Fire your toxic clients

I saw this tweet a couple of weeks ago, and it brought back so many rollercoaster memories:

Becoming aware that the problem exists is hard enough, but firing real revenue is 10x harder.

Shane did the right thing. 

I’ve fired my share of toxic clients, and never regretted my decision.

A bad client doesn’t just cost money — they cost focus

They want you to be something you’re not.

Your best employees end up trapped in pointless meetings, responding to never-ending complaints, and dealing with unrealistic demands.

And they simply don’t get the value you bring.

It’s not just about direct time wasted. Toxic clients have a major impact on team morale. 

They create a culture where your team feels undervalued, and where the wrong behavior gets rewarded. 

And they prevent you from serving the clients who actually drive your business forward.

So how should you deal with this?

One of the most obvious things to do is avoid these relationships in the first place.

Agency owner Kirsten Russ created an evaluation system that she performs for every new potential client. Not only does her system consider revenue potential, possibility of long-term engagement, and the network-effects of working with that client—

It also ranks them on a scale between “great to work with” and “pain in the ass”.

While this might feel like an uncomfortable thing to formally ask yourself, it can keep you from making excuses to work with the wrong clients simply because they bring a ton of money or prestige to the table.

Another great litmus test Kirsten shared is the "two beers and a puppy" test.

This is a thought exercise which originated in Ross McCammon's 2015 book Works Well With Others. The test is a way to determine how you feel about someone by asking yourself two questions:

1. Would you (gladly and willingly) have two beers with this person?

2. Would you allow this person to look after your puppy over a weekend?

The test categorizes people into four groups based on your answers:

• No and no: Avoid these people at all costs

• Yes and no: Cautiously trust these people

• No and yes: These people are no fun but they make the world a better place

• Yes and yes: These people are wonderful and your life and work are better for having them in your life

Evaluating toxic clients before they actually become your client is ideal, but sometimes things slip by, and…

You have to fire them

If this is your situation, my advice here is simple:

• Be direct

• Be kind

• And be quick

If you’re firing someone, whether it’s a client, vendor, or employee, I strongly believe in telling them why. That sort of feedback is important and valuable.

Dancing around with “it’s just not a good fit” language is cowardly. You’re firing them for a specific reason — so share that reason with them.

But do it kindly. Refund them for uncompleted work, and be empathetic.

And do it quickly. It’s an uncomfortable process for everyone. There’s no need to drag it out.

If this is something you have to do, forgive yourself, and move on.

–Aleksandr

P.S. – Have you ever fired a client?  I’d love to hear your story, and possibly feature it in an upcoming newsletter. Hit reply and tell me about it.

Catch you next Sunday!