Why you should fire clients more often (and how to do it the right way)

All clients review agencies for “fit.”

They line up the RFP cattle call, or back-to-back meetings between a handful of agencies to contrast and compare.

However, almost zero agencies review clients in return.

Instead, they’re too eager, living hand to mouth, to take on all clients at all times as long as they have a pulse and a checkbook. 

It makes sense. You need to keep the lights on and employees fed. But it almost always backfires at least a few times each year.

Client A is actually costing you money in the long run. Client B keeps asking for caviar on a sardines budget. And Client C is simply just an a-hole.

Counterintuitively, that’s why the best thing an agency can do is to routinely fire clients on a regular basis. Not once a year, but once a month or quarter.

Here’s why.

When to fire a client: Recognize you have a problem (profitability, notoriety and fit)

Just like any good 12-step program, start by recognizing you have a problem.

You should have never touched that one client with a 10-foot pole. You were a terrible fit for that other client last summer.

Thankfully, you can relax. This is totally normal.

Profitability

The first issue that sabotages client engagement is usually profitability (not contract value). 

Either you:

  • Undercharged from the get-go, too eager to land the client that you failed to properly scope or understand the full specifications. 
  • Or the project costs that worked when you started a ~year ago don’t line up with your agency’s current headcount, overhead, and profitability targets.

Fortunately, this issue is also pretty easy to fix. You can (and should) regularly:

Simply raise rates at regular intervals for each client. Not every month or quarter necessarily, but definitely every year. 

Continue on a “discounted rate” only if they meet your payment terms, like paying for the quarter or annual contract upfront to help your cash flow. This is especially key on larger accounts with enterprise companies that seem to think you’re a bank that extends credit to fund their project resources for… infinity? While they pay slooooooooooowwwllyyy.

Institute a new “change order” policy to avoid scope creep. My dad always used to say “what you permit, you promote.” Drove me nuts at the time and still rings in my ears.

But 100% true when it comes to managing client relationships and expectations.

Next time a client requests something out of scope (and every time hereafter), you can accommodate it only for an extra fee. 

Move your higher-cost and better resources (read: people) off their account to newer, higher-paying clients (and substitute them with cheaper ones).

This sleight-of-hand trick instantly improves margins without the client being the wiser. (Obviously, don’t let quality drop during this transition!)

Routinely sticking to these four principles should clean up ~80% of your agency’s profitability issues.

Unfortunately, though, profitability isn’t the only reason a client engagement goes sour.

Mismatch with client expectations

The second most common, and harder to fix, is a mismatch with client expectations. 

They expect business class on an economy budget. 

They’re a tiny, no-name, commoditized brand that thinks it should be on the cover of TechCrunch or The New York Times. 

Or they expect results yesterday, despite not having the internal resources to support any of the initiatives you’re trying to get off the ground.

In these cases, education early and often is key. 

Also, be direct and transparent. Be nice and polite, but firm.

The minute you get backed into the “vendor” corner, simply fulfilling orders and being a pushover, you’re screwed. 

This mismatch issue also brings to light a tertiary issue: “fit.”

Fit

Maybe you sold a service or project you’re actually unequipped to deliver.

Or maybe there’s just a personality difference between your firm’s people and the client’s point of contact. 

Either way, healthy agency engagements are more marriage, less Tinder. “Fit” is as important as budget. 

There’s usually a variety of reasons why “fit” gets distorted and the relationship blows up in your face. And depressingly, there’s almost nothing you can do to improve fit.

Leaving you with only one obvious option.

Get the daily newsletter search marketers rely on.

<input type="hidden" name="utmMedium" value="” />
<input type="hidden" name="utmCampaign" value="” />
<input type="hidden" name="utmSource" value="” />
<input type="hidden" name="utmContent" value="” />
<input type="hidden" name="pageLink" value="” />
<input type="hidden" name="ipAddress" value="” />

Processing…Please wait.

