As a small business, landing a client feels INCREDIBLE. All that pitching and preparation finally paid off. You like to cherish every single client you’ve worked hard to get. And 95% of the time you do.
But there’s that one client. You might’ve noticed some initial red flags, such as constant last-minute requests or poor communication. When these snowball into greater issues, like a pile-up of unpaid invoices, it could be time to let them go.
Not every client relationship will serve you, and that’s okay. Firing a toxic client is a big business decision to make. Ultimately, you want to think about what’s good for your business and mental wellbeing—both are important!
We’ve laid out some key points to help guide you through the process of firing a client, including:
We’ll start by looking at common types of difficult clients and red flags to look for.
As a business owner, you always want to have a good relationship with your clients. However, some clients end up being especially difficult, from the “I’m always right” type to the downright bully. We’ve rounded up common toxic client types to keep on your radar.
Before you read on, remember that each client relationship is important. Even the difficult ones. Your goal should be to find solutions to apparent issues before considering firing them.
It’s frustrating to work with someone who always thinks they’re right. They’re generally not willing to listen to other opinions. If you bring a different point of view to the table, they dismiss your ideas. While you may be the expert on a subject, they believe they know it better. All this makes it difficult to move projects forward!
Every client relationship should have some level of trust. It’s not just awkward to catch a client in a lie, it also fractures the relationship. This client type might constantly “misinterpret” important information, making it impossible to do your job.
These clients are often considered the worst of the bunch. They tend to be argumentative and in-your-face. Just be sure they don’t creep into the territory of a workplace bully, which is a sign you should drop them immediately. Safework Australia defines workplace bullying as repeated and unreasonable behaviour directed towards a worker or a group of workers that creates a risk to health and safety.
These clients have no trouble calling or Whatsapping at any hour of the day, even after you explicitly ask them not to. Deadlines are pushed forward and there are a lot of last-minute requests. You may notice them interrupting you or your team’s workflow, making it hard to manage all other deliverables.
This client type isn’t necessarily rude or dishonest, they’re just rather unorganized. They’ll request deliverables on a certain date but will forget to send over the necessary documents. They may miss scheduled calls or ask for rushed work often. You might not need to fire these clients, but they do require extra hand-holding.
Unorganized processes can put a strain on your client relationship. With Content Snare, you can easily organize and collect content from clients. Smoother processes mean happier clients.
While a client may not fully embody the toxic typologies above, there can still be signs that the relationship should end. We’ve laid out some telling ones.
1. The client is abusive.
Examples of abuse include:
If a client is abusive, it’s time to call a lawyer and fire them immediately.
2. The client is unreasonable.
A client can be unreasonable in different ways. Some include:
3. There are constant payment issues.
Payment issues shouldn’t happen. If they often do, that’s a big red flag. This disrupts your cash flow and creates financial anxiety—bad for your business and mental health.
4. The client takes up more time than they're worth.
Unfortunately, some clients are just unprofitable. You either spend too much time or money on their projects, stifling your business’ potential growth.
5. The relationship isn’t improving
If you’ve tried, on multiple occasions, to talk about issues like those listed above and things still aren’t getting better, you may have to move on.
It's normal for a few client hiccups or miscommunication issues to arise along the way. Some clients are challenging but not necessarily problematic, and there are always ways to improve client communication.
The grounds for firing a client occurs when there are repeat offences and you’ve exhausted all options of trying to improve the relationship.
Building client relationships is one of the ways to prime a business for success. It's never easy to give up on one. You’ve sat down with the difficult client, explored all avenues for improving the relationship and gave them your all. Still, things haven’t improved.
You’re now sure it’s time to fire the client for the wellbeing of your company, employees and yourself.
How do you go about doing that? Most importantly, avoid burning bridges.
Here are some other things to keep in mind:
Unless the client did something illegal or inappropriate (in which case, fire them and get a lawyer stat), it’s a good idea to express your appreciation for their business. After all, last impressions are as important as the first.
Now what do you actually say when firing a client?
People have different ways of going about this. We’ve outlined five approaches you could take and what to say.
It feels good to do good. This scenario involves helping the client find your replacement. You’ll make a better last impression and you can build business connections by referring someone in your network.
What you can say:
Business owners tend to use the upfront approach when they feel the client relationship isn’t salvageable or the client has done something completely unreasonable. In this scenario, a direct conversation is needed with zero uncertainty over the terms. You can adopt a firm yet polite tone. Just remember to avoid pinning blame on the client.
What you can say:
This approach is risky. If a problematic client accepts your raised rates, you’re back to square one(ish). However, this might be the right technique if you’re not fully certain you want to fire them yet.
What you can say:
This approach works if you can see light at the end of the tunnel. Perhaps your contract is coming to an end shortly anyways. If you won’t be renewing the contract, give the client enough time (around one month) to find a new provider.
What you can say:
If you’d like more direction on what to say when firing a client, we’ve outlined a general structure you can follow:
Dear Client,
1. Mention the positives.
It’s been a privilege to work with you and your team.
2. Let them know you won’t be working with them.
Unfortunately, due to [reasons], we won’t be able to offer our services, effective [date].
3. Offer an apology and a referral.
We’re sincerely sorry for the inconvenience! To avoid any interruptions in service, we’d like to refer you to [company or freelancer name], who we think could meet your needs. Let us know if there’s anything else we can do to help with the transition period.
4. Mention any project items you’ll complete.
Below is a list of items you can expect from us between now and [date].
[list of items]
5. Thank them for their business.
Thank you for your business over [time period]. We wish you all the best.
Each person has a unique client relationship and reason for leaving their client. While these are guiding points on what you can say when firing a client, you should always try to personalize your departure.
Working with a bad client is disheartening, but don’t let that ruin your confidence in delivering good work. When a client relationship doesn’t serve you, chances are, it’s not serving them either. Sometimes it’s best to rip the bandaid off.
Plus, there are a number of great clients out there. When you find them, you’ll want to nourish the positive business relationship—after thanking the heavens.
Helen is a creative copywriter with over six years of agency experience in the marketing and branding world. She’s crafted campaigns and content for brands like Accor and Ford to lean and local small businesses. Based out of Bangkok, when she’s not typing away at her keyboard, she’s probably stuck in traffic.
