Peter Lessard-Why I turn down clients and you should too

10 replies
Why am I writing this and for who?


I am writing this because after getting over the hurdle of actually being able to get clients one of the really big problems you will encounter is taking on the wrong clients. I am sure for many it is a problem you would love to have but note that it can be just as much an issue when you are starting out with just a few clients as when you are busier down the road. For example if you are low on resources and one client out of ten calls you constantly then it is causing a serious drain on resources.


Also note that my definition of “wrong client” includes the deal you struck. The client as a person or business may rock but if you promised a 10k project for $2000 bucks I will generalize and say wrong client.


***********My little story to put things in perspective*******************


To give you an idea of how important client selection can be let me use my situation as an example.

Many years ago my business exploded after being featured on television. It was just days after Google launched PPC and I was featured as an expert on the subject. We all think we want more clients but two hundred new clients in three weeks not so funny. I had significant corporate experience so was able to scale up but I don’t remember sleeping nor did was it much fun.


At that time I was doing bricks and mortar, employees, equipment, in person meetings, sixty hour weeks. All this growth meant more office space, training, equipment... You get the picture.
Now of course this was better than not being able to pay the rent but it was stressful as hell.


FAST FORWARD TO Today?

Have my dream home by a lake. Cannot remember the last time I had a meeting that was not skype video. All my staff is virtual and all my service delivery and training processes are fairly automated. I have broken my company into two parts. First part is pre-packaged offers that have a set price such as a lead generation site or video marketing package that my VA’s can easily execute. The second part of my business is where I am very careful because I love this part of my business. I decided to limit myself to a handful of “prime” clients that have budgets of 2k+monthly that can profit substantially from the “dedicated” efforts of me and my team and this is where I found applying client selection to be of most importance. It is where I put 90% of my time, creativity and where I can profit most.


************************************************** *********************

BUT HOW DID I GET TO A PLACE IN MY BUSINESS OF BEING HAPPY, MAKING GOOD MONEY ETC..?

Other than the obvious I attribute a huge amount of my current situation to CLIENT SELECTION!!


SHARE YOUR EXPERIENCES TOO!
There are many other off liners here with great instincts on when NOT to take a client and I hope you contribute.


HERE ARE A FEW OF MY REASONS FOR NOT TAKING CLIENTS


1. THE CLIENT THAT DOES NOT FIT.
If the client/project does not fit into my big picture for my business I have learned to walk away. Example if life is great with a small group of 2k+ month clients don’t let yourself get easily sidetracked. If your business is rocking with specific niche, milk it! Beware of the distractions. This sounds easy but we as internet marketers are generally really excited about the next shiny object or different niche but being flighty with client selection can be bad. Of course if you have the resources and time then it may lead you to a cool new niche just decide carefully before you say yes.


2. THE MONEY IS NOT AN ISSUE CLIENT.
One of my favorites! If EVER a client says “the money is not an issue” run like hell! I know a ton of people with stupid amounts of money and NEVER have I heard them say “money is not an issue”. People and businesses that have accumulated wealth value money! The ONLY times I have not been paid is when I fell for this line. These are the business owners that will stall and stall and take up your time and get you all wound up about how much their going to give you.


3. THE BE MY PARTNER CLIENT.
Ruuunnn!!!! Seriously though, let me explain further because a big part of my business is limited partnerships BUT they often involve months of negotiations, lawyers, long contracts and I would still rarely be a “partner” in a venture that involved me providing the marketing for someone that holds most of the cards as far as product and service delivery that did NOT cover my costs! I am happy to take a 10k retainer and then cash reduced monthly payments for cash+ a piece of the pie. What you will find is that when most “clients” are so kind as to ask you to be a partner what they really mean is can you be an INVESTOR. That is great if you can afford it but do not mix up the two. When you are young and new you may be flattered into a very bad investment.

