Financial Planners and Social Media, Step 1

Breaking The MythPlanners need referrals to succeed and that
There is a myth out there that Financial Plannerspeople want to vet smart, well polished financial
cannot use Social Media. I am here to tell you thatminds is paramount for me when I sit with a
is truly a myth and there are tons of ways thatfinancial firm. I always keep that at front of my
Financial Planners can use Social Media. To startmind.
with, compliance is always an issue, especially inBecause I was in the business, I know it well. I
the most regulated industry in the world.can tell you that Social Media is the greatest
Compliance checks and clearing your publicinvention on the planet for Financial Planners as
marketing material is just part of the game.long as you know the rules and use common
FINRA, the regulatory body for the financialsense. Here are the things that I do with all
services industry has recently published guidelinesfinancial folks.
for using social media and they are ofStep One
tremendous benefit to the industry as a whole.I make sure that they have connected with all of
First, financial planners are allowed to usetheir current clients; this is commonly overlooked
microblog sites, like Twitter, without going throughand often forgotten. Of course there must be a
the traditional channels of compliance. This was astrategy for this; the most common is utilizing this
myth that many have fallen victim to believing atdata base to provide new connections and
one point, this included me. Facebook posts,business. There is nothing wrong with saying you
Tweets and other short form social mediahave tickets for the ballgame and could use some
statements CAN be made by those in thenew introductions. Instead of making 300 phone
financial services industry. The problem is just incalls, put in into that orbit you have already
the fact that they are not using the tools theyworked so hard for. Right now, 80% of the
have available properly.country does not trust their financial professional.
Let Logic PrevailIf you are not showing your clients you have
What better playing ground can a financial advisornothing to hide and opening up on Social Media,
have to network than the internet? America hasthey already think you are hiding something. Get
a financial IQ lower than the points paid on ait? If you are not the one that they see every
savings account and yet we cannot get ourweek, who is? Make sure you provide a way for
financial firms to post educational material to helpyour clients to see you when you are not around.
out. All financial professionals need to be in contactTo polish and finalize step one, let me also make
with their clients on a regular basis, because theyit clear that Social Media is a two way street and
deal with money. If you are not using this ideashould be used as such. Not only can your clients
and running with it, I assure you someone will besee you and listen to what you have going on,
hiring a firm, like Boom Media, to get in the spacebut you also get to see them and listen. By
first. Why make 400 phone calls a week, sendconnecting with your existing data base you have
out blanket news in the manner that your clientsthe opportunity to listen to what is going on in
want anyway. Why spend time telling the sametheir lives. For example, Mr. Smith may have a
story about your kid's baseball game, film it andson and you have been so busy working on
then throw it on Facebook and let your clientsbuilding your business and managing money that
see it when they want to. The latest studyyou forgot he even existed. This is not a knock, it
showed that more than 180,000,000 people log inis reality. If you are busy you forget. Then all of a
to Facebook every day. Your clients are theresudden you read a status update that says,
and they are being prospected by another firm if"Enjoying the weekend, little Johnny is turning 10".
you are not in that space protecting them fromWhat does this mean to you? It lets you know
the wolves.that the Smith family is progressing to another
Financial Planners have a tremendous opportunitystage of life and that they need to sit down for a
to provide basic educational information to thereview. It also lets you know that they need
public and round up new business in half the time.some college savings plan put together, they need
The internet allows intelligent people to show theto stay focused on retirement at the same time
world they are intelligent and display it in front ofand they probably have 10 other friends that
the world. The internet also allows you to selfneed the same.
publish articles on massive sites for all to judge.This is Step One in a 6 part series. Please
Think about it, if you were looking to roll overremember this Financial Planners: Social Media is a
your 401(k) or hire a money manager wherelike a Health Savings Account, you have to use it
would you look first? Family and friends, thenor lose it. Be available for every to come to you
Google, then Facebook (to vet them), then otherand the sky is the limit. Get in the space, set up
published information (if you have any). Thiscamp with existing clients, look, learn and most
industry is tricky to promote and can be aimportantly start to listen.
nightmare if done wrong. Knowing that Financial