Creating Social Media Opportunities in Wealth Management: A Fad or a Fast Evolving Reality?

June 20, 2012 by Rich LoPresti 1 Comment

New York University: Social Media

New York University: Social Media Opportunities in Wealth Management

Creating Social Media Opportunities in Wealth Management: A Fad or a Fast Evolving Reality?

Capstone by: Akanksha Ahuja

@Twitter: akanksha_ahuja

N e w Y o r k U n i v e r s i t y – S c h o o l o f C o n t i n u i n g

a n d P r o f e s s i o n a l S t u d i e s

P u b l i c R e l a t i o n s a n d C o r p o r a t e C o m m u n i c a t i o n

P r o g r a m

Faculty Adviser: Prof. Robert F. Noltenmeier

Submitted on May 10, 2012

Creating Social Media Opportunities in Wealth Management: A Fad or a Fast Evolving Reality?

ABSTRACT
Businesses changed when email came to life; they changed again when websites came to life; and now they have changed again as social media has come to life. Social media has transformed not only our world and our perceptions, but also our daily experience. We share our everyday activities with friends, with family and even with businesses via social media. But what are the limits within which we freely share information? To what extent, for example, can we talk about money on social media? Even though the growth of social media is well documented, leading financial institutions and wealth managers have not embraced it. This paper explores the potential for social media in wealth management. It seeks answers to questions about the scope and role of social media in wealth management, and how wealth managers and potential customers can build relationships while ensuring the privacy of financial information. Drawing on interviews with social media strategists, the paper highlights that young, high net worth individuals rely on social media as a way of life. Social media has the capacity to connect financial advisers with potential clients. But to leverage social media effectively, it is important to train employees and to develop a governing policy and compliant social media strategies.

CLICK HERE for the Full Thesis on Creating Social Media Opportunities in Wealth Management: A Fad or a Fast Evolving Reality? Brought to you by the thorough research of Akanksha Ahuja @Twitter: akanksha_ahuja and New York University School of Continuing and Professional Studies Graduate Program in Public Relations and Corporate Communication.

Filed Under: Social Communication

Social Media Scores a Touchdown!

May 17, 2012 by Rich LoPresti 2 Comments

Would you have ever thought that an insurance company would use social media to reach their business objectives? I did. The reason? It works! All a company needs to do is humanize their brand enough to connect with their target demographic. Sounds simple right? It is. Financial institutions have to stop worrying about the buzz word of “social media” and begin to realize that social media isn’t about the social networks themselves—it’s about the power they have given us to access virtually anything and anyone in the world.

What does that mean for business? You’d better find a genuine commonality that you can share and develop with your existing clients and prospects. In this way, you can show them that as a brand you have a soul, the brand isn’t lifeless. Corporate America shouldn’t be about pitching commoditized products and services, all the while pretending to be interested in who and what their prospects care about. There needs to be a connection. That connection can be as simple as the love of the game of football—yes, football.

New York Life's Protection Index

New York Life's Protection Index

I digress. New York Life Insurance company, known as “the company you keep,” has started to humanize its brand. On Facebook, they created a “Protection Index.” Simply stated, the index rates and determines how well your favorite NFL team’s offensive line protects the quarterback. ”Just as an offensive line is designed to protect its quarterback’s blind side, New York Life offers life insurance products that protect individuals, families and businesses from unforeseen circumstances,” said Mark W. Pfaff, executive vice president, of New York Life.

This great “human” approach was received well by the fans and followers of all NFL teams, the bloggers covering the NFL teams, radio and TV commentators, and the NFL players themselves. Every week, more and more fans were exposed to the Protection Index and were immediately interested to see how well their team was doing. It was being spread on Facebook, bloggers were Tweeting about it, articles were written, NFL team websites and game day announcers were sharing the story, and videos were being made. Even New york Jets Super Bowl III underdog and MVP, Joe Namath made a vlog post about the Protection Index. All methods of media drove curious fans to the site. Through those methods, the campaign spread like wildfire. New York Life gave the football fans what they wanted, and then subtly extended their careful message to their newfound fans. They made it easy for them, as the quarterback of their team, their family to check and see if they had enough life insurance coverage to protect their family, if they were “blind sided” by life. Brilliant!

Twitter Feed Mentioning the Protection Index

Twitter Feed Mentioning the Protection Index

In my eyes, the campaign was a big success, but how can it have been bigger? How could New York Life have made their marketing campaign better? They could scale it—they could try to reach more eyeballs! Aside from spending millions on a commercial during the Super Bowl, I came up with another cost effective way.

My system incorporates the incredibly powerful infrastructure Twitter has created. Most brands use Twitter all wrong. They use Twitter to blast out messages to the masses, going sight unseen by their target audience. If they Tweet their “Protection Index,” how many people will really see it? Most people are viewing Twitter on their mobile phone, and if they aren’t staring at the screen they’ll miss the message. When the NFL teams and blogs were Tweeting out about the index, it did drive traffic, but what if you could drive more?

For example, here is the Twitter account for the National Football League (NFL). They have over 2,990,000 followers, which are fans of the NFL and the New York Giants. Here is that commonality we were talking about when looking to humanize a brand. We could have 2,990,000 one-to-one conversations about football and drive them toward making that human connection. We could also have our customer service team monitor their conversations, and when they talk about something relevant to football, we can talk to them and link them to the page. The Tweet wouldn’t be an interruption to the prospect because the “Protection Index” is relevant to them. It would be in the flow of their conversation. As an insurance salesman, you can’t say that’s the case with a phone call. The phone call is an interruption to the prospect. Why wouldn’t you leverage Twitter’s infrastructure for sales?

