Blue Helm

I have to admit I was a little surprised when I saw the following chart on Mashable the other day:

The lines in the graph that surprised me the most corresponded with LinkedIn and Twitter. LinkedIn actually had a better year than Twitter!

We’ve all heard about how Twitter is growing like crazy. Ever since Ashton Kutcher challenged CNN to a Twitter-off, Twitter has been all over the media. Celebrities, news shows, websites and commercials all promote Twitter in some way. As a result, Twitter has grown at an remarkable rate, but surprisingly, LinkedIn has grown more.

How has LinkedIn done it? Here are a few ideas I had:

1. LinkedIn is more robust – I love Twitter, but there’s only so much you can do with 140 characters and a few different symbols like @ or #. LinkedIn has all sorts of great resources to help you connect with other people. They have groups, they suggest people you may want to connect with, there’s the Q & A section and they have improved link sharing capabilities. Also, your profile says a lot more about who you are and you can recommend close connections. These features are attractive to someone who’s looking to connect and network on a deeper level.

2. LinkedIn is easier to use – This may sound contrary to my first point, but hear me out. First, Twitter is not easy to understand for a new user. They don’t know what a re-tweet is, they don’t know what a hash tag does and they don’t know what the heck they should tweet. Worst of all, Twitter does a terrible job of explaining all of the ins and outs of how to use the site. Twitter does have a 101 course, but it’s not easy to find. The 101 course should be a part of the sign-up process. Second, Twitter is very high maintenance. If you want to have a successful Twitter account you have to tweet a lot of great content, which is not an easy task for most people. Third, there are all sorts of spam on Twitter. People get tired of being followed by accounts who are following 300 people and have few or no followers. I have to delete spam every day on Twitter, while on LinkedIn I’ve never had to. LinkedIn on the other hand is very user-friendly. There is a side bar tool that tells you what you need to do to complete your profile. They have great tabs that are easy to understand. All of the updates are broken up into categories. Not only is LinkedIn clean and easy to use, but you don’t have to update it all of the time. If you update it once a week you’re doing great.

3. LinkedIn’s demographic is specific – LinkedIn targets business professionals. There’s no point for everyone and their dog to get on LinkedIn and clutter up the space. The only reason people are active on LinkedIn is to network with other professionals. On the other hand, Twitter is full of people talking about everything from Justin Bieber to Earth Day. It’s not easy to sift through all of the noise to hear what you want.

4. Twitter is helping to grow LinkedIn – I think all of the hype Twitter gets actually helps LinkedIn. Convincing people that they need to be a part of the social networking revolution has gotten a lot easier as more and more people hear about these sites in the news. Professional people keep up with news; as a result, they turn to a network that makes sense to them…LinkedIn.

Why do you think LinkedIn is outpacing Twitter? Do you think I’m way off base? Let me know.

In my last post, I focused on the need for college alumni to clean up their Facebook pages, Twitter feeds and blogs. In today’s highly-competitive and unpredictable job environment, you can’t afford to have potential employers come across negative or incriminating information on your social networks (particularly photos). If you haven’t done so already, it’s time to clean house.

This morning I want to write about the next step in evolving your social sites into positive and dynamic networking tools: professionalize.

What does that mean? Well, if you haven’t figured out by now that social networks play a commanding role in 21^st century personal branding, it’s time to take a crash course in reality. Like it or not, Facebook matters in the business world. So do LinkedIn, blogging and a host of other “new media” channels. These are robust, highly compelling tools to use in your networking and job searching endeavors. So you must professionalize your social networks—you must develop them into qualified, focused sites that employers, coworkers, interviewers, former professors and colleagues will respect, value and share with others. However, you don’t have to turn all your social networks into stale, emotionless resumes. You can still use Facebook and Twitter for personal or social reasons…just be aware that employers and business people will see your sites. You want them to look great.

(The following suggestions are for those that already have existing social networks, like Twitter, Facebook or LinkedIn. If you currently don’t use any social networks, but want to start building your social media presence, go here.)

Upload good profile pictures. Online profile pictures can make significant first impressions on potential employers and others. You definitely don’t want a photo of your recent drunken late-night escapade greeting every visitor to your social networks. Your Facebook profile photo doesn’t have to be uber-professional, but it should be well-cropped and likable. LinkedIn profile shots can have a more professional feel, depending on your industry. Make sure your Twitter profile picture is cropped well and shows your face clearly (unless your Twitter page is based around a product or company). Remember, you’re branding yourself.

Maintain a well-written bio. Most social networks give you the option to include a small biography about yourself. Use this to your advantage! Include work and professional information about yourself on Facebook and especially LinkedIn. Bring some of the strongest parts of your resume over to your social networks. If you’re using Twitter, make your bio short, but full of key words that stand out to people searching about your industry.

