Advisers finding benefits by being LinkedIn

NEW YORK — Like LinkedIn’s 13 million other registered users, financial advisers are discovering that online networking can pay off. Richard J. Krasney, who manages more than $200 million at Krasney Financial LLC in Mendham, N.J., has been a LinkedIn participant for a year. While he hasn’t added many clients as a result of using the service, he has found its Question and Answer feature helpful. “I’ve used it to get quick answers on various aspects of my work —things I’m not an expert on,” he said, referring to the ability the site provides to query every member of his LinkedIn group. “I can then use the answers and verify them. This puts me way ahead in terms of doing research, rather than having to start from scratch myself.” Mr. Krasney said. Dan Nye, chief executive of Mountain View, Calif.-based LinkedIn Corp., said the company’s site is adding new members at the rate of almost a million a month, and it is particularly popular among those involved in banking, insurance, brokerage and investment advice. Accelerating business “For financial advisers in particular, we’ve noted that with little more than a fairly simple profile added on LinkedIn, the service acts as an accelerator for both new business and building out a wide- ranging professional network,” said Mr. Nye, who formerly was executive vice president of San Francisco-based Advent Software Inc. LinkedIn’s premise is that establishing “trusted relationships” among individuals helps everyone in the network. In practice, participants put together a personal profile (a profile-building wizard assists in the process) and then start building a network by inviting people they know or have met via an invitation from the site or one generated using an e-mail-based tool to “link-in.” The intended party, recognizing the person, either accepts or rejects that person. Those linked can see the name, title and company of each of their peer’s other links but don’t get to see contact information. Connecting with those additional contacts requires an introduction or a premium subscription. No other networking site is as large or offers the same mix of services as LinkedIn. Ryze Ltd., a business networking site based in San Francisco, offers comparable networking capabilities but is smaller in reach, with about 500,000 registered users worldwide. Plaxo Inc. of Mountain View, Calif., is a personal-information-management service that allows its 15 million registered users to upload their e-mail address books and keep them automatically updated with other Plaxo members. Michael Zhuang, president of MZ Capital Management of Rockville, Md., which specializes in computer-based mathematical modeling of portfolios, uses LinkedIn to share his expertise and exchange ideas. “I primarily use the Answer function,” he said. “When my clients have questions I cannot answer, I post them to LinkedIn, and I usually get very good responses.” Michelle Ogden, a portfolio manager and fee-only adviser in Oviedo, Fla., who specializes in retirement planning and fee-analysis related to retirement planning, also gravitates to the Answers section. But she notes that the area also provides her with many new connections. “I connect with other professionals, and enjoy reading the questions in my area of expertise and answering them to the best of my ability. I have even asked questions on occasion and received excellent suggestions,” she said. Bob Gillooly, portfolio manager at Osborne Partners Capital Management in San Francisco, which manages $800 million in assets, said he uses many of the services on LinkedIn, but recruiting in particular stands out. “Our most important use for LinkedIn has been in looking for and finding well-qualified folks. “For instance, I’ve found some very qualified portfolio managers on the site,” Mr. Gil- looly said, adding that he is currently negotiating with two of his LinkedIn finds. “I’ve also found it very helpful to use the Answers feature to take the temperature, sentimentwise, of the stock market, looking for really positive or negative sentiments. Ours is a manic or panic business, and the commentary there can be a good gauge, and one that’s coming from generally knowledgeable professional people,” he said. Other advisers find the service to be a good way to meet corporate executives, either to prospect or share knowledge. “I find that most top executives are on LinkedIn, and that it is the best way to communicate directly with C-level executives. Most people respond to LinkedIn inquiries or e-mails with a mutual respect that I haven’t experienced in any other online forum,” said Pasquale J. Sacchetta, president of CFIG Wealth Management of Westport, Conn., a consultant to other financial advisers who also manages more than $40 million. Raising visibility Aside from its networking potential and its use as an informational resource, having a profile on LinkedIn can raise an adviser’s visibility in web search engines. “Make sure you fill out your public profile completely and set it to Full View, which allows search engines to see more of your profile,” said Kay Luo, director of corporate communications at LinkedIn, who provides participants with tips to maximize the value of their participation. “Check your LinkedIn home page often to keep tabs on the people who matter to you. Respond when one of your connections has been promoted, is looking to have a question answered or has connected to someone new,” Ms. Luo said. Providing thoughtful well-written answers to questions from a member’s network builds social capital and demonstrates expertise, she said. In addition, adding connections increases the likelihood that your profile will come up first when someone in your network is searching for people with whom to do business.