The number of financial advisors who are gaining new clients through social media is growing, according to a survey released by Putnam Investments today.
In the 2013 Putnam survey, 49% of advisors using social media for business indicated that social media had helped them gain new clients. This year that number is up, with 66% of advisors reporting that social has helped them gain new clients.
The size of the new clients advisors are gaining through social media is growing too. This year, 39% of respondents who reported gaining new clients through social media gained new assets of more than $1 million, with an average gain of $5.5 million. The median booking was almost $2 million in new assets, close to triple the level reported by the 2013 respondents.
It’s also interesting to note that while the business value of social media is becoming more evident for advisors, the percentage of advisors using social has not grown year-over-year, remaining steady at 75% of respondents. LinkedIn remains the top network for advisors, with 64% of advisors reporting that they use the professional social network.
The survey also shares some interesting demographics: women and advisors under 30 are the most likely to use social networks for business. Wirehouse advisors are using social media more than independent advisors or RIAs and are the most likely segment of advisors to gain new clients.
To learn more, check out the Putnam Investments 2014 Social Advisor Study.