When and how to fire a client without burning bridges

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Webinar presented live on June 17, 2025

Not every client relationship is a good fit. Some clients drain your time, underpay for your work, or create unnecessary stress for your team. But knowing when and how to walk away can be tricky, especially if you’re worried about your agency’s reputation or financial impact.

In this webinar, Chip Griffin will show you how to professionally and strategically exit bad client relationships. You’ll learn how to recognize when a client is no longer the right fit, how to communicate the decision in a way that minimizes conflict, and how to smoothly offboard clients without leaving money on the table.

Ending a client relationship doesn’t have to be messy or stressful. With the right approach, you can free up your agency’s resources, protect your team’s morale, and make room for better-fit clients who value your work. If you’ve ever felt trapped in a toxic or unprofitable engagement, this session will give you the confidence to make a change.

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The following is a computer-generated transcript. Please listen to the audio to confirm accuracy.

Hello and welcome to today’s SAGA Webinar, When and How to Fire a Client Without Burning Bridges. I’m your host, Chip Griffin, the founder of SAGA, the Small Agency Growth Alliance, and I am delighted to have you with me today to talk about, well, it’s a difficult subject. It’s not something that we all really plan on, think about hope for when we’re starting our agencies, but it’s something that many of us will encounter somewhere along the way.

So before we dive into the topic at hand, I’m gonna allow people to continue filtering into the room. And while we do so, we’ll talk through a couple of quick housekeeping items. First of all, a replay will be available. So if you are watching this live and you don’t wanna be taking notes throughout, that’s fine.

Just, we’ll be sending you a link in the next couple of days to the recording so that you have full access to it. If you’re watching this on replay, you won’t have access to live q and a, but if you are here, you do. So. If you would like to use the q and a function at the bottom of your screen, feel free to submit the question at any time, and I’ll take it at the end of the prepared portion of my commentary.

If you are watching this on replay though, you can send me an email at chip@sagaimpact.com. Or if you’re watching live and just don’t wanna ask the question publicly, you can do that as well as a way to get your question answered. I’ll do my best to get back to you as quickly as possible. And finally, I’ll mention, I’m sure along the way here, a number of SAGA resources, but you can find anything I mention as well as lots of others at the website, sagaimpact.com.

There’s a very robust search function that will help you to look through past webinars, podcast episodes, articles, workbooks, templates. Every, all of the stuff we’ve been putting out over the last eight years or so. So I would encourage you to check that out. So with that, let’s get into what you’re actually here for today, and that is firing a client.

So what are we gonna be covering? We’re gonna be talking about how you decide if that’s really the right move. We’ll talk about how and when you go about doing this firing of a client, we’ll talk about how to offboard gracefully so that you do your best to preserve the relationship and the reputation of your agency.

And then we’ll talk about what to do after that. The, the lessons that can be learned, the changes you may wanna make in the wake of a circumstance like this. So let’s talk about why you might even want to ever contemplate firing a client. Because we all fight so hard to get new revenue in our businesses.

The last thing we’re thinking about is, is how we cut them loose. In fact, we spend a lot of time as agency leaders trying to figure out how we can keep clients longer, and so firing a client is obviously the exact opposite of that. So it’s gotta be a pretty significant circumstance that brings you to that decision.

One of the top things on that list is that that client is not profitable. Maybe it’s not profitable enough, or maybe it’s not profitable at all. I’ve worked with a number of agencies where it actually costs them money to service a client, and that is not sustainable. It’s certainly not good for the growth of the firm, and it actually holds you back.

So that’s probably the, the number one reason. But some of the others that shouldn’t be overlooked are the level of respect that the client shows to your agency and, and your team members. Because it is not uncommon to have abusive clients in the agency space. And it’s your job as an agency leader to try to protect your team from that.

And when you can’t deal with it any longer, when you can’t get the client to change their behavior and, and treat your team with the respect that they deserve, it may be time to part company.

It could also be simply that you’re not aligned correctly, that you have different visions of where you want to go, or maybe the client has done something that doesn’t align with your values or perhaps the, the direction that your firm is going in and the, the kinds of services that you’re providing aren’t really a good fit for what that client does or needs from you. And sometimes that can happen with clients that have been with you for a really long time. You evolve and perhaps they don’t or you evolve, but, but, but in two different directions. That’s something where it often makes sense to end the relationship gracefully.

Of course, some clients are just straight up stressful. They’re the kind of client who, maybe they’re respectful, but they’re still, they’re peppering you with questions seven days a week. They’re expecting quick turnaround on things that take more time than that to actually get done. So the stress level can be high for you or your team, and that might be a reason to part company.

And finally, sometimes you’re just not able to get the results that you know, the client deserves, so sometimes it’s better to, to go to them and say, look, you know, we can’t do what you really need. We are not the solution for your problem, for the challenge that you have. And so it’s better to go to them and handle that that way, as opposed to allowing the, the relationship to go along to the point where it festers and the the client themselves comes and ends the relationship.

Sometimes you can spot that you’re headed in that direction and there’s nothing you can do about it. So it’s better off you initiating that conversation.

So let’s talk about if those are some of the reasons that we do fire a client. What are some reasons that we don’t fire a client who perhaps we ought to? Top of that list is exactly what I talked about at the top of, of this discussion.

Lost revenue. We fight so hard to generate new revenue, and particularly in times like these, where everybody’s nervous about the ability to retain business, to win new business. We don’t really wanna be thinking about going to a client and saying, bye, we’re done, because that’s a, a check that we’re no longer going to be getting.

And so it’s a fear that that is real. It’s legitimate, and we do have to accept that if we’re gonna go down this path, we are going to lose that revenue in the short term. Now, the flip side is that we have an opportunity to then go find other revenue, invest our team’s time in growing the business in a way that is hopefully a better fit. But in the short term, there’s no doubt that it’s going to be a hit in most cases.

Another fear is the reputational damage that you might get. You’re afraid that that client might go out and say, you know, they, these guys, they, they fired me. They, you know, they. They’re just awful. They’re terrible people. They don’t do a good job. You know, oftentimes the, the client will turn it around and, and say basically, you know, I, I wasn’t fired. I quit. And so, you know, in, in those circumstances, they may try to portray it as if your agency is the bad guy in the relationship.

I would tell you that this, while this is a, a legitimate fear. It’s frankly a little bit overblown because in my experience, most of the time when an agency lets a client go, they don’t go around and and trumpet it to the world because it doesn’t really help their image either. Next up would be. A lot of times we’re just afraid of having that difficult conversation, whether that’s a performance conversation with an employee, or a difficult conversation with a client telling them that they need to change or we’re gonna need to part company. That’s uncomfortable.

