Every small business owner, freelancer, and entrepreneur starts their business envisioning fulfilling projects brought to them by dream clients. Potential clients are seen as a source of new and fun challenges and, of course, revenue.
But in the real world, you’ll inevitably do business with both good clients and bad clients; customers who strain client relationships (or ignore their importance) with unrealistic demands and flat-out rude behavior, and who put service providers into a real pickle.
With this imperfect reality in mind, we asked our partners and providers here at UpCity to help us put together a guide for “bad-fit” clients. Their insights included:
- Typical characteristics of a “bad” client[1]
- The negative impacts of bad client relationships
- Red flags to look out for when considering a new client[2]
- Advice and strategies for how to handle bad client fits
But first, let’s take a closer look at what we mean when we talk about “bad” clients.
What does it mean to have a bad client?
Any freelancer, startup leader, or small business owner who has worked with clients has likely seen numerous examples of bad clients. Generally speaking, though, bad client stories fall into a few common categories:
- Clients who ask for more than is reasonable
- Clients who fail to communicate
- Clients who introduce payment challenges
These are just basic category examples, though, and our experts shared several more specific types of clients to watch out for.
“Clients are not a good fit if they do not want to follow your set workflows. If they want you to do ‘special’ things for them, they are not a good fit. For example, if you intake clients using a Google Form but they want to email you the information instead, they are not a good fit. They will continue to work outside of your established workflow.” –Dotty Scott, Owner and Website Designer at Premium Websites
Working with these kinds of clients can impact your business in many different (often negative) ways. From interrupted workflows to unreasonable follow-up expectations, impossible milestones, or difficult payment terms, problem clients can cost any business owner a lot of time, money, and morale.
“Usually, existing clients are not the problem. On occasion, though, someone new may be assigned to your account–someone who may not be up to speed on the situation or the price points. If they don’t understand how the process works, they have little use for comparing companies, and they’ll default to price tags, neglecting to consider all other factors.” –Richard J. DePaso, Managing Director at Aardvark Video
What are the negative impacts of bad client relationships?
As we discussed in the introduction, there are multiple negative outcomes that can result from working with a bad client. Estimated timeframes are thrown out the window, metrics can be skewed, and revenue is lost.
“The bad fits are constantly creating problems or additional work for you that your ideal clients do not create. If they are a headache and you don’t enjoy talking to them over the phone, then they are probably not a good fit. If you find yourself not looking forward to meeting with them, then they are probably not a good fit.” –Robb Fahrion, Partner and Co-Founder of Flying V Group
Time is one of the key considerations that repeatedly came up with our panelists. Not only is time valuable, it is a critical resource that you and your team can not get back. So working with a difficult client who engages in too much pushback or demands excessive, inconsequential revisions can cost your organization much more than a few hours of phone calls.
“Be wary of clients that are overly demanding, disrespectful, unreasonable, or those that overstep boundaries. If a client is reluctant to pay or makes payments late, that is a huge red flag. Also watch out for clients that like to micromanage all aspects of a project. YOU are the expert and they hired you for a reason!” –Max Karren, President of Chuckwalla Design
All of our panelists also agreed that the number one key to understanding what type of client you are dealing with and what type of service they are expecting is a simple conversation. From the first time you engage with a client, asking upfront questions and managing expectations about what your team will and will not do can make all the difference.
“Make sure you take the time to meet with them and go with your gut feeling … it’s almost always right. When I was starting out, I made a few bad choices that could have been avoided if I listened to my gut instead of just wanting to get a new client. Avoid clients who badmouth their current or previous agencies because you will be next.” –Ryan Kallok, Founder of Brandspire
Those initial conversations–including the questions you prepare and the terms of service you can offer–are truly the number one way to avoid major headaches or disruptions down the road.
“Communication is key when it comes to the agency/client relationship. If the two sides are unable to properly align on goals and day-to-day workflow, there will be problems. Clients who don’t pay on time or are unable to will also be a major liability for an agency.” –Katey DiStefano, Organic Social Media Strategist at Austin Williams
How to recognize and avoid poor-fit clients before onboarding
So how do you know if a potential client is going to be a good fit in the first place? Our panel of experts had several recommendations that you can apply from the first touch to the final invoice.
“The KYC (know your customer) process is one of the most effective ways to filter out poorly-matched clients. Businesses can also conduct regular website and social media check-ups. Reviews from their existing partners can also be a deciding factor that can help sieve out unfitting clients.” –Daria Leshchenko, CEO and Managing Partner at SupportYourApp
Doing your part to prepare for any sales conversation or initial meeting with a prospective client is a major factor in any business-client relationship. Being ready to not only answer their questions but also to ask critical questions of your own is an invaluable part of the sales process and onboarding.
“A well-rounded questionnaire/project inquiry page is a great way to find out if you and a potential client are a good fit. From budget to scope, services needed, or even fun personality questions, getting the answers to important foundational questions will provide you with the information you need to know and filter out the good versus not good client matches.” –Anna Ritchie, Co-Founder of jo + leigh marketing
You can also help start a new business relationship off on the right foot by approaching these initial meetings as genuine conversations between potential business partners as opposed to calculated job interviews.
Bring your natural curiosity to these discussions and you’ll likely learn more than you would have with a straightforward list of questions.
