Guest post: “Be Compliant When Using LinkedIn Messages”

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Social media compliance is a big worry for financial advisors, so I was delighted when Bill Winterberg offered to write a guest post on three easy steps to be compliant using LinkedIn messages. I’ve quoted Bill in numerous blog posts and tweets on technology, social media, and tweets because he’s a great resource.

Be Compliant When Using LinkedIn Messages

By Bill Winterberg, CFP®

An earlier post on InvestmentWriting.com highlighted a “whopping flaw” in LinkedIn’s messaging system that poses compliance issues for financial advisors. The concern is that no viable solution exists to archive and retain messages using settings on LinkedIn.

I believe that advisors can use LinkedIn messages without violating regulatory requirements, provided they follow the three steps below. The key in all three steps is to leverage an existing e-mail archiving service to capture and retain messages sent via LinkedIn.

Here are three steps advisors can follow to demonstrate proactive compliance when using LinkedIn messages.

1.      Use an e-mail archiving service and use the e-mail address being archived with all LinkedIn messages. If you’re not archiving e-mails today, you’re going to have a challenging time responding to audit requests by examiners. They almost always ask for e-mail communication in one form or another.

2.      Configure your LinkedIn E-mail Notification settings to control how you receive e-mails and notifications. All of your General options should be set to deliver Individual E-mail, as shown below. This will feed all LinkedIn messages sent to you into your e-mail system, so they will subsequently get archived by the service you established in Step 1.

3.      Here is the only part that requires you to do something manually. When you compose new LinkedIn messages−or reply to messages received−you must click the “Send me a copy” check box under your message window. Again, the copy of the message will be sent to your e-mail address that is subject to archiving through your archiving provider.

These three steps will leverage an e-mail archiving service to capture and retain message sent through the LinkedIn messaging system. Upon examination by a regulator, advisors will be able to quickly produce all messages sent using LinkedIn.

Bill Winterberg, CFP®, is a technology consultant to financial advisors in Dallas, Texas. His comments on technology and financial planning can be viewed on his blog at www.fppad.com.

Do the robin, the reindeer, and the building sing the same song?

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Your title, headings, and topics should all send the same message when you write a financial blog post, article, or white paper. I think of this metaphorically as “singing the same song.”

The sign that you in the photo made me think about the importance of “singing the same song.” Looking at the photo, can you tell what kind of business is represented? No?

Based solely on the sign saying “The Golden Robin” and the inflatable reindeer, I would never in a million years have guessed that this is a farm stand. Plus, a reindeer was out of season in August, when my husband took this photo on a bicycle ride.

Inspired by this mismatched image, here are some suggestions to help your writing sing:

1. It’s okay to get cute with your titles, but quickly address your real topic. After teasing you with my title, I got down to business in my first paragraph.

2. Use headings that sum up your main point.

3. Your title, headings, and content should all support your main argument. I could have blathered on about a better name for the farm or a bigger sign. But I chose instead to get to my lesson for writers.

P.S. If you enjoy bicycling, I recommend Westport, Mass., where this photo was taken. It’s very scenic. Plus, it’s nice to cool off at Horseneck Beach after a summer ride.

 

Note: edited on 12/11/20.

Guest post: “What’s a tomato got to do with getting your fund discovered?”

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Mutual fund marketing is the focus of this week’s guest post by Dan Sondhelm. His post originally appeared on SunStar Strategic’s FundFactor blog.

What’s a tomato got to do with getting your fund discovered?

by Dan Sondhelm

Have you ever grown a tomato? If so, you know it’s not as simple as just putting a seed in the ground. In fact, passionate tomato farmers often start their seedlings indoors several weeks before planting season. Once outside, they need a good dose of sunshine and the right amount of water, not to mention great soil, shelter from chill winds and a strong trellis. You get the idea.
Growing a fund requires similar specialized knowledge and attention. According to Morningstar, in the open-end mutual fund industry of over $7 trillion assets, the top 10 fund firms hold 58%. That’s one big tomato! The next 40 hold 28%, while you and the remaining 600 plus firms compete for the remaining 14%. And, fund flows follow a similar pattern.
In the past few weeks, I’ve been privileged to speak on panels addressing distribution for smaller funds. I’ve met dozens of smaller fund managers there. Some are managers with unique investment processes. Others are experts in their asset classes, still others have amazing performance. Yet, they’re frustrated by lack of fund flows, anxious about mounting expenses and hungry for ideas about how to get the recognition they deserve in this crowded market place. So, how do you differentiate your fund from the others and get discovered?

