Firing a Client Increases Your Turnover!
20 August, 2007 - General Business - 5 Comments
I tend to frequent a lot of online forums (International Web Developers Network, WebHostingTalk, SitePoint and more). As of late, I’ve noticed a lot of talk about firing clients.
Personally, I have never had to fire a client. However, I have come very close. The only thing that has stopped me from firing clients in the past, is the fact that they clients fired themselves before I had a chance.
What is ‘firing a client’? Firing a client refers to telling a client that you can no longer do work for them. The contract is cancelled and your client goes elsewhere for their work. Huh? That means you lose money.
Well, the bottom line is, when you fire the right client you can increase your turnover because the ‘right client to fire’ is going to be one which takes up far too much of your time, and we all know time is money. The ‘not so bottom line’ is if the customer really is worth firing, he or she is probably going to be better off with another company.
There are any number of reasons why you might get to a point where you feel you need to fire a client. Usually, it’s simply a case of chemistry not mixing. You may find yourself fighting an uphill struggle against a client who is not willing to listen to your professional advice. You might find the client isn’t responsive, and it gets to a point where your work is put on hold, costing you money elsewhere. You simply might realise you can’t work with the client. They may require more work than you initially thought, and you realise you can’t actually accommodate them.
Firing a client isn’t always something done on bad terms. Often, the phrase refers to the time when you admit to a client that you’re probably not the best company to get the job done, so you’re going to have to ask them to go elsewhere.
The point of this post is to say that firing a client isn’t something you should be scared of. It’s a part of business. Just how a client may choose to fire you, you are well within your right to fire your client. Of course, firing a client should always be a last resort. I would never fire a client unless I have spent several weeks or even months trying to find a solution to the problems that exist.
Firing a client isn’t a decision that should be taken lightly, but at the same time, if you’re losing money by having the client on your books and you have tried and failed to find a solution, then firing that client may be your only option. You’ll be all the better for it, and as is almost always the case, your client will be the better for it too.
Have you ever fired a customer? Have you, as a customer, ever been fired?
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Posted on 20 August, 2007 by Jamie Harrop
Filed Under General Business |
5 Comments»
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It also happens when the lines of communication get broken between company and customer.
That’s certainly true, Jason. Communication is everything when dealing with customers, and when that communication is broken, all hell tends to break loose.
I’ve come close once over a dispute (it was a misunderstanding on the client’s end). In the last year, I have become increasingly cautious when taking on new work. I’ve even begun turning people down because I “sensed trouble” either about the person or their project. This is happening more and more as I try to ween myself off client work and into starting and maintaining my own personal projects.
My biggest concern is a client turning into a huge time sink. I do freelance work on the side, after hours from my day job, so anything that takes up too much time with too little return is a killer for me.
Ah yes. The firing a client before they’re a client approach. I’ve done that in the past, and sometimes, it makes all the sense in the world.
Thanks for stopping by, Jack’s Design.
Agree entirely with approaching prospective clients sometimes cautiously. You can get a good feel if someone is going to try and take advantage of a situation and become a considerably greater burden than first expected. In those situations steer well clear or include the extra expected costs in any project quoted for.