See terms.

function getCookie(cname) {
let name = cname + “=”;
let decodedCookie = decodeURIComponent(document.cookie);
let ca = decodedCookie.split(‘;’);
for(let i = 0; i <ca.length; i++) {
let c = ca[i];
while (c.charAt(0) == ' ') {
c = c.substring(1);
}
if (c.indexOf(name) == 0) {
return c.substring(name.length, c.length);
}
}
return "";
}
document.getElementById('munchkinCookieInline').value = getCookie('_mkto_trk');

5 simple steps to firing clients once and for all

Subscription businesses like SaaS measure things like “churn” to assess how well they’re doing in satisfying customers.

From a 30,000-foot level, it’s a measure of how many people sign up and then bounce (seemingly to find some other alternative).

Generally speaking, a SaaS business then wants its churn rate to be as low as humanly possible because that means its product is “stickier” and therefore its business is way more profitable.

Service businesses often try to measure similar “churn” metrics. However, they’re missing the obvious point. 

As a completely different business model, there is such a thing as churn being “too low” when it comes to clients.

In other words, you actually want clients to regularly churn out, assuming:

  • They’re still happy with the service you delivered so they’ll provide a testimonial and referrals.
  • That you have a steady stream of eager prospects willing to engage you at a higher rate (which is a topic for another day).

You obviously don’t want large, well-paying, nice clients to churn that often. 

But you absolutely want less profitable, obscure, mismatched, unfriendly clients to see the door on a regular basis.

Replacing one for the other almost instantly:

  • Frees up your biggest bottleneck – people! – to take on new accounts without constantly needing to hire and fire under-performers as your deal flow ebbs and well, flows.
  • Improves your profitability because it’s often easier to start new clients at a significantly higher rate than ask (read: force) old clients to pony up more dough for seemingly the same exact level of service.
  • Both of those two moves, together, actually result in giving you less work to do while making the same (or more) – ‘cause you and your team deserve vacations sometimes, too.
  • Last but not least, it allows you to ideally work with bigger brand names which provide an almost instant lift to the credibility of your agency and helps “pre-sell” other prospects who’ve been sitting on the fence for months (or years).

So it’s best to be blunt and polite. But also rip the bandaid off ASAP.

Here’s how to fire clients nicely.

1. Time client firings with natural project conclusions or times of year

For instance, if a major milestone is going to be complete by the end of this quarter, that would be a perfect target date to… 

2. Give plenty of notice

Tell them at least a month in advance (maybe more) that it’s coming to help set expectations. This also gives you some time to…

3. Plan ahead

You can:

  • Provide them with some alternatives for you.
  • Be able to forecast new work you have coming through the door so you can easily transition your team from one account to the next. 

If they want to try to continue working together, you can…

4. Significantly raise rates for future work

This kinda gives them a hint. Every client gets put out when you try to ask for more money. Especially a lot more money.

Now imagine you 2X or 5X or even 10X their next project cost if they want to continue working together. They’ll almost always get the hint and go seek out cheaper alternatives. This also assumes the split will be amicable. 

Unfortunately, that isn’t always the case. So here’s how to fire a client with a not-so-nice script… 

5. Some client firings aren’t always that nice

Look: life ain’t a fairy tale. Sorry to be a spoiler. 

As a service professional, you need to be kinda like a mercenary. You parachute in to get s#*t done. Then, you move on to wherever the next project takes you. 

Some clients routinely “take the piss” by:

  • Paying you well after previously agreed upon dates.
  • Demanding things that were never in scope.
  • Blaming you for their own internal issues.
  • Talking down to your staff.
  • Just simply being a pain in the @$$ to deal with. 

So with these people, you can be blunter and skip the foreplay of the last four points:

  • “Effective immediately, we’re canceling our agreement with you due to… (list the points in the preceding sentence). After [XYY] date you will no longer have access to [ABC] resources.” 

And… that’s it. 

No elaborate script or heartfelt breakup needed. Remember that you’re a Navy Seal, not an untrained boot who’s never seen combat.

You can and should explain your reasoning and thought process to nice clients that are sadly no longer a good fit for where your agency is trying to go. Help them find another good shepherd to lead their flock.

But…

You absolutely don’t need to apologize or explain anything to jerks. They’re on their own. Because they all most likely think you’re an idiot already, unable to possibly live and breathe the same airspace as their genius.

So stop putting up with their crap, sapping your team’s morale, and damaging your longer-term reputation.