Like growing tomatoes, gaining visibility – and resultant sales – requires commitment. As a small firm, you’re competing for attention with firms who spend significant dollars on their marketing activities, both in the advisor market and at the retail level. They spend hundreds of thousands of dollars for TV commercials, glossy magazine style annual reports and sponsorships with major distribution platforms and public venues.

Making the Commitment to Grow.
Distribution is at the heart of the potential for success. But just getting on platforms is the equivalent of tossing your tomato seed in the dirt and hoping for the best. Successful distribution lies in nurturing the effort. Like adding water and light, protecting from the frost and spraying for bugs, growing your fund requires consistent attention. You have to ensure you’re in the right channels, and that advisors and investors know you, know your people and know your products.

We understand smaller firms are often made up of a handful of people. Not all firms can afford a wholesaling staff or have resources to sustain a significant marketing presence. So, how do you make it work?

Design a Distribution Strategy.
Write it down. Make someone accountable for each step. We all know that what gets measured gets done. Traditional marketing wisdom says you must address the four P’s: Product, Price, Place (Platforms), Promotion. This applies to fund distribution, too. But what about a fifth P, Performance? It’s true, not many investors will flock to a poor performing fund, but relying solely on performance is risky business. While performance may get you your 15 minutes of fame, performance chasers will drop your fund for the next hot item if they don’t really understand your investment philosophy and process or know the fund manager well.

Cover all the bases
Product

• Build a story around your investment process that highlights the opportunities of your asset class and process and differentiates you from your competition.
• Add personality by discussing your current sector strategy and top investment selections. Let investors know about the good decisions you’ve made in the past and the fund’s current positioning.
• And of course, commit to excellent performance.
Price
• Set competitive pricing – You’ll notice I didn’t say lower than average. Many managers think this is important, but many funds with lower-than-average expenses don’t sell. What does matter is how your fund compares overall to other funds that are selling.
• Set your share classes so that you are priced appropriately for the advisor types you are targeting. The preponderance of flows are going to no-load and load-waived shares. For smaller firms without existing relationships or sales teams, no load may be the way to go.
Place (Platforms)
• Select the distribution channels and share classes that make sense for your fund.
• Get on Schwab, TD Ameritrade, Fidelity, and Pershing – these are the most appropriate for smaller firms with limited distribution. Then, establish a relationship with your account manager, who can guide you through the maze of opportunities available to reach platform advisors.
• Be realistic in your expectations. If you have no prior relationships with wirehouse firms, you are too small to meet their criteria and/or there is no demand from their representatives, it’s unlikely they will add you to their platform in the short term.
Promotion
• Establish relationships with advisor firm research teams to get and stay on their radar. Where applicable, find out and work toward meeting criteria to be placed on preferred/recommended lists.
• Take advantage of marketing opportunities offered by some platforms. Develop a strong relationship with your account manager so you are alerted to and aware of opportunities for proprietary mailings or sponsorship opportunities at local and national events.
• Consider Virtual Wholesaling – use third party endorsements and technology to communicate with advisors in a structured and timely way to attract and retain investors, while building your brand.
o Proactively engage the media. Let the financial press sell you; third-party endorsed news coverage in national and local business publications adds credibility.
o Leverage third-party endorsed reprints in your other sales and marketing efforts, in print, through social networks and on your website.
o Keep your website up to date with timely commentary and news coverage. Regularly post themes about your fund and the good decisions you made. If your site doesn’t allow you to add timely information, upgrade it. Advisors won’t come back if there is nothing new.
o Communicate. Regular communication with advisors is critical in order to keep your story top of mind. Consistently offering useful, meaningful information will position you in their minds as the expert on certain topics.
o Use monthly email newsletters to drive advisors to new content and fresh ideas on your website such as recent commentaries, Webinar promotions and media coverage.
o Host Webinars or conference calls for advisors on a quarterly basis.
o Take advantage of platform outreach programs to stay in front of their advisors; many of these are free.
o Develop a social media strategy to distribute timely information in the networks investors frequent. Social media allows you to listen to shareholder concerns and become part of the conversation.
Growth will happen if you take the right steps. Like a tomato, the more care and attention you provide, the greater the likelihood for success. Healthy growth depends a great deal on creating relationships. With today’s email, internet and social media opportunities, expanding your reach is easier than ever before. Make a commitment to building strong relationships where advisors and investors can learn to trust and respect your firm and its expertise.
Dan Sondhelm provides personalized services to money management firms and service providers, REITs, public companies and pre-IPO companies seeking to attract and retain investors. Dan is also the executive editor of the company’s online blog, Fund Factor.