And as humans, we try to avoid those uncomfortable conversations as much as possible. And I do have a number of resources available on the SAGA website about how to approach difficult conversations, and I’ll give a snippet of my advice there when we get to that portion of today’s presentation.

But it, it is, it is a legitimate fear again, that, that you need to overcome and you need to accept that it is, it’s not gonna be an easy conversation most of the time. And then finally, we’re afraid that, that by doing this, by parting ways with one of our clients, we’re admitting defeat. We’re admitting that we had a failed relationship.

And that’s not something that most of us want to admit. As agency owners, we’re often pretty proud of what we’ve accomplished and, and feel good about it. And when we see a relationship with a client in this way, we can’t help but reflect upon it and, and think that maybe we did something wrong and, and maybe we did, maybe we didn’t.

At the end of the day, it doesn’t really matter if you’ve gotten to that point and there is no other recourse, you have to move ahead for the good of the team, for the good of the agency, and for the future growth that you have in store.

So that really brings me to, to one of my key points, which is try to avoid waiting too long. This doesn’t mean that you should be running around firing clients willy-nilly. That doesn’t help you. It, it certainly is not gonna help with growth. But you, if, if you’ve never let a client go, if you’ve never even had a serious contemplation of letting a client go, then. Perhaps you’re just one of the lucky ones.

But most of the agencies that I’ve worked with, all of the agencies that I I’ve owned, we’ve had those circumstances where we just know that this client is no longer the right fit for us. And it’s best to find some sort of a, a graceful exit as quickly as possible, because the longer you wait, the harder it gets.

If you wait, you’re gonna be losing money, you’re gonna have your team suffering and, and your team looks at you and, and they start to worry about well, you know, why is Chip not doing anything about this? Why is he allowing us to be treated this way by this client? Why are we overservicing them so much, even though we know it doesn’t make any sense?

So your team starts to have declining morale as a result, and that’s not helpful. Meanwhile, your stress level is going up because you’re just frustrated with this client. You’re frustrated with your team coming to you, complaining about it. You’re frustrated looking at the project budgets that you’ve put together and, and the, the profitability tracking that you have on that client, and you realize we’re not making what we ought to be on it.

And finally, the longer that you wait and, and if it gets to that boiling point, that tends to be where you might suffer some reputational damage. Because the, the relationship really blew up rather than gracefully faded away, so don’t wait too long. Again, don’t jump into this without understanding all the consequences, but more often than not, I don’t see people acting too swiftly with firing a client. I see them waiting too long.

So how do you know exactly when you’ve reached this time? When is it that point where you know that, that you want to make this decision and you want to share it with the client? So I, I start with the fundamental question is can you do something to fix the situation that exists in front of you?

So that means that you have to be really clear what is the problem, and you have to be ver really clear with yourself, what would it look like if this were fixed? So in other words, is it that you need to reduce the amount of time that you’re spending on the client? Is it that, that you need to get them to pay you more for the work that you’re doing?

Is it that you need to provide some additional training or professional development for your team in order to be able to accomplish it? What. Is there something that can be fixed? Can you do it in a reasonable period of time? Can you see this path forward and can you work with the client on it?

If so, then it might not be time, but if it’s, if it’s something that you just can’t see, a scenario where you can fix it and solve it then it might be. You also need to ask yourself, have, have, is this gonna be a surprise to the client? Have you communicated with them effectively about the challenges that you’re having along the way?

Have you raised issues of respect or overwork or out of scope or whatever it is with them previously? Because just as when you terminate an employee, you don’t want it to come as a surprise to them. You don’t want it to come as a surprise to a client when you have that conversation either. So don’t make that the first time that you’ve raised your concerns, because if it is, then you’re probably acting too soon to actually go to that level because some clients will be responsive.

We, we underestimate the willingness of our clients to make changes. If we actually let them know what the problem is and we talk through possible solutions. Because a lot of times it’s painful for the client to switch. It’s painful for them to find a new relationship. It’s painful for them to do the transition things that they need to do perhaps be without you for a period of time.

So don’t underestimate the leverage that you have in that relationship to at least have an open conversation.

At the same time, we also need to be looking at ourselves and asking, are there, are there things we could be doing differently internally? Could we put more checks and balances in place so that we’re not inadvertently over servicing?

And I’ve got a webinar, not too long ago where we talked about how to avoid scope creep and, and managing client relationships more effectively. But are there things that we can do internally, whether it’s additional training or pushback or whatever that might be helpful? Have we asked the client for those changes that we talked about?

Do we have a plan for what we want to do after we’ve terminated this client? So you never want to go to the termination of a client without saying, okay, well, you know, here are the things that, that, that I need to do next. Here’s what I’m gonna have to cut as far as spending for the agency to make up for that lost revenue.

Here’s how I message things, and we’ll talk about that in just a moment. But you need to make sure that before you act on your desire to terminate a client, that you have a clear plan in place, because that will make everything flow much more smoothly and be much less chaotic, and therefore produce better results for you and frankly for the client because you want this to go smoothly for them.

You don’t want, even, no matter how frustrating that client may have been, you don’t want a bad outcome for them in the process. So that means like anything else you need to do the, the take the steps you need to be prepared for it.

First of all, you need to understand your contract. And so, and it’s, it’s worth even if you think you remember what’s in every contract or you use a standard contract, which is obviously something that I advise and, and, and most attorneys would as well.

Go back and look at the specific contract for that client and just see what the provisions are regarding termination. How much of a notice period is required? What are the, the obligations of the terminating party? Do you have to provide a, an opportunity for the other party to cure any problem solve?

If you’re looking to terminate them, perhaps because of, of non-payment, right? Sometimes you have to give them a cure period where you tell them that they, they need to become current in a short period of time, in order to continue the arrangement working. Those are things you wanna make sure that you’re clear on so that you don’t inadvertently violate the legal agreements that you have in place.

You do also want to, to check with your, your bookkeeping team and see where does the client stand for payment, because I’ll be honest with you, a lot of times when you terminate a client, the odds of them paying what they still owe you drops substantially. So if you have someone who owes you a bunch of, of past due invoices, it can often be helpful to do your best at collections before you get to this stage.

Obviously, you don’t wanna just keep incurring cost, in order to, to have the hope that you might be able to collect. So at some point you have to draw the line, but do check on that and do make sure that, that you are as current as possible before you act on this decision.

You need to have a plan for talking with your own team because they will get nervous. They will get concerned if a client leaves on their own or because you terminate them. They’re gonna ask, what does this mean for me? And, and we have to remember that, that all of us, it’s on some level, are selfish. As owners, we care about what does this loss of revenue mean for my profitability, for the money I get to put in my own pocket.

