Despite the pressure to jump on Twitter and Facebook to promote their services, most financial advisors say social media did little to boost business, according to an Investment News article titled “For advisers, it’s more like social notworking.” In fact, the reported benefits of social media have plummeted over the past two years.
Aite Group conducted a survey of 437 financial advisors and found that while social media use has clearly increased since 2009, with about half saying they use some form of social media professionally. However, a mere 19 percent reported the media brought in new prospects, down from 36 percent two years ago, and just 6 percent said it helped increase revenue, down from 16 percent.
The story quotes Aite senior analyst Ron Shevlin: “I think to a certain extent, the hype around social media has been overplayed. For many advisors, especially those who were not good marketers to begin with, they keep hearing ‘You gotta be on Facebook and Twitter,’ but they get on and it doesn't produce any results.”
Compliance rules stifle some advisors. Also, the fact that most clients still find advisors by word-of-mouth may explain the findings.
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