Lessons from “Presentation Skills for Investment Professionals”

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You can never learn too much about how to give an effective presentation, especially about weighty topics such as investment management. That’s why I logged into “Presentation Skills for Investment Professionals,” a recent presentation to the CFA Institute by Dave Underhill of Underhill Training & Development.

Some of Dave’s advice resonated with advice I give my writing students. For example, don’t get deep into details before you tell your audience the value of what you’re discussing.

Boil down the tsunami

“Take a tsunami of data and boil it down to most important point,” said Dave. It’s a mixed metaphor, but I love his point. Look at the data and pretend you’re an audience member asking “So what? Why should I care about this?”

This is a topic I’ve addressed in “Focus on benefits, not features, in your marketing.” As I say in my writing workshops, your audience is looking for the WIIFM, which is short for “What’s In It For Me.”

Leave time for questions

Don’t make your presentations too long. Allow time for questions, suggested Dave.

Figure that one PowerPoint slide will 60-90 seconds to discuss. For goodness sakes, don’t READ your slides, as I did when I first started speaking in public.

Show, don’t just tell

Among the techniques that Dave uses to improve the power of his presentations are:

  1. Telling a story
  2. Using numbers, not just words — I suggest you use a graph, rather than a simple table, if your data lends itself to a more visually appealing display
  3. Using gestures to demonstrate your ideas

Go the extra mile

I was very touched that Dave took the time to email an answer to the question I’d sent in. It was a question without broad audience appeal, but he answered anyhow. That’s a classy thing to do.

To learn more of Dave’s tips, register to watch the replay of “Presentations Skills for Investment Professionals.”

no, No, NO: My business card shouldn’t add me to your e-newsletter list

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“When people give you their business cards, you’re in a relationship, so you can add them to your e-newsletter list.”

Photo by Almoko


I disagree with the statement above. But I’ve heard it from many people.

Technically speaking, you may not violate the CAN-SPAM Act if you email everyone who gives you their card. But, in my opinion, you’re violating the spirit of the law. You’re also making me unhappy.

I use two techniques to keep my conscience clean.

When I meet people, I ask if I can add them to my e-newsletter distribution. I tell them they may enjoy the newsletter’s tips for client communications and articles on investment and wealth managers. For prospective clients, the newsletter is a gentle reminder of my availability, so they can find me once they need a writer.

If I obtain an email address, but forget to discuss my newsletter, I send an email asking if they’d like to subscribe. I include a link to a sample issue.

Rather than force people to sign themselves up, I offer to do it for them. “Just hit ‘reply’ to this message and send me an empty email. I’ll add you to my distribution.” This is a technique I learned from Andrea Novakowski, a coach. Interestingly, most people write a brief message in reply to my newsletter subscription offer.

Maybe I’m too conservative. I don’t automatically add my clients to my newsletter distribution. I treat them as I’d like to be treated.

Guide to e-newsletters

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If you have questions about e-newsletters, mosey on over to “The freelancer’s guide to e-newsletters” on Michelle Rafter’s WordCount blog. I’m quoted extensively in answers to questions including

  • What’s so great about e-newsletters?
  • How long should it be?
  • What kind of software can I use?
  • How can I get subscribers?

If you’re a financial blogger, you can recycle your blog posts in your newsletter, perhaps adding one unique bit of content for your subscribers.

It takes time to build an e-newsletter email list. Even if you don’t think you need one yet, start building your newsletter now.

Great blog posts don’t matter…

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…if people don’t read them. As the saying goes, “If a tree falls in a forest and no one is around to hear it, does it make a sound?”

Don’t count on readers for your financial advice or investment services blog posts to come to your blog. Grow your audience by making your content available the way your readers prefer.

