Nightmare Client Red Flags

Avoid these clients like the plague...

April 12, 2024

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898 Words | 3 Min 45 Sec Read

Welcome to another issue of Passionate Income.

Today we’ll be discussing red flags you absolutely must watch out for if providing a service (coaching, consulting, freelance, etc).

Let’s dive in.

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Over the years I've worked with dozens if not 100+ clients.

A few of which were great, most of which were average, and some of which were absolute nightmares.

In an ideal world, you would only with A-Listers who are easy to manage and pay their invoices immediately. In reality, however, most of us have to sift through some mud to find the gold nuggets.

Fortunately, the services industry is nothing new.

And since most interactions - professional or otherwise - are driven by human emotions, it's pretty easy to identify the warning signs that a prospect could be a "Nightmare Client" if you take their money.

So in today's issue, I thought I'd expand on a tweet I saw today to explain why each of the factors below are such big red flags.

#1 - Asks for a Discount

When it comes to buying a commodity like toothpaste or toilet paper, discounting is an incredible strategy for taking someone who might have bought another brand and convincing them to buy your brand.

But when it comes to professional services, asking for a discount implies two very negative things.

First, it implies the prospect sees the service as a commodity instead of a skill-based service that took someone years/decades to refine.

Second, it shows a focus on cost over value. In particular, it shows the prospect is more concerned about how much they're paying instead of how much value they're going to get / what the quality of the service will be.

#2 - Has Worked with Tons of Competitors

On the surface, you should sell your service to prospects who have a history of hiring people in your field. Why? Because it shows they understand the value in outsourcing whatever type of project they're hiring you for.

The problem is when someone complains how they've hired tons of people like you before and none of them have worked out.

The reason this is such a red flag is because it signals the problem is most likely them and their business, not the people they've been hiring.

While it's possible to make one or two bad hires, it's unlikely all three, four, or 5+ people they hired before you were total idiots who couldn't get the job done.

Instead, what's more likely is that the client was a nightmare to work with / had a terrible business. And because of that, it's unlikely anybody - no matter how good they are - could get them results.

And if that's the case, accepting them as a client virtually guarantees that - sooner or later - you’ll be fired no matter how great your service is.

#3 - Has a Low Budget but High Expectations

Most businesses start from zero, so having a low budget is not a massive red flag on its own (although earning substantial fees from these kinds of clients is nearly impossible).

What is a warning sign, however, is when someone has a tiny budget but expects you to deliver the world for them.

The reason this is so dangerous is because it shows the prospect has no idea of the near-infinite number of variables that go into producing a result in today's business marketplace.

Sure, if you're selling tax preparation you can guarantee results.

But if you're selling marketing, sales, employee training or any other kind of service where the human element (or big tech algorithms) are at play, it's near impossible to "guarantee" results.

Fortunately, good clients understand this. Mainly because they achieved success as a result of getting kicked in the teeth in the real world.

But if someone wants you to provide Ritz Carlton level service for Motel 6 prices, understand you're dealing with an amateur. In particular, someone who will blame you - and potentially request a refund or call their bank for a chargeback - if your service "fails" to live up to their expectations.

**And if you don't like the idea of working with people, you may want to check out the ​free training​ we recorded yesterday.

Inside, we unveil how to build a Mini Media Empire. No clients, no sales calls, or providing a service. Just create content and collect Stripe deposits.

Discover why Mini Media Empires are the best side hustle for 2024:

💡 Takeaway: While providing services can make for a great career, just one of the wrong clients can turn your life into a nightmare. So before you rush to close the deal, be on the lookout for red flags.

🎁 Resources:

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