Participation in social media—LinkedIn, Facebook, Ning, Groupsite, Twitter, blogs, YouTube—is now a workplace reality. These new media forums are not a fad; in fact, the number of social networks is growing every day.

Social media describes the online technologies and practices people use to share opinions, insights, experiences and perspectives. Social media can take many different forms, including text, images, audio and video. By definition, social media websites allow users to do more than just retrieve information. Users can contribute content, and post from their phones and mobile devices as well as their computers.

In fact, collective intelligence by way of user participation is one of the essential attributes of social media. Social networking online is all about connecting people and creating a rich experience. Connecting with people—isn't that what you do as an advisor?

Web 2.0 and the use of online social media is on the rise within the industry. "Online Marketing Methods: Planner Best Practices," a white paper published in May by the Denver-based Financial Planning Association, states that 43% of advisors reported using "social media/online networking sites." In addition, 32% of advisors said they used audiocasts and webcasts, while 17% reported they used blogs in their practices. Sixty percent of advisors who relied on social media generated at least 16 leads per year, according to the FPA survey. The results were based on responses from 331 FPA members.

While some advisors may scoff at social media's usefulness in building a successful business-and may therefore be missing some great opportunities to build relationships-other advisors may be spending so much time online that they're skimping on face time with prospects, clients and centers of influence. All advisors need to understand the basics and pick one or two new media methods sanctioned by their firm to supplement their current website.

EMBRACING THE SOCIAL WEB

As one of the experts in digital media at Securities America, I've been tasked with learning all about social networking—both online and off—and how it may help advisors build business and improve their brand. Reasons to social network your business online include:

* Expanding awareness. Social media allows you to extend your online presence, deliver key messages and build relationships online.

* Enhancing your credibility. Within compliance restraints, you can engage audiences across the social web.

* Driving traffic your way. With a social media presence, your own website will benefit from inbound links and better search engine page rankings.

* Converting opportunities. With a thoughtful plan and a consistent commitment to social media, you can nurture prospects into new clients.

Many potential clients and business associates do a Google search before proceeding with important conversations. Prospective clients and strategic partners who see significant media mentions of your firm will be impressed. Solid advice dispensed through your blog or discussion boards, connections with credible organizations and other positive search results will generate more confidence in you and your firm.

"Advisors must be sure they do not underestimate the value of a good online presence," says Marie Swift, president of Impact Communications in Leawood, Kan. "It's also a way to be novel and to have a reason for people to interact with you and start a dialogue. The use of Web 2.0 and social networking positions you as a savvy businessperson."

But, cautions Swift, "Don't spend all your time blogging, tweeting and contributing to discussion boards. Pick one or two things to start-for instance, start a branded blog and then send out tantalizing snippets about your blog entries (along with a link) using Twitter, Facebook, LinkedIn or other social media sites approved by your firm."

You will find that participation in social media demands a steady commitment. Posts get stale fast. "Schedule a certain amount of time to work on your online presence every day," Swift suggests, but don't let your online life eat into your workflow. "Do whatever you choose to do quickly and consistently, including submitting your blog entries and tweets in advance to your compliance department for approval. Then get out there and meet people because nothing is as powerful as face time. And when you meet people or give talks in the community, be sure to mention your blog or your moderated discussion board—you might even put your blog address or 'Twitter handle' on your business card. Give people lots of reasons to connect, lots of reasons to talk about you and generate buzz."