Employees are worried about what does it mean for the kind of work that they do. Or are they even gonna still have a job at the end of this? And, and the larger the client, the larger that concern. So be really prepared for the, the questions that you’re going to get and the messaging that you are going to give you.

You also wanna have those post breakup action steps that I talked about, so. As soon as this client’s gone, what are you gonna be doing? How are you gonna deploy the team? Are they gonna help produce content or do other things to, to help market the agency to new prospects? Are you going to take certain steps to move people around to different teams, to re resource on a temporary basis?

All of these things are, are plans that you want to have in place, as best as possible before you have that conversation with the client. So that. You are best prepared for a good outcome for your firm. You also obviously need to have a plan for how you’re going to communicate this to the client themselves.

And we’ll talk in more detail about that in a moment. But don’t, this is not one of those things where you just pick up the phone one day and say, Hey, client, you’re fired. There needs to be some thought into who you talk to, what message you deliver, how you deliver it. And so we’ll talk all about that in a moment.

And then finally, because as soon as you share this news with a client, there’s a good chance that they will try to talk you out of it. You wanna know what your, what your boundaries are, what’s the, the minimum acceptable outcome that you have in order to move forward. Are there, is there one, is there anything other than termination that they could do?

Even if you don’t think it’s likely, could they pay you more? Could they actually offer to change their behavior and you’d be willing to give it a shot? Could they change their goals or objectives? Are there things that that could be changed if they absolutely pushed on it? Or have you really reached that limit and there is no other viable outcome?

So I mentioned that you have to have a plan for how to talk to the client, and it starts with how do you talk with the client. And I’ve, I’ve seen a lot of agencies where when they terminate a client relationship, they do so by letter. And do you have to have a, a, a letter? In most cases, yes. Absolutely.

There needs to be some written document that is formally terminating the contract. That should not be the first communication that your client gets. The first communication should be a, a personal phone calls, zoom in-person meeting, whatever it is, something very direct between you and whoever the, the key decision maker is there.

Whoever the most logical point of contact for you is not your day to day, probably not the most junior person on the client. You don’t wanna stick them with this. You want to do it at a more senior level, and you need to, to explain your decision to them. Absolutely follow that up with the, the written notification, because you need that to sort of cross the T’s and dot the i’s.

But this needs to be a personal conversation. This personal conversation should be clear and direct. It’s very similar again, to terminating an employee. You don’t, you just wanna rip the bandaid off. You just want to explain the decision that you’ve arrived at. You really don’t want to have a lot of preamble for it.

It may feel more comfortable to do that ’cause you’re sort of putting off the inevitable. But I, I encourage you to get right to the point in any difficult conversation because that’s something that generally works out better for both sides.

If the the client does want to express concern or offer an alternative solution or beg for forgiveness, or whatever it is, you have to be willing to listen and listen carefully because you’re gonna take those boundaries that you came up with beforehand as part of your planning process and listen to try to figure out, are they saying something?

Are they acting in such a way that there is some last ditch outcome that we can come to. And I, I can tell you, I’ve had a number of occasions over the years where I’ve had a conversation with a client. I went in. With the purpose of firing that client, and we actually ended up finding, a resolution that I didn’t think was actually there.

In some cases, they magically found budget that they didn’t have before. In some cases, they agreed to make substantial changes to the actual services we were providing in order to make it a better fit. And, and many of those cases, those ended up being clients for a long time after that, it was not just a, a quick patchwork kind of thing that bought us a few months.

It had a much more meaningful impact. So don’t forego that possibility. And the way that you do that is by being open to listening. At the same time, you need to stick to whatever boundaries you’ve established, and so don’t allow yourself to be talked into something that you’re not really comfortable with, because this isn’t really the kind of conversation you wanna revisit anytime soon, right?

It was difficult enough probably to reach the decision to fire the client, difficult to start the conversation with them. You don’t wanna have to go back to it because you agreed to something that really wasn’t a solution as part of this process. So if that means you need to say, Hey, let me, let me go back and talk with my team, or think about it, or, or crunch the numbers, or whatever, whatever that buying time explanation might be, that could be worthwhile to you, if you really want to give yourself a little bit of more time to, to think through, if you really want to go down that path, with the client and, and, and salvage the relationship, or at least attempt it.

And finally, I would say really avoid the blame game here. Even if the client is just awful and completely at fault, and they’re, they, they behave crazy. They disrespect your team. They have unreasonable expectations. Their goals, you know, don’t match with, with anything that you could actually attain. Don’t say that. It doesn’t matter. Not, this is not about assigning blame and figuring out who was more wrong or more right. Frankly, there’s usually a little bit of blame to go around on both sides when an agency-client relationship ends, but, you really just want to get to the, the actual outcome you’re looking for, which is to end the relationship as gracefully and professionally as possible.

So now that we’ve, we’ve delivered the message, we follow up with whatever written confirmation that we need in order to meet our contractual obligations. Now we need to think about, okay, how do we wind down this relationship in that, that most professional way possible?

And so that first and foremost means that just because you’ve notified the client, the relationship is over, doesn’t mean that you stop work immediately. It, it means that you need to, to continue to act professionally, your team needs to continue to give the full level of effort, right, until whatever that termination date might be. And so resist that urge that we often had probably when we were junior employees and we had given our notice and, and we figured we’d coast through our two weeks notice or longer, whatever we had.

Don’t go through that coasting as an agency, make sure that you’re continuing to, as best as possible, earn your keep, and provide good solutions to the client. Obviously, the work that you’re doing during this period will change a bit or should change a bit because you need to focus some degree of effort, depending on what work you’re doing on the transition itself.

Can you provide documentation, logins, access to stuff, things that will help the client better take on the responsibility to themselves or find a new agency to work with? In some cases, you might even be able to help guide them and make some suggestions on an agency that would be a better fit. This is typically the case if the reason for the end of the relationship is because you’re going in one direction, and evolving that way, and the client is evolving in a different direction. You may well have people in your network that would be good for them to talk to that would be a good fit. And if you can help them do that, if you can smooth things out, that’s much better.

I’ve had a number of occasions over the years where I’ve been in an agency and, and we’re, we’re growing faster than a particular client. And so it was no longer a good fit because the, the work we were doing would be far too expensive for them to afford. And in those cases, I found other agencies that were younger, more affordable and able to fit in better with that. And those clients were uniformly grateful. They, they were, you know not necessarily happy that the, the relationship with my firm was ending, but it, it gave them an opportunity, to not let balls fall through the cracks and, and all that. So balls dropping and things fall through the cracks. So you want to try to be as helpful as possible on those.