Twitter: National Football League (NFL)

Twitter: National Football League (NFL)

If 3 million prospects are too many, we can drill down to specific NFL teams. Here is the Twitter page for the New York Giants. They have over 274,000 followers, which are fans of the NFL and the Giants. When you drill down, the commonality becomes stronger.

Twitter: New York Giants

Twitter: New York Giants

Here is an example of a New York Giants blog’s account. They have more than 25,000 followers. Do you think these passionate fans are interested in New York Life’s “Protection Index” to see how well Eli Manning is being protected in the pocket? They sure do!

New York Giants Buzz

New York Giants Buzz

We can organize all of those Twitter users into Twitter lists and have our customer service team monitor those conversations. Once there is an opening to enter the conversation, after some small talk you can then drive them to the value add of the “Protection Indexes” landing page. The customer service team is already in front of a computer; why not leverage their capacity?

The point is, why wait for people to come to you when they are right there for you to put yourself in front of and speak to? It makes total sense to take advantage of this and join the relevant conversation. For one, you have already spent the money creating the campaign. The point of the marketing message is to drive more people to the ”Protection Index” to drive awareness of the brand and explain how it could solve a problem, eventually leading to increased sales and client retention. The second point is that Twitter has organized and identified your target audience; they are there for you to talk to. Through social technology, you can communicate to them in a human and meaningful way.

Adding this strategy to an already successful strategy will not only score a big touchdown, it will surely win the game!

Filed Under: Facebook, Social Communication, Social Lead Generation, Social Marketing, Twitter Tagged With: Financial services, New York Life, Social media, twitter

How to Make Time– Social “Call Blocks” for Financial Advisors!

April 27, 2012 by Rich LoPresti 4 Comments

Social Media Networking Clock: Time for Social Networking

Social Media Networking Clock: Time for Social Networking

Where Does the Time Go?

Financial Sales Professionals Have “NO TIME” for Social Media. That is a common excuse among the status quo. We all have the same amount of time in a day, no more, no less. Everyone’s life is busy, everyone wants more time. How do you get more time? Stop wasting it! You simply need to be more efficient and effective with your time. You might not be able to put 25 hours in a day, but if you complete your urgent and important tasks without wasting your time with all of the distractions around you, you’ll have more time to do other things.

Time Waster

Why waste time on old methods that simply aren’t as effective as they used to be? People don’t waste time these days getting from point A to point B in a horse drawn carriage; they hop into their car. The horse and buggy works, but it’s not as effective. You need to take care of the horses, clean up after them and feed them. They cannot do 80 MPH down the highway. You save time, by using a car instead of a horse and buggy.

Social Media Efficiency

When used as a sales tool, Social Media is not a distraction. If you take the time to understand it, the information it provides you with, turns into currency in your pocket.

All kidding aside, how do you think God knows everything? Social Media!

Communication has changed. If you don’t see that, then you have been living under a rock. This is why I cringe every time a financial sales professional says he has no time to learn about social media, no time to develop a strategy on social media and no time to execute actions on social media.

What I really hear him saying is that “I don’t have time to get to know my clients and those they care about,” “I don’t have time to interact with my clients.” “I don’t have time to efficiently and effectively find more people to help!”

What to Do?

I digress. Below I outline effective uses of time for a new financial advisor, a financial advisor who is trying to get to the next level, and for a more established, older financial advisor who is coasting and is happy with the status quo.

1) New Financial Advisor – Where’s my first appointment coming from?

When I see a new trusted financial advisor starting out, where does he get his leads, let alone prospects and clients from? I am sure you would agree, a good place for him to start would be to try and convince his rich uncle to trust his assets with him. Financial advisors, and Insurance agents especially are told to sell their solutions to their family and friends, just to give them a base. They already know, like and trust them, so why not? I guess it’s a start!

Good advice to a new advisor just starting out, wouldn’t be telling him to come in to the office and sit down and dial phone numbers “cold” out of the phone book until his finger is bleeding. A financial advisor cold calling for clients is no longer the effective way to go. How many times do you want him to get hung up on before he quits because of the constant rejection? Maybe 20 years ago it was a better approach, and the advisor would have had some success smiling and dialing. Communication has changed, and Cold Calling in no longer as effective as it once was.

Think about it… how could you accelerate the family and friends strategy above? Social Media. Since you are urged to start with family and friends, Linkedin, Facebook, Twitter and Google+ allow you extend your social graph more efficiently and effectively in less time!

2) Advisor Trying to get to the Next Level – Where’s my next appointment coming from?

Social media is a no brainer here. The advisor is at a point in his career where he is experiencing inconsistent income and may potentially be losing clients. He is not seeing the same results that once were from some of the more advanced “old school” marketing tactics. For instance, the “fish bowl shuffle” where they are going around putting fish bowls for patrons to put their business cards in and then buying them lunch, in hopes of landing a new client. They are frustrated because they are putting in the effort, but not getting anywhere. For an advisor that is looking to find a more consistent way to locate, win, grow and retain his clients, whether he knows it or not, Social media is vital to his survival.

Social media is about People, People are Prospects and Clients. Through social media, prospects and clients are letting you in on who they are, and what they care about before you can even ask them an open ended question! On social media, they are giving you relevant and actionable information. Advisors need to realize that this social information is currency. It is their job to use this information well. It’s not hard to figure out what you have to look for, where to look for it, and how to transform the information into an opportunity.

3) Established Financial Advisor – I don’t want any more appointments

More established advisors, put in the hard work and effort over the years. Their businesses are well established. They are now set in their ways. I strongly feel that the established advisor has the most to lose by not using social media. When they are ready to sell their practice, Social media is easier for them, they already have the clients.

