For example, if you're a highly specialized agency, providing one service to a single market already. Any such claim would make no sense then, right? In such a case, amend your pricing or how you deliver the service to make it unsuitable for the client. And in turn, let them end the relationship instead. Now, I must warn you. This approach could backfire if they agree to new prices or processes. So, use it with caution. Firing a client isn't easy. The emotional weight of such a business decision can be heavy.
But at the same time, toxic client relationships could affect your agency's growth. That's why, sometimes, you have to make the tough call. But hopefully, you've just gained some insight into how to do this without any consequences to your agency. Good luck! Agency Advice. Are you frustrated with a particular client?
Do you imagine how wonderful life would be without them? The thing is, once a client relationship goes bad, it begins to threaten your agency. Over time, this negative client relationship affects your other accounts too. That's why, sometimes, you have to make a tough call and fire a client. Let's begin. In fact, just because you face problems with a client, it doesn't mean they have to go.
I've seen many small business owners getting frustrated with clients to the point of letting them go just because: A client asked from a revision out of the project scope. Or acted in a similar way after a client rejected their idea.
You get the picture. So, what are those boundaries? Here are the most common ones: Broken client communications Imagine, you work on the client's projects but get little or no support or interest from them. Unrealistic demands This is such a common scenario. They threaten you and your staff. Block payments until you do what they say. And in turn, they drop the company's morale down. No support for projects With these clients, you find yourself running in circles. A new process that generates more cost This scenario often happens when you subcontract with other companies.
Poor anger management Abuse towards you or your team member. Determine how you can reduce your workload with the client in question so there won't be much left to complete in order to complete your relationship with them. Start turning down any new assignments and decline to sign a new contract, or put it off as long as you can while you finalize your plans. It may seem easier to stay with the known working relationship even if that client causes stress, especially in times of economic uncertainty.
But keep reminding yourself that the free time will open up an opportunity to find and secure an ideal client who will pay you more and, more importantly, treat you better. It's important to let your client know in writing that you do not plan to continue the working relationship. This enables you to establish a clear exit plan with end dates and project closure.
The resignation or disengagement letter may also be an opportunity to let the client know what was not working in the relationship in hopes that the client may change their behavior for the better when they work with other freelancers in the future. The wording to use when firing a client should be professional and polite. Even though you may never plan to work with this challenging client again, it is always best to adhere to the idea of not burning any bridges.
Also, leaving on good terms shows that you have taken the high road, demonstrating your commitment to professionalism no matter how badly the soon-to-be ex-client behaves. For the next paragraph, you have two options.
You can directly address the reason you have decided to end the working relationship, such as lack of payment, different work styles, etc. Or, you can offer a more general reason that neutralizes the situation as shown below. I have overextended myself and must now reduce the number of clients I represent to ensure the level of service each client deserves.
From there, the rest of the letter should be focused on how you plan to complete any deliverables and hand over client files and information.
I plan to have all work completed by 25.01.2010 and have attached a final invoice for that work. If you need another person to replace me on this project, I do have some referrals that I can extend to you.
These colleagues might be a good match for your needs and budget. Thank you again for the opportunity. Please contact me directly should you have any questions about the project work or final invoice. Firing bad clients helps create the time and energy you need to take on those dream clients who are waiting in the wings to take your small business to the next level. Suddenly, work will no longer feel like a hassle. Instead, you will feel good, knowing you made the right business decision.
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Applicant Tracking Zoho Recruit Zoho Recruit combines a robust feature set with an intuitive user interface and affordable pricing to speed up and simplify the recruitment process. If you owe the client some work, make sure that you wrap it up before the firing. Not doing so will give the client room and reason to talk about you to others. And if word spreads, you might just find referrals drying up. You reset your goals, re-establish your processes and timelines, perhaps reset the team working with the client and renew your commitments.
Start a dialog to find a baseline and use it to measure your effectiveness. Think of this as a way to start things afresh without the burden of past disagreements and miscommunications. Firing the client should always be your last resort. Pursue it only if you know that the relationship is absolutely beyond redemption and if it is hurting your other clients.
Your aim should always be to end the relationship as amicably as possible. From unclear expectations to improper scoping of work, a lot of issues can be solved by simply having a clear dialog with the client. Managed the right way, a client termination can result in a level of respect that generates a healthy dose of good karma and might even lead to referrals. Ending a relationship is also a lot more personal than acquiring a new client. You know a lot more about the client than you did when you first started the relationship, which can make the firing hard.
A new client you signed-up barely a week ago can be let go over a quick email, but an older client deserves the courtesy of a face to face meeting, video conference or call. Ending a client relationship often seems like the only solution, however, as we have explained there are many potential ways to reset or rebuild a shaky client relationship.
Why agency-client relationships go bad is easy enough to figure out: unclear goals, unmet expectations, and poor communication. Often, these problems are solvable. Try that before you attempt more radical solutions such as ending the relationship. Learn the secrets of growing and scaling an agency from these founders. Join a partnership that grows your agency and your clients' business to the next level. Loves all things SaaS, technology, and startups.
July 11, Opinions expressed by Entrepreneur contributors are their own. More About Client Relationships. Growth Strategies. Christopher Tompkins Oct 20, Client Relationship Management. FlexTal Nov 23, Jessica Thomas Mar 12,
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