You wanna make sure that you are preparing whatever kind of handover documents you need. Again, that documentation that we talked about, so that the, the client has that smoothest exit possible, but you also need to look internally. And so there is a really strong internal communications component that needs to occur, you know, right on through this whole process because the team will be nervous, as I said before, and so you need to make sure that they understand that you thought this through, that you’ve got a plan, and that you’re, you’re moving forward.

And by the way, that also means you need to be listening to your team, listening to the concerns that they have. They may spot things that you didn’t, and you need to be thinking about as part of this transition period. And then finally, beyond that, that final notification that you give to the client, to terminate the contract, figure out if there’s any other formal documentation that’s necessary.

Do you need to, in most cases this isn’t necessary, but certain kinds of agencies may need regulatory filings, right? So, let’s say a public affairs agency that’s representing a, a foreign government or is doing lobbying work. They would potentially need to file some termination documents and those kinds of things.

So just make sure that you’re thinking those things through. Basically the same sort of thing you would do in any kind of off-boarding, whether it’s because you chose to end the relationship or the client did, or the contract simply expired.

So now we’re into that stage where we’re just, it’s time to move on.

And so we, we’ve off boarded successfully. Now it’s time to, to take a beat, not necessarily the next day. Give it a little bit of time, give it a little bit of space. But now sit down, probably with your team and start to think through what lessons have we learned from this episode? Because anytime you have a difficult experience, you wanna make sure that you take as many useful lessons away from it as possible to reduce the chances that the exact same thing happens in the exact same way again. Because that’s, that’s when it gets really frustrating if you have a repeated pattern of these things happening. So you wanna make sure that each one is as unique as possible, and, and couldn’t have been prevented. So what are the things that you’re looking for here?

First of all, you’re looking for, are there things that you would want to change in the legal documentation? You have the contract, the statement of work, those kinds of things. So this might be the case if, for example, you have a client that you wanna fire, you go back and look at the contract and you find that you can’t exit it.

You’ve written it ironclad in the hope that you keep the client around. But you didn’t realize that that also tied your hands so that you couldn’t end the relationship, at the point in time where it no longer made sense. It’s one of the reasons why I’m such an advocate of essentially evergreen month to month contracts, and I, I know that goes against the grain.

I’ve got a whole webinar where I talk about, you know, how to structure these agreements with clients, but having evergreen relationships where either party can end on 30, 60, 90 days notice, some relatively short window. It gives you a lot of flexibility for solving these problems, more quickly and easily than if you have to only if you only can walk away from the client once a year, for example.

So, and in some cases I’ve seen where the contracts are written poorly enough that the agency can’t walk away for a number of years, but the client can. Make sure that any termination elements of the contracts are always balanced between you and the client, so you each have the same ability to walk away. But that’s one area to look at.

Another area to look at is particularly during that prospecting phase, were you really aligned with the client on expectations? The vast majority of agency client relationships fail in part because we didn’t have a true meeting of the minds over what to expect from the relationship before we even signed that first contract.

And so we need to make sure that we’re not just glossing over any differences. We’re not allowing them to have assumptions about what we can accomplish. Oh, you’ll be in the Wall Street Journal within a month, you’ll have a new website built within six weeks. Things that, that, you know, aren’t realistic.

You don’t wanna allow those to, to get out there and, and become a true belief of the client before the contract is signed, because then it becomes harder to deal with it later on. So make sure you have that alignment of expectations. And in this after action review of the, the client termination, take a look and see, you know, were there things that you missed there?

Were there expectations that could have been set more clearly? Were there other red flags, frankly, during the prospecting phase that you should have noticed? Their behavior for example, If you’ve got prospects who are consistently late to meetings, missing meetings, if they are asking for tons and tons of changes to statements of work, all sorts of things like that. That can be an indication that those are going to be problems.

In fact, it’s often an indication that those will be problems once they become a client, because generally speaking, people don’t improve once they become a client.

You may also wanna be thinking about are there things that you could do better to vet the client? Could, could you spend more time with them before you sign that initial contract?

Could you, are there questions that you should be asking so that you can figure out how they work, what their approval processes are. Understand the things that maybe understand what went wrong with their last client relationship or previous, sorry, agency relationship. That can be really helpful knowledge for you as you’re trying to vet a client and understand if they’re a good fit or not.

But you also wanna be thinking about how are you defining your ideal client? What is your ideal client profile and are there things that you want to change based on this? Was there, did you sort of pull some threads in the course of this relationship where you have identified perhaps a certain kind of organization or certain kind of manager that they have or any of those kinds of things just as you’re looking for things to include in your ideal client profile. Sometimes these soured relationships are a good source of things that you want to make sure you’re excluding from your ideal client profile. So be sure to be looking at that.

And then finally, I think one overlooked thing here is that we need to consider is, are there things that we could do to better train our staff to, to give them better resources and information in order to avoid the same kind of situation in the future. So that might be empowering them on identifying and pushing back on outta scope work. It might be helping them to better understand how to manage project budgets, right? A lot of times our account leads don’t have a lot of experience in this, and we just expect that they’re gonna manage the relationship profitably. But if they don’t understand what that means and how to do it and how to read reports correctly from the finance team, those are kinds of things that you really want to, to help them to understand.

If it’s something where we’re just not getting the results for the client and we don’t think we’re going to, does that mean that we need to have some professional development to build our skill sets in a particular area? Or is it something where if we’re gonna offer a particular kind of service, we need to have in-house help versus contractors?

Really look at what caused this relationship to fail and ask all of the different things that you could have done differently in order to avoid getting to that point where your only option was to terminate.

So, from there that will, sort of tie up the, the loose ends here. And so, we’ll, we’ll talk about the, the key highlights from what I’ve just covered here as a reminder.

It’s not a bad thing, it’s not a good thing, but it’s not a bad thing to fire a client. It’s something that, you know, is often needed. It is not unusual or uncommon, so don’t resist it for that reason. If you’re, if you do need to terminate a client, make sure that you’re figuring out how to time it right and do it in the right way.

And hopefully I’ve offered you some good, useful tips on that. You wanna make sure that you understand what the, the long-term benefits are to the team and the bottom line, because ultimately, if you’re able to replace a bad fit client, an unprofitable client, a stressful client with a better fit client that you have a good relationship with, that’s a win.

So yes, you may short term lose revenue. You may lose that client from your roster, but it frees you up to go and find and service a better fit.

And finally make sure that anytime you have a bad experience of any kind in your business, whether that’s an employee you have to terminate, whether that’s a client you have to terminate, whether it’s any other kind of unexpected and unpleasant circumstance. Make sure you’re learning from it. Make sure you are taking lessons away from it because that’s how you grow, that’s how you continue to improve. It’s how you will accelerate your progress as a leader, as a manager, and as an agency owner.

