Marketing and advertising are evolving quickly in the information age. As more people use the internet to easily access information at the touch of a button, exchange traded fund financial advisors should also think about ways to leverage social media to their benefits.
For instance, Josh Brown, or the so-called Reformed Broker, has quickly expanded his Ritholtz Wealth Management business through the power of social media, Aparna Narayanan reported for Investor’s Business Daily.
“I spent decades cold-calling individuals,” Brown said. “This is a much more fun way to grow your business.”
As financial advisors utilize social media to expand their presence, there are a number of tricks and pitfalls advisors should be aware of. For instance, Brown suggested that advisors should not delegate their social media accounts to interns or someone else as it won’t pay off in the long run.
There are no shortcuts, so users should refrain from paying people to follow their accounts. Only organic growth has proven to be a trustworthy sign. It is important to foster and develop one’s own community.
While it may be fun to watch feuds in the online arena, Brown advises advisors to refrain from sparring with a stranger.
Additionally, advisors should strike a balance between original ideas and reactions to what is going on in the world. Advisors should draw a line between personal and professional use of social media as well.
Financial advisors will also have to get to know the growing number of millennials surfing the social media networks. To garner business from this growing demographic, advisors should learn their lingo.
In the latest annual survey of ETF investors by Charles Schwab, 66% of millennials, or Generation Y, expect to boost holdings of ETFs over the next year, or up from 61% in last year’s survey and well above the 43% of investors in general who say they plan on increasing ETF exposure this year, reports Gerrard Cowan for MarketWatch.
Millennials are putting 36% of their investments into ETFs on average. While the number is down from 41% in last year’s survey, it is still well above the average 23% allocation from all investors surveyed this year.
“They’re seeing more of that growth, there’s more about it in the news, so I think they’re adopting it a lot more,” Rich Messina, senior vice president and head of investment products at financial-services provider E*Trade, told MarketWatch.
Financial advisors who are interested in reaching out to a wider investor audience can learn more about social media tricks and marketing at the in-person third annual ETF Boot Camp in New York on September 29-30. Want 50% off? Sign-up with a colleague and both use promo code “buddy” at checkout.