How brokers get social media wrong

by MPA29 Nov 2012


More and more brokers are jumping into the attractive proposition of social media interaction without understanding the full business implications. Here are the basics you need to get right first…
This is the warning that was issued by First Step Communications CEO Gihan Perera as he addressed last month’s Synchron NextGen7 conference in Cairns.
He noted that, although social media offers brokers outstanding opportunities to build their brands, demonstrate thought leadership and attract new business, social media marketing is wasted if advisers have ineffective or non-existent websites.
His message was a simple one: a website is the foundation on which social media marketing must be built.
“People try to jump straight into social media, because it’s fun and sexy and the flavour of the moment,” he said. “But if you don’t have a website and an associated blog and client newsletters that feed into your website, then much of your social media activity will be wasted.”
“People think that creating a website takes a long time and a lot of money,” he addedd. 
“The truth is that it used to take a long time and a lot of money, but with the creation of online web content solutions – and there are many great solutions available now – it doesn’t have to.”
He noted that small businesses that are worried about the cost of web development can actually put together a professional-looking website using online solutions for around $8 per month.”
“The solutions are designed so that you can upgrade to a more sophisticated website if you want to further down the track,” he explained.


  • by Raz Chorev 29/11/2012 12:31:42 PM

    Completely disagree. Although having a website can add to a broker's online presence, it isn't essential.
    A broker can have a professional LinkedIn and/ or Facebook page (personal) and a company page outlining his services, with interactivity which can't be matched on a static website. A $8 per month website won't look professional, or would look like any other $8 website. If you're investing anything in a website, you'd need to remember that that website is your online shopfront. You won't get a professional copy writer, graphic designer, and web developer using latest technologies. You'll get a standard, awful-looking template.

    But that's besides the point.

    The real reason brokers get social media wrong, is because it is not an advertising platform, like marketers tend to preach. It is interactive, time consuming, paradigm shifting, communication platform. As a broker, you'd need to allocate internal resources (time AND money), form a long lasting strategy, and make sure it is implemented correctly.
    You'll find you do more listening than talking (it's a two-way communication service, not just outbound message board).
    You'd need to have internal policies (if you employ staff) to make sure your people represent your company well, and protect yourself legally when the sh*t hit the fan (which can happen).
    You'll also need to think of devices, IT infrastructure, and other aspects of the business effected by the use of the social tools. I can go on and on about it, but this is just a comment, not the entire article.

    Look me up to see what I mean about social presence....

    Raz Chorev
    GM NSW @iGo2 group.

  • by broker IQ 30/11/2012 8:26:51 AM

    I agree with Raz. Most broker websites lack anything of real value to a consumer. I guarantee all broker websites are identical and offer no value whatsoever, not do the differentiate. Social media also relies on the proprietor to have an existing baseline of customers for it to be an effective tool to create interest, raise awareness and generate new opportunities.

    Multi media advertising is outside a broker's capability - unless you have a strong brand like Aussie or Mortgage Choice who have the budget and the capability to advertise heavily on radio and tv that allows them to direct consumers to their website or social media platforms. Unless you have deep pockets, your websites and facebook pages are useless. Instead, invest your time working and maintaining your existing database.