So, with that, that will tie up all of the key points that I wanted to share with you.

In just a moment here, we’ll move on to q and a for live participants. So if you haven’t done so already, feel free to submit a question through the q and a function. If you’re watching this on replay, this is where the replay will end. Thank you for joining us, and I hope to see you on a future webinar.

And I’m gonna grab a sip of water and we’ll jump into the live q and a in just a moment.

The following is a computer-generated transcript. Please listen to the audio to confirm accuracy.

Hello and welcome to today’s SAGA Webinar, When and How to Fire a Client Without Burning Bridges. I’m your host, Chip Griffin, the founder of SAGA, the Small Agency Growth Alliance, and I am delighted to have you with me today to talk about, well, it’s a difficult subject. It’s not something that we all really plan on, think about hope for when we’re starting our agencies, but it’s something that many of us will encounter somewhere along the way.

So before we dive into the topic at hand, I’m gonna allow people to continue filtering into the room. And while we do so, we’ll talk through a couple of quick housekeeping items. First of all, a replay will be available. So if you are watching this live and you don’t wanna be taking notes throughout, that’s fine.

Just, we’ll be sending you a link in the next couple of days to the recording so that you have full access to it. If you’re watching this on replay, you won’t have access to live q and a, but if you are here, you do. So. If you would like to use the q and a function at the bottom of your screen, feel free to submit the question at any time, and I’ll take it at the end of the prepared portion of my commentary.

If you are watching this on replay though, you can send me an email at chip@sagaimpact.com. Or if you’re watching live and just don’t wanna ask the question publicly, you can do that as well as a way to get your question answered. I’ll do my best to get back to you as quickly as possible. And finally, I’ll mention, I’m sure along the way here, a number of SAGA resources, but you can find anything I mention as well as lots of others at the website, sagaimpact.com.

There’s a very robust search function that will help you to look through past webinars, podcast episodes, articles, workbooks, templates. Every, all of the stuff we’ve been putting out over the last eight years or so. So I would encourage you to check that out. So with that, let’s get into what you’re actually here for today, and that is firing a client.

So what are we gonna be covering? We’re gonna be talking about how you decide if that’s really the right move. We’ll talk about how and when you go about doing this firing of a client, we’ll talk about how to offboard gracefully so that you do your best to preserve the relationship and the reputation of your agency.

And then we’ll talk about what to do after that. The, the lessons that can be learned, the changes you may wanna make in the wake of a circumstance like this. So let’s talk about why you might even want to ever contemplate firing a client. Because we all fight so hard to get new revenue in our businesses.

The last thing we’re thinking about is, is how we cut them loose. In fact, we spend a lot of time as agency leaders trying to figure out how we can keep clients longer, and so firing a client is obviously the exact opposite of that. So it’s gotta be a pretty significant circumstance that brings you to that decision.

One of the top things on that list is that that client is not profitable. Maybe it’s not profitable enough, or maybe it’s not profitable at all. I’ve worked with a number of agencies where it actually costs them money to service a client, and that is not sustainable. It’s certainly not good for the growth of the firm, and it actually holds you back.

So that’s probably the, the number one reason. But some of the others that shouldn’t be overlooked are the level of respect that the client shows to your agency and, and your team members. Because it is not uncommon to have abusive clients in the agency space. And it’s your job as an agency leader to try to protect your team from that.

And when you can’t deal with it any longer, when you can’t get the client to change their behavior and, and treat your team with the respect that they deserve, it may be time to part company.

It could also be simply that you’re not aligned correctly, that you have different visions of where you want to go, or maybe the client has done something that doesn’t align with your values or perhaps the, the direction that your firm is going in and the, the kinds of services that you’re providing aren’t really a good fit for what that client does or needs from you. And sometimes that can happen with clients that have been with you for a really long time. You evolve and perhaps they don’t or you evolve, but, but, but in two different directions. That’s something where it often makes sense to end the relationship gracefully.

Of course, some clients are just straight up stressful. They’re the kind of client who, maybe they’re respectful, but they’re still, they’re peppering you with questions seven days a week. They’re expecting quick turnaround on things that take more time than that to actually get done. So the stress level can be high for you or your team, and that might be a reason to part company.

And finally, sometimes you’re just not able to get the results that you know, the client deserves, so sometimes it’s better to, to go to them and say, look, you know, we can’t do what you really need. We are not the solution for your problem, for the challenge that you have. And so it’s better to go to them and handle that that way, as opposed to allowing the, the relationship to go along to the point where it festers and the the client themselves comes and ends the relationship.

Sometimes you can spot that you’re headed in that direction and there’s nothing you can do about it. So it’s better off you initiating that conversation.

So let’s talk about if those are some of the reasons that we do fire a client. What are some reasons that we don’t fire a client who perhaps we ought to? Top of that list is exactly what I talked about at the top of, of this discussion.

Lost revenue. We fight so hard to generate new revenue, and particularly in times like these, where everybody’s nervous about the ability to retain business, to win new business. We don’t really wanna be thinking about going to a client and saying, bye, we’re done, because that’s a, a check that we’re no longer going to be getting.

And so it’s a fear that that is real. It’s legitimate, and we do have to accept that if we’re gonna go down this path, we are going to lose that revenue in the short term. Now, the flip side is that we have an opportunity to then go find other revenue, invest our team’s time in growing the business in a way that is hopefully a better fit. But in the short term, there’s no doubt that it’s going to be a hit in most cases.

Another fear is the reputational damage that you might get. You’re afraid that that client might go out and say, you know, they, these guys, they, they fired me. They, you know, they. They’re just awful. They’re terrible people. They don’t do a good job. You know, oftentimes the, the client will turn it around and, and say basically, you know, I, I wasn’t fired. I quit. And so, you know, in, in those circumstances, they may try to portray it as if your agency is the bad guy in the relationship.

I would tell you that this, while this is a, a legitimate fear. It’s frankly a little bit overblown because in my experience, most of the time when an agency lets a client go, they don’t go around and and trumpet it to the world because it doesn’t really help their image either. Next up would be. A lot of times we’re just afraid of having that difficult conversation, whether that’s a performance conversation with an employee, or a difficult conversation with a client telling them that they need to change or we’re gonna need to part company. That’s uncomfortable.

And as humans, we try to avoid those uncomfortable conversations as much as possible. And I do have a number of resources available on the SAGA website about how to approach difficult conversations, and I’ll give a snippet of my advice there when we get to that portion of today’s presentation.

But it, it is, it is a legitimate fear again, that, that you need to overcome and you need to accept that it is, it’s not gonna be an easy conversation most of the time. And then finally, we’re afraid that, that by doing this, by parting ways with one of our clients, we’re admitting defeat. We’re admitting that we had a failed relationship.

