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Building an online presence can be frightening for retirement plan advisers. Tricky compliance rules and misconceptions about whether their core audience even uses social media are just two of the reasons some advisers think they will get tangled in the Web. However, with the world turning to online sources for education and communication, building a Web platform is a great way to establish connections, says Christine Pilch, Partner with Grow My Company in Ware, Massachusetts, which helps companies with social media strategic planning, positioning, and branding. “[Social media are] the online version of working the room,” she says.  

Here are some key discussion areas advisers should consider before diving in:  

What Compliance Rules Apply. An adviser should know what rules apply to him as it relates to the online medium, whether he is governed by a broker/dealer, the Financial Industry Regulatory Authority (FINRA), or the Securities and Exchange Commission (SEC). As the use of social media grows, regulatory bodies are trying to catch up. The SEC has said that any social-media initiatives fall under the general advertising rules; FINRA has guidance for securities firms and brokers about the use of social-networking sites; and broker/dealers have their own rules, so it is crucial to check with your company before using social media.  

How Much Time Is Required. Advisers also may worry about the time it takes to build and maintain an online presence through mediums like blogs, forums, status updates, videos, and more. The initial stage, such as creating profiles on social-media sites, is the most time consuming but saves many hours in the future, says Jason Bishara, Founder of linkedFA, a social-networking site designed specifically to enable financial advisers to communicate with clients and prospective clients in an environment that meets compliance regulations. 

However, it is not enough just to have an online presence through a Web site and social-media profile. This is not an “if you build it, they will come,” situation; it takes work. As regularly as possible (at least once a week), Bishara recommends taking five minutes to update any site you use to communicate with clients or prospective clients.  

What Are Your Goals. Posting relevant content is an essential goal in building your online presence. You should spur conversations in your network, invite people to join your sites, and upload a professional photo of yourself, Bishara says (see “What You need To Know About…LinkedIn,”).  

Sheri Fitts, Director of Communication and Large Plan Sales at The Standard, recommends joining relevant industry groups on LinkedIn. Appearing credible online requires preparation and research, she adds. “Joining a group is a way to kind of learn the protocol or etiquette of working in that [online] environment,” she says.  

Application to Business Model. Some advisers think social media are ineffective because their core demographic does not use it. However, Bishara says many people do, including the largest-growing social-media demographic, the 55-plus age group.  

The other misconception, he adds, is “I don’t do my business like that.” However, Bishara says social media do not replace sitting down face-to-face with your clients when needed; it enhances it by providing additional information. Through your online presence, you can feed clients additional information between meetings, he suggests. 

Prospective Client Approach. Advisers should never act like salesmen online, Pilch says.  

The point of an online presence is to educate and form relationships, she says, which can spur a natural sale. Social networking is 92% giving and 8% getting, Fitts agrees.  

If you approach prospective clients with a selling tactic, it is extremely easy for them to disconnect from your online network. “Before you can sell something to someone, you have to court them,” Pilch says. “It’s like a romance.”