Advisers Ditch Cold Calls for Social Networks

For financial advisers, using cold calls to drum up new business is quickly going the way of VCRs, CD players and the desktop computer: to the dustbin of history.

Citing a poll conducted by SEI Advisor Network, Investment News reports that advisors have been ditching the old school tactic of cold calls for social media sites like Twitter, Facebook and LinkedIn to introduce themselves to prospective clients. Not a single person responding to the poll claimed to use cold calls to find new investors anymore.

From Investment News:

Tim Shanahan, an adviser with Compass Capital Corp. is one adviser who has fully immersed himself in social media. Though he shuns Facebook over regulatory concerns, he has a blog, as well as LinkedIn and Twitter accounts. Typical posts include items about changes at the firm, investing and human interest items.

Nevertheless, advisors can't trash their phones just yet. Because as great as social media is in helping to find new clients, the phone is still king when it comes to maintaining those relationships. Nearly two out of three advisors surveyed concede that their biggest shortcoming has become the lack of frequency in communicating with their clients, the survey added.