By D. Bruce Johnston, President and Chief Executive Officer, Advisolocity

There is good news about social media for smaller fund managers and advisors ahead.

Smaller Fund Managers Can Stand Out with Financial Social Media Marketing: Johnston

The new media platform has enough history to prove its cost-efficiency and value over traditional methods.

According to SocialWare’s Guide to Embracing Social Technologies in Regulated Industries, “The Altimeter Group found that companies with the highest levels of social media engagement increased revenues by 18% in the last 12 months, while the least active declined by 6%.”

While this alone doesn’t prove that all social media strategies have delivered, it does remove one of the barriers to trying a social media effort: social media has been proven to increase business.

A number of investment service providers and publications have been tackling the implications of the growing realization that revenue growth likes social media.

On August 3, Huntington Asset Services, formerly known as Unified Fund Services, will sponsor its first webinar on the topic of Using Social Media to Build Investor Awareness.

Interested investment industry professionals are invited to participate in the webinar by registering here.

The business-building implications of social media for liquidity-pinched financial services firms are growing larger. For example, recent data from marketing firm LederMark Communications underscores the growing popularity of these tools among financial services professionals.

According to that survey, up to 40% of all users say that social media strategies are helping them build new business. Research from Spectrem Consulting Group last spring delivered similar findings:

• 63% of Twitter users read tweets that offer financial advice
• 46% of YouTube users and 41% of Facebook users seek information from social networking investment forums

In addition to offering some practical guidance on how to use social media, the August 3 webinar also intends to feature insights on regulatory trends and archiving solutions.

Huntington Asset Services will continue to expand its social media marketing focus during its annual client meeting to be held September 12-13 in Indianapolis.

If climbing the corporate ladder is a game, the game gets clearer with a performance shares rule book, according to a new white paper developed by Charles “Chuck” Steege, CFP^®, Executive Financial Coach, with assistance from writer, John Drachman of the Advisolocity staff.

Capture contacts, expand orbit

While the structure (and even the definition) of performance share grants can vary, the common feature is a specified goal or metric that must be achieved before one can profit from the grant.

“We are seeing that the performance share discussion with our prospects moves faster once they register for, download and read our white paper  Five Reasons to Like Performance Shares (And One Reason to Think Twice),” said Mr. Steege.

White papers establish thought leadership

“We’re seeing solid interest for more information from executives looking to make a high-level change, yet are hesitant about transitioning to a new position without all of the facts about their compensation,” Mr. Steege continued.

As clients download Mr. Steege’s white paper, they leave their name and e-mail address.

“It’s important to treat captured contact information with a great deal of respect,” Mr. Drachman added.

“We make sure that all of our clients know that every email or post they send must provide an opt-out feature if the prospect chooses not to receive more information,” he continued.

“Still,” Mr. Drachman concluded, “There are few value-added materials that can offer as much educational benefit — with the least intrusion — as a well-crafted white paper.”

By John C. Drachman, Advisolocity

Will low budgets prevent marketers from taking advantage of  the Internet’s free bandwidth?

Taking advantage of free bandwidth

“Not likely,” says Advisolocity’s D. Bruce Johnston in his his recent post on Blackberry Blogosphere.

Social media types are taking heart from a study quoted by Marketing Pilgrim that while 40% of marketers report budgets down for the year, 70% plan to redeploy their resources from traditional print and advertising to Twitter and Facebook marketing.

“This resource shift is sure to accelerate as marketers and compliance officers now find common agreement,” Mr. Johnston said.

The release of FINRA’s 10-06 ruling has removed the last impediment to utilizing the cost-efficiencies and creativity of social media programs, he added.

Download your copy of FINRA 10-06 at the Advisolocity Resource Center

Can we expect a new social media marketing compliance lore to come into existence? Mr. Johnston thinks so: “Responsible, spontaneous, transparent communication can do a lot to put back the heart in this troubled (securities) industry.”

He pointed out three simple steps any marketer can take to heart as she undertakes a social media effort:

Archiving makes it easier to network.

1. Build a social media policy and follow it. If FINRA comes knocking hand them a copy
2. File product-related postings as usual
3. Treat blog and web site as connected, yet independent; with the blog focusing on thought leadership themes and the site offering products and services

“Simultaneously FINRA 10-06 has managed to strike a blow for common sense, fiduciary responsibility and freedom of speech,” he added.

While compliance officers  and investment marketers decode FINRA 10-06, financial advisors are embracing the new regulatory clarification.  According  to a Rydex AdvisorBenchmarking survey, advisors are looking to primarily use social media tools for “securing new clients (46%), enhancing communication with current clients (35%), and advertising or promoting their firms (30%).”

Over at financial research firm Nemertes, the social media cat is happily out of the compliance bag. “The new guidelines bring clarity,” a recent report stated, “but remove excuses for delay.”

Without delay, full speed ahead is required: Nemertes cautions the tidal wave of consultants, archivists, communications specialists, compliance firms and social media strategists, however, to get busy carefully: “Plan to converge or add social media features and capabilities with security solutions for communications media like email and IM.”

By D. Bruce Johnston, President and CEO, Advisolocity

Last week I sat on a social media panel at the “Innovation and Growth In A Post Economic Crisis Era” Conference.

Social media = client conversation: Bernstein on FINRA

The event, sponsored by Spectrem Group and Financial Advisor Magazine, identified a wide range of issues affecting advisors and investors in the shifting wealth management landscape.

One of those issues centers around how best to restore transparency and clarity between the securities industry and beleaguered investors through the creative use of social media and networking.

Interest in this area has been intensifying since the release of FINRA’s 10-06 ruling removed the last impediment to utilizing the the cost-efficiencies of these new communications technologies.

I believe that more frequent, transparent communication can do a lot to put back the heart in the securities industry. Now, should an advisor or money manager implement a social media strategy, they may do so  providing they meet the additional standards for archiving and retrieval of published content.

Without a robust archiving initiative, firms can receive admonishments — and fines — from FINRA.

If we are to become engaged, active social media practitioners who routinely post content, send Tweets, and banter back and forth on Linkedin, we need to pay as much attention to how the message is stored as to how the message is developed.

In fact, according to Market Counsel’s Daniel Bernstein, social networks are increasingly viewed  by FINRA as no different than an in-person meeting or written client communication.

The pace of change will only accelerate: Dow Jones’ Christopher Young  informed the audience that social media growth has surpassed the rate of adaptation for the Internet, personal computer and the cell phone.  Most recently, The Wall Street Journal made a similar point by contrasting  their 2.2 million subscriber list with the 400 million individuals on Facebook.