A client recently reinforced this lesson for me. She said, “Susan, I love those links you post on LinkedIn!” I was surprised. This client had declined my offer to send her my e-newsletter, which is the main way my clients read my blog posts. However, my content developed greater appeal when delivered via LinkedIn, a way that suits her style. Linking to my blog posts in my LinkedIn status updates is a bigger success than I’d realized.

Here are some ways you can make your blog posts available to satisfy your readers’ preferences.

1. LinkedIn status updates. I explain how to post links in “Reader question: How can I share my investment commentary on LinkedIn?”

2. LinkedIn groups. If you’ve found a LinkedIn group that gets good traffic, then share your post there.

3. E-newsletter. An e-newsletter is a great way to package your blog posts for readers who’ll never visit a blog or use an RSS feed.

4. Other social media: Twitter, Facebook, and more. You can post links to your blog posts on Twitter, Facebook, and other social media sites much as you would on LinkedIn. Of course, link-posting will reach a point of diminishing returns. Figure out which sites yield your best results, and then focus on them.

You may find that more of your prospects are on Facebook than Twitter or other social media sites.

5. Guest posts. Appearing as a guest on someone else’s blog is another way to get your content seen. While many blogs want original content for their guest spots, some don’t. You can learn more in “How to guest-blog on personal finance or investments, Part I: Your approach” and “Part II Blogs that accept posts from financial advisors.”

If you’re not using any of these methods, it’s time to re-think your approach to blogging.

A great financial article isn’t enough

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A great financial article that you find online does NOT make a great blog post. At least not by itself. It simply gets you to the starting line of writing your blog post.

Photo by Diana the Math

It’s an excellent idea to link to a provocative or helpful article, as many financial advisors do. But your job is not complete when you post the website address to access a web page or an Adobe Acrobat file. You must also give your reader at least one reason to click on the link.

You can

  1. Explain why you feel the way you do about the link–You may agree or disagree with author’s point of view. It’s fine to link to articles with which you disagree.
  2. Briefly summarize the article’s relevant points–Many people will be too lazy to click through.

You may think it’s enough to share articles that you like because you’re giving readers a sense of who you are. But link-only communication works better on Twitter. It looks funny on a blog.

You needn’t invest lots of time to turn a link into a blog post. Imagine you’re talking with a client or friend about the article in your blog post. Write out your thoughts and you’ve got a blog post.

Before and after examples

I’ll illustrate what you can do by outlining a blog post based on “A Market Forecast That Says ‘Take Cover,’ ” a column by Jeff Sommer in The New York Times.

BEFORE

Here’s how the minimalist blogger presented Sommer’s article.

You probably don’t feel inspired to click on the link. You may even feel irritated that the blogger expects you to act on so little information.

Next, I’ll sketch an outline of how you blog the same article.

AFTER

In just three paragraphs the “after” example gives readers a sense of the blogger’s opinion. They may be intrigued enough to click through. Or, they may prefer to ponder the blogger’s point of view.

Make sure you express an opinion when you write a blog post that focuses on an article you admire.

First, pick your target market and niche

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Scattershot marketing of your investment or financial advisory services will sap your energy. Plus, it makes it harder for you to distinguish yourself from your gazillion competitors. This is why I’d like you to pick your target market —the group of people whom you target—and niche, meaning the services you provide, before you write any marketing materials, including your blog.

Don’t know how to choose your target market or niche? “Why People Buy What You’re Selling,” Chapter 2 of Michael Port’s Book Yourself Solid offers exercises that will help.

“What are your clients’ compelling desires?” asks Port in this chapter. Understanding the answer to this question is a key to your marketing—and blogging—success.

Knowing your target market, niche, and your clients’ “compelling desires” will tell you who to address in your blog and which benefits of your services you should stress.

Edited July 21, thanks to comment from Ben.

Disclosure: If you click on an Amazon link in this post and then buy something, I will receive a small commission. I provide links to books only when I believe they have value for my readers.

Guest post: “Adding Video into the Communications Mix”

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Video makes a great complement to your written financial communications. This is the message I took away from the guest video post below by Samantha Allen of Investius.

Until I watched Samantha’s video, it hadn’t occurred to me that video’s short format can attract readers, so they’re willing to read publications that go into greater depth on the same topic. I’d been thinking of video as a competing format that appeals to people who prefer visual learning.

Thanks, Samantha!