4. THE NUMBERS/DREAMER CLIENT.
I include this in my list because to me a bad client/deal is a deal where I could not possibly satisfy the emotional expectations of my client and later he will hate me. I could care less if a guy is pushing a check at me I really don’t want to have somebody totally pissed that I supported them in their delusions and it didn’t work out. EXAMPLE: I rank for “city” widgets and I make Y dollars so if I ranked for that in 20 cities I would make 20 x Y so here is 2k a month to make that happen. Ummm? Ya you can see how that will turn out. There is NO proof this will happen, don’t support clients in their delusions for the sake of a quick payday it will bite you in the ass. When I have discussions like this I say “Would you be happy if I make you more than I cost you?” If they keep ranting about their dream numbers I walk away.

5. THE CLIENT THAT KNOWS MORE THAN YOU DO.
This one is odd isn’t it? A prospective client will call you to hire you as an expert and then once they send the first payment try to tell you how you should handle their marketing. Suddenly they are experts or they read an article or their cousin Bob said it should be done this way. Imagine how that will turn out if your value proposition is “I will make you more than I cost you” then this guy throws you a bunch of cash then insists on doing things his way. Had that happen twice, issued a prompt refund and wished them well. I am NOT saying you should not take input and consider the clients requests but you have to have the courage to advise them properly. If you are easily swayed because you are not sure of yourself you should not have accepted the job.

I hope this helps a few and I know that other off liners here have many more examples they can share of when it is best to turn down a client. Sometimes when times were lean I stuck to this and was glad I did because within days another prospective client would pop up that was a great fit.
#clients #lessardwhy #peter #peter lessard #turn
  • Profile picture of the author Rus Sells
    Hey Plessard,

    Thanks for sharing your experience and outlining the different client pitfalls.

    I won't go into a long post because you've pretty much covered it.

    I will share that I learned a long time ago that to avoid many headaches associated with clients is to be upfront about one very important thing.

    And that is,

    This is how I do business, I don't do business any other way. You (the client) must fit into my mold, my way of doing things, my methods, or I'm not interested in the least in working for or with you.

    You (Mr. client) don't get special treatment, all my clients get treated exactly the same and each gets the same high standard of deliverables and service as the next. If you are a dinky little pizza shop or a 10 location service contractor it doesn't matter, you both get the same treatment.

    Of course I'm not that blunt to a prospects face as I have been here. The thing I want people who read this to learn is that if you cater to the clients way of doing business you are destined for big trouble, you'll be all over the place and you'll never EVER have a consistent way of doing things. This means you'll never be able to scale your business and you'll just flounder like a kid who can't swim.
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  • Profile picture of the author Peter Lessard
    Hi Rus

    Thanks for your input. In my case I am not too concerned about how the clients wants to be treated since all that will be worked out before I sign them.

    For example I had a national client that was paying huge money and a piece of the pie but wanted for that money to have access to me 7 days per week if the need arose. At that time, for that deal and with that specific client that was ok. It was only OK because he was not a flake and would not randomly call and the return on investment was worth it. I would NOT extend the same offer to the guy that bought the $500 web site.

    The big thing I hope the newbies go away with is just to be careful what you agree to and to shift a little bit from "I must sign this client" to "under what conditions should I sign this client or maybe should I sign them at all?".
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    • Profile picture of the author Rus Sells
      Yeah in that case I can see making some exceptions. I just found that if I made sure prospects understood that it was my way things were simpler for me and them overall.

      If I had to estimate I've sold around 22.5 million over the years in construction. B2B and B2C, and I just learned by the numbers that the more I moved away from how I did things and did them how my client wanted them, I invariably found that those jobs and clients were the most problems. Uncollectedable, troublesome and headaches.

      What it really does is qualify them out or makes them get on board and lets me be the leader. Which is the position we all should be in. Makes business much easier and causes less problems.

      Originally Posted by plessard View Post

      Hi Rus

      Thanks for your input. In my case I am not too concerned about how the clients wants to be treated since all that will be worked out before I sign them.

      For example I had a national client that was paying huge money and a piece of the pie but wanted for that money to have access to me 7 days per week if the need arose. At that time, for that deal and with that specific client that was ok. It was only OK because he was not a flake and would not randomly call and the return on investment was worth it. I would NOT extend the same offer to the guy that bought the $500 web site.