Let them go hire and fire 10 other agencies before they realize that they, not you, were the problem all along. 

Firing a client is inevitable

You aren’t a therapist or a shrink. 

The best agencies are battle-hardened teams of trained, skilled specialists. You get hired to create deliverables, design websites, problem-solve, rank stuff, increase ROAS, and more.

But nowhere in your MSAs or SOWs does it say: fix every client’s problem, no matter what.

Because there are tons of client problems that you literally can’t do anything about, like:

  • Bad internal support or champions.
  • An undifferentiated service or product in a crowded space.
  • Having the wrong people leading the wrong projects.
  • Under-qualified employees or HIPPOS (highest paid person’s opinion) calling the shots.
  • Poor/nonexistent processes and workflows to coordinate complex projects and scale results. 
  • Under-resourced teams with inappropriately-aggressive timelines.
  • And lots, lots more.

You can’t save everyone. 

Help the good, but no-longer-a-good-fit clients land on their feet when transitioning them out of your agency.

But don’t be afraid to cut the jerks loose today and let them be someone else’s problem to deal with tomorrow.

The post Why you should fire clients more often (and how to do it the right way) appeared first on Search Engine Land.

Original source: https://searchengineland.com/fire-clients-more-often-388842

83 thoughts on “Why you should fire clients more often (and how to do it the right way)”

  1. Your writing is so eloquent and heartfelt It’s impossible not to be moved by your words Thank you for sharing your gift with the world

  3. В Москве купить аттестат – это комфортный и быстрый способ завершить нужный бумага лишенный избыточных проблем. Разнообразие фирм предлагают сервисы по производству и реализации свидетельств разных образовательных институтов – https://russkiy-diploms-srednee.com/. Разнообразие дипломов в городе Москве большой, включая бумаги о академическом и среднем ступени учебе, свидетельства, дипломы техникумов и академий. Основное преимущество – возможность достать диплом официальный документ, подтверждающий подлинность и высокое качество. Это предоставляет уникальная защита от фальсификаций и предоставляет возможность применять аттестат для различных целей. Таким способом, покупка аттестата в Москве становится безопасным и оптимальным выбором для данных, кто хочет достичь процветанию в карьере.

  7. Sugar Defender orchestrates a reduction in blood sugar levels through multifaceted pathways. Its initial impact revolves around enhancing insulin sensitivity, optimizing the body’s efficient use of insulin, ultimately leading to a decrease in blood sugar levels. This proactive strategy works to prevent the storage of glucose as fat, mitigating the risk of developing type 2 diabetes.

  8. Sugar Defender’s prowess in managing blood sugar is deeply rooted in its exceptional blend of natural ingredients, each playing a distinct role that contributes to the overall success of the supplement. Here are some noteworthy positive impacts of the Sugar Defender Ingredients blend:

  11. hello there and thank you for your info – I have definitely picked up something new from right here. I did however expertise a few technical points using this website, as I experienced to reload the website lots of times previous to I could get it to load properly. I had been wondering if your web hosting is OK? Not that I am complaining, but sluggish loading instances times will often affect your placement in google and can damage your high quality score if ads and marketing with Adwords. Well I am adding this RSS to my e-mail and can look out for a lot more of your respective fascinating content. Ensure that you update this again very soon.

  13. Red Boost is a supplement that is meant to improve overall health and well-being, especially in men who may be showing signs of low testosterone. It’s a new product, but it’s already getting a lot of attention because it helps men with common problems that come up as they age.

  14. The ability of Alpilean to target both subcutaneous and visceral fat distinguishes it from other weight loss products. Subcutaneous fat is visible beneath the skin, whereas visceral fat is harmful fat that accumulates around the organs, increasing the risk of heart disease and other health problems. Alpilean ensures that you not only look better, but also feel better by attacking both types of fat.

  21. Sugar Defender transcends symptom-focused interventions, delving into the root causes of glucose imbalance. It stands as a dynamic formula that seamlessly aligns with the body’s intrinsic mechanisms, presenting a distinctive and holistic approach to enhancing overall well-being. Beyond a mere supplement, Sugar Defender emerges as a strategic ally in the pursuit of balanced health.