And that’s not something that most of us want to admit. As agency owners, we’re often pretty proud of what we’ve accomplished and, and feel good about it. And when we see a relationship with a client in this way, we can’t help but reflect upon it and, and think that maybe we did something wrong and, and maybe we did, maybe we didn’t.

At the end of the day, it doesn’t really matter if you’ve gotten to that point and there is no other recourse, you have to move ahead for the good of the team, for the good of the agency, and for the future growth that you have in store.

So that really brings me to, to one of my key points, which is try to avoid waiting too long. This doesn’t mean that you should be running around firing clients willy-nilly. That doesn’t help you. It, it certainly is not gonna help with growth. But you, if, if you’ve never let a client go, if you’ve never even had a serious contemplation of letting a client go, then. Perhaps you’re just one of the lucky ones.

But most of the agencies that I’ve worked with, all of the agencies that I I’ve owned, we’ve had those circumstances where we just know that this client is no longer the right fit for us. And it’s best to find some sort of a, a graceful exit as quickly as possible, because the longer you wait, the harder it gets.

If you wait, you’re gonna be losing money, you’re gonna have your team suffering and, and your team looks at you and, and they start to worry about well, you know, why is Chip not doing anything about this? Why is he allowing us to be treated this way by this client? Why are we overservicing them so much, even though we know it doesn’t make any sense?

So your team starts to have declining morale as a result, and that’s not helpful. Meanwhile, your stress level is going up because you’re just frustrated with this client. You’re frustrated with your team coming to you, complaining about it. You’re frustrated looking at the project budgets that you’ve put together and, and the, the profitability tracking that you have on that client, and you realize we’re not making what we ought to be on it.

And finally, the longer that you wait and, and if it gets to that boiling point, that tends to be where you might suffer some reputational damage. Because the, the relationship really blew up rather than gracefully faded away, so don’t wait too long. Again, don’t jump into this without understanding all the consequences, but more often than not, I don’t see people acting too swiftly with firing a client. I see them waiting too long.

So how do you know exactly when you’ve reached this time? When is it that point where you know that, that you want to make this decision and you want to share it with the client? So I, I start with the fundamental question is can you do something to fix the situation that exists in front of you?

So that means that you have to be really clear what is the problem, and you have to be ver really clear with yourself, what would it look like if this were fixed? So in other words, is it that you need to reduce the amount of time that you’re spending on the client? Is it that, that you need to get them to pay you more for the work that you’re doing?

Is it that you need to provide some additional training or professional development for your team in order to be able to accomplish it? What. Is there something that can be fixed? Can you do it in a reasonable period of time? Can you see this path forward and can you work with the client on it?

If so, then it might not be time, but if it’s, if it’s something that you just can’t see, a scenario where you can fix it and solve it then it might be. You also need to ask yourself, have, have, is this gonna be a surprise to the client? Have you communicated with them effectively about the challenges that you’re having along the way?

Have you raised issues of respect or overwork or out of scope or whatever it is with them previously? Because just as when you terminate an employee, you don’t want it to come as a surprise to them. You don’t want it to come as a surprise to a client when you have that conversation either. So don’t make that the first time that you’ve raised your concerns, because if it is, then you’re probably acting too soon to actually go to that level because some clients will be responsive.

We, we underestimate the willingness of our clients to make changes. If we actually let them know what the problem is and we talk through possible solutions. Because a lot of times it’s painful for the client to switch. It’s painful for them to find a new relationship. It’s painful for them to do the transition things that they need to do perhaps be without you for a period of time.

So don’t underestimate the leverage that you have in that relationship to at least have an open conversation.

At the same time, we also need to be looking at ourselves and asking, are there, are there things we could be doing differently internally? Could we put more checks and balances in place so that we’re not inadvertently over servicing?

And I’ve got a webinar, not too long ago where we talked about how to avoid scope creep and, and managing client relationships more effectively. But are there things that we can do internally, whether it’s additional training or pushback or whatever that might be helpful? Have we asked the client for those changes that we talked about?

Do we have a plan for what we want to do after we’ve terminated this client? So you never want to go to the termination of a client without saying, okay, well, you know, here are the things that, that, that I need to do next. Here’s what I’m gonna have to cut as far as spending for the agency to make up for that lost revenue.

Here’s how I message things, and we’ll talk about that in just a moment. But you need to make sure that before you act on your desire to terminate a client, that you have a clear plan in place, because that will make everything flow much more smoothly and be much less chaotic, and therefore produce better results for you and frankly for the client because you want this to go smoothly for them.

You don’t want, even, no matter how frustrating that client may have been, you don’t want a bad outcome for them in the process. So that means like anything else you need to do the, the take the steps you need to be prepared for it.

First of all, you need to understand your contract. And so, and it’s, it’s worth even if you think you remember what’s in every contract or you use a standard contract, which is obviously something that I advise and, and, and most attorneys would as well.

Go back and look at the specific contract for that client and just see what the provisions are regarding termination. How much of a notice period is required? What are the, the obligations of the terminating party? Do you have to provide a, an opportunity for the other party to cure any problem solve?

If you’re looking to terminate them, perhaps because of, of non-payment, right? Sometimes you have to give them a cure period where you tell them that they, they need to become current in a short period of time, in order to continue the arrangement working. Those are things you wanna make sure that you’re clear on so that you don’t inadvertently violate the legal agreements that you have in place.

You do also want to, to check with your, your bookkeeping team and see where does the client stand for payment, because I’ll be honest with you, a lot of times when you terminate a client, the odds of them paying what they still owe you drops substantially. So if you have someone who owes you a bunch of, of past due invoices, it can often be helpful to do your best at collections before you get to this stage.

Obviously, you don’t wanna just keep incurring cost, in order to, to have the hope that you might be able to collect. So at some point you have to draw the line, but do check on that and do make sure that, that you are as current as possible before you act on this decision.

You need to have a plan for talking with your own team because they will get nervous. They will get concerned if a client leaves on their own or because you terminate them. They’re gonna ask, what does this mean for me? And, and we have to remember that, that all of us, it’s on some level, are selfish. As owners, we care about what does this loss of revenue mean for my profitability, for the money I get to put in my own pocket.

Employees are worried about what does it mean for the kind of work that they do. Or are they even gonna still have a job at the end of this? And, and the larger the client, the larger that concern. So be really prepared for the, the questions that you’re going to get and the messaging that you are going to give you.

You also wanna have those post breakup action steps that I talked about, so. As soon as this client’s gone, what are you gonna be doing? How are you gonna deploy the team? Are they gonna help produce content or do other things to, to help market the agency to new prospects? Are you going to take certain steps to move people around to different teams, to re resource on a temporary basis?

