How to Fire a Client and When You Should Do It [Free Template]
A bad client isn’t worth the trouble. They drain your time, morale, and finances—all resources you should use to serve the good clients who support your business.
It’s time to rip off the bandaid and let that nightmare client go.
Learn how to fire difficult clients with our helpful tips, scripts, and templates. Plus, identify warning signs of problematic clients to avoid future issues.
Ready to fire that toxic client? Keep reading to learn:
How to fire a client the right way
Whether it’s someone who never pays on time, is overly demanding, or is downright abusive––you know in your heart it’s time to terminate that bad client who’s been weighing on you emotionally, financially, or otherwise.
You’re unsure what to do next, OR maybe you’ve been avoiding it entirely.
We know it’s awkward and uncomfortable, but for the good of your business, it’s time to let them go.
If you’re looking for examples of how to fire a client, there are several ways to communicate that you’re terminating the client relationship.
1. Raise your prices
The easiest way to get rid of a challenging client is to give them the chance to “fire” you instead—by charging them a lot more for your services.
Usually, raising your rates leads to one of two things. Either the client goes elsewhere for cheaper services, or you’re paid well enough that you’re willing to keep dealing with them.
But if you just want to be done with the client, that’s okay, too. No amount of money is worth your sanity!
READ MORE: How to write a price increase letter
2. Firing a client by email
To avoid a potentially uncomfortable phone call or in-person conversation, firing a problem client over email can be a less confrontational way to end a business relationship.
You benefit from having a written record of the termination, and you can take time to craft your message carefully.
Use our example below for some inspiration.
How to fire a client via email template
Subject: Important update regarding our services with you
Dear [Client’s Name],
I am writing to address an important matter regarding our working relationship.
After careful consideration and extensive discussion within our team, we’ve come to the difficult decision to terminate our services with you, effective [termination date].
We understand that this news may come as a surprise to you, but please know that this decision was not made lightly.
We sincerely appreciate the opportunity to work with you and will do what we can to ensure a smooth transition during this process. If you would like, we can provide some names of alternative service providers in the area.
If you have any questions or concerns, please do not hesitate to contact us so we can discuss them further.
Thank you for your understanding in this matter.
Sincerely,
[Your Name]
[Position]
[Your Contact Information]
3. Send a client termination letter
If your client’s preferred communication isn’t via email, it may be better to send a letter to end the client relationship.
Write this letter professionally on company letterhead and make a copy so you have a written record of everything you said.
Below is a sample of a termination letter from a cleaning company. You can download our free template to personalize your own letter.
How to fire a client letter sample
Dear Chelsea,
While I appreciate your business, I believe we are no longer a good fit for one another and that another company would better serve you.
As of May 30, 2024, Sparkling Clean will no longer provide you with home cleaning services. Until that date, we will continue to provide the agreed-upon services on a weekly basis as outlined below:
– Vacuuming
– Mopping
– Dusting
– Kitchen surface cleaning
– Window cleaning
– Bathroom cleaning
I would like to recommend Cleaning Bros as an alternative service provider. I believe they can provide the level of service that’s right for you. You can contact the company at 555-555-5555 or [email protected].
If you want to discuss this matter further, you can reach me at 555-444-5555 or [email protected].
Thank you for your understanding and best wishes.
Sincerely,
Kyle Smith, Owner
Sparkling Clean
4. Pick up the phone
If you want to verbalize your position or answer any follow-up from your client in the moment, delivering the news over the phone is your best option. A phone conversation can be more empathetic than written communication.
Remember to be clear in your delivery and prepared to answer any additional questions or objections your client may raise.
You can use our sample phone script below to help you with speaking points.
How to fire a client script
[Start with a greeting and then jump to the news]
“Hello [Client’s Name], I hope you’re doing well today. I wanted to contact you personally to discuss our business relationship.”
“Firstly, I want to express my sincere gratitude for the opportunity to work with you. Your support has meant a lot to us. “However, after careful consideration, we’ve decided to terminate our services with you.
[You can offer some reasoning if necessary; just keep it brief and to the facts]
“While we’ve made every effort to meet your expectations, it’s in both of our best interests to part ways at this time.
“I understand this might come as a surprise, and I want to assure you that this decision wasn’t made lightly.”
“We’re committed to making this transition as smooth as possible for you. Please let us know if you need assistance finding a new service provider.”
[You can offer to waive upcoming fees if applicable and to end the client relationship on a better note]:
“As a gesture of goodwill, we’ll waive any fees for the final service to ensure no financial burdens in our parting.”
[End the call with gratitude and well wishes and confirm the termination date]
“Once again, I want to thank you for your business and wish you all the best in your future endeavors.”
“Our services will officially terminate as of [date]. If you have any questions or concerns, please don’t hesitate to reach out.”
“Thank you for understanding, [Client’s Name]. Take care.”
5. Meet in person
Meeting in person is a good option if you want to discuss the situation with the client and leave the door open for a possible resolution.