For more established financial advisors (any advisor for that matter), I can’t stress this enough, bring your offline client base (World) online. The more networks you connect with them on, the more actionable information and incite you will reveal. Start with Linkedin, in most cases they will put their website and Twitter handle for you to access, making your process easier, and then quickly branch out to Facebook.

Please, please don’t use the excuse that my clients are too old, and they have no interest. They are interested. Just like when the VCR was introduced. Older generations did not know how to use it, but they watched videotapes, just like the DVD player, the Internet, and now social media. I’m just saying, Apple TV?

Educate your clients (heck tell them to invite their friends), it would be a great idea for a seminar. Add personal value to them through social media education.

Aside from the amazing connections you will make with your client’s network (the ones they care about) and the endless referral opportunity. When you are ready to retire and sell your practice, you’ll get more money for it. Through social media, you will be able to establish and deepen the relationships with the beneficiaries of your clients, because you now will have access to their lives.

Social “Time Block”

Many social media strategies can be implemented effectively in as little as 5 to 10 minutes a day. At first, I’d recommend spending 30 minutes to 60 minutes a day on social media.

Please don’t use time as an excuse. Replace a “call block.” Successful financial advisors religiously block hours of time to make phone calls, called a “call block” simply take half of your time allocated to your “call blocks” and allocate that to a “social media block.”

Additionally, It would be a good use of your personal time, to help jumpstart the process. That personal time where you’re sitting in front of the TV, playing games on your iPhone. Instead of playing games… network. You can even keep your social strategy going while you’re going to the bathroom. Your mobile device, smartphone tablet… helps you continue your prospecting, monitoring and engaging round the clock!

Have any Social Prospecting Tips for Financial Advisors or other Sales Professionals? Add your knowledge and experience below!

Filed Under: Cold Call, Facebook, Linkedin, Social Communication, Social Lead Generation, Social Networking, Social Phone, Social Prospecting, Social Prospecting, Social Referrals, Twitter Tagged With: Cold Calling, Compliant Prospecting for Financial Advisors, financial advisor cold calling, Financial Advisors, Financial services, Lead Generation, prospecting social media, Social Cold Calling, social media efficiency, Social Media for Financial Advisors, Social Prospecting, traditional cold call

Is the Financial Services Industry Bearish on Social Media?

April 6, 2012 by Rich LoPresti 9 Comments

Is the Financial Service Industry Bearish on Social Media? A Bear’s Perspective: The Glass is half empty for Financial Advisors

Is the Financial Service Industry Bearish on Social Media? A Bear’s Perspective: The Glass is half empty for Financial Advisors

A Bear’s Perspective: The Glass is half empty for Financial Advisors

At a brand level, and on a customer service level most big financial institutions have embraced social media. But, they have lagged behind in granting the power of social media to their distributed sales forces. Aren’t they the ones who keep the lights on?

Have you figured out what the number one reason why the financial services industry is bearish on social media? Because, I haven’t. If you already know, stop reading and share with us your thoughts in the comment section. I want to know. If you are as perplexed as I am, at the end of my diatribe, decide for yourself if the reason is among the areas I cover. In any case, be sure to share your thoughts with our readers in the comments section below!

Is the number one reason why financial institutions are bearish on social media compliance? Maybe. FINRA, SEC, NAIC, and CFPB oh my! It’s a good argument—why would a financial institution want to get fined for something that they don’t understand? For compliance sake, how would they know what to do? The regulators keep changing and revising their policies, and revising them again, and again. How can a financial institution, let alone a financial advisor, keep up?

Who is the Business Prevention Unit? Is the Compliance Department to Blame?

Who is the Business Prevention Unit? Is the Compliance Department to Blame?

This is absolutely crazy, but here is a possible solution. I hear stories that FINRA wants financial firms and institutions to reach out to them so they can work together to figure out this social media stuff. Financial institutions and FINRA working together in harmony to develop some real-life social media case studies to shape social media policy. I hear the financial institutions now, “Really, you want me as a financial institution to be proactive and voluntarily go to the regulators? I understand what you’re saying, but I can’t believe that’s something the financial institution really wanted to go to the regulators, volunteer to be a case study… We’re not fully buckled down with traditional media. We can’t go to them so they can look at us and see what we’re doing internally, I don’t want to open up that can of worms. Why would I want to invite in a regulator? It doesn’t make any sense. Not to me it doesn’t.”

Regulation aside, financial institutions want to protect their brand. Listening in again on their conversation: “Brand Reputation is big for me, why would I want all of my reps out there Tweeting? Posting and texting and messaging and doing all sorts of social sales stuff?” I mean, they are pushy right—we are trying to push our commoditized product. So why would we want to push product where everybody can see it, and be recorded forever? What happens if the collective “we” messes up? Everybody in the world will be there to watch. Why would we want to do that? Who is really listening on social media anyway? Employees, competitors, clients, prospects, everyone? Well, if we started talking on social media, I hear you can’t control the conversation. I can’t get over that. If I can’t control it, the conversation can and won’t be safe. If a social media fire started, how do you put it out? Once you say something stupid, you can never take it back, you need to live up (or live down) to what you said and honor your actions to make it right.

Additionally, aren’t their legal ramifications for financial institutions and advisors? What’s at risk? Social media puts the multiplier effect on personal versus professional. Is the employee they hired the same person (business or pleasure)? With social networking, the lines are more crossed than ever. For example, who owns the social accounts if we allowed them—the company or the employee? They might spend time working for us just to run away with the information and the relationship. Reference this enlightening article from the Wall Street Journal: Covering a dispute over who owns a Twitter account, and a similar fight over a LinkedIn account.

