Why Social Media Marketing Works for Financial Advisors
According to LinkedIn, 92% of financial planners who use social media for business purposes report that it has helped them get new clients.
Wealth managers should consider developing social media and marketing strategies for financial advisors to help increase brand awareness and digitally connect with leads, clients, referrals, and other advisors.
Empower your teams to be active online and share updates about your firm, tax policies, trends in the market, etc.
More people go to social media to get news and information like this than ever before. And they expect you and your business to satiate their hunger for knowledge and financial literacy.
Social media for financial advisors is a great place to share simple financial planning concepts like The Bucket Plan® or The Money Cycle. Information sharing has become an established part of the sales process.
Each Social Network Requires a Different Approach
Before developing marketing strategies for financial advisors, the first thing to consider is SEC marketing compliance. Like all other forms of financial advisor client communications, social media for financial advisors must follow marketing compliance.
Those penalties start to add up quickly if you don’t carefully adhere to the Securities and Exchange Commission’s rules and regulations. According to FINRA, the fine for misinformation in the financial services industry can be as much as $3.8M.
Strategies involving social media for financial advisors should not replace your existing marketing plan. Instead, look at if and how each individual platform will fit into the marketing strategies for financial advisors that you currently practice.
Digital marketing for financial advisors complements other advertising methods to enhance the overall client experience.
Social media for financial advisors can be tricky to navigate. Sometimes users experience negative feelings if you’re trying to sell them something when they’re trying to scroll through cat photos. On LinkedIn, however, you don’t have to worry about that as much.
LinkedIn is an online professional networking platform that provides business-oriented services like job boards and resume builders to individuals and companies alike. Because it focuses more on the professional than the personal, there is more freedom to follow a hard sell approach on this platform than on others.
Facebook is arguably the most well-known social media platform of all time, so all marketing strategies for financial advisors should incorporate it both organically and from a paid advertising perspective.
Twitter is a text-based microblog; each tweet can only contain a maximum of 280 characters. This includes the text for your post and any emojis, hashtags, or links, so brevity is key.
Hashtags were born on Twitter. They’re essential to getting in on the conversation and reaching the right audiences. You should follow governmental organizations like the IRS and SEC and filter their content to be relevant to your audience and their needs.
Because it is so text-heavy, including images can really help your content stand out when users are mindlessly scrolling.
According to Hubspot, the amount of online video consumers watch has almost doubled since 2018, and 94% of marketers say video has helped increase user understanding of their product or service.
When you’re in as complicated an industry as ours, simplifying processes for your clients is priceless.
Instagram is an image-based app owned by Facebook’s parent company, Meta. The term social media influencer was coined on Instagram.
How can you position yourself as an influencer on social media for financial advisors?
TikTok is a short-form video app. It has the youngest audience out of the platforms we’ve covered above. This means there is a wealth of opportunities to get in before the space becomes cluttered.
Social media for financial advisors sometimes means weeding through bad actors who offer advice but have no credentials or valid data to back up their claims.