Good Clients vs. Bad Clients

As agency owners, we encounter two distinct types of clients—those who make our work a pleasure and those who can turn even the most exciting projects into a nightmare. Understanding the difference between good and bad clients is crucial for the success and growth of any agency.

Good Clients

Let’s start with the good clients—the lifeblood of any successful agency. These are the clients who trust our expertise, respect our work, and value our time. They understand that they hired us for a reason, and they let us do what we do best: deliver results.

Good clients communicate clearly, are responsive to our requests, and respect deadlines. They may be busy—just like us—but they make time to collaborate effectively. They’re invested in the success of their projects, which means they provide us with the information and resources we need to achieve their goals. When we email them, they read the emails or make sure to catch up during the next meeting. They trust us to guide them through the process and are open to our suggestions, making it easier for us to deliver results that exceed their expectations.

At my three agencies, we go above and beyond for these clients. We understand that they’re busy entrepreneurs and business owners, juggling countless responsibilities just like us. That’s why we’re always ready to repeat ourselves, clarify details, and ensure they’re well-informed. We have empathy for what they’re going through, and we do everything we can to make their experience with us smooth and successful.

Bad Clients

Unfortunately, not all clients are like this. Some clients can be a pain in the ass. These are the clients who are unresponsive, refuse to take meetings, or constantly miss deadlines, yet they blame us when the results aren’t what they expected. They tax our emotional and mental state unnecessarily, cause friction, and generally treat us with a lack of respect.

When dealing with bad clients, we have to make a choice: do we try to salvage the relationship, or do we cut our losses and move on? Sometimes, the best course of action is to have a heart-to-heart conversation with the client. We might say, “Hey Bob, we need to talk. Your behavior is affecting our team, and we need to figure out how to move forward.” Often, clients don’t realize they’re being difficult, and a candid discussion can lead to a positive change.

However, if the client gets defensive or continues to treat us poorly, we don’t hesitate to fire them. We’re not going to put up with that kind of behavior. We’d rather wrap things up, hand over their website, and move on than deal with the stress and negativity of a toxic client.

Handling the Worst-Case Scenarios

In some cases, though, firing a client isn’t an option—particularly if they’ve already paid for a project that’s near completion. In these situations, we play hardball. We limit communications to what’s absolutely necessary, such as a short weekly meeting or email summary. We document every single time the client misses a deadline, provides incorrect information, or otherwise fails to fulfill their end of the bargain. This documentation is crucial because it allows us to hold them accountable and ensures that we’re not blamed for delays or issues caused by their incompetence.

There’s one client in Canada who has been particularly challenging, with over two dozen documented infractions in the past two months alone. In cases like this, we don’t give them an inch. We stick to the scope of work and make it clear that we will deliver the project on time, regardless of whether they meet their deliverables. If the end product isn’t exactly what they thought it would be because they didn’t provide the necessary input or information, that’s on them.

While playing hardball can be effective, it’s not something we enjoy. It’s far better to fire these clients early or, even better, avoid them altogether by identifying red flags during the sales process.

Identifying Red Flags

One of the most important lessons I’ve learned over the years is the value of an effective client screening process. During the sales stages, pay close attention to any red flags that suggest a potential client might be difficult to work with. If something doesn’t feel right, don’t ignore it. Ask them why they believe certain things or why they said something that concerns you. If you don’t like their answers, don’t be afraid to say, “I don’t think we’re a fit.”

There’s nothing wrong with turning down work that doesn’t align with your values or that you know will be more trouble than it’s worth. In fact, it’s the right thing to do. It’s better to say no upfront than to regret taking on a client who drains your time and energy.

The Dangers of Desperation

In the early days of running an agency, it’s easy to feel desperate for work. You might take on any client who’s willing to pay, even if it’s for something outside your area of expertise or with a client who throws up red flags. But this desperation can lead to problems down the road. You end up working with clients who don’t respect you or your team, who don’t value your work, and who make your life difficult.

Remember, you are the prize. You don’t need to work with clients who don’t appreciate what you bring to the table. Stick to what you do best, and don’t be afraid to walk away from a bad deal.

Helping Agency Owners Navigate These Challenges

As a successful operator and business coach, I’ve seen firsthand how the right clients can propel your agency to new heights, while the wrong clients can drain your resources and stunt your growth. That’s why I help other agency owners master the art of client management through my mastermind program.

In the mastermind, we dive deep into strategies for identifying and working with the best clients, setting boundaries, and building a business that’s both profitable and enjoyable to run.

If you’re an agency owner struggling with client issues, I invite you to learn more about my mastermind at this link. Together, we’ll work to ensure you’re attracting the right clients, setting yourself up for long-term success, and scaling your agency with confidence.

In the end, the key to a successful agency isn’t just about the work you do—it’s about who you do it for. By understanding the difference between good and bad clients and being willing to take the necessary steps to protect your business, you can create an agency that not only thrives but also brings you the satisfaction and fulfillment you deserve.

I hope that helps.

~ Erik