All of these things are, are plans that you want to have in place, as best as possible before you have that conversation with the client. So that. You are best prepared for a good outcome for your firm. You also obviously need to have a plan for how you’re going to communicate this to the client themselves.

And we’ll talk in more detail about that in a moment. But don’t, this is not one of those things where you just pick up the phone one day and say, Hey, client, you’re fired. There needs to be some thought into who you talk to, what message you deliver, how you deliver it. And so we’ll talk all about that in a moment.

And then finally, because as soon as you share this news with a client, there’s a good chance that they will try to talk you out of it. You wanna know what your, what your boundaries are, what’s the, the minimum acceptable outcome that you have in order to move forward. Are there, is there one, is there anything other than termination that they could do?

Even if you don’t think it’s likely, could they pay you more? Could they actually offer to change their behavior and you’d be willing to give it a shot? Could they change their goals or objectives? Are there things that that could be changed if they absolutely pushed on it? Or have you really reached that limit and there is no other viable outcome?

So I mentioned that you have to have a plan for how to talk to the client, and it starts with how do you talk with the client. And I’ve, I’ve seen a lot of agencies where when they terminate a client relationship, they do so by letter. And do you have to have a, a, a letter? In most cases, yes. Absolutely.

There needs to be some written document that is formally terminating the contract. That should not be the first communication that your client gets. The first communication should be a, a personal phone calls, zoom in-person meeting, whatever it is, something very direct between you and whoever the, the key decision maker is there.

Whoever the most logical point of contact for you is not your day to day, probably not the most junior person on the client. You don’t wanna stick them with this. You want to do it at a more senior level, and you need to, to explain your decision to them. Absolutely follow that up with the, the written notification, because you need that to sort of cross the T’s and dot the i’s.

But this needs to be a personal conversation. This personal conversation should be clear and direct. It’s very similar again, to terminating an employee. You don’t, you just wanna rip the bandaid off. You just want to explain the decision that you’ve arrived at. You really don’t want to have a lot of preamble for it.

It may feel more comfortable to do that ’cause you’re sort of putting off the inevitable. But I, I encourage you to get right to the point in any difficult conversation because that’s something that generally works out better for both sides.

If the the client does want to express concern or offer an alternative solution or beg for forgiveness, or whatever it is, you have to be willing to listen and listen carefully because you’re gonna take those boundaries that you came up with beforehand as part of your planning process and listen to try to figure out, are they saying something?

Are they acting in such a way that there is some last ditch outcome that we can come to. And I, I can tell you, I’ve had a number of occasions over the years where I’ve had a conversation with a client. I went in. With the purpose of firing that client, and we actually ended up finding, a resolution that I didn’t think was actually there.

In some cases, they magically found budget that they didn’t have before. In some cases, they agreed to make substantial changes to the actual services we were providing in order to make it a better fit. And, and many of those cases, those ended up being clients for a long time after that, it was not just a, a quick patchwork kind of thing that bought us a few months.

It had a much more meaningful impact. So don’t forego that possibility. And the way that you do that is by being open to listening. At the same time, you need to stick to whatever boundaries you’ve established, and so don’t allow yourself to be talked into something that you’re not really comfortable with, because this isn’t really the kind of conversation you wanna revisit anytime soon, right?

It was difficult enough probably to reach the decision to fire the client, difficult to start the conversation with them. You don’t wanna have to go back to it because you agreed to something that really wasn’t a solution as part of this process. So if that means you need to say, Hey, let me, let me go back and talk with my team, or think about it, or, or crunch the numbers, or whatever, whatever that buying time explanation might be, that could be worthwhile to you, if you really want to give yourself a little bit of more time to, to think through, if you really want to go down that path, with the client and, and, and salvage the relationship, or at least attempt it.

And finally, I would say really avoid the blame game here. Even if the client is just awful and completely at fault, and they’re, they, they behave crazy. They disrespect your team. They have unreasonable expectations. Their goals, you know, don’t match with, with anything that you could actually attain. Don’t say that. It doesn’t matter. Not, this is not about assigning blame and figuring out who was more wrong or more right. Frankly, there’s usually a little bit of blame to go around on both sides when an agency-client relationship ends, but, you really just want to get to the, the actual outcome you’re looking for, which is to end the relationship as gracefully and professionally as possible.

So now that we’ve, we’ve delivered the message, we follow up with whatever written confirmation that we need in order to meet our contractual obligations. Now we need to think about, okay, how do we wind down this relationship in that, that most professional way possible?

And so that first and foremost means that just because you’ve notified the client, the relationship is over, doesn’t mean that you stop work immediately. It, it means that you need to, to continue to act professionally, your team needs to continue to give the full level of effort, right, until whatever that termination date might be. And so resist that urge that we often had probably when we were junior employees and we had given our notice and, and we figured we’d coast through our two weeks notice or longer, whatever we had.

Don’t go through that coasting as an agency, make sure that you’re continuing to, as best as possible, earn your keep, and provide good solutions to the client. Obviously, the work that you’re doing during this period will change a bit or should change a bit because you need to focus some degree of effort, depending on what work you’re doing on the transition itself.

Can you provide documentation, logins, access to stuff, things that will help the client better take on the responsibility to themselves or find a new agency to work with? In some cases, you might even be able to help guide them and make some suggestions on an agency that would be a better fit. This is typically the case if the reason for the end of the relationship is because you’re going in one direction, and evolving that way, and the client is evolving in a different direction. You may well have people in your network that would be good for them to talk to that would be a good fit. And if you can help them do that, if you can smooth things out, that’s much better.

I’ve had a number of occasions over the years where I’ve been in an agency and, and we’re, we’re growing faster than a particular client. And so it was no longer a good fit because the, the work we were doing would be far too expensive for them to afford. And in those cases, I found other agencies that were younger, more affordable and able to fit in better with that. And those clients were uniformly grateful. They, they were, you know not necessarily happy that the, the relationship with my firm was ending, but it, it gave them an opportunity, to not let balls fall through the cracks and, and all that. So balls dropping and things fall through the cracks. So you want to try to be as helpful as possible on those.

You wanna make sure that you are preparing whatever kind of handover documents you need. Again, that documentation that we talked about, so that the, the client has that smoothest exit possible, but you also need to look internally. And so there is a really strong internal communications component that needs to occur, you know, right on through this whole process because the team will be nervous, as I said before, and so you need to make sure that they understand that you thought this through, that you’ve got a plan, and that you’re, you’re moving forward.