  22. GlucoTrust is a powerful dietary supplement that is designed to address the root cause of excessive blood sugar. It provides the body with essential vitamins and minerals that are specifically formulated to lower blood sugar levels and help keep them at optimal levels. This supplement is highly effective in eliminating fat from the liver, pancreas, and cells, which is one of the primary causes of high blood sugar levels. By doing so, it improves the conversion of carbohydrates and proteins into energy that your body can easily burn.

  24. What makes Sumatra Slim Belly Tonic even more unique is its inspiration from the beautiful Indonesian island of Sumatra. This supplement incorporates ingredients that are indigenous to this stunning island, including the exotic blue spirulina. How amazing is that? By harnessing the power of these rare and natural ingredients, Sumatra Slim Belly Tonic provides you with a weight loss solution that is both effective and enchanting.

  26. What makes Sumatra Slim Belly Tonic even more unique is its inspiration from the beautiful Indonesian island of Sumatra. This supplement incorporates ingredients that are indigenous to this stunning island, including the exotic blue spirulina. How amazing is that? By harnessing the power of these rare and natural ingredients, Sumatra Slim Belly Tonic provides you with a weight loss solution that is both effective and enchanting.

  27. I am absolutely thrilled to introduce you to the incredible Sumatra Slim Belly Tonic! This powdered weight loss formula is like no other, featuring a powerful blend of eight natural ingredients that are scientifically linked to fat burning, weight management, and overall weight loss. Just imagine the possibilities! With Sumatra Slim Belly Tonic, you have the opportunity to finally achieve your weight loss goals and transform your body into the best version of yourself.

  28. Sumatra Slim Belly Tonic is a unique weight loss supplement that sets itself apart from others in the market. Unlike other supplements that rely on caffeine and stimulants to boost energy levels, Sumatra Slim Belly Tonic takes a different approach. It utilizes a blend of eight natural ingredients to address the root causes of weight gain. By targeting inflammation and improving sleep quality, Sumatra Slim Belly Tonic provides a holistic solution to weight loss. These natural ingredients not only support healthy inflammation but also promote better sleep, which are crucial factors in achieving weight loss goals. By addressing these underlying issues, Sumatra Slim Belly Tonic helps individuals achieve sustainable weight loss results.

  30. I’m often to blogging and i really appreciate your content. The article has actually peaks my interest. I’m going to bookmark your web site and maintain checking for brand spanking new information.

  35. TerraCalm is an antifungal mineral clay that may support the health of your toenails. It is for those who struggle with brittle, weak, and discoloured nails. It has a unique blend of natural ingredients that may work to nourish and strengthen your toenails.

  36. SonoVive is an all-natural supplement made to address the root cause of tinnitus and other inflammatory effects on the brain and promises to reduce tinnitus, improve hearing, and provide peace of mind. SonoVive is is a scientifically verified 10-second hack that allows users to hear crystal-clear at maximum volume. The 100% natural mix recipe improves the ear-brain link with eight natural ingredients. The treatment consists of easy-to-use pills that can be added to one’s daily routine to improve hearing health, reduce tinnitus, and maintain a sharp mind and razor-sharp focus.

  37. GlucoCare is a dietary supplement designed to promote healthy blood sugar levels, manage weight, and curb unhealthy sugar absorption. It contains a natural blend of ingredients that target the root cause of unhealthy glucose levels.

  38. While Inchagrow is marketed as a dietary supplement, it is important to note that dietary supplements are regulated by the FDA. This means that their safety and effectiveness, and there is 60 money back guarantee that Inchagrow will work for everyone.

  39. Nervogen Pro is a cutting-edge dietary supplement that takes a holistic approach to nerve health. It is meticulously crafted with a precise selection of natural ingredients known for their beneficial effects on the nervous system. By addressing the root causes of nerve discomfort, Nervogen Pro aims to provide lasting relief and support for overall nerve function.

  40. Introducing FlowForce Max, a solution designed with a single purpose: to provide men with an affordable and safe way to address BPH and other prostate concerns. Unlike many costly supplements or those with risky stimulants, we’ve crafted FlowForce Max with your well-being in mind. Don’t compromise your health or budget – choose FlowForce Max for effective prostate support today!