It’s getting kind of hairy; maybe it’s better if we turn the other cheek and look away, we won’t notice all of our financial advisors who are already using social media on LinkedIn, Facebook, Twitter, Youtube, Google+, and Pinterest. I mean, they are on there for personal reasons, right? We can’t prevent them from bringing those “smartphones” into work anyway. If they do happen to get new business from it, good for them (I mean us).

FINRA Suspends Advisor

FINRA Suspends Advisor

Just say we did want to embrace social media, it would be easy to implement, right? David B. Armstrong of Monument Wealth Management said in reference to social media, “If you are Series 7 registered, you should already know what to say, and what not to say.” That sounds about right. It’s just a new way to communicate. We’ve been in the same industry for years. That’s a good thing because we don’t have the time or the inclination to educate our advisors on social media. Oh, wait, slow down. Did you see what happened to her? She was Tweeting, promoting, pumping, and dumping stocks on Twitter. We can’t control our reps, why did we hire them?

Read more later about her case, if you want to know what not to do… FINRA Suspends advisor for social media communication. Bottom line, Know your customer. Don’t blast buy or sell recommendations to random people.

Then again, if we did allocate the resources to training, like I mentioned before, we just don’t have the time. Honestly, why would any great sales manager take time from activities that are already working and bringing in business, to suddenly change an advisor’s structured activities to add in a medium that is not yet proven, at least in our eyes? I can’t see the justification for our established representatives. Additionally, how do you monitor it all? How well have we monitored traditional media—are we exposed? Our monitoring was never 100% and never will be, we are fallible. Social media can’t really be a gift to the compliance department; everything can’t be recorded, achievable, traceable, trackable, measurable, right down to its origin, right?

When you think about it, there is only close to 1 billion people on Facebook, and another half a billion on LinkedIn, 300 million on Twitter, and God knows how many people are on Google+ these days. So if there are over 1 billion people on social networks, that means there are 5 to 6 billion people who aren’t using social media, especially for business. So why should we?

Even if we do use social media, the people with money, those boomers, they’re not using social media, are they? What interest do seniors have in using social media? There isn’t an entire cottage industry teaching our most profitable demographic on how to use social media, is there? I mean the fastest-growing segment can’t be among 55-year-old woman on Facebook, right? It must be a fluke that my 68-year-old dad just bought an Amazon Kindle Fire, what’s he going to do with that? Generation Y are getting older (which means they’re accumulating more money), but anyway everybody’s not utilizing social media, so why should we?

How we used to communicate, and still should

How we used to communicate, and still should

Time, time, time—we don’t have time like I mentioned. We have all of these other operational activities that we have to do. Why in the world would we take time from prospecting strategies that are working, like knocking on doors, in person meetings, client appreciation events, seminars and the telephone? I mean, the telephone still works right? The telephone has been closing down business since 1876, and besides, the phone went mobile in 1973. Production, is sure to go down. As it is, representatives have so many different activities and responsibilities. They don’t have time for one more dial, let alone social media. Hey, I love my corner window office—I don’t want to be a social mobile advisor. Besides, we don’t have to worry about any FINRA 10-06, 11-39 regulation on the aforementioned modes of communication, right? How compliant is all of the other media (The social in-person meeting, social phone, social letter, social e-mail, social fax, social seminar, social water-cooler talk, social bar, social seminars, social client appreciation events, social everything) we’ve been using? Even though we don’t have a social media policy, I guess we are no stranger to similar internal and regulatory policies for, record keeping, archiving, suitability (Know Your Customer), communications with the public, advertising, supervision and endorsements. We just started using email, how different can social media be?

Again, I’m not going to do something that I don’t know how to do. I don’t have the time to take away from producing activity to a non-producing activity and, I don’t really have the time for an education; those days of continuous learning are over. I’ve been doing this for years. I have spent hours and hours getting my CFP, and my Masters and all of these other NASD designations and licenses. I’m not going to spend time on social media, not me, no way. Social media is for kids, right?

I’m not registered to sell in all 50 States; there aren’t any boundaries on social media. All I know is that I’m not risking my licenses and reputation and getting in trouble on social media. I’m not putting myself out there, no way, no how. So what if everybody is going mobile and will be able to find me if I put myself out there to be found? Come on now, we can’t rely on the Internet, let alone social media. What if the Internet crashes—what happens then?

But then again, where’s the return on investment (ROI)?

I plan on getting a nice return (viewership) on ignoring the topic of ROI. My next blog post will be dedicated entirely to exploring social media ROI for the financial services industry.

If you or your firm would like a free social media assessment to determine where you stand, Learn more here:

FREE Online and Social Media Assessment

I invite you to share your thoughts below:

Filed Under: Facebook, FINRA, Google+, Linkedin, SEC, Social Communication, Social Compliance, Social Networking, Social Prospecting, Twitter Tagged With: advisor marketing, Business, Compliant Prospecting for Financial Advisors, facebook, Financial adviser, Financial Advisors, Financial Planning, Financial Service, LinkedIn, Social Cold Calling, Social media, Social Prospecting, twitter

The “Common Sense” Way for a Financial Advisor to Get Started in Social Media

April 2, 2012 by Rich LoPresti 2 Comments

Common Sense for Social Media

Common Sense for Social Media

What’s the right way for a regulated financial professional to get started in social media?

Be there, be you, be authentic, be creative, and demonstrate that you actually care to help others. That’s it.

Unfortunately, for financial advisors, it’s easier said than done. These days, advisors are being regulated not only by the industry, but also by their firms’ policies as well. Most big firms’ policies, by nature, have stricter interpretations of the regulations. Why you ask? For a number of reasons, but the most pressing is they need to protect the brand. In a lot of cases, these large firms haven’t even done that, social media or not, but that is for another post.

