Looking back on the difficult relationships got me thinking: When it comes to bad clients, when is enough truly enough? How do you know when to simply grin and bear it, or when it's the right time to walk away?

Thanks to baptism by retail and an overzealous work ethic, part of me has always subscribed to the philosophy of "Do What's Right for the Customer." It was my first employer's motto and it's always stuck with me. But as I've grown older and wiser, I have come to realize that, despite one's best efforts or good faith in mankind, there are still some client relationships that go south for reasons beyond your control. Of more importance, I've learned to recognize warning signs that signal it's time to make a change and ultimately accept that a relationship is no longer working.
Here are some fundamental questions to consider when you're assessing the uncertain health of any client partnership:
  1. Are you repeatedly over-servicing the account? Often in our zest to keep clients happy we invest time above and beyond what is scoped. However, if this situation becomes more of a rule rather than an exception, remind yourself that you're in a business relationship and you don't work for free! If you're continually putting in double and triple the billable hours than you have agreed upon, it just doesn't make good business sense to continue.
  2. Is the client demonstrating bad behavior or being unprofessional? I believe that good begets good. Are they being honest and truthful or acting in an unethical manner, such as knowingly providing you with incorrect information? Do they criticize good work? Distorting the truth, berating or being unpleasant to staff are sound reasons to walk away from any client. After all, in professional services our people are our most valuable assets; allowing them to be mistreated isn't worth any budget.
  3. Are they constantly making unreasonable demands? I never balk at a big project or challenge. Anyone who works at an agency knows that some days turn into long nights. However, if your team is constantly jumping through hoops without any show of gratitude, feedback or understanding, it's high time to re-set expectations and right the ship. If every day is a fire drill and you feel the need to don your armor before every client call, ask yourself the hard question: Is this partnership worth the overall toll it's taking on your team?
  4. Do they trust you? Sometimes a client isn't listening because they're juggling a lot of responsibilities; however, if they don't trust your recommendations or heed your advice, it's a no-win situation. There is nothing worse than a client that undermines your authority and expertise and shows no true signs of partnership or respect.
  5. Are they paying on time? We pay our cable bills when we want to watch TV. We all pony up funds to go shopping, eat out and attend yoga classes. It's basic commerce. When clients don't uphold the financial terms of your contract (on top of demonstrating any of the above bad behaviors), recognize you're on a slippery slope. Being diligent about getting paid from the beginning will help prevent any big losses when/if the going gets tough. 
At the end of the day, as leaders we must trust our gut instincts. But as part of the process, it's important to stay connected to our staff, to stand up for what we believe is right and to be brave enough to walk away from bad revenue. We all want to grow our businesses, but we need to do so in a positive way with the right partners -- the kind that do not destroy team morale or negatively impact productivity and the fabric of our agencies. Failing to recognize unhealthy situations and becoming complacent or blinded by financial gains is sure to cause more extensive damage, which can hinder the long-term success of any business.

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