What’s the most successful social network for financial advisors?
By Vanessa De La Rosa
It’s an awkward pairing: advisors’ hesitance to push through compliance worries and jump onto the social media bandwagon, and the incessant message that advisors must adapt to social media or risk dying off like dinosaurs.
Whether you're using social media every day, a little bit, or not all, it's undoubtedly an ongoing source of curiosity among those in the insurance industry. How many advisors are really using social media, and are they seeing significant results? Which networks are they using and how? What’s the most successful social network for financial advisors — and why?
The answers to those questions (and many more) were uncovered recently when Putnam Investments partnered with FTI Consulting to poll 408 American financial advisors on their social media behaviors and success (or lack thereof).
While many in the industry question the role social media can play in boosting advisory businesses, one thing is common throughout the extensive research devoted to this topic: Most financial advisors are using at least one social networking tool for business. In the case of the Putnam survey, “most” meant three-quarters of the respondents. Forty-nine percent of advisors acquired new clients by using social media, and 29 percent of those advisors gained over $1 million in new assets.
Here are a few of the survey’s findings that are particularly interesting:
- How advisors are using social media in different ways and on each platform (LinkedIn, Facebook, Twitter, and Google+)
- Which network is cultivating the most success for advisors and their businesses
- Why the top network is so successful
- Which tools and features advisors are capitalizing on that network
- is a fee-based, independent broker-dealer
- has over 10 years of experience
- has a typical client portfolio of less than $1 million
Here's how the typical social media-savvy advisor uses each network:
However, the study showed there is still room for improvement when it comes to using LinkedIn to its fullest potential:
- 59 percent of advisors have increased usage only because they now have a better understanding of how to leverage LinkedIn for business
- 39 percent of advisors want reduced compliance requirements
- 22 percent of advisors want more education, training and tools
Want to see the Putnam survey's comprehensive results? Click here.
Curious how many ProducersWEB members use social media for their business? Participate in this survey and stay tuned for the results!
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