A new client relationship is often akin to a new romantic relationship. First, there’s the heady buzz and the rose-colored glasses. Sometimes, we’re lucky and that feeling stays with us throughout the course of the relationship.
And, sometimes not.
Then, if a client relationship turns sour, it can be just like a divorce. There’s the emotional, legal, and financial tangles to deal with.
Over the last 17 years, I’ve had just four terrible clients. I ‘fired’ three of them, and in three cases, I refunded some portion of their fees even though I’d dove in and, in one case, did a fair chunk of the work.
Looking back at each instance, though different circumstances, I can see now that there were signs up front that I didn’t [want to] see.
I get it.
It’s tough to turn down new client work that pays the bills. You think you can deal with their quirks and go in full force to tackle the work. The problem is that it’s never the actual work that’s the issue.
It’s the client.
Long ago, with the help of my attorney, I developed an 8-page New Client Onboarding package. It covers a variety of topics and includes a Terms & Conditions page that covered every possible twist. The final page of the document requires a signature and a date.
I thought I was covered.
What I recently learned, however, is that these documents are more like my syllabi (I’ve been a communications and marketing professor for more than two decades), and just when you think you’ve covered/headed off every possible outcome – BOOM – the very next class has a student who goes off the rails in a completely new and different way.
Red flags are easy to spot once you know what they are. You may choose to ignore them (again, for the money), but do so at your own peril.
Here are the top five red flags to watch out for:
1. Delays of any kind. Unless it’s been communicated up front they will be away for a conference or on vacation, this signals the relationship/project it isn’t a priority. You’re excited, but they’re not. Again, just like a new romantic relationship when one party is more eager than the other, it becomes a push and pull. This turns into endless follow ups and trying to be as polite, yet firm, as possible.
FIX: I now have a stop/start clause in my Terms & Conditions for myself and suppliers I work with. This includes a restart fee, possible rate changes, losing the project’s time slot, and more.
2. Lack of respect for boundaries. This could include any of the following such as texting late at night or on the weekends (unless, of course, you’re a Real Estate agent), making last-minute changes when on tight deadlines, scope creep (“Can you just…..”), and other similar irritating behavior.
FIX: Have a verbal discussion, then follow up in writing (always follow up in writing), with firm parameters. Something such as “I am available to my clients Monday-Friday 9-6.” Or, “I’d be happy to add [the extra task], and will send you an updated Scope of Work and estimate.”
3. Not being available. This is a big one for me. Given the work I do, I must always have direct access to the owner/founder. I’m happy to work with any designated team member for day-to-day issues, but for sign-offs, and the like the owner/founder must be the point of contact.
FIX: I now ask clients for a firm standing weekly/bi-weekly meeting that gets on our calendars.
4. Late payments. For a typical client engagement, I’ll invoice 50% up front to begin work. Then, depending the scope, I might split the rest 25%/25%. I once let this slide, and ended up in small claims court for $3,000 in back payments due. Never again.
FIX: Late invoices trigger a phone call, then a follow up in writing. If still unpaid, all work stops. Once invoices are caught up, we’ll start again.
5. Listen to your gut. In this last instance, I just KNEW it wasn’t right. I felt it. I squelched it, even after a nasty insult was twice hurled at me. In the end, I paid dearly for it.
FIX: Just say no.
For the most part, I have enjoyed working with a wide variety of clients over the years. I’ve learned from them and many of them have become friends and in a few instances of role reversal, I became their client.
A great client relationship requires honest and timely communication, in the same way a new romantic relationship does.
Having a difficult conversation is sometimes necessary and though it may be uncomfortable, the alternative can be worse.