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Why and How Financial Professionals Should Fire a Client

Posted by Partners Advantage on Wed, May 17, 2017 @ 05:39 PM

“You’re fired!” is something most financial advisors would never think of saying to one of their clients. Financial professionals are often afraid to let a client go, but there are times that they should. Let's look at the main reasons why you should fire a client and how to do so in a professional way.


Changing Objectives

The number one reason a financial professional should let a client go is when the objectives change. For example, your client now wants high returns and isn’t afraid of risk. The problem is, you specialize in working with “safe money” that has moderate gains with no risk. This is very common in our industry. Eventually the client will fire the financial professional and leave unhappy because they had unrealistic expectations. 

Client Doesn't Follow Advice

Another reason to fire a client is when a client refuses to follow your advice. There is an old saying: “You can lead a horse to water, but you cannot make them drink”. As a financial professional, you work hard to create a detailed plan that will address as many of the client's concerns as possible with the resources they have. If a client isn’t going to follow the agreed plan, then they are wasting your valuable time and their own.

Rude to You or Your Staff

The last main reason is if you have a client who is constantly nagging the financial professional or is rude to staff members. This creates a hostile environment when the client comes in. The staff will be on edge and nervous when appointments are coming up. This is not fair to you or your staff. If you are the owner of your financial services business, you have a responsibility to create a professional work environment for your staff and clients. Fire clients who do not treat you and your staff like the professionals you are before they disrupt your office.

How to Fire Clients

Now lets discuss how to let a client go. You have to remember you are a professional. You never want to stray from that. The best way is to schedule a meeting with your client and explain to them why it isn’t going to work. You have a relationship with your clients. Regardless of the reason you are letting them go, explain that you feel that they would be better off working with someone else. It will help if you have a referral for them as well. Always give your referral a heads up that you are sending a client their way and why. You don’t want to ruin a referral relationship.

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Tags: practice management


This content is for informational and educational purposes only and is not designed, or intended, to be applicable to any person's individual circumstances. It should not be considered as investment advice, nor does it constitute a recommendation that anyone engage in (or refrain from) a particular course of action.