Step 1: Creating Your Online Identity

There is a blurred line between personal and business. Let me ask you a question: When you meet a prospect for the first time, do you only talk business, or do you try and make a connection with them on a personal level? Most successful advisors don’t talk about the weather; they try to find a commonality with their prospect beforehand, or try to find one on the fly when they meet them. The clothes they are wearing; the nice watch on the prospect’s wrist; the car they drive; the hat with their favorite team’s logo on it. Let’s face it—to be successful in “offline” real-world business, you need to bring your personal personality into the mix. It’s the same with “online” real-world business. Looking at the two worlds separately doesn’t make sense. The worlds are connected.

When you create online social profiles on Facebook, Linkedin, Twitter, and Google+, it’s really not a crime to tell people what you do, who you help, and how you help them. Your bio is everything. You only have one chance to make a great first impression. Same concept when you go to a party offline—basic conversation is going to lead you down that path. It’s just a natural conversation flow. For instance, if you are at a personal life party, it’s only natural to bring a little business into the conversation. It’s not your fault; it’s part of you. People are curious to see what you do, and how you can help them. Again, you are not breaking any laws if you tell someone on social media what you do for a living, why you do it, and how. If someone tells you otherwise, they need their head examined.

Please Be There:

Being on social media will allow you to be found. It’s the first step. In the offline world, you have business cards right? Do you give them to people? Do you pin one to the bulletin board at the library, drycleaners, restaurant, or post office? You are putting yourself out there, so, at the very least, one additional person can find you. Think of your online profiles as your business card. Instead of you handing the card to a prospect and having a brief introductory conversation, let the words on your profile do the speaking for you. Please let your compliance officer read this if they won’t let you have a profile, they may not understand. Why wouldn’t your company want you to proudly display their name next to your name? They hired you to represent them, right?

What’s wrong with this picture? On Linkedin, how can a financial advisor with a Certified Financial Planners (CFP) designation, a Chartered Retirement Planning Counselor (CRPC) designation, and a Chartered Mutual Fund Counselor (CMFC) designation, not even mention on their profile that they are a financial advisor? The firm he works for has a company page on Linkedin. Isn’t that social discrimination?

Linkedin Profile: What not to do

Here is a representative from the same firm. He mentions that he is an advisor, but still doesn’t mention the firm’s name. Weird, right? It is in your best interest to complete the picture for the viewer. You never know who is going to view your profile. The viewer could change your life!

Linkedin Profile: Getting better, but still not right

In this Linkedin profile, you finally get a complete picture of who the advisor is. If you visited his Linkedin page, you would find the answers to the three important questions: who you are, what you do, and how you can help.

Linkedin Profile: Finally a good profile

Step 2: You think before you speak, don’t you?

Advisors are coming to me all the time, telling me, “My compliance officer won’t let us do anything other than Linkedin; they won’t let me Tweet; they won’t let me blog; forget about Facebook (even though I’m on it for personal use); what can I do?”

Again, this is where that blurred line is between “personal” and “business.” On Facebook, as a person, you can talk to people, and you can see if you can help them. Personally, of course. I outlined some great strategies you can use to get you started. As Gary Vaynerchuck, Founder of Vaynermedia had predicted, we are going back to “old town rules” where everyone knows everyone. Bob the butcher knows you. He knows what you are going to order and has it ready for you before you even ask for it. Why can’t a financial advisor follow that same tact?

Want to blog? It is my humble opinion that independent advisors have the advantage, simply because big firms want to promote their BRAND, and not the individual, unique, talented reps they have representing them. With that being said, open-minded firms realize that social media allows an advisor to differentiate themselves from the commodity that they sell. Here is a traditional branding example that may shed some light on the power of differentiating yourself. Do you answer your phone with your full NAME first or your FIRM’S name? A 40-year vet of Merrill Lynch told me once that he always answered the phone with his full name only. One of his top clients referred a client to him and couldn’t remember the firm he worked for, but did remember his name. Guess what, Merrill still got the business. They may not have gotten the business if it weren’t for the unique style of the innovative representative. How can you differentiate yourself?

Surely not like this next example—Tweeting on Twitter. Did this Tweet damage Morgan Stanley Smith Barney’s social reputation?

Twitter: Danger of pre-written tweets

Twitter: Danger of pre-written tweets

I personally don’t think it did, but it surely isn’t helping. When 600 (potentially 17,800) advisors could send out the same message, yikes! Talk about corporate spam! The compliance fear being alleviated here by crafting canned Tweets most is taking the authenticity out of their online communication. In this picture you can see multiple (MSSB) advisors Tweeting the same Tweet at the same time. Do you think they all speak to clients the same exact way as well? I don’t think so.

In my opinion, there is a simple solution for this. I have no problem with MSSB treasure trove of pre-approved content. It helps the advisor with time management. What MSSB should simply do is put RT @MorganStanley and have the message come from their account and ReTweeted from the individual advisor’s accounts. It’s more authentic, and proper Twitter etiquette. The RT is a confirmation from the representative on the material from the firm. Advisors are fearful of ReTweeting content because of FINRA guidelines, but if a Tweet was approved by the firm, and it’s the firm’s material, there is no harm in ReTweeting the content.

Getting the Message! Morgan Stanley Smith Barney started Tweeting Today! Yeah!

Getting the Message! Morgan Stanley Smith Barney started Tweeting Today! Yeah!

Recently, this Tweeting style caught the attention of New York Times writer William Alden. After I read his article, I posted on Facebook On Wall St ., Keeping a Tight Rein on Twitter, with a comment on how I dislike canned Tweets and within seconds Twitter agreed. In this image you can see the authentic conversation about the un-authentic posting style.

