From: bizjournals.com

You are in business. You deliver a service and need the right sort of clients. Your business is traditionally built on referrals.

Where does your extended family fit into this picture?

In the financial services industry and other professions involving money, high ethical standards and confidentiality are paramount.

If you come from a large family you have many factors working in your favor.

• Confidentiality– “Keep it in the family” shows they place a high value on discretion.
• Reinvestment– Working with a family member means fees and commissions paid go to a relative, not a stranger.
• Pricing– For years a municipal bond firm announced: “At Lebenthal, we treat you like family.” You are gentle with pricing for family members.
• Referrals– How can a family member seeking referrals be effective when asked: “Do you do business with your daughter?” and the answer is no?

Being pushy with business in family situations is often fatal. Taking the long view, your job is simple. People need to know who you are, what you do, and why you are good. You want to know who they are, where they work and what they do. Weave confidentiality throughout.

Close to home

You have more control over business within your immediate family. If you are a banker, financial advisor or insurance agent, start with college savings plans for your young children.

You fund them. You may have parents who rely on you for investment advice. Are the products offered by your firm suitable based on their risk tolerance? If so, you should be suggesting them. Why would you help strangers, yet not share your expertise with people you care about?

Going further afield

You have in-laws, siblings and extended family near and far. Attend family events. Always dress well. Learn what they are doing now and tell your story in simple terms when asked. An advisor in Massachusetts puts it well: “I help people manage their money. I work well with moms, pops and families. Help solve their problems. If you ever want to talk, give me a call.”

Keep a file and remember birthdays and anniversaries. Send holiday cards. Christmas letters are still popular. They are a treasure chest of information. Yours can share your family’s updates, but always remember humility is a virtue. You never want to appear to be getting rich at the expense of others.

How should family be treated when they become clients? An interviewed advisor remarked, “Give them the same level of service you provide to your best clients. Discount slightly if necessary.”

Everyone is not a good fit

Not everyone should be a client. When you marry, you get in-laws as part of the package. They might not like you, thinking their baby brother or sister could have done so much better in spouse selection. You might have the urge to stand on your head to win them over. Often, the karma is wrong. Don’t actively go after them. As a New York advisor remarked, “If you don’t have a good relationship with your brother-in-law, it’s unlikely to improve once he becomes a client.”