HOW TO: Deal With Bad Clients

Guest post by: Jeff Ogden
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Making a Marketing Reality Check - By Jeff Ogden

At the B2B demand generation company Find New Customers, we help companies dramatically improve revenue by changing the way they attract and earn the trust of prospective customers.

But even we have some bad clients, so this caught our eye. Been there, done that. We hope you find it helpful. We thank Nellie for this article and we are careful to share full credit by including her bio below.

In addition, Act-On Software is hosting a webinar on August 17th entitled “Stop Marketing in the Dark.” featuring a special guest marketing expert (yours truly) Click the title to learn more.

by Nellie Akalp 13

Nellie Akalp is CEO of CorpNet.com. Since forming more than 100,000 corporations and LLCs across the U.S, she has built a strong passion to assist small business owners and entrepreneurs in starting and protecting their business the right way. LIKE the CorpNet.com Facebook page for exclusive discounts and giveaways! To learn more about Nellie and see how she can help your business get off the ground quickly and affordably, please visit here.

If you’re a freelancer, consultant or other independent worker, chances are you abandoned the comfortable and steady office paycheck to become your own boss, make your own rules and blaze your own trail. So why are you still navigating unpleasant situations with your clients? What happened to working on your terms?

Being your own boss has its rewards, but dealing with bad clients isn’t one of them. However unfortunate, you’ll inevitably have to confront poor client relationships. Here are some tips on how to identify the situations and ensure they don’t impact your business or emotional well-being.

1. You Don’t Have a Bad Client — You Have a Bad Situation

We’ve all heard freelancers complain about that “client from hell.” For example, a web designer may have to deal with the “vague-input client” — a person who says things like, “I’ll know what I like when I see it, but in the meantime, can you present four iterations?” Another example might be a CPA who works with a freelancer who brings in a box full of receipts two weeks before tax time.

However, the only truly bad clients are the ones you continue to work alongside in spite of the red flags. If you’re losing sleep or dreading the telephone ring, you need to realize that you’re just as active a participant in the relationship as your client. Remedy the situation proactively.

Is a client unprofitable? Try raising your rates. Are you spending too much time responding to their demanding and inconvenient requests? Put your foot down once in awhile and request more time or notice. If a client relationship isn’t mutually beneficial, it’s your responsibility to change the situation.

2. Conduct a Time Audit

Maybe you feel like the majority of your time is spent dealing with one client (when that person may not even represent half of your income). If you’re self-employed, it’s important to precisely strategize your time and energy.

For two weeks, conduct a detailed audit of your day. Keep track of what you did, for whom, and how long it took. These audits can reveal great insights into your client relationships, and can help you make adjustments where needed. For example, is one squeaky wheel getting all the attention while your top client gets short-changed? You need to respectfully approach the time-intensive clients in order to reevaluate a more beneficial relationship.

3. Make Sure You Get Paid

In this economy, you can expect some delays in payment. Even good clients get behind once in awhile. However, a professional gets paid for the work he or she does.

You should ultimately aim to have a minimum of 2-3 months worth of “safety funds” for your business, especially so that a slow payment cycle won’t impact your ability to pay personal bills. This cushion will allow you to occasionally cut a good client some slack. However, you should not be spending time tracking down or worrying about payments, or even worse, distrusting your client’s promises. If that’s the case, you need to make a change.

4. Stay Away From Your Client’s Office Politics

Perhaps you became a freelancer to avoid office politics, gossip and backstabbing. Now that you’re removed from that environment, don’t let your clients involve you in their own corporate drama. When dealing with a team, it’s important not to choose sides or be influenced by one particular member. As an independent worker it’s your responsibility to get your work done, not to get caught up in a client’s power struggle.

5. Firing a Client Isn’t Fun…But It’s Part of Your Job

The majority of us try to avoid conflict. However, remaining in a negative client situation can take a significant toll on your job satisfaction and your emotional well-being — and even impact your work with other clients. If you’ve already tried to actively manage or change the negative aspects of a client relationship, it might be time to cut the cord.

When firing a client, be clear and calm. A simple statement like “I believe my services are no longer meeting your needs” can suffice. The more details you provide, the more you might open the door to an argument. Make sure to leave your emotional baggage aside and remain neutral. These conversations aren’t necessarily easy, but soon afterward you’ll be able to move on to bigger and better things.

Images courtesy of iStockphoto, urbancow, Flickr, theloushe

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About the Author: Jeff Ogden

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Global leader for General Electric for The Pedowitz Group. Also the host of the B2B marketing show, Marketing Made Simple TV. We help companies rapidly grow revenue by transforming the ways they attract, engage and win new customers.

With 8 out of 10 companies saying the lack of quality sales leads is their biggest problem, they need help. SiriusDecisions also found that fewer than 1 out of 10 companies that implement lead management software went beyond the basics. They need help.

We help companies implement world class lead generation programs. Companies need quality sales leads, so they need sales lead generation programs including social media marketing. They need to implement lead nurturing programs. We are considered one of the best leads generation companies in business today.
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