Plan for a shorter talk where you say your piece and leave, but if they’re open to discussion, you can make it a longer conversation.
Grab some of our example speaking points below to help guide your conversation.
Scripts for firing a customer in person
“I don’t believe we’re the best option to meet your needs right now. This particular company might be a better fit—here’s their contact information.”
“There have been issues with our business relationship for some time now, and I think it’s best to go our separate ways. I’m happy to help you find another service provider that would be the right fit for your needs.”
“The company is moving in a new direction. As a result, we’re wrapping up some of our contracts, including yours. We’ll complete your project, but after that point, you’ll need to work with a different service provider.”
READ MORE: Tips to deal with difficult customers
General tips for firing a difficult client
Regardless of how you choose to fire your client, these are some expert tips from the professional service providers in our Facebook community:
- Do it nicely. Try to approach the situation with kindness and professionalism (even if it’s painful).
- Limit justification. Stick to the script and only justify your reasons if serious issues need to be addressed.
- Keep it concise. Deliver a clear message expressing the decision to terminate services.
- Pay to go away. If applicable, consider waiving fees for the final service to maintain goodwill or to exit the contract early.
- Express gratitude. It might be hard, but thank the client for their business and express well wishes.
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How do you know when you should fire a client?
Ultimately, you can weigh the risk vs. reward to help you make the call if it’s time to end a relationship with a client.
Are they slightly annoying but always pay on time? Then maybe not. Or do you spend more time with one client than anyone else—without getting enough profit to balance the investment? Then, yeah, probably.
However, if a client raises any red flags below, it’s time to fire them!
They abuse, assault, or harass you (or your employees)
Abuse takes many forms. In a business relationship, it often looks like a client yelling at you, swearing, sending a string of angry texts, or any other bullying or harassing behavior.
Everybody has bad days, and it might be one of those cases where the client is just being difficult. It’s up to you to decide whether or not you’ll accept an apology.
If the client isn’t sorry and shows no signs of change, it may be best to fire them.
And if somebody assaults you, threatens you, or uses hateful language? That’s an instant firing. At this point, you may want to bring in a lawyer, too.
If people are rude to me or my staff, we part ways very quickly.
Impossible to satisfy
You know you do good work, but this client would never say it. They’re trash-talking you, leaving bad reviews, or constantly calling you back to fix things that don’t need fixing.
You’ve tried everything to make them happy, but nothing is working. Sometimes, you must realize that you can’t please everyone, especially if they’re determined to find problems with your work.
If the client is taking your time, attention, and resources away from other clients who are happy with your work, let them go. They might have better luck with another service provider.
[If] the customer has higher expectations than they are willing to pay for, it’s time to part ways.
Consistent late payments
You might have a client who hasn’t paid an overdue invoice or is regularly late sending payments.
They’ll often say it’s coming or avoid the subject when you remind them. But they’re still expecting regular service, which isn’t reasonable.
If it’s been a few months since your service, you’ve sent reminders, and they still haven’t paid the invoice, it’s time to part ways and focus on more profitable paying clients.
At this point, you should send the bill to collections, too.
GET PAID FASTER: Send invoices through Jobber and get paid online
They make it hard to do your job
Maybe you’re a cleaning business, and the client always leaves clutter everywhere. Or perhaps you’re a lawn care business, and the gate is always locked, so you can’t access the property. Or you sent appointment reminders before your visit, but the client still forgot you were coming.
With this type of client, communication is poor, making it hard to do your job. This sets you back and affects your schedule for the rest of the day, which also affects your other clients.
If you’ve talked to the client about it and reminded them what they need to do, and they still aren’t doing it, it might be time to end the business relationship.
READ MORE: Learn how to prevent customer cancellations
If it arises to a level where it’s stressing you out and just causing undue stress in your life, it’s time to fire that client.
They have unreasonable demands
Some clients want to be sure they’re always getting the best deal or want to know what other services you offer, which is perfectly fine.
But a few of those people regularly want extra services for free or ask for tasks outside of what you do. They might even ask you to do something illegal or unethical.
This bad behavior shows that they don’t understand your business and the value you offer. It often also means they don’t respect you as a person.
If these bad clients won’t take no for an answer or keep questioning your prices, it could be time to say goodbye and focus on the great clients who see your value.
I have had to fire a customer or two.
One reason is if a customer constantly asks my staff to do extra work they know they should be charged for and get belligerent when questioned about it.
Avoiding future bad clients
After you’ve let go of the toxic clients affecting your small business, the best way to avoid getting in that position again is to find new clients that fit your business.
That means taking referrals from your good ones and doing solid discovery by asking the right questions upfront to ensure that you can meet their expectations (and that they can meet yours).
We’ll close with sound advice from service pro Zach Jurkowski of Montreal Contracting—bad clients attract more bad clients.
Originally published in May 2019. Last updated on April 23, 2024.