RIAbiz.com recently discussed the findings of an August 24-25, 2009 Investment News survey conducted on the Twitter habits of the financial-advisory community.  Not surprisingly the survey reveals that “a mere 14.9% of financial advisers say they communicate with clients or colleagues through Twitter.  Meanwhile, only 44.9% and 43.8% of advisers say they use LinkedIn and Facebook, respectively, the survey found”.

Has RIAbiz.com and Investment News missed the point?  It’s not about Twitter, Facebook or LinkedIn!  It’s about communicating with one’s customers and clients utilizing ALL the tools available!

So, what’s my point?

Practical, functional, and sensible go a long way to enhancing the relationships financial advisors are trying to create between themselves and their customers and clients, with or without social media tools.  Social media tools allow financial professionals to enhance and simplify and extend their communication and marketing efforts to customers and clients.

So, how does that work?

Here’s an example to illustrate my point.  Also, in the spirit of full disclosure DBJ Associates did play a role in the viral marketing aspects of this program.

I followed up with Charles “Chuck” Steege, CFP,^® to see how his three-part webinar program, Uncovering The Fortune That Lies Hidden In Executive Compensation, fared over the summer.

“The program was very successful for us,” Chuck said. He credited John Drachman of The Drachman Group, Inc., which developed the content, with much of the attention the program attracted. “In addition to having wordsmith expertise,” Chuck said, “John is a deep listener, quickly grasps the message you want to convey, and works his intuition to best convey a positive impression.”

Social media strategies: Low cost approach to higher AUM

The following chart shows attendance and results for three-part webinar program: Uncovering the Fortune that Lies Hidden in Executive Compensation.

In summary, the program, aimed at HNW investors with a minimum of $1 million-plus in investable assets, netted approximately $45,000 in new and ongoing annual fees on estimated AUM of some $4 million.

What did the program prove?

I asked John Drachman what these results proved.

“For under $10,000, Chuck was able to put a social media strategy together that used conventional webinars and a press release to springboard his expertise to a new audience that ranged from the United States to Germany and India.”

“We began with establishing Chuck’s thought leadership in the area of executive compensation, especially around the timely topic of the Alternative Minimum Tax Credit Refund – which should be top of mind for anyone who has paid their AMT and would like their money back,” John continued. “Next, we set out to expand Chuck’s message to his target audience of HNW prospects with an e-mail campaign to draw viewers to the webinars, a press release, as well as the webinar links themselves. Then, of course, DBJ Associates took the messaging and put it out on the blogosphere earning a #1 Google ranking for almost two weeks. That’s how Chuck’s program got picked up by Reuters and Smart Money. Then when BusinessWeek picked it up, it really went viral.”

The firm’s abundant appearances in financial blogs were also used for marketing purposes. “Sending a blog posting via e-mail to a client is similar to sending a photocopy of a press clip. It establishes a thought leader’s presence,” John added. “This proves to me that viral marketing can succeed with targeted, smaller numbers of prospects and institutions. Applying these free, readily available public domain tools to an outreach campaign is the short-cut to sales success.”

So, by working closely with Chuck and his compliance department John built a successful strategy utilizing both traditional marketing and social media tools.  The three themes driving John’s strategy were:  thought leadership, targeted communication plan and measurable results.

And, the entire successful strategy was built utilizing social media but not Twitter, LinkedIn or Facebook.

As always, I welcome your comments and insights.  Please leave a comment or send me an email directly and I will personally respond.

I touched base with wealth management consultants Charles “Chuck” Steege, CFP,^® and Philip J. Siana, CPA, recently to find out why they chose the dog days of summer to introduce their three-part webinar program, The Golden Summer Of 2009: Uncovering The Fortune That Lies Hidden In Executive Compensation. Chuck serves as Executive Financial Coach and President of SFG Wealth Planning Services, Inc. and SFG Investment Advisors, Inc., an SEC registered investment advisor. Phil is a tax attorney and Principal of Porzio, Bromberg & Newman P.C.

DBJ: Aren’t people trying to get away during the summer? Why would they attend a webinar?

Phil: We picked the summer because we find that our clients liked thinking about their money when they are relaxed and comfortable; perhaps, with a cool drink at their elbow.

Chuck: That’s right, also a lot of other firms avoid the dog days of summer, because they think no one will attend a webinar. That leaves us as one of the few games in town.

Phil: Were trying to pick up the summertime flavor, too. This is not meant to be heavy lifting or overly educational. The truth is there are a number of overlooked tax savings opportunities for high net worth clients – even in August.

DBJ: Like what?

Chuck: During the dot.com bubble, many investors found themselves socked with a big alternative minimum tax (AMT) bill, because they exercised incentive stock options (ISOs) that suddenly sank in value. Now, Uncle Sam is trying to give the money back.

Phil: AMT credits are now like a pot of gold, since Congress voted in 2006 to make them refundable in certain circumstances.

DBJ: Wait. I’m writing this down for my accountant…

Phil: You can even collect a refundable AMT credit for a year when you owe no federal income tax at all.

DBJ: This is all very interesting, but why would someone other than me want to take time from the golf course for this? 

Chuck: We’re keeping the time commitment to a half-hour. Also, there are only three sessions at noon on July 29, August 5 and August 12. We asked Fort Point Growth Partners to help develop the content so it should move along briskly, in plenty of time to get back on the golf course.

DBJ: Are you doing anything else from a social media perspective?

Chuck: Yes. We just signed on with The Executive Compensation Professional Network to see if professionals in the human resource area would be interested in coming to the webinars.

Phil: Regardless of whether an interested party is at the beach or sitting behind a desk, the webinars are aimed at any individual with $1 million and up in investable assets, as well as human resource directors who may wish to learn more about preparing employees to cope with the complex and timely decisions that underpin much of executive compensation. Fifty openings are available and attendance is on a first come, first served basis.

Chuck: The first two webinars will concentrate on the wealth accumulation phase of an individual’s career, while the third webinar will stress best practices for using wealth for the benefit of the individual, their family and their philanthropies.

DBJ: Is there any downside to blissful ignorance and just hanging out at the beach?

Chuck: Not if people don’t mind sending their additional dollars to Washington. The fact is there is still time to file for a refundable AMT credit. If anyone has opted for a late filing for their 2008 Form 1040, they may get cash back right now. If they’ve already filed a 2008 return but were unaware of the refundable AMT credit, they can file an amended 2008 return (using Form 1040X) to get cash back.

DBJ: How difficult is it for a tax payer to get an AMT refunded?

Phil: All they have to do is breathe.

Individuals with $1 million in investable assets and up are invited to attend The Golden Summer of 2009: Uncovering the Fortune That Lies Hidden in Executive Compensation by registering for any one – or all – of these dates: July 29, August 5 and August 12. All sessions will begin promptly at 12:00 p.m. EST. Fifty openings are available and attendance is on a first come, first served basis.