Editor's Note: This post was originally published in September 2016 and has been completely revamped and updated for accuracy and comprehensiveness.
Because so many people are using social media sites such as Facebook, X, and LinkedIn, subject to compliance approval, financial advisors can no longer afford to ignore having a presence on one or more of these social platforms. Let's take a look at some of the uses and benefits that financial advisors can derive from building a bigger online social media presence.
Why Do Investors Use Social Media For Help With Their Finances?
It is a well-known fact that investors are getting more of their news and information via social media channels. This includes financial news and tracking the performance of individual securities. Posting timely news and trends about financial markets on social media sites is a good way to reach your audience. It keeps them informed and builds your reputation for being a trusted source of financial information.
Pro Tip: Social media marketing is now a powerful way to get people's attention so they seek further information on your website.
It's A Great Way To Reach Older Millennials
Younger investors, millennials in particular, are likely to use social media channels for news and information. Plus, millennials like to digest more financial information in short, concise snippets. For this reason, X is one of the best platforms for reaching this audience.
When you have targeted followers on X and other social media sites, it's easy to pique their interest with short messages that resonate with them about their personal finances. As millennials get older, they'll be investing more and more assets for retirement and other purposes. This makes it important to grab their attention early using social media if you want to convert them into future clients.
LinkedIn Is A Powerful Tool For B2C Marketing
Some of the best customers for financial advice are smaller businesses, their owners, and their employees. One of the best places to reach this particular audience is on LinkedIn. There are several ways to use this fast-growing platform to reach potential clients.
Sponsored ads allow you to attract new prospects to your LinkedIn profile or website. Joining or starting groups on LinkedIn is another way to connect. Beyond this, simply having a strong profile, posting helpful content, and regularly widening your circle of contacts helps generate leads.
Be Cautious With Social Media
Financial advisors must exercise some caution when using social media. It's best to avoid promoting specific investments or making promises for certain results, as this can violate SEC regulations. Social media users also have a low tolerance for anything that resembles spam.
It's safer and more effective to focus on generating useful content that will make readers want to learn more about your services. By sharing your expertise and interpreting the latest financial news, you position yourself as an authority.
Some ways to do this include writing articles, making videos, or publishing white papers. Longer content is not usually suitable for social media. It's easy enough, however, to provide snippets and link to the longer content on your website.
How To Use Social Media To Build Lists Of Followers
Financial advisors can leverage social media as a powerful tool to build a robust list of followers by employing strategies that emphasize value addition, engagement, and credibility. First and foremost, creating and sharing high-quality content that addresses the financial concerns, aspirations, and interests of their target audience is crucial.
This content could range from blog posts and articles to videos and infographics, covering topics like investment strategies, market trends, and personal finance tips. By consistently providing valuable information, financial advisors can position themselves as industry experts and trusted sources of financial advice.
Engagement is another key strategy. Advisors should actively participate in conversations, respond to comments, and engage with other users' content. This two-way interaction helps build relationships with potential followers, fostering a sense of community and loyalty. Running Q&A sessions, webinars, and live discussions are excellent ways to directly engage with the audience, offering them personalized advice and insights.
Furthermore, utilizing the features of different social media platforms can enhance visibility and attract new followers. For example, using relevant hashtags, participating in trending topics, and optimizing content for search can increase the chances of discovery by potential clients. Collaborating with other professionals and influencers within the financial industry can also expand reach and credibility.
Finally, financial advisors must ensure their social media presence aligns with their professional brand and complies with industry regulations. This means maintaining a balance between being approachable and professional, ensuring that all shared content is accurate, and respecting confidentiality and compliance requirements.
By following these strategies, financial advisors can effectively use social media to build a significant and engaged follower base, extending their influence and business reach.
Financial advisors can leverage social media as a powerful tool to build a robust list of followers by employing strategies that emphasize value addition, engagement, and credibility. First and foremost, creating and sharing high-quality content that addresses the financial concerns, aspirations, and interests of their target audience is crucial.
This content could range from blog posts and articles to videos and infographics, covering topics like investment strategies, market trends, and personal finance tips. By consistently providing valuable information, financial advisors can position themselves as industry experts and trusted sources of financial advice.
Engagement is another key strategy. Advisors should actively participate in conversations, respond to comments, and engage with other users' content. This two-way interaction helps build relationships with potential followers, fostering a sense of community and loyalty. Running Q&A sessions, webinars, and live discussions are excellent ways to directly engage with the audience, offering them personalized advice and insights.
Furthermore, utilizing the features of different social media platforms can enhance visibility and attract new followers. For example, using relevant hashtags, participating in trending topics, and optimizing content for search can increase the chances of discovery by potential clients. Collaborating with other professionals and influencers within the financial industry can also expand reach and credibility.
Finally, financial advisors must ensure their social media presence aligns with their professional brand and complies with industry regulations. This means maintaining a balance between being approachable and professional, ensuring that all shared content is accurate, and respecting confidentiality and compliance requirements. By following these strategies, financial advisors can effectively use social media to build a significant and engaged follower base, extending their influence and business reach.
Use Social Media To Build Email Lists
Another powerful way to leverage social media is to use it to build a mailing list. This works best if you publish a regular email newsletter. You can capture email addresses on some social media platforms, such as Facebook. This approach requires you to provide people with an incentive to subscribe. This might be a report or e-book. Make sure you provide something that offers real value and isn't merely an advertisement for your services.
Social media sites are playing an ever-larger role in people's lives. People check their Facebook and X statuses constantly, often from their mobile devices. Younger people are especially caught up in this phenomenon. Both your clients and potential clients are spending a great deal of time checking these sites. It only makes sense, therefore, to position yourself to reach them in this manner.