“We start by asking open-ended questions to understand why they are looking for a new agency. Maybe they have a one-person marketing team that is getting bogged down. Or, perhaps they have never invested in marketing before, so using an agency will be an investment as well as a new relationship. In these cases, you will need to set clear expectations and get the client thinking about how to best work with an agency.” –Laurie Michaels, President of Brown Bag Marketing
In addition to asking and answering questions, our experts also suggested displaying honesty and transparency. Being clear and forthcoming with every client, prospective or otherwise, is the best way to create, maintain, and nurture healthy business relationships and retain your good clients or customers.
“To effectively filter out poorly-matched clients before onboarding, it is crucial to maintain transparency at every step of the engagement process. Agencies should clearly communicate their capabilities and limitations, and equally understand the client’s expectations and goals through detailed discussions before formalizing any agreement.” –Patrick Ruben Long, Digital SEO Content Manager at Integrated Digital Strategies
And don’t be afraid to ask about a potential client’s previous agency work. The way they tell you about their prior projects can give you a lot of insight as to what they are asking and expecting from an agency partner.
“Ask questions and listen to prospects to learn about how they have previously worked with agencies. What were the length of engagements, why did they part ways, what were some of the successes with other agencies? Look for cautionary answers that always put all the blame outside their organization.” –Jonti Bolles, President of WHO Digital Strategy
Red flags to look out for in existing client relationships
When you do engage with a new client, or as you evaluate some of your current clients, there are a number of standard red flags that our panelists suggest looking out for.
“Losing trust and lacking respect for the service provider are the two biggest red flags we try to avoid. When either or both of these signals are recognized, plan to exit the relationship. These lead to unneeded stress and deterioration of internal and external culture. They can be avoided with most clients through proper account management, but if/when you see them creeping in, be proactive in your exit plan.” –Matt Simpson, COO of MAGNETIC
As we talked about above, boundaries are key. What you won’t do or can’t do for a client is every bit as important to the conversation and the relationship as what you can and will offer.
“Another red flag for not-so-great clients is not respecting your boundaries. Are they asking you to hop on calls on your day off, emailing you late at night expecting a response, or otherwise overstepping? Maintaining your boundaries as a service provider is crucial to building a healthy and collaborative working relationship with clients.” –Meg Mothershed, Co-owner of Mothershed Design Co.
And one big red flag that our experts have seen before is refusing to listen to your recommendations. You as the service provider are being hired as a subject matter or service authority, so if a client is consistently ignoring your advice and guidance, this is a pretty big sign that the client-provider relationship is broken. Healthy collaboration is one thing, but obstinate clients are rarely worth the trouble.
“The bottom line is that when a customer does not want to take your recommendation, this usually is a sign of a lack of trust, which is a huge red flag.” –Peter Berson, Marketing Consultant at Aveli By WSI
Tips for “breaking up” with bad clients
If it turns out that you are dealing with a bad client, the first thing to do is relax. These sorts of things happen all the time, and you can never guarantee that every working relationship will be great. The very best path forward is honesty, openness, and communication with your client.
“Speak the truth in love. Let them know that the current arrangement no longer works for you. Then let them know what changes must be made in order for the arrangement to continue. If you are no longer willing to work with them, you can recommend other agencies and give them a timeline for wrapping things up.” — Drew Berkemeyer, Founder of Berkemeyer Concepts
That advice is definitely worth repeating. As a part of the conversation, be sure to offer your recommendations and connections for agencies and service providers who you believe will be a better fit with the client. This kind of consideration goes a long way and doesn’t leave your client in an impossible spot without assistance or direction.
“I think one of my best tips is to not burn any bridges. It’s okay to be honest and say ‘We’re not the right fit’ without anyone taking the blame. Depending on the situation, the client could become a client again later, or they might be a good contact for referrals! Your professionalism is not limited to the work you do for someone, but in every interaction you have–even if it’s a client break-up!” –Justine Wan, Founder and Lead Strategist at Sidewalk Marketing Co.
Tips for salvaging client relationships
If you are currently working with a difficult client but believe that the working relationship is valuable and worth fixing, there are several steps you can take to strengthen a weakening relationship. The following tips are just a sample of the advice that our experts have for businesses, but these best practices can hopefully point your conversations and your client management plan in the right direction.
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- Proactive communication
Don’t be afraid to pick up the phone or schedule that Zoom meeting! When questions arise or if new options become available, staying on top of communication will impress your clients and encourage them to do the same.
- Goal setting
Understanding your client’s goals is one thing, but helping them to refine, expand, and achieve their goals is another. Be actively involved with your client in their goals, and look for ways that you can work together not only to achieve them but perhaps even exceed them.
- Shared responsibility
Your clients need something from you, of course, but this means you also need things from them. Information, guidance, decisions, resources–don’t be afraid to remind them of their responsibilities and how upholding them will help you meet their expectations for a successful project.
- Anticipation
In conjunction with the goals conversation above, be proactive in thinking through a project and your client’s input. This includes finding options they may have missed or deliverables they may have forgotten about, but which you know are key components.
- Transparency = clarity
Being upfront is the best policy. Keeping your clients updated on timelines, availability, and more is remarkably important to creating healthy, effective client relationships.
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Managing clients and more
Whether you have one client or 20, our panelists have a lot more advice that they are ready to share with you. From startups to solo freelancers, reaching out to one of the business consultants in our UpCity network can provide you with a remarkable head start.
From finding and securing clients to customer relationship management, project management, and more, our highly rated partners can offer advice and guidance based on decades of experience to help your business succeed.
Sources
- 8 Signs It’s Time To Fire A Bad Client & How To Do It, Search Engine Journal
- Use These 10 Red Flags to Spot a Difficult Client From a Mile Away, Entrepreneur