Leave it to me to discover anti-social networking and shoot myself in the foot on Linkedin.
I recently decided to test the efficacy of social networking applications by increasing my activity on Linkedin. I'll let you know how it is going in coming weeks. I spent a couple of hours this past week enhancing my profile on Linkedin by adding my blog to it and inviting about 75 people to "join my network," which is Linkedin lingo for "friending" people on Facebook—connecting with them. I then asked a handful of longtime clients to "recommend" me in my role as CEO of Advisor Products. The results were nice. Several advisors responded immediately by saying great things about me and my company. It was recognition that I genuinely appreciated. I've worked hard to turn my company to the next level in the last three years and this was recognition. It felt great. And then the sweetness turned ugly.
One of the people I asked for a recommendation, a long-time client and an advisor I respect, responded with glowing praise for me and my company. But he also asked that I reciprocate by recommending him.
I wrote back explaining that I could not recommend him. I have 1,800 clients that Advisor Products works with and recommending one advisor over another was something I wanted to avoid.
Last night, the advisor emailed me and asked me to delete his recommendation for me. He said that he works with reporters and they recommend him and could not understand why I would not do so. I was trying social networking to see if it could help my business. Instead I offended a client who now resents me.
I emailed him back explaining that the recommendation he gave me was for me in my role as CEO of Advisor Products and not in my role as a reporter. The recommendation was about the services Advisor Products offers, not about my work as a reporter covering the industry.
I also explained that I could not recommend him as an advisor because he was not my advisor. I buy no services from him and can't in good conscience act like I know whether he provides good advice and good service because I am not a client of his—although everything I know about him would lead me to believe that he's a great advisor and runs a very fine client-oriented business, I don't have hard evidence of this. Moreover, if I say this about him, the other 1,800 advisors who use my service may feel slighted.
At the same time, however, he can recommend me because his firm has been a client of Advisor Products for more than 12 years. My company has been hired by his firm every year for all these years and has been providing service to his firm many times every year. His relationship with me was different from my relationship with him.
Moreover, I don't think it is proper for reporters to be offering sources or potential sources recommendations. Quoting someone in a story as an expert is an endorsement in and of itself. Offering up blanket recommendation of an advisor is not something I want to do. When I quote an expert source about his opinion on PMS software, creating intentionally defective grantor trusts, or how to know whether a private placement is a good investment, I am finding experts in that particular area. I don't want to be on record recommending an advisor's practice just because he is expert in one particular area. And how do I know if he gives good service or investment advice? People recommending advisors that they know almost nothing about are irresponsible. Just ask any of Bernie Madoff's investors.
Other advisors who in the past have asked me for recommendations have always understood my position and dropped the request after I declined to recommend them and explained why. I'd like t know what you think.
All day, I've been thinking this. I feel terrible. Was I wrong? Should I have given this advisor a recommendation? I think I'm doing the right thing. Please post any comments and let me know what you think.