It might be difficult to see the value in a medium used incessantly by 13-year-old girls—but if that’s the way you think of social media, you may be critically misjudging its importance. A recent report from Spectrem revealed that 55% of the mass affluent and a whopping 46% of millionaires are now utilizing Facebook. So, connecting with this demographic through social media is definitely something to consider.
Understanding potential compliance issues is vital, and though more and more broker-dealers across the country are now allowing social media usage, their rules and regulations can vary. It’s important that you contact your BD for their guidelines prior to executing any social media marketing endeavor.
What is social media? In the simplest terms, we’re speaking of online interaction—using Internet-based applications to communicate with others.
Why Social Media?
Credibility. If you’re anything like me, when you hear someone’s name, the first place you search for information is online. Your prospects will likely search for information about you in the same way.
Client Maintenance. Social networks offer wonderful tools by which you can share items of interest with clients and prospects, as well as learn about important events in the lives of your clients. Many advisors have learned about important events in their clients’ lives by being “friended” on Facebook.
Lead Generation. Probably the primary reason most advisors jump into social media, but possibly the least likely to happen, is to add new clients. It’s highly unlikely that someone you don’t already know will find you on social media, read about you and contact you. It’s much more likely that someone whom you met briefly will seek you out on social media and reach out to you.