Tag: Client Management

  • Sometimes They Even Get Severance Pay (sort of)

    Sometimes They Even Get Severance Pay (sort of)

    I was talking yesterday about how the only sane way to do business is to only work with good clients. You have to get rid of the bad ones who waste your time.

    They picture some dramatic moment where you slam a folder shut, stand up from the table, and announce you won’t be treated that way.

    The truth is a lot quieter — and a lot simpler.

    I’m pretty good at reading people, so it doesn’t happen often. But if I list a property and realize the seller is a flake, or dishonest, or just likes wasting people’s time?

    If the property isn’t under contract, I fill out a termination form, sign it, email it over, and tell them it’s not working. Two seconds later, the contact is deleted from my phone.

    But what if it is under contract?

    Well, a closing ends the relationship too.

    In that case, the smartest way to fire a bad client is to finish the deal, get paid, and then never work with them again.

    That’s it.
    No drama.
    No speeches.
    Just a clean exit.

    (even if it “costs” you a little)

    A while back, I had a couple of those deals where everything looked normal until the closing table.

    Then the buyer pulled a last-minute stunt — trying to back out of a standard cost he’d already agreed to.

    It’s always the same type of personality: someone who waits until the very end, when everyone’s time is spent, and tries to squeeze one last thing out of you.

    Not because they need to.

    Because they want to see if they can.

    (if you’re in my business you’ve seen it too, and know what I’m talking about…but no need to name it)

    A lot of people think the “strong” move is to dig in and refuse to budge. And yes, if I had pushed back, I probably would’ve “won.” The deal would have closed anyway and I’d have walked out with the full amount.

    But here’s the part most people never account for:

    The second he pulled that stunt, I knew I was never speaking to him again after that day. If we close, great. If we don’t, I’m pulling the listing.

    And he might get sued by the buyer.

    Not my problem.

    If there’s even a 20–30% chance that kind of person blows up the deal, the expected value drops fast.

    Option A:

    Fight it out, maybe get $8,000, maybe get $0 — and never deal with them again. Other than maybe testify against them in court later.

    Option B:

    Pay a small amount out of pocket, guarantee the deal closes, walk away with (say) $7,000 — and never deal with them again.

    It’s not a hard choice once you strip out the ego.

    You don’t build a strong business by letting bad clients take up space.

    You don’t build sanity by keeping people around who nickel-and-dime you.

    And you don’t build a reputation by escalating pointless standoffs.

    The smartest operators I know — in real estate, development, legal, construction, you name it — all do the same thing:

    They protect their pipeline, not their pride.

    A good client pays you in money, time saved, referrals, easier deals, smoother communication, and less chaos.

    A bad client takes far more than they ever give.

    So no, I don’t hesitate.

    If covering a small cost gets the deal closed and gets the wrong person out of my world forever, that’s not weakness.

    That’s strategy.

    You don’t have to win every little battle.

    You just have to win your time back.

    Once you understand that, firing bad clients becomes easy — even when it means paying them to leave.

    PS- You may not be ready to sell today, but wouldn’t it be smart to be prepared ahead of time?

    I offer a free opinion of value on any property, along with market info etc. And no time wasting, no pestering you to hurry up, none of that.

    Is it ever a bad time to start talking to a pro who will treat you the right way?

    (and will have time for you because he doesn’t let bad actors mistreat him?)

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  • Working With Everyone Is a Good Way to Work for No One

    Working With Everyone Is a Good Way to Work for No One

    I was on a Zoom call this morning with a guy who used to be the city manager of one of the faster growing cities in my area. He retired, moved into development consulting, and said something that stuck with me.

    He joked that he has to “pick and choose” who he works with now — not because he’s trying to be fancy, but because there are more people wanting his time than he has hours to give.

    That hit home for me, because I’ve lived the same thing in real estate.

    I’ve written about this before: most people are terrified to fire a bad client. They think if they walk away from someone who drains them, they’ll never replace the lost business.

    But here’s the odd thing about business — and it took me a while to learn this:

    The minute you stop saying yes to everyone, the right people start showing up.

    Not in a mystical way. Just cause and effect.

    When you’re overloaded, dealing with unreasonable demands, endless hand-holding, price-shoppers, or high-maintenance/low-commitment personalities… you don’t have the bandwidth to serve the people you should be serving.

    You aren’t as sharp. You aren’t as available. You don’t follow your instincts. You don’t market as well.

    You rush. You put things off. You tolerate behavior you shouldn’t. You start operating from pressure instead of intention.

    Every minute with a bad client is a minute you can’t spend with a good one. And good clients usually demand less time while giving you more back, it’s worse than just a one to one trade.

    There’s a standard. There has to be.

    And here’s the part most people don’t believe until they live it:

    It’s like the air changes. Smart, reasonable people are drawn to someone who values their own time and expertise.

    They respect it. They even expect it. And the ones who don’t? They self-select out.

    I’ve had deals in the past where everything in my gut said, “This isn’t a fit.” The minute I trusted that — not rudely, just clearly — I made more room for the right ones. And the right ones showed up faster than I would’ve predicted.

    Not because I’m special.

    Because that’s how the world works.

    People who operate at a high level want to work with other people who operate at a high level. The Sherman guy on the call? Same story.

    He’s not being conceited. He just knows that if he says yes to the wrong project, it keeps him from doing the projects that actually matter.

    Most professionals never make that leap. They cling to every lead, every maybe, every person who says “I’m thinking about it.” They treat scarcity like a strategy. And they wonder why they’re exhausted.

    The truth is simple:

    You don’t starve by turning down bad work.

    You starve by letting bad work crowd out the good.

    Set the standard. Hold it.

    The quality of your clients will rise to meet you.

    PS- The flip side of me having the right clients is that if you’re one of the “good ones” then you should only work with top professionals.

    You’re probably not ready to sell now. You know that the time to start preparing for a big event like that is before you’re actually ready.

    But you also know how it is with real estate agents. You reach out and ask for some info, then regret it because the agent won’t stop pestering you about needed to sell now.

    But if you work with someone who already attracts top clients, they don’t have time to pester people who aren’t ready.

    (Hello).

    Is it ever a bad idea to start talking to someone who knows the business, respects your time, and acts with integrity?

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