Twitter: Authentic Twitter conversation on Twitter

Twitter: Authentic Twitter conversation on Twitter

As Lauren Boyman, who runs social media at Morgan Stanley Smith Barney, says they are “trailblazing, so to speak, even with the restrictions that we have, we’ve seen a lot of success.” Kudos to Lauren—many big firms have only embraced social media at a brand level, and not at an advisor level. More so, it seems that they are well aware of the drawbacks of the pre-written Tweets and have started a pilot program of 20 financial advisors who can be themselves and craft their own Twitter messages. With the help of Socialware, they are streamlining the compliance approval process.

Power of Social

Fay DeBellis, a Morgan Stanley Smith Barney Advisor, may be canned Tweeting on Twitter, with her 46 Tweets (as of this writing), most of them pre-written, there is no surprise in the fact she has not developed any business from Twitter. Don’t let those facts fool you, twitter doesn’t represent the entire social story. She happens to be very successful on driving business through other social networks. On Linkedin for example, she has brought in a whopping $10 million worth of business during the last year and a half.

Twitter: Fay's Social Profile and Pre-Written Tweet

One of Fay’s colleagues Mitchell Rock, a Wealth Advisor for The Rock Group, has also had success on Linkedin. His group’s Linkedin strategy generated 28 percent of The Rock Group’s revenue last year, which included a $70 million whale of an account.

Bottom line: Social media can grow your business even if you don’t understand how to fully utilize its power. You need to start.

Compliant Social Compliance:

From my compliance experience as a NASD series 4, 9, 10, and 24, I had firsthand experience with managing compliance. I was responsible for keeping the branch representatives in compliance. I must tell you that, with the right tools, all the other modes of communication (phone, mail, fax, in person) cannot be tracked as effectively as social media. Nothing is 100 percent. All firms are having compliance audits done on them for traditional media; it’s always a challenge. Through technology, social media is the only medium that I know that is fully traceable, trackable, searchable, and measurable. All the data communications are captured and stored.

Social Enablement Technology

Social CRM and Social Media Management and Archiving Systems:

Here are some of the 140-plus companies that can help enable compliant social media. Actiance, Hearsay Social, Radian6, Socialware, Arkovi, Smarsh, Engage121, Backupify, Spredfast, Expion, Awareness Networks, cloudpreservation, Hootsuite, Shoutlet, Syncapse, erado, hanzoarchives, iterasi, pagefreezer, and LinkedFA. The list goes on and on.

With the aforementioned companies, the supervision fear that a financial advisor may breach FINRA Regulations by posting inappropriate terms on a social media platform is eliminated. Similar to email compliance controls, social media management applications used by many financial institutions and banks can prevent an advisor from sending posts and messages including words like “buy,” “sell,” “hold,” “recommended,” “advise.” This security measure will allow for an advisor to be more authentic, and allow compliance officers peace of mind. When speaking on social media, this security measure (and others) will allow for an advisor to be more authentic.

This primer should help you in getting started in “Common Sense” social media. As always, please comment with your thoughts below. If you have any questions or need assistance with your social media deployment, please let me know, I am here to help!

Need More help getting started? Be sure to click below and download my free Social Media Primer to help you get started in Linkedin:

Linkedin: The Financial Advisor’s Gateway to Compliant Social Media Bliss (How to get new business from Linkedin. PERIOD!)

and

Stay Compliant with the Regulation Primer for Linkedin: A Financial Professionals guide to stay in Compliance

Filed Under: Facebook, Google+, Linkedin, Social Communication, Social Networking, Twitter Tagged With: actiance, advisor marketing, CFP, client aquisition, Compliance, Financial services, FINRA, hearsay social, smms, Social Media for Financial Advisors, social media management system, Social Networking, SocialCRM, socialware

Tax Free Growth Through Social Media

March 27, 2012 by Rich LoPresti 2 Comments

Roth IRA Movement

Roth IRA Movement

#Roth IRA Movement goes Viral!

The majority of Financial Professionals are struggling to incorporate Social Media into the framework of their practices. Financial Professionals are well-educated (CFP, MBA, Series 7) individuals, and have amazing knowledge and incite in helping the average person who has chosen their life’s work in a different field. Here’s a novel idea, why not simply help others solve for a problem before they have one?

To this point today, I stumbled upon the perfect example of what helping others through problem solving is all about. No joke, through a tweet on twitter from @Vanguard_FA‘s feed something amazing caught my eye.

Vanguard Tweet #RothIRAMovement

Vanguard Tweet #RothIRAMovement

Since I am in the field of helping advisors leverage social media, I was immediately intrigued. I clicked on the link (I also ReTweeted the message [giving Jeff social credit] to my 40k plus twitter followers) and read his blog post in amazement. Finally, someone got it. “It” simply means that Jeff has genuinely connected with his audience. He has added so much value into a simple concept within savings and investing, the “Roth” IRA that has been around since 1997.

How did he do it?

Jeff Rose a successful Certified Financial Planner from Illinois was charged up from a talk he gave at his alma mater, SIU Carbondale. He asked the simple question to the 50+ attendees from the graduating class “How many of you are familiar with a Roth IRA”? To his dismay, not one person raised their hand. Not one single senior has heard of the Roth IRA. Why not he thought? After a night of brainstorming, enter the Roth IRA movement.

Jeff's original Tweet that started it all!

Jeff's original Tweet that started it all!

Through social media, Jeff used his voice and started to create a buzz. The power of an idea given new life, coupled with a terrific shareable story has the potential to go viral. In a sense, it already has.

