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Spotting a bad client

What’s your conversion rate? How many clients do you close out of ten sales calls? Do you try to close then no matter what? Some of them might be bad clients.

What are bad clients? My definition of a bad client is someone who doesn’t respect you or your business. The way this is show is by haggling about your prices, services or trying to teach you how to do your job. Don’t get me wrong, you should listen to your clients and contently improve. But you should not let a clients micro manage you.

A friend of mine started a Facebook advertising company, I spoke about it in a recent post. He got some references from his client, one in particular raised a red frog for me and I’ll explain why. First, he started off with a way lower price for his first client and found out that’s it’s not that profitable. And decided to raise the price just a little to find an option to give the best service for the lowest price.

The new client knew about the lower price and demanded to get it. New clients should not have demands except what they need to get for the price they pay. Any client that has demanded anything when he just starts out raises a red flag. In addition to his issue with the price, he demanded to get more than the previous client got. Does this seem like a client you would like to work with?

And if that was not enough he wants to tie a bonus to closing sales (not what my friend’s business does). I understand that in the beginning, you want to accept any client to grow your business. The issue is that clients like this will kill your margin before you get started.

It’s completely understandable that a client will want to make sure he’s getting his money’s worth. But some go too far, and you have to decide if you’re going to accept a deal that eats into your profit. I for one will not accept that deal.

I hope you found this post helpful, if so like it and share it with your friends. And while you’re at it, check out my ebook ‘level up your business’ a guide to starting your own business the right way.


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