Keep your blog focused. Maintaining a consistent, professional blog can be one of the most effective and rewarding online networking tools. If you do have a blog, make sure it caters to a specific industry or niche—and keep it focused! What is your expertise? Your greatest talent? Write about that, and little else. Whether its finance, politics, cooking or PR, keep your blog relevant to one industry. You’ll begin to attract readers from your field that will respect your writing and take notice of your skills. Your status as an opinion leader will grow—and that is a big deal to employers.

Fill out your LinkedIn profile. Build your summary, grow your contacts, ask for recommendations, use LinkedIn’s “Q & A” feature, etc, etc. Go here to learn how to grow and effectively utilize your LinkedIn presence. You really can use it as a great online resume.

Create a custom background on Twitter. This isn’t absolutely necessary, but it’s a nice addition to your Twitter presence, and could really impress potential employers and colleagues. Go here to learn how to get started.

Professionalize! Make your social networks attractive, interesting and, most importantly, impressive to potential employers. Remove all the childish rubbish and consistently update your profiles with genuine and professional content.

My next few posts will focus on specific social networks and how to use each one to build your personal brand. Stay tuned!

Four years ago I worked as an intern at Northwestern Mutual. I learned many valuable things in the year I spent there. I learned that cold calling is one of the best ways to ruin your day. I learned that referrals are the greatest way to get new clients. I learned that financial advisors have a plethora of rules they have to follow to conform to compliancy regulations. It was a great learning and growing experience, and I highly recommend the internship to any young business person.

Back when I interned the online community was different. Facebook was only available to college students, LinkedIn was unpopular and Twitter wasn’t even invented. Needless to say, the world has changed.

There are now over 300 million active Facebook users. LinkedIn has over 43 million registered users in 170 different industries. Twitter is growing at ridiculous rates. People are using social networks to talk to each other about what they’re doing, why they’re happy, why they’re sad, what’s frustrating them, what’s new and what’s exciting. People are using social networks to connect with old friends, to develop new relationships and to keep in touch with family and friends.

But before I get into why financial reps should use social networks, I need to make sure the basic rules are clear: A financial advisor must work within guidelines set by their respective corporate legal departments that are based on interpretations of guidelines set by FINRA and the SEC. Here are a few suggestions that apply to most companies: A financial advisor cannot talk business on social networks. Don’t use social media to advertise (or even mention) products your company sells, to ask your friends to come into your office to talk about their financial plans, to talk about how great your company is or to rant about how bad your competitors are. You can use approved materials your company has released, but don’t go making up your own advertising material. Be sure to ask your compliance department for a list of what is appropriate.

So why should you be using social networks? Here are the top six reasons:

1. It’s where your clients hang out – As I already mentioned, there are hundreds of millions of people using these networks. And it’s not just kids. The fastest growing demographic on Facebook are those 35 and older. The only way you’re going to sell your services is by getting in front of people. If you want to get in front of people, you have to travel to where they are.
2. Build personal awareness – How often do you meet with your clients? Once or twice a year? Do you have to remind your B or C clients who you are? Social networks give you a way to remind clients that you exist. They‘ll see pictures of your family, learn about what interests you, see your updates and understand who you are as a person (not just a financial advisor). The next time you call them, your clients will know who you are and be more interested in talking to you.
3. Build client loyalty – How many times have clients or prospects transferred their business to another advisor who was cheaper or more accessible? Probably a few times. Now, how many times has that happened with close friends or family? Hopefully, never. The reason you retain friends and family is because they’re loyal to you. As you connect on a deeper level with people through social networks, you’re suddenly a friend instead of just an advisor. You will retain more business as a result.
4. Get more referrals – One of the great lessons I learned in my internship was that referrals are the best way to get new clients. Social networks are a great resource for getting referrals! You can see the people your friends are connected with and ask for introductions. If you search for someone you want to meet, you can see who you’re mutually connected with. By utilizing these networks properly, you can greatly increase your prospecting pool.
5. Have more fun connecting – You can spend your time cold calling and hating life if you want, or you can reach out to someone on social networks. It can be a really enjoyable prospecting tool if used correctly. And while you can’t talk about business directly on social networks, you can invite people to lunch, golf, ski or any other activity.
6. If you don’t do it, someone else will – If you’re not engaging with your clients over social networks, some other financial advisor is. He’s becoming friends with your clients, commenting on their pictures, sending them witty messages and building a relationship that you don’t have. Sooner or later that financial advisor is going to take them out to lunch and steal your business. Don’t let that happen to you. If you have a solid relationship with your clients it won’t matter how many comments your competitors leave on their wall. They’re yours.

What are some other reasons financial advisors should use social networks? I would love to hear your ideas.