Being a Financial Advisor myself, and dealing with sixty year olds who have worked their entire lives. They are struggling making the transition from accumulating wealth while working to distributing their wealth to see when and if they can retire. I can relate. Let’s stop this problem before it happens. Most educated people facing retirement never saved enough and were solely focused on their day-to-day lives. Obviously, they did not realize the importance of saving for retirement soon enough.

Let’s collectively solve that problem!

Jeff took to the Web and started a movement. Today there are 150+ bloggers and notable Financial Institutions running with his message, a message that was already out there. However, this message wasn’t being targeted to the demographic that can benefit the most from “control” and “tax free” growth through years of compounding.

#RothIRAMovement Twitter Feed

#RothIRAMovement Twitter Feed

These powerful financial institutions struggled to get across to younger generations. Most of them were focused on the generations with the big bucks, not the generations who need help as well, and will inherit wealth from the boom generation. They have the knowledge and the resources to help educate our youth. I think they hear the message now, loud and clear! They need to thank Jeff Rose for giving them the opportunity to connect with the younger generation.

Independent advisors also need to learn from what Jeff has done here. You don’t need to be a big financial institution to have an impact. It is easier for an individual to genuinely connect with a niche audience. Brainstorm, and figure out unique ways to connect with people that you can help.

Even if Jeff gets one person to raise his hand during his next talk, Jeff has won!

Jeff has won!

Jeff has won!

More BIG TIME Accolades for Jeff’Rose’s #RothIRAMovement:

More Accolades for Jeff Rose's #RothIRAMovement

More Accolades for Jeff Rose's #RothIRAMovement!

Charles Schawb, Yahoo Finance, The Huffington Post, AARP and many others recently joined the #RothIRAMovement. The momentum continues. One thing is for sure, Jeff Rose will be forever associated with the ROTH Ira. I Just added the #RothIRAMovement to Wikipedia

Closing down Business with a Hashtag:

New Business from a Hashtag #RothIRAMovement

New Business from a Hashtag #RothIRAMovement

Origins of the Roth IRA Movement:

Click here to view Jeff Rose’s Roth IRA Movement

IRA Facts:

Traditional/Rollover IRA:

A Traditional or a Rollover IRA is a retirement vehicle similar to a 401(k). Money you earn is taken before taxes are taken out and contributed to the account. You have to pay taxes on the money you take out of it. There also is a 10% penalty on top of income taxes if you take out money from the account before you reach the age 59 ½. You are required to start taking out funds at 70 1/2

A Roth IRA is the opposite, you put after tax money in the account and it grows tax free. You do not have to pay taxes on any of the withdrawals, ever, as long as you hold the account for five years. The benefit of the Roth is the tax free feature. If you start young, and invest wisely, you can really benefit from never having to pay taxes on those funds again…. ever!

Are you a Financial Advisor? Need help getting started in social media? Be sure to click below and download my free Social Media Primer to help you get started with Linkedin:

Linkedin: The Financial Advisor’s Gateway to Compliant Social Media Bliss (How to get new business from Linkedin. PERIOD!)

and

Stay Compliant with the Regulation Primer for Linkedin: A Financial Professionals guide to stay in Compliance

Filed Under: Facebook, Linkedin, Pinterest, Social Communication, Twitter Tagged With: #RothIRAMovement, CFP, Education, financial advisor, Gen Y, Lead Generation, Retirement Savings, Roth IRA, Social Advisor, Social Movement

LIVE FREE WEBINAR: Can’t Miss Compliant Social Media Strategies THAT Financial Advisors Can Use Right Now To Grow Their Practice

March 17, 2012 by Rich LoPresti Leave a Comment

Can't Miss Social Media Strategies for Financial Advisors and other Sales Professionals

Can't Miss Social Media Strategies for Financial Advisors and other Sales Professionals

LIVE FREE WEBINAR: Can’t Miss Compliant Social Media Strategies THAT Financial Advisors Can Use Right Now To Grow Their Practice.

This Can’t Miss, all inclusive webinar will cover complaint beginner strategies for advisors just getting started in social media, as well as compliant intermediate strategies for advisors ready to take the next step. There will additionally be advanced strategy secrets for the seasoned financial advisor that’s ready to evolve their practice to the next level through social media.

Sign up now!

Filed Under: Cold Call, Facebook, Google+, Linkedin, Pinterest, Social Communication, Social eMail, Social Events, Social Lead Generation, Social Networking, Social Phone, Social Prospecting, Social Prospecting, Social Referrals, Twitter, Videos, Webinar Tagged With: advisor marketing, brightTalk, Financial adviser, financial advisor, Financial services, impact communications, Internet Marketing, Marketing and Advertising, marketing and PR, Rich LoPresti, Social media, though leader

Social Prospecting: Monitor the Competition for their Hot Leads

March 8, 2012 by Rich LoPresti 6 Comments

Effective Step-by-Step Guide to Monitor Your Competitor’s Social Prospecting Efforts

Social Network Prospecting: Lead Generation Monitoring Strategy

Social Network Prospecting: Lead Generation Monitoring Strategy

To say we live in the information age is an understatement. These days, everyone is over-sharing information. Too much information surrounds us. Everyone is so open to sharing and will communicate with anyone and everyone willing to listen. For example I am sharing this social-lead generation secret with you. The awesome social-lead generation strategy I’m about to share with you shouldn’t be shared. Truth is, I know you’ll share it too!

Why all this sharing? Are we professional businessmen and women trying to be more successful than one another, or are we unnoticed children crying for attention? In any case, it seems like everyone is learning how to talk online for the first time. It’s time to grow up—the public Internet is going to be 18 this year.

This keen observation begs the question: Did we ever communicate correctly before social media, or were we always trying to have everyone hear every word and thought we had and know about every action we made? My guess is social media exacerbated this over-sharing problem.

