How to Fire a Freelance Client: 5 Foolproof Methods

How to Fire a Freelance Client: 5 Foolproof Methods

Morgan Overholt

We’ve all been there. We ignored the red flags and ended up in a less-than-ideal situation with a difficult client. As a freelancer, I've had to deal with a few annoying clients over the years. Fortunately, only a couple became untenable enough for me to cut ties and break the contract early. I genuinely believe that most professional service providers should strive to remedy the situation before it reaches a boiling point. 

When Should You Give Up on a Client?

It’s important to recognize when a relationship has soured beyond repair and to learn how to end things professionally, without further escalation. In this article, I’ll share my best tips on how to fire a client the right way.

First, let's discuss when to give up on a client. As business owners—including all freelancers and independent contractors—we should be able to differentiate between a slightly annoying client and a truly toxic one. As with all relationships in life—romantic, friendship, or professional—perfection is a pipe dream. Disagreements will arise, and conflict-resolution skills will be required at some point. However, no bad relationship is worth holding onto if it:

  • Takes a toll on your mental health
  • Causes you to lose sleep at night
  • Diverts time and energy away from your good clients
  • Costs you money
  • Costs you opportunities

Far too often, I hear freelancers say they can't “afford” to leave a bad situation. I always respond, “Can you afford to stay?” There are real costs and consequences when you cling to a toxic relationship for too long.

First, there’s the personal cost. It may put you in a bad mood, cause you to lose sleep, and make you irritable around friends and family.

Then, there’s the professional cost. The project might be so far beyond the original scope that you’re working for free. You could also be spending so much time accommodating the difficult client that you’re neglecting your good clients or missing out on opportunities with clients who are a better fit for your business.

So when should you give up on a client? You should end the relationship when the personal and professional costs become too great.

My Last Nightmare Freelance Client

In mid-2020, I took on a new client who initially expressed discomfort with working with a remote freelancer but felt they had no choice. At that time, lockdowns were in effect, and even major corporations were implementing remote work policies. To this day, I regret ignoring that huge metaphorical red flag.

Over the following months, their distrust and anxiety grew to unimaginable levels. Within a few weeks, the project was well beyond scope. I was out of pocket, stressed, and even putting my good clients on the back burner to accommodate my anxiety-ridden, insatiable new client.

It all came to a head the week of the project launch. Just as I thought I was nearing the end, the client sent several lengthy, anxiety-fueled emails. They began second-guessing the project and wanted to delay the launch.

At that point, something inside me snapped. I politely reminded the client that I had fulfilled my contractual obligations, recommended they find a new freelancer for future needs, and submitted my notice.

5 Ways To Fire A Bad Client

If you’re in a similar situation, I’m excited for you. I know the relief you'll feel once you send your toxic client packing. The freedom is exhilarating, and you'll be wiser for the experience. Next time, you'll recognize the red flags early and avoid finding yourself in this situation again. After all, prevention is key to avoiding similar situations in the future.

Without further ado, here are five ways—complete with sample scripts—to professionally end your client relationship.

Editor’s Note: Be sure to carefully review any agreements you have with your client to ensure you are not in breach of contract before taking action. Also, include sending a final invoice and collecting any outstanding payments in your exit strategy.

1. Implement the Annoying Client Tax

In the freelance industry, there's something often referred to as the “annoying client tax.” It involves raising your rates to a level that is either:

  • An amount your client cannot afford
  • An amount that makes the extra work worthwhile if the client accepts

I’m not talking about a slight rate increase here. I mean a comically large bump—2-3 times your original rate. The increase should be high enough to either scare the client off, making it seem like their decision to leave, or high enough to make the extra headache worthwhile if they accept.

Think of it this way: everyone has a price. If my difficult client came back and offered $1,000,000 for a new website, they might not seem so bad after all!

Here's a template you might use for this tactic. I’ve never personally used it, as I prefer to end the relationship outright, but it’s a popular strategy in the freelancer community.

[Client Name],

I hope you and your team are well.

After reviewing my recent operating costs and increasing workload, I’ve decided to raise my rate from [$100 per hour] to [$300 per hour]. This change will take effect on [date].

I hope this notice gives you and your team enough time to plan accordingly. Please let me know if you have any questions.

Sincerely, [Your Name]

2. Refer them to someone else

You can use this technique in combination with others—just recommend a replacement freelancer who might be a better fit for their needs (and temperament).

However, a word of caution: freelance community karma is real. Do not refer a bad client to a good freelancer without a proper heads-up. Inform the new freelancer about the client issues you’ve faced and let them make their own decision about whether to take the job.

[Client Name],

I hope you and your team are well.

I’m writing to inform you that due to [excuse here], as of [date], I will no longer be able to provide services to [client’s company name].

I hope this notice provides you with enough time to plan as needed. If you’re interested, I’d be happy to recommend a few alternative [service providers] who might be able to assist you with your [service type] needs moving forward.

Sincerely, [Your Name]

3. Write an honest, but professional letter

In my personal toxic-client situation, I decided that honesty was the best policy. I knew I had fulfilled my obligations as detailed in the original contract, despite the client’s requests for additional edits and meetings.

Luckily, my contract clearly outlined my obligations and included a 30-day termination clause that could be invoked by either party at any time.

Pro-tip: During the onboarding phase, ensure your clients sign a contract with specific milestones and a reasonable termination clause.

When I was ready to end the relationship, I sent an email similar to this:

[Client Name],

Below is a summary of work and deliverables related to [project xyz]: As you know, our contract included:

– [Milestone One], completed on [date]
– [Milestone Two], completed on [date]
– [