And by the way, that also means you need to be listening to your team, listening to the concerns that they have. They may spot things that you didn’t, and you need to be thinking about as part of this transition period. And then finally, beyond that, that final notification that you give to the client, to terminate the contract, figure out if there’s any other formal documentation that’s necessary.

Do you need to, in most cases this isn’t necessary, but certain kinds of agencies may need regulatory filings, right? So, let’s say a public affairs agency that’s representing a, a foreign government or is doing lobbying work. They would potentially need to file some termination documents and those kinds of things.

So just make sure that you’re thinking those things through. Basically the same sort of thing you would do in any kind of off-boarding, whether it’s because you chose to end the relationship or the client did, or the contract simply expired.

So now we’re into that stage where we’re just, it’s time to move on.

And so we, we’ve off boarded successfully. Now it’s time to, to take a beat, not necessarily the next day. Give it a little bit of time, give it a little bit of space. But now sit down, probably with your team and start to think through what lessons have we learned from this episode? Because anytime you have a difficult experience, you wanna make sure that you take as many useful lessons away from it as possible to reduce the chances that the exact same thing happens in the exact same way again. Because that’s, that’s when it gets really frustrating if you have a repeated pattern of these things happening. So you wanna make sure that each one is as unique as possible, and, and couldn’t have been prevented. So what are the things that you’re looking for here?

First of all, you’re looking for, are there things that you would want to change in the legal documentation? You have the contract, the statement of work, those kinds of things. So this might be the case if, for example, you have a client that you wanna fire, you go back and look at the contract and you find that you can’t exit it.

You’ve written it ironclad in the hope that you keep the client around. But you didn’t realize that that also tied your hands so that you couldn’t end the relationship, at the point in time where it no longer made sense. It’s one of the reasons why I’m such an advocate of essentially evergreen month to month contracts, and I, I know that goes against the grain.

I’ve got a whole webinar where I talk about, you know, how to structure these agreements with clients, but having evergreen relationships where either party can end on 30, 60, 90 days notice, some relatively short window. It gives you a lot of flexibility for solving these problems, more quickly and easily than if you have to only if you only can walk away from the client once a year, for example.

So, and in some cases I’ve seen where the contracts are written poorly enough that the agency can’t walk away for a number of years, but the client can. Make sure that any termination elements of the contracts are always balanced between you and the client, so you each have the same ability to walk away. But that’s one area to look at.

Another area to look at is particularly during that prospecting phase, were you really aligned with the client on expectations? The vast majority of agency client relationships fail in part because we didn’t have a true meeting of the minds over what to expect from the relationship before we even signed that first contract.

And so we need to make sure that we’re not just glossing over any differences. We’re not allowing them to have assumptions about what we can accomplish. Oh, you’ll be in the Wall Street Journal within a month, you’ll have a new website built within six weeks. Things that, that, you know, aren’t realistic.

You don’t wanna allow those to, to get out there and, and become a true belief of the client before the contract is signed, because then it becomes harder to deal with it later on. So make sure you have that alignment of expectations. And in this after action review of the, the client termination, take a look and see, you know, were there things that you missed there?

Were there expectations that could have been set more clearly? Were there other red flags, frankly, during the prospecting phase that you should have noticed? Their behavior for example, If you’ve got prospects who are consistently late to meetings, missing meetings, if they are asking for tons and tons of changes to statements of work, all sorts of things like that. That can be an indication that those are going to be problems.

In fact, it’s often an indication that those will be problems once they become a client, because generally speaking, people don’t improve once they become a client.

You may also wanna be thinking about are there things that you could do better to vet the client? Could, could you spend more time with them before you sign that initial contract?

Could you, are there questions that you should be asking so that you can figure out how they work, what their approval processes are. Understand the things that maybe understand what went wrong with their last client relationship or previous, sorry, agency relationship. That can be really helpful knowledge for you as you’re trying to vet a client and understand if they’re a good fit or not.

But you also wanna be thinking about how are you defining your ideal client? What is your ideal client profile and are there things that you want to change based on this? Was there, did you sort of pull some threads in the course of this relationship where you have identified perhaps a certain kind of organization or certain kind of manager that they have or any of those kinds of things just as you’re looking for things to include in your ideal client profile. Sometimes these soured relationships are a good source of things that you want to make sure you’re excluding from your ideal client profile. So be sure to be looking at that.

And then finally, I think one overlooked thing here is that we need to consider is, are there things that we could do to better train our staff to, to give them better resources and information in order to avoid the same kind of situation in the future. So that might be empowering them on identifying and pushing back on outta scope work. It might be helping them to better understand how to manage project budgets, right? A lot of times our account leads don’t have a lot of experience in this, and we just expect that they’re gonna manage the relationship profitably. But if they don’t understand what that means and how to do it and how to read reports correctly from the finance team, those are kinds of things that you really want to, to help them to understand.

If it’s something where we’re just not getting the results for the client and we don’t think we’re going to, does that mean that we need to have some professional development to build our skill sets in a particular area? Or is it something where if we’re gonna offer a particular kind of service, we need to have in-house help versus contractors?

Really look at what caused this relationship to fail and ask all of the different things that you could have done differently in order to avoid getting to that point where your only option was to terminate.

So, from there that will, sort of tie up the, the loose ends here. And so, we’ll, we’ll talk about the, the key highlights from what I’ve just covered here as a reminder.

It’s not a bad thing, it’s not a good thing, but it’s not a bad thing to fire a client. It’s something that, you know, is often needed. It is not unusual or uncommon, so don’t resist it for that reason. If you’re, if you do need to terminate a client, make sure that you’re figuring out how to time it right and do it in the right way.

And hopefully I’ve offered you some good, useful tips on that. You wanna make sure that you understand what the, the long-term benefits are to the team and the bottom line, because ultimately, if you’re able to replace a bad fit client, an unprofitable client, a stressful client with a better fit client that you have a good relationship with, that’s a win.

So yes, you may short term lose revenue. You may lose that client from your roster, but it frees you up to go and find and service a better fit.

And finally make sure that anytime you have a bad experience of any kind in your business, whether that’s an employee you have to terminate, whether that’s a client you have to terminate, whether it’s any other kind of unexpected and unpleasant circumstance. Make sure you’re learning from it. Make sure you are taking lessons away from it because that’s how you grow, that’s how you continue to improve. It’s how you will accelerate your progress as a leader, as a manager, and as an agency owner.

So, with that, that will tie up all of the key points that I wanted to share with you.

In just a moment here, we’ll move on to q and a for live participants. So if you haven’t done so already, feel free to submit a question through the q and a function. If you’re watching this on replay, this is where the replay will end. Thank you for joining us, and I hope to see you on a future webinar.

And I’m gonna grab a sip of water and we’ll jump into the live q and a in just a moment.

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