The best financial advisors make social media work for them. It’s not easy, but a well-planned systematic approach to cultivating social media is clearly helping drive successful financial advisors’ gains in assets under management higher and higher.
Putnam Investments’ 2016 annual survey of more than 1,000 financial advisors provides some useful insights into the activities of financial advisors who are successfully using social media to build their businesses.
The Best Financial Advisors Use Social Media to Grow
Here are some of the key findings of this survey:
- Between 2013 and 2016, the percentage of advisors sourcing clients via social media increased from 49% to 80%
- Linkedin remains the most popular social media site with 73% of advisors, followed by Facebook at 54% and Twitter at 44%
- For advisors with AUM greater than $100 million, the average social-based AUM gain is $8.3 million
- Linkedin was used by 64% of advisors to connect with peers. In contrast, advisors used Facebook more (62% of advisors) to improving their referral networks and building their brands. Facebook use is increasing
- 81% of advisors’ firms have social media policies. Many firms limit social media use to personal use
- Only 12% of users consider Twitter to be their primary business platform
- Hours spent by financial advisors on social media and traditional networking activities are now about the same, clocking in at 10 hours per week each
- Paid promotion on Facebook has a measurable impact on assets gained by financial advisors
- Advisors who were active daily on social media gained considerably more assets than advisors who used social media less frequently
Financial Advisors’ Daily Use of Social Media Drives Efficiency
In summary, Linkedin remains the primary social media network for financial advisors with Facebook and Twitter gaining ground. Active daily impact on social media appears to have a very significant positive effect on gaining assets under management. And, here are some actionable Linkedin tasks to consider.