5 Social Media Tips for Financial Advisors

Written By : Clifford Blodgett

In the past two decades, all industries have witnessed a radical shift in marketing operations due to the drastic impact of the internet. But many financial advisors may assume their prospects are still getting their information the old-fashioned way. They would be partially right; according to new studies by Sysomos, 60 to 70 percent of investors still use newspapers Wall Street analyst reports.

But as social media platforms like Facebook, LinkedIn, and Twitter have exploded in recent years, the number of investors accessing financial information online has grown exponentially. Currently 40 percent of investors seek investment advice on social media, and that number jumps to 60 percent for the under-40 generation.

Clearly, a financial advisor who hopes to compete in today’s increasingly internet-dependent world will need to leverage the power of social media. But if you’re still wondering what to do once you log into your LinkedIn or Facebook account for the first time, try these five tips to get started.

Reach out to your prospects. Social media is the ideal place to showcase your financial knowledge and expertise, which helps you to build trusting relationships with current and future clients. It’s also a great place to humanize yourself. Most people prefer to do business with someone they know, so don’t be afraid to demonstrate your personal side.

Share relevant content. Investors and prospects are thirsty for knowledge, and search for financial advice and tips online. Create helpful blogs and videos that address their concerns, and share this content as a status update on your social media account.

Join groups. LinkedIn groups are the ideal places to share ideas and connect with prospects online. If someone has joined a retirement discussion group, for example, they probably did so because they have questions about financial planning. They are basically already looking for you! When you join groups, you can post your content as well as message members privately. Just remember to do so judiciously; stay on topic, and don’t over-sell yourself or you will be quickly dismissed as a spammer.

Use faceted searches. LinkedIn includes a “faceted search” option, in which you can search for prospects based on location, industry, education, and more. Once you’ve created a faceted search which helped you locate your ideal prospects, you can save that search. Now you will receive notifications when the search results are updated, leading to even more new prospects.

Support your investment advice online. Once you’ve met with clients and have given them advice, they may still harbor some reservations. When you distribute information supporting your methods via social media, and include links to authority sources, you provide support for your advisory practice and build trust with that client over time.

Filed under: Social Media for Financial Advisors