Now to the social business world:

In the business world, salesmen who prospect online may have an excuse for over-sharing. They may feel they need to justify their social communication actions to their boss. They need to “show” their work. Their cold call dials are down; their mass email communication is ineffective; where are the new prospects coming from? I’m sure you’ve heard your “old school” sales manager say “Social prospecting, what’s that?” The saleswoman’s work needs to be justified with PROOF! Forcing them to be public about their work so their bosses and their boss’ bosses can see how their online communication strategies are working.

Little do the salespeople realize that their competition is watching their every step! Did you really think that the social salesman’s bosses aren’t the only ones monitoring their great social sales communication?

So what should you do?

If the sales professionals are naive enough to inform you of sales opportunities, as a salesman, you need to be prepared to take full advantage of other saleswomen’s over-sharing of information. Because these social saleswoman like to talk a lot, there is a mixture of relevant and irrelevant information that you need to sift through. How do we filter out the noise and stay on task? The answer—social monitoring with optimal organization.

Your Goal:

As a salesman, your goal should be to get in front of as many qualified prospects who are in the market to buy what you are selling.

Well, how do I find them in the information-overload era you ask? I am here to tell you.

Here’s How:

My friend and prospecting thought leader, Cory Kapner, show’d me his amazing prospecting secret and the endless flow of leads it has generated for him. I was floored. Follow this strategy and you will be the top sales professional in your organization. Forget about cold leads; forget about warm leads; your leads will be hot and ready to close. They are all ready to solve a problem that you can solve. Please read and reread the step-by-step guide below.

Hot Social Lead Generation in Action:

1) You should know your competition, but if you don’t, research your competitors on LinkedIn by putting in your company name on the ”companies” page. If your industry is commoditized, start with the companies that you know your organization is superior to:

Locate and Research your Competition

Locate and Research your Competition

2) Now it’s time to get to know your competition in real-time online. Drill down further on the companies one by one. First, research your LinkedIn contacts within the competitor’s organization. You should focus on (corporate level) C-level decision makers, sales and client services people. The idea is not to befriend them. The idea is to identify who they are, what their role is, and if they can help you drive more sales within your organization.

Drill Down on your Competition and Locate the Key Individuals you want to Follow

Drill Down on your Competition and Locate the Key Individuals you want to Follow

3) Once the individual contacts are identified, the best way to have them help you is to follow them on Twitter. (You can follow them on Linkedin as well, but that’s a whole different conversation.) They will bring you right into their conversations. For organizational purposes, first locate the individual Twitter handles for each contact and start compiling your list offline.

Finding Key Actionable Information on the Selected Individuals

Finding Key Actionable Information on the Selected Individuals

*Amazingly, in some cases the companies do all the organizational work for you—they put together public lists of their sales-force for you to follow. What a nice gift!

It's always nice when someone does the grunt work for you!

It's always nice when someone does the grunt work for you!

4) Now bring your lists back online using a third-party social media management application (SMMS) application (or Twitter lists directly) to “sneakily” follow the Twitter handles you patiently compiled. There are SMMS platforms that offer the “sneaky” follow, although there are many other ways you can do this without your competition knowing you are watching them. For example, you can easily create lists on Twitter using a separate Twitter prospecting account.

Using Twitter Lists and Groups to Organize your Findings

Using Twitter Lists and Groups to Organize your Findings

5) Filter the conversations based on competitor (or whatever other goal(s) you may have set up). Monitor through alerts, watch through Twitter, or watch through a third-party SMMS platform.

Start Listening to your Competition for Relevant Sales Information

Start Listening to your Competition for Relevant Sales Chatter

6) Identify and qualify potential leads by researching conversations. Like magic, the social Twitter conversation below didn’t capture a warm lead—it captured a hot lead! Here is a prime example of a perfect lead you can pounce on (carefully)! Talk about hot lead generation! The prospect is searching for a solution, can you articulate a better solution than your competition?

Like Magic, Hot Sales Leads Appear!

Like Magic, Hot Sales Leads Appear!

Sale Speak on Twitter: Client is Looking to Buy a Solution!

Sale Speak on Twitter: Client is Looking to Buy a Solution!

7) Now reach out to the hot leads you found on different social media platforms using the research you’ve gathered. In the above example, this prospect had a link on her Twitter page to her LinkedIn profile. Now you can identify if you share any commonalities with the prospect, such as groups you share on LinkedIn. Information can easily be found on their “about me” section of their website. You can also take a look at their companies “about us’ page for information about them and the company they work for. Again, this is important: Once you have located their LinkedIn profile, you can connect with them if they share a similar group with you. If you are in any of the groups, join it, and connect through that commonality. This will be the gateway for you to distance yourself from the real way you found them. It may be too creepy to tell them that you have been waiting and watching for their conversation to take place.

Time to Connect with the Prospect on Linkedin!

Time to Connect with the Prospect on Linkedin!

If your competition is going to give you an open look into their social prospecting, you would be foolish not to take notice. I urge you to listen to your organized social network’s conversations. You will be pleasantly surprised by what you see. No time like the present to capitalize on this opportunity.

If you are struggling to apply this strategy to your niche let me know, If you think it doesn’t work for your niche, remember social media is not business to consumer (B to C) or business to business (B to B)—it is person to person (P to P). With this in mind, just listen! If you talk to your sales prospects, remember the competition can and will be listening.

What do you think of this strategy? Please let us know by sharing your thoughts below:

Filed Under: Linkedin, Social Communication, Social Lead Generation, Social Prospecting, Social Prospecting, Twitter Tagged With: Lead Generation, Prospecting, Sales Technique, Salesmen, saleswoman, Social Lead Generation, Social Monitoring, Social Networking, Social Prospecting

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