The Payoff
What's the return on this expenditure? That's nearly impossible to calculate. "Fifty percent of marketing works and 50% doesn't, and nobody knows which one is which," says Van Pearcy, a branch manager and financial advisor at Van Pearcy's Wealth Services Team in Midland, Texas.
Yet that uncertainty doesn't make the effort worthless. "It's hard to track how much it brings in," says Adams, "but I've definitely got a couple big cases just from people finding me through the Internet, liking our content and thinking we were a step above the rest."
Compliance
Before you publish that content-whether it's a blog about a financial topic or a simple Twitter tweet-you need to ensure your message won't run afoul of the regulators. For Raymond James affiliates, a software package called Socialite, which is made by Actiance, is the solution. "It not only blocks what regulators don't approve of but tracks and maintains the records that are required," says W. Barton Close, a certified financial planner at Chattanooga, Tenn.-based Classic Wealth Advisory.
Clients of LPL BrandPartners have the option of repackaging online content that LPL produces, though many prefer to supplement that with their own material. "BrandPartners produced material for our brand, including a logo that represents forward and upward movement, and a tag phrase-'Experience, Trust, Commitment'-that highlights our clients' and firm's values," says Mark Shepherd, founder and registered principal of Winchester, Mass.-based Shepherd Financial Partners. "BrandPartners even came up with the color scheme, a valuable add, as I'm color-blind!"
Shepherd hired a dedicated staffer to run the ongoing marketing effort. "Our marketing effort includes production of weekly blogs, quarterly newsletters, presentations, events and publicity," says Patricia Manko, Shepherd's chief marketing officer. To be most effective, she says, "one must initiate and join conversations about the topics you've blogged about, and this activity in and of itself could constitute a full-time job."
Social Media's Many Uses
How advisors express their brand identities can vary greatly. For some, it's just another way to keep in touch with clients. "I'm comfortable posting a picture on Facebook of the waffle I made for breakfast," says Sun, the wealth manager in Irvine, Calif. "I'm committed to keeping my clients up to date not only on the business aspects of our practice but also on who we are as people. It helps clients feel we're aligned."
Similarly, Close in Chattanooga likes to share with clients his passion for classic cars. "I wanted to tie in my passion, my hobby, with my firm's identity," he explains. "I wanted to appeal to people with whom I have something in common."
The Personal Touch
Nevertheless, despite the benefits of high-tech communications, there are some advisors who insist that the best marketing is the old-fashioned kind. "We spend three or four days a month calling high-net-worth individuals in our area who aren't doing business with us, just to ask if we can come by and give them a chance to get to know us better," says Pearcy, who only takes clients with at least $1.5 million to invest.
Early on, he advertised in local papers and billboards and hosted monthly educational seminars. But in 2003, all that changed. "To be honest with you, high-net-worth individuals are not interested in working with people who advertise the way we did," he says. A subtler approach was needed.
Raymond James helped Pearcy not only design a quality Web site but realize that, after more than 20 years in business, he no longer had to take all comers as clients. "At this point, we can be picky about who we're going to do business with," says Pearcy. "It's a great position to be in."