PR agencies strive to find new clients while better serving current ones. They usually dread being fired by a client. However, in certain circumstances agencies turn the tables and fire the client.
Terminating a client hurts an agency’s income, at least in the short term. Over the long term, the decision may be beneficial. Even if a client pays well and is well known, a horrible client can disrupt other client relationships, prompt talented agency professionals to resign in frustration and damage the agency’s reputation. Ending that bad relationship can improve morale of the agency’s staff and free time for other clients.
These are the most common reasons why PR agencies terminate clients and the types of clients that agencies are better off without. Frequently, the reasons overlap.
Unreasonable expectations. Unreasonableness is probably the most common reason why PR agencies fire clients. Overly demanding clients level a host of unreasonably high expectations. They demand immediate, outlandishly favorably media coverage, often by the largest, best-known media outlets. Working with these clients is like accepting mission impossible.
Some clients believe instilling fear will prompt its agency to produce extraordinary results. They threaten to fire its PR agency unless it generates outstanding positive results – immediately. Most likely, the tactic backfires. The PR professionals are too fearful to suggest anything unusual or innovative. Under the pressure of the client’s expectations, PR professionals may use media relations tactics that antagonize the most important journalists – thereby jeopardizing future media coverage.
Financial reasons. Some clients send payments chronically late. They ignore the contract that requires payments within 30 days. “The check is the mail” is their motto. In addition, they may ask the agency to advance their out-of-pocket expenses. These clients may simply be cheap or they may face a looming financial problem. Both situations are bad news for vendors. Cash flow is the lifeblood of business and cannot be taken lightly.
Some clients demand “skin in game.” Frequently, they are start-ups that ask you to lower your fee and accept the difference in options. They often have unrealistically high expectations and expect your team to work 24/7. “We’ve learned over the years that these relationships almost never work and, indeed, often turn ugly when grandiose expectations aren’t met,” writes Steve Cody, co-founder of Peppercomm, a communications firm, in an article for Inc.
Abusive clients. Some clients with tempers have frequent outbursts at agency staff, and everyone else.
“Nothing torpedoes an agency-client relationship like someone who berates the team publicly,” says Shift Communications Vice President Cathy Summers. “Yelling at our staff isn’t productive or professional. It demotivates the team and generally creates a downward spiral of angst and angry outbursts.”
Ethical considerations. Terminating a client over ethical considerations is rare. Some of the largest PR firms said they refuse to represent organizations that deny man-made climate or to work on campaigns to block regulations limiting carbon pollution, according to the Guardian. “Of course, there’s a gap between promising not to take on climate change deniers in the first place, as many mega-firms recently did, and resigning a large client company because it works to block climate-friendly legislation, which no one seems to be rushing to do,” points out Dorothy Crenshaw of Crenshaw Communications.
Dishonest clients. PR agencies cannot do their jobs properly if clients turn over incorrect information. Lying for a client can damage the agency’s reputation and embroil it in litigation. That’s why agency contracts typically contain “hold harmless” provisions, Crenshaw notes. PR crisis firms usually request clients to disclose all relevant information so that they can manage difficult situations with full knowledge of all details. PR crisis firm Navigator stopped working with CBC host Jian Ghomeshi because it believed he had lied to the firm.
Both the agency and the client have a responsibility to assure a productive partnership. If the relationship is not working well, both are obligated to discuss their problems forthrightly and attempt to develop a plan to rectify the issue. If the problems persist, then either the client or the agency can terminate the relationship. In those circumstances, termination will benefit both parties.
Bottom Line: Sometimes terminating a relationship with a client is the right business decision. Have you ever fired a client? Why? What types of behavior justify terminating a client? Please comment below.
William J. Comcowich founded and served as CEO of CyberAlert LLC, the predecessor of Glean.info. He is currently serving as Interim CEO and member of the Board of Directors. Glean.info provides customized media monitoring, media measurement and analytics solutions across all types of traditional and social media.
I have read so many post of yours about PR. It’s good. Thanks so much.