  42. Gorilla Flow is a non-toxic supplement that was developed by experts to boost prostate health for men. It’s a blend of all-natural nutrients, including Pumpkin Seed Extract Stinging Nettle Extract, Gorilla Cherry and Saw Palmetto, Boron, and Lycopene.

  43. FitSpresso stands out as a remarkable dietary supplement designed to facilitate effective weight loss. Its unique blend incorporates a selection of natural elements including green tea extract, milk thistle, and other components with presumed weight loss benefits.

  44. SynoGut is an all-natural dietary supplement that is designed to support the health of your digestive system, keeping you energized and active.

  45. Metabo Flex is a nutritional formula that enhances metabolic flexibility by awakening the calorie-burning switch in the body. The supplement is designed to target the underlying causes of stubborn weight gain utilizing a special “miracle plant” from Cambodia that can melt fat 24/7.

  46. GlucoFlush Supplement is an all-new blood sugar-lowering formula. It is a dietary supplement based on the Mayan cleansing routine that consists of natural ingredients and nutrients.

  47. Glucofort Blood Sugar Support is an all-natural dietary formula that works to support healthy blood sugar levels. It also supports glucose metabolism. According to the manufacturer, this supplement can help users keep their blood sugar levels healthy and within a normal range with herbs, vitamins, plant extracts, and other natural ingredients.

  49. Claritox Pro™ is a natural dietary supplement that is formulated to support brain health and promote a healthy balance system to prevent dizziness, risk injuries, and disability. This formulation is made using naturally sourced and effective ingredients that are mixed in the right way and in the right amounts to deliver effective results.

  50. Amiclear is a dietary supplement designed to support healthy blood sugar levels and assist with glucose metabolism. It contains eight proprietary blends of ingredients that have been clinically proven to be effective.

  51. HoneyBurn is a 100% natural honey mixture formula that can support both your digestive health and fat-burning mechanism. Since it is formulated using 11 natural plant ingredients, it is clinically proven to be safe and free of toxins, chemicals, or additives.

  52. InchaGrow is an advanced male enhancement supplement. The Formula is Easy to Take Each Day, and it Only Uses. Natural Ingredients to Get the Desired Effect

  53. Neurodrine is a fantastic dietary supplement that protects your mind and improves memory performance. It can help you improve your focus and concentration.

  54. Nervogen Pro, A Cutting-Edge Supplement Dedicated To Enhancing Nerve Health And Providing Natural Relief From Discomfort. Our Mission Is To Empower You To Lead A Life Free From The Limitations Of Nerve-Related Challenges. With A Focus On Premium Ingredients And Scientific Expertise.

  58. Dentitox Pro is a liquid dietary solution created as a serum to support healthy gums and teeth. Dentitox Pro formula is made in the best natural way with unique, powerful botanical ingredients that can support healthy teeth.

  60. SonoVive™ is a completely natural hearing support formula made with powerful ingredients that help heal tinnitus problems and restore your hearing

  63. ProDentim is a nutritional dental health supplement that is formulated to reverse serious dental issues and to help maintain good dental health.

  64. GlucoBerry is a meticulously crafted supplement designed by doctors to support healthy blood sugar levels by harnessing the power of delphinidin—an essential compound.

  66. EyeFortin is a natural vision support formula crafted with a blend of plant-based compounds and essential minerals. It aims to enhance vision clarity, focus, and moisture balance.

  69. Neotonics is a dietary supplement that offers help in retaining glowing skin and maintaining gut health for its users. It is made of the most natural elements that mother nature can offer and also includes 500 million units of beneficial microbiome.

  75. Boostaro increases blood flow to the reproductive organs, leading to stronger and more vibrant erections. It provides a powerful boost that can make you feel like you’ve unlocked the secret to firm erections

  78. Aizen Power is a cutting-edge male enhancement formula that improves erections and performance. The supplement contains only natural ingredients derived from organic plants.

  79. FitSpresso is a special supplement that makes it easier for you to lose weight. It has natural ingredients that help your body burn fat better.

Comments are closed.