TV: Embrace social media to stay in business

by Adam Smith19 Mar 2012

Brokers who want to remain in business must embrace social media, but that doesn't necessarily mean Facebook or Twitter.

On this week's Australian BrokerNews TV, we speak to Doug Mathlin of FrontRunner Consulting Group, who gives his take on the use of social media. Mathlin has commented that brokers can branch out into other forms of social media such as YouTube, but that involvement in some form of social media is a must.

"Even if you're thinking, 'I don't want to do social media, I don't want my company on a Facebook page, I don't want Twitter', if you're going to be in business in five years' time I think you're going to have to embrace it at some stage. Therefore, why not try to start to embrace some of the mediums that are out there," Mathlin said.

Mathlin also warned that social media must not blur the lines between brokers' businesses and their personal lives.

"I've actually heard examples where clients have been disappointed with a broker's value proposition or service when they see a whole lot of personal information about what the broker's doing. If clients are waiting for documents to come back or a decision from the broker or lender, and then go on their Facebook page and see the broker's been out at the pub or a meeting or surfing, all these kinds of things they see them post on their personal Facebook page, that can be detrimental to the brand and detrimental to the service proposition," he said.

Regardless, Mathlin claimed that social media will be crucial for brokers who wish to remain relevant. But, with MFAA research indicating that fewer than 30% of brokers are using Facebook or LinkedIn, Mathlin said the industry has yet to embrace the technology.

"I don't think the main population of brokers is really embracing it, but I guess that's probably indicative of the average age of the broker. A lot of people are probably a little bit old for the social media side of things, and a lot are probably anti-Facebook or anti-Twitter," he said.

Watch the latest Australian BrokerNews TV video for more analysis of the use of social media.

Related stories:

TV: Even elite brokers will have to change

TV: Will segmentation impact commissions?

TV: Don't risk 'dabbling', be an SMSF expert