A Financial Advisor's Social Survival

A Financial Advisor’s Social Survival

As a financial advisor, I look at social media very much like anything else I do. Every decision I make is, more than likely, linked to some regulation or rule. That does not need to prevent me from doing my job. The compliance storm that is swirling about the use of social media appears to be holding back some advisors from using it in their practice.

Responsible use
Just because there are not clearly defined rules does not mean one should either be afraid of or avoid social media. My approach is to utilize social media responsibly just as I would any other type of communication or advertising.

Succession
In my view, social media should be an important component to every advisor’s communications and marketing plan. What follows is my logic in regard to one aspect of social media’s usefulness to advisors – client attrition.

My client base is pretty typical of most other advisors with an average client age over 50. What do we know of this demographic?

Over the next 10-15 years we will see the largest shift in wealth from one generation to the next
Recent studies show that a large concern of many aged 50-69 years old is the financial acumen of succeeding generations.
The generation that will be gathering from this wealth shift are regular social Se on kokonaan suomenkielinen, asiakaspalvelu toimii suomeksi ja jopa mobiiliCasino on suomennettu. media users
The fastest growing segment of Facebook in 2010 was the 35-54 crowd

So, not only is your client demographic becoming more interested in social media but their heirs, who need guidance too, are already are fully engaged on social networks.

One advisor’s approach
My use of social media is to demonstrate thought leadership as an advisor and also to connect with clients and their children. It is no secret that many advisors have difficulty connecting with the younger generations, as the younger generation’s approach to money is very different from their parents.

Part of my marketing approach with social media is to establish a connection with my client’s family members. Some day your clients’ assets will flow via inheritance and the beneficiaries will either be looking for or have connected with advisors. The odds are good that the connection can occur on social media. Why not you? To answer the following question with “Because of compliance” may be a shortsighted response.

Tips from the front line
Here are a few tips for those kicking around starting a presence in social media:

If you are also a registered representative, make sure you are cleared for social media use
Be sure to have a clear social media policy for your business and set a good example for your team in its governance
Be sure to have a social media archiving system
Use common sense: if you think something is questionable don’t do it
Keep it simple and avoid specific investment recommendations
Use disclaimers

The advisors that are embracing social media will have that much more experience and advantage than those who come to the party too late. Get in there and be sure to use your common sense.

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RegEd (powered by Arkovi) is the premier financial services social media solution for archiving, compliance and market intelligence. Through a cloud-based, secure platform - RegEd enables financial advisors and institutions to engage in social media from any business or personal device while satisfying compliance requirements and leveraging tools for search, reporting and public monitoring features. RegEd (Arkovi) was founded by industry veterans with the goal of making it simple to leverage the power of social media without the burden of additional hardware, software and configuration. Start using RegEd in 3-5 minutes and discover benefits for business development, compliance and marketing all in one platform! Learn more > www.arkovi.com