Have You Ever Sacked a Client? (16 posts)

Topic tags: client management
  • Might be strange question for some but I made the big mistake when I started my web marketing business of taking on every bit of work that came my way. Instead of properly qualifying every prospect I just shoe horned them into the most appropriate service and discounted until I closed the deal. The problem is that 1 or 2 clients have dragged me down. I operate in a small business community so it’s important not to fall out with anyone and damage my reputation. I also feel obliged (wrongly) to keep working with people who are struggling as they haven’t had an ROI from my services, but the reason for this is because they haven’t done what they needed to do or weren’t willing to pay extra for me to do it for them.

    How would you handle this?

  • Good morning Nick

    The answer to your question unfortunately is yes! However, here is the good news once you realize they are never going to appreciate your experience and direction it will be easier to advise them to work with someone else.

    Compile data and have a frank discussion with them about the marketing plan they agreed to early on. Explain to them that you understand they have a limited budget and it may be difficult to continue servicing them at this level, they will get the picture. My recommendation to you is to make sure you have clear contracts for each client, use Quickbooks to match time worked against the contract to know what is profitable and what is not and never chase the money again! 

    We all have learned this the hard way….Good luck!

  • @positiveim

    I also run a web design/marking firm in a small community (Maine) and I’ve felt the same way that you do, afraid to burn any bridge for fear of my reputation.

    However, you also don’t want to develop a reputation as a pushover, either.

    @diannebeatoncgacaps is right in that you have to have a frank conversation with them. It’s also OK to fire a client. As we’ve grown, we’ve done it. 

    Let them know that success isn’t guaranteed, but if they follow your suggestions, they will greatly increase their chances of success. If they aren’t willing to take those actions or pay you to do so, gently tell them that you don’t feel you’re a good fit for them any more.

    If you do have to fire someone for not being a good client, don’t try and help them find another vendor, especially in a small community. That’s the equivalent of selling someone a lemon (car). Your fellow web developers will never forget.

  • Good advice guys, thanks.

  • As a business coach I let my clients know that “you get out of anything what you put into it”.  I offer a guarantee in my coaching with one caveat, if you don’t put anything into the process and follow the rules, the guarantee is void.  People have habits and its hard to change those habits.  Having a burning desire is the only way to become highly successful.  As a media consultant I find the same thing.  I can give clients the tools but if they choose not to use them properly they won’t work.  I had to get thick skin in order to tell people the lack of cooperation was the problem.

  • @positiveim I have a couple of “challenging clients”, one which gives me referrals. What I’ve learned from her is that she really needs more education than the normal client. She likes to know every nuance of everything, even if she isn’t the one handling it.

    The other thing I’ve noticed is that my client that doesn’t have enough money to get everything done that needs to be done is actually hurting my reputation. Other people in her industry are looking at her results, which are weak at best. They think it’s my fault, but they don’t see that I only have 5 hours a month to spend on this clients social media. I actually lost a client because of this. I told my potential client that my actual client only hired me for 5 hours, but it still didn’t matter. The funny thing is that they hired someone else, more industry related, and they haven’t seen the ROI they wanted from me and they haven’t fired him.

  • Hi Nick ( @positiveim )

    I’ve guess I’ve fired about 5 clients (maybe a couple more) since being in business online.  Not burning bridges is the hardest to accomplish however, not impossible. 

    Diane and Rich have it right that the frank talk is in order.  If that doesn’t work find a way to cancel the contract altogether. Julie had a good note on this too.

    Be sure to point out the items you needed them to do that did not get done. You must lay some of the responsibility back on their shoulders.  That way, they cannot point fingers at you for any ROI failures. 

    I’d make a “pro and con” list and build from there, before the discussion.

    Eileen :)

  • Before taking on any client, I would always ask “what are their objectives”… but, what people fail to ask (and I always made sure) was “what are their expectations”… because expectations is where the fan hits the sh@t.  Unrealistic expectations need to be dealt with before you start…  However, to answer the questions.  Yes.  To get rid of a client, I asked another company if they wanted them, the other company said yes, so I referred my client on to them.

    Beware of customers who want to :

    - partner with you (OMG!)
    - get you to think for them! (OMG – if they cant figure out wth their business is all about, they are not going to be successful)

  • Here is another thread on this subject:http://www.socialmediaexaminer.com/clubs/small-business/forum/topic/firing-bad-customers-how-why-when/    @positiveim

  • You’ve gotten great advice here.

    Because of client mistakes I’ve made in the past (yes, I’ve fired several of them), I am smarter about screening them in the beginning. I know the warning signs, so I ask questions directly on those points. And when I get a questionable answer, I get really pointed with my follow up questions.

    When I turn down work because of answers I get in the intro interview (and I do), I never tell them on the spot. I always tell everyone that I need a few days to review their situation and my schedule, and I’ll get back to them. When my answer is no, I follow up by saying that I don’t feel our goals and styles are lined up and I can’t give them the results they want. I never tell them that I feel the problem is with them. I say that under these conditions, I can’t deliver what they need and deserve.

    Hope that helps.

  • Some great advice here by everyone already.  

    For new businesses or small businesses, it seems to hurt but you have to set a standard for the clients you want.  Turn away anyone who you have a hard time working with. 

    You need to consider the lost revenue because you’re spending time with a client who won’t pay you appropriately, bad mouth about you, etc…  So what if you didn’t take that project.  Take the time you would have spent on the project and set a goal to use that time to find new clients.  Hold yourself accountable.

    I’ve managed sales people for a long time.  The ones who struggle and flush out are the ones that take anything they can get.  The problem clients eat up so much of their time that they can’t bring in any other business.

  • A business associate told me that one high-maintenance client saps more of your time and energy than four “normal” clients. I found this to be true after spending sleepless nights, migraine days and upset stomachs trying everything I could think of to please an unpleasable client. We ended up having the “frank talk” as several of you suggested, and we cut ties.

    Although I lost a bundle of money (my choice), the very next day we contracted with four new clients who more than covered the monetary loss, and these clients are an absolute delight to work with.

    Needless to say, we’re doing a more thorough job of screening prospective clients now.

  • All great replies folks – shame there’s not a thanks button!

    @Charlene Kingston - what would you say the warning signs are?

  • You asked Charlene specifically, but I’ll still chime in…

    Warning signs include reluctance to talk to that person, resentment of any time you need to spend with them. If you feel like you’re going in the wrong direction, you probably are.

    I just “fired” a client a few weeks ago. We had a straight-up discussion about the signs indicating their needs were different than the services I offered. I suggested a few things they should look for in the person that would fill this role better. When we got off the phone, I took a deeper breath than I had in weeks.

    The stress just isn’t worth it, especially when you are in this business because you actually enjoy what you do!

  • What a relief that this is normal.  I never want to turn down the income but if the client wants magic to happen without any money put in it’s unrealistic.

    As a new business owner I need to grow the thicker skin :/

  • Great question!

    I haven’t had to do it myself, but I remember a boss who did. I worked for a local SEO company at the time.

    Look at the cost/benefit of keeping the client. If you’re time is worth $50/hr and the client takes/sucks 10 hours per week, that’s $500 worth of work a week.

    How much is the client paying? In the above scenario: @$500, you give them what they pay for.

    Are they worth the time and headache? In every scenario: hard to determine, no dollar value :)

    With SEO, it’s hard cause you keep having to re-educate the client over and over again on the same ‘issues’. Some of SEO is hard to grasp; especially if the clients have preconcieved ideas of what SEO is and how it works.

    Good luck to those who are currently dealing with this! I do not envy your position.


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