After reading Evan Zall’s article Traction on a Slippery Slope, I’d wished I had written it. Zall captures the unique predicament in which regulated financial advisors find themselves regarding their use of social media and he offers some pragmatic advice: engage proactively, but do so with caution.

In this post, I will build on Zall’s advice and offer some clarification from my perspective on how to implement it. To do so, I will borrow his four pillars framework and trust he will recognize that my imitation is the sincerest form of flattery.

Knowing the Tools

The rapid evolution of social media tools, strategy and etiquette necessitates a significant learning curve that can challenge even the most seasoned social media guru.  It is true that LinkedIn offers a safe and effective starting point for engaging in social media and LinkedIn Groups open up opportunities to establish one’s subject matter expertise and make valuable connections. But what about the meteorically popular site Quora which similarly offers opportunities to demonstrate knowledge through questions and answers? Even if you don’t actively engage on Quora, it should not be ignored.

Twitter is a curious little game-changer of a tool whose use is constantly evolving. While larger media outlets and information hubs tend use it to stream content to their followers, individuals are using it more interactively and socially – to broaden networks, meet new people and extend their social interactions with existing contacts. Twitter can be highly personable and social; if used properly, it can open many new doors without even a mention of business subject matter at all.

And these are only a handful of the many social media tools that are available and potentially useful for financial advisors. Point being – take advantage of this cautious period to study these tools and understand them. When the flag drops and the race is on, this knowledge will serve you well.

Knowing the Rules

Since the regulatory rules and guidances surrounding social media lag far behind the tools themselves, Zall shrewdly cautions the wise advisor to “leave the heavy stuff for a more intimate and compliant setting.” In other words, stick to corporate email, telephone and face-to-face meetings for doing whatever you do to help clients make decisions.

So what should you be using social media for? Use social media for developing some of the other characteristics that are important factors in trust relationships. Knowledge of your field. Commitment to common causes. Personality. And herein lies the power of social media. It is precisely in developing your online personality – your personal brand, if you will – that you can really leverage social media while remaining cautious.

In a post entitled A micro-manifesto on personal branding for practice professionals, I lay out some key factors and social media technologies that are enabling advisors to develop and extend business relationships like never before. The advisory business relies heavily on relationships – your client is buying your knowledge, your reputation and your commitment. The personal becomes professional. By connecting through social media and extending your social interactions and personal brand effectively through technology, you are setting the groundwork for your professional success.

Having said all of this, don’t fly without a parachute. Sign up for a social media archiving service like Arkovi or Socialware just so you have an archived record of your online activities should you require it to demonstrate compliance.

Knowing your Audience

Social media is but another stage in the evolution of the technological age we are living in. As our relationships become more technologically mediated, knowledge of and comfort with these technological tools becomes a requirement of social engagement.

Even if the majority of your clients aren’t clamouring today for social media interactions, they are increasingly exposed to and aware of information and competing offerings that come to them through social media channels. And we’re not just talking about competing advice; alternatives come in the form of engaging investment information and ideas, new business models for investment management promising better results, as well as dynamic new online personalities vying for your clients’ and prospects’ business. Can you afford to be invisible in that discussion?

HNW investors are using online tools to gather information, assess offerings and get advice on investment decisions. Just as relevantly, you could be using social media technology to research potential/existing clients and development opportunities to build/deepen your relationship with them.

Knowledge of Self

There is a social media opportunity out there that is uniquely yours – it depends on you, your personality and your ability to tell a compelling story, as Zall so insightfully articulates.

Not everyone is equally gifted in this regard. Some are introverts, preferring face-to-face meetings and lots of solitary number crunching. Some are too busy with traditional business development activities (breakfasts, lunches, dinners, golf) that they can barely find time for their personal lives, let alone a steep social media learning curve. Others have achieved success, grown accustomed to its comforts and have no desire to pursue the leading edge.

So, who is the perfect candidate for engaging in social media?

1. You are a communicator. You love people. You are a natural storyteller and a master of business relationships.
2. You are not afraid to try new technologies. In fact, you find it thrilling to learn how to do something new with your smart phone or iPad.
3. You want to be ahead of the pack and you’re willing to do the work to get there.

If this sounds like you or someone you aspire to be, the emerging world of social media communications is full of opportunities. Step up and seize one.