It’s a safe bet that most professionals have a social media account. Estimates say 90% of all high net worth individuals (HNWI) – those earning between $100,000 and $1 million are quite active with social media, many of whom spend more than 48 hours a week on their accounts.
Between 2010 and 2013, the number of affluent users on Facebook soared from 29% to 61%. LinkedIn saw its numbers run from 10% in 2010 to 31% in 2013, according to the Spectrem Group, as reported by The Social Graf.
In other words, they’re gradually making their presence known. And the question is, “why?”
Many are turning to social media to build investment partnerships and decisions. In fact, more than five million high net worth North Americans are likely to use social media to assist with financial decision-making, reports LinkedIn.
Real estate investor Harmel Rayat notes that, “more than 34% of high-net individuals on LinkedIn use the format for research and to develop business ventures.” Harmel uses social media to communicate with accredited investors for offerings, like real estate syndication.
Attracting Buyers and Sellers
While social media may offer you a plethora of information, you still have to attract buyers and sellers. And the best way to do that is by generating audience-specific information.
New York City’s residential real estate firm, Corcoran Group – for example — is quite active on all major social media channels. Allowing its CEO, Pam Liebman to provide “living tips” for those interested in moving to the Big Apple, the firm was able to generate pertinent, audience-specific information and build business relationships.
ApartmentHomeLiving uses social media to answer questions and make suggestions to visitors looking for a new apartment.
Social media can also attract buyers and sellers by showing a real estate listing.
It may only be a bedroom, kitchen or living room, but that’s all it takes to pique the interest of potential buyers. Instead of walking into a location and not knowing what to expect, you can view a listing and move forward from there. This informed decision saves people time and aggravation. People can pick and chose the listings that interest them and fit their needs.
Social media has become part of the final decision-making process. It’s become imperative, as a wealth and trust-building tool. “The way this group communicates has been completely altered with social strategizing,” notes Harmel Rayat. “They’re finally realizing the long-term reward of building relationships and trust with such a strategy.
Studies proven that we – as humans – trust our peers more than any other source. We can log onto Facebook and Twitter to share similar experiences and research others’ experiences with other companies and products.
It builds trust and reliability.
It also allows us to communicate with like-minded people, seeking pertinent information that’ll help us make a decision. It allows us to share advice and opinion that could lead to a business decision or investment. Realtors – for example — use social media to attend group meetings for networking, and discussion of new trends.
LinkedIn has found that 76% of users connect with business colleagues. Another 42% use the service to discuss business related questions.
Use it to your advantage…
Understanding your niche audience is one of the most important considerations when launching an online marketing campaign. If your intent is to reach high net worth individuals, engage them through LinkedIn, for example. Professionals and investors alike prefer LinkedIn to Facebook or Twitter.
Consider generating information that “speaks to them.”
Generate information that can influence investment-making decisions, for example, full of well-researched statistics, videos, and info-graphics.
Also realize that not all high-net worth individuals are the same. Personalize your information. Narrow your audience. Once you narrow your target – and the message you want to deliver – social media is a great tool to bridge the communication gap.
To read the original Forbes article, click here