Some clients are bad for your business. These clients cause headaches, frustration, and generally suck the energy from you. It should be easy to get rid of your bad clients. . . but you still have them.
Here are 3 ways to be rid of your bad clients.
#1. Don't Let Them Become Clients
Gurus tell you to fire your bad clients. I recommend you fire you bad prospects. Don't let them become clients.
To preemptively avoid bad clients, you must be clear on who your Best Clients are and why they select your firm.
Randy, one of my clients, brags he now can spot a future Best Client in 15 minutes. Used to take him 2 hours, and that was to simply to qualify the prospect as a someone who might buy his services.
#2. Upgrade Them to a Better Match
Your bad clients usually aren't bad people. They are looking for something in a relationship that is different from what makes you shine.
Darrin is an estate planning attorney who works best with highly organized and motivated clients. "Needy" clients used to drive him crazy. Now, Darrin refers all his needy clients (and prospects) to Lisa. Lisa loves to offer a helping hand and is a perfect fit for needy clients.
Like #1, you need clarity about who your Best Clients are and what Best Clients look like for others in your market. This clarity also shifts your focus and marketing away from what your competitors are doing.
#3. Raise Your Fees
If you can't bring yourself to fire bad clients, your can make them less unprofitable by making them pay you more. Since your bad clients often are the ones complaining about fees, raising your rate helps them self-select away.
As a bonus, you often find your Best Clients are willing to pay you more as well. Your Best Clients pay you more and your bad clients look elsewhere. Your higher rate adds a filter at the front end as well.
Regardless of Option, the Results Are Worth It
While in the long term #1 is the best option, #2 or #3 or a combination of them will quickly clean up your client portfolio so you are working with a higher percentage of Best Clients.
You can replace bad clients with more than one Best Client because Best Clients don't require the same level of resources. Working with them often generates energy where bad clients suck your energy.
You end up earning more without working harder.
