social networks balances both risk and reward and allows you to showcase your own thought leadership in a variety of formats.

With regard to the Facebook concerns, different B/D's are coming out with policies that are all over the map so you must be aware of what your firm requires. In order to have an effective Facebook Business Page, however, you need to have followers. The only way people can follow your page is to "Like" your page. For someone to show an affinity for your Facebook presence is not an endorsement of how well you've done for them as an advisor. If any comments of the sort are posted on your wall, you simply delete those. Or, you could even prevent commenting altogether on your wall. The Facebook "Likes" will ultimately drive your ability to get discovered within Facebook and also within the search engines as Google is incorporating the Facebook social graph. The evidence is here that people spend more time on Facebook than searching on Google. "Likes" will be your best opportunity for discovery in your target markets!

To learn more you can subscribe to our e-marketing blog at Wired Advisor. I write about these topics frequently!

Stephanie Sammons
CEO, Wired Advisor