"The only people making money from social media are the people selling you a program on how to make money from social media." Years ago, a trainer/coach I greatly respect made this observation.
Over the years, financial professionals have always looked for the "magic bullet," the new strategy or technology that will bring in new business with little or no effort.
There is no magic bullet. You have to work at it.
But is your work paying off?
LinkedIn is a good case study. It's the social media channel where I have the most firsthand experience.
I've been active on LinkedIn for twenty years. (June 2005.)
Is the effort worth it? It depends on what you're trying to achieve.
1. How important is your LinkedIn profile?
You've seen the statistics.
People will check you out online before they engage.
They will look for positive clues: "How many shared first-level connections?
(They might get in touch and ask about you.) How many connections do you have?
How long have you been on LinkedIn? Do you belong to any of the same LinkedIn groups?
You'll be checked out thoroughly before they even take their first step.
2. Does it supply a steady stream of prospects or direct business?
No.
I have gotten inquiries that have led to business. They come now and again with no prompting on my part.
There isn't enough to recommend the channel as the sole source of new business.
3. Does it enhance my professional reputation?
Yes.
Your LinkedIn profile is a version of your resume or CV.
You can highlight awards won. Your frequent posts help establish you're a subject matter expert.
4. Can I post occasionally?
For purposes of marketing, no.
You need to post consistently.
People get used to seeing your posts or shared articles on a regular basis.
I do the same with messaging, sending a weekly Tuesday message to my connections in Singapore and Hong Kong.
If I'm on vacation (and don't let them know in advance), I get a few messages asking, "Are you OK?"
5. What online reputation do I want to develop?
Ideally, you want to be seen as both a subject matter expert and someone who helps others.
Your connections might not need an agent or advisor, but they might know someone who does and bring both of you together.
6. Will I get business from my connections?
You might, but think of it as scattering seed in a field.
There will be plenty of seed that doesn't take, but some might be bountiful.
I am primarily a writer. By building up a collection of editor connections and drip marketing to them, I get expressions of interest and occasionally long-term business relationships.
7. Get a dialogue going with birthdays.
Engaging with your LinkedIn connections can be like trying to befriend a feral cat.
They might want what you have, but they're very skittish and suspicious.
LinkedIn prompts you about upcoming birthdays within your network.
I have found people tend to be receptive to replying.
This can get a dialogue started.
8. Don't forget about job changes.
Another LinkedIn prompt is job changes. This is an occasion to congratulate them.
It might also mean assets in a company retirement plan have been left behind.
They will need to take some action.
9. The messaging to video call transition.
How do you take things to the next level?
One way if to ask if they are OK with trying a video call instead of simply text messaging.
If they are good at responding to your LinkedIn messages, this should not be a "tough sell."
10. Will they meet in person?
This has worked for me.
It's easier when I want to meet an editor in my role as a writer.
I have also met connections where there is no immediate business benefit.
One example involves a husband and wife couple, both accounting professors.
He and I met for lunch at an Italian restaurant in New York. Later on, I learned his wife said: "Oh, you're going to meet your new friend, the one you met on the internet!" When you say it that way, it sounds creepy.
However, the husband explained he researched me thoroughly online beforehand.
As couples, we have met for restaurant meals several times since.
We've also entertained them as weekend houseguests several times.
11. Do you have interests in common?
This is important when taking the relationship to the next level.
Why is it worth their time to get to know you in person?
If you share an interest in an area like wine, they can easily figure out if the interest is genuine.
When it is, barriers are removed.
12. Where do referrals fit in?
They might not be looking for an agent or advisor.
If you push business, they can become wary.
We've all experienced connections who come on too strong.
Let them know the types of people you help. Plant seeds.
This works better if you're affiliated with a large firm.
13. Offering help is a good idea.
You have a LinkedIn connection.
They lose their job. (The "open to work" banner is a good clue.)
You make encouraging remarks. Suggest they look through your first-level connections.
Offer to provide introductions.
Caution them some you know better than others.
14. Can you get introductions?
Years ago, I knew a senior executive who explained his financial advisor got 50-plus introductions from him.
The story goes as follows: The advisor would call, mention a senior exec at another firm and ask: "Do you know this guy or someone who could put me in front of him?"
My friend, the senior exec, added, almost as an afterthought, "Of course, my advisor needs to have made money for me if he wants me to make an introduction."
LinkedIn removes that required close personal relationship from the equation, but it geometrically expands the universe.
Yes, you can get introductions, but bear in mind some of your second-level connections might only be a casual first-level connection to the person you're asking.
15. Here's an idea: Reconnecting with people you knew years ago.
You hear about people doing this on Facebook all the time. You knew someone from the old neighborhood.
You wonder, "Where are they now?"
In past years, you had few, if any, avenues for tracking them down. Today, you might find them on LinkedIn.
LinkedIn has about a billion members, and 211 million are in the United States.
The Takeaway
Is LinkedIn worth the time?
The answer is yes.
It is not your primary prospecting channel.
It is a way to make initial connections and nurture them.
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