      The big thing I hope the newbies go away with is just to be careful what you agree to and to shift a little bit from "I must sign this client" to "under what conditions should I sign this client or maybe should I sign them at all?".
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  • Profile picture of the author Peter Lessard
    Couldn't agree more. I always worry when I see all these WSO's floating around telling everyone how "easy" it is to make money in offline that those new to it have no idea what they are getting into. They are so excited someone will actually give them work and a check that they don't realize managing expectations and the relationship upfront will be a key factor in their ongoing success.

    I have also found like you that clients are totally cool with ground rules if they know them from the start. Business owners just don't like surprises. For example I have NEVER had a business owner complain that all support requests should come in by email if it was explained upfront why that was the case.
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    • Profile picture of the author Rus Sells
      Exactly! How you sell the deal up front is how the whole process and relationship will be dictated. These are lessons I had to learn back in the day when I was a sales noob.

      Clients don't mind ground rules at all and I'm always keen to set them with every client.

      Originally Posted by plessard View Post

      Couldn't agree more. I always worry when I see all these WSO's floating around telling everyone how "easy" it is to make money in offline that those new to it have no idea what they are getting into. They are so excited someone will actually give them work and a check that they don't realize managing expectations and the relationship upfront will be a key factor in their ongoing success.

      I have also found like you that clients are totally cool with ground rules if they know them from the start. Business owners just don't like surprises. For example I have NEVER had a business owner complain that all support requests should come in by email if it was explained upfront why that was the case.
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  • Profile picture of the author Jason Kanigan
    For those who are interested in how to phrase this, after you learn a little about your prospect's needs, you say:

    "OK Ms. Prospect. The way I work is..." and you continue with your M.O. "I take a 50% deposit, and then I give you the client questionnaire..." "we write down our requirements in an agreement, and then we get money off the table by taking care of 100% of the investment up front..." "I go work in my Secret Lab of Awesomeness, and you'll hear from me in 6-8 weeks..." -- whatever your process is. This is also a qualifying tool.

    People like to be told there is a process. It shows them you've done this before. Gives them more confidence in you. Don't be afraid to use it. The few that don't like it aren't your ideal clients anyway.
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  • Profile picture of the author sloanjim
    ok so I presume you guys have a handful (?) of high paying clients.

    Offering what service(s)

    What is classed as a high paying client?

    Thank you
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    • Profile picture of the author Jason Kanigan
      Doesn't have to be high-paying. Client has to meet your needs on:

      * budget (pay you what you believe you deserve)

      * need (have a genuine problem that your solution can help fix)

      * personality fit (not be a jerk).

      Problem is that people don't lay out these expectations in the first place, and/or are desperate for any business, and take on clients who are deficient in one or more of these area. That equals trouble.

      Originally Posted by sloanjim View Post

      ok so I presume you guys have a handful (?) of high paying clients.

      Offering what service(s)

      What is classed as a high paying client?

      Thank you
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      • Profile picture of the author Peter Lessard
        some great points Jason!
        Also I think we should mention something else important here.

        To those that are new or wishing they had more clients we are NOT saying "Hey look at us we da man and its our way our the highway!"

        The REASON we have developed process and stick to it whether it be for how to choose clients or how to deliver a service or hire an employee is because we care to do it right and care to avoid major obstacles when possible so as to make sure we can deliver the best to our clients.

        I wanted to be clear on that point. Hec I have flown half way across North America just to clear the air with a clients staff because he was having difficulty rallying the troops on a major initiative. We are not suggesting anyone become inflexible we are just suggesting that you will find some processes and rules of thumb that work and when in doubt you should likely stick with them. When we have not it has cost us.
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        • Profile picture of the author Mwind076
          This is great info for newbies or those that continually find themselves with the wrong clients or "issues" with clients.

          We have worked with all these people, and once is usually enough to make you recognize them a mile away.

          Great post and a great reminder to us all to stand our ground!
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