I have found that I fire a client, when I get that back of the brain itch that asks; hmmm should I fire this client. I have three rules that I apply. It is sometimes not easy, but I have found that I have always regretted not firing earlier.
I will start by saying that if you are working with startups, you often find you want the founders to succeed and you go into the relationships knowing that revenue might be uneven.
Uneven to abusive is a fine line.
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Asking for past due Invoices - I find that if I have to ask for the status of an invoice more then once, the I have an issue. If I have to ask twice and get no action then it’s time to fire.
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Meetings start on time - This is not new concept. But it can be a signal of your perceived value to a client. I have found that problem clients will be late to meetings, reschedule last minute and come unprepared. I find this painful, since I service a number of clients. Pushing a meeting causes calendar shifts. Don’t allow it.
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Discounts - You are a pro. You get paid what you asked. Clients who ask for discounts either after the projects starts or before a new block of work are a red flag. It signals a drop in perceived value. Good clients do not ask.
Never signal you are going to fire them. Simply stop work. Threats are almost always counter productive. You are a pro. You are responsible for not getting paid. So own it. Improve your process and vetting.
The best approach I have found is to signal that you are busy. I cannot give the hours you need this week. I will try to catch up and allocate more hours in the coming month.
This might appear to be passive aggressive, but what it quietly signals is that you are busy and cannot make them a priority. It signals that wanting to get the work done is not a form of payment.
Do not tell the client they are fired. This question has come up on a number of CTO zoom sessions. Developers often think in absolute turns and want to be 100% transparent. Resist this urge. Clients are not your friend, even if you feel like they are. They are businesses. They know how to pay their bills.
Client will self educate. Ten years ago I had to fire a long time client. The client has lost sight on the value I provided. Five years after terminating the relationships, they were back. My bill rate doubled and invoices were never late or negotiable again.