How to Create a Policy and Process for Ending Toxic Client Relationships

Handling Toxic Clients with Facts and Processes [15:11]

Focus on facts, not emotions, when evaluating a client relationship.
Being brief in emails (e.g., replying “fine.”) isn’t a valid reason to fire a client.
Provide concrete examples if recommending ending a client relationship.
Examples of valid concerns:
- Consistently missing deadlines, impacting the team’s workload.
- Agreeing to extra fees but later refusing to pay.
- Ignoring clear communication about deadlines.
Clear data points help ensure decisions are rational, not emotionally driven.
Mental health and well-being matter, but toxic clients usually show clear factual issues too.
Rarely is a client toxic only in an emotional way—there are usually concrete problems.
Feeling uneasy (e.g., defensive, anxious) can be a sign to look deeper.
Identifying specific issues (e.g., scope pushing, missed deadlines) clarifies the problem.
Once the facts are clear, it’s easier to justify ending the relationship.

Creating a Client Communication SOP [20:11]

Agencies should have a client communication SOP to handle common issues like excessive revisions, rush fees, and escalation protocols.
SOPs help identify and address client issues early, allowing for course correction or necessary offboarding.
Standardized email templates empower team members to respond firmly to pushy clients without added stress.
Clear processes and policies ensure consistency in handling difficult clients.
When offboarding a client, use a structured action plan outlining:
- Tasks to be completed.
- Tasks that won’t be completed.
- Handover details and final date.
The offboarding email must be explicit, stating: “This concludes our working relationship.” to prevent lingering obligations.
Provide a template for escalating issues to leadership when needed.
Example: A response acknowledging receipt while stating the issue will be discussed internally with a follow-up by a set date.
- This approach gives breathing room to assess the situation (e.g., bullying, scope pushing).
Ensures timely communication while maintaining control over the response.
Even “no update” is still an update—clients should know their concerns are being tracked.

How to Handle a Toxic Client When You Can’t Fire Them [25:49]

Focus on facts and strictly follow the scope of work and processes.
Stick to agency protocols, including follow-ups and meetings, without cutting corners.
If the organization won’t fire a toxic client, request better tools (e.g., templates, clearer processes) to manage them.
Framing the request as a way to improve client satisfaction increases the likelihood of support from leadership.
Share email records and follow-up attempts to highlight recurring client issues.
Ask for feedback on clarity, ensuring communication is as effective as possible.
Outline the process followed (e.g., email cadence, reminders) to show due diligence.
- Helps leadership see if the issue is miscommunication or a truly bad client needing action.
Clear processes are key to handling difficult clients effectively.
Client relationships are important, so firing a client shouldn’t be a rash decision.
Sometimes, a client is simply a bad fit, and letting them go is necessary.
Firing a client impacts revenue and the team, so it should be done carefully.
Address issues early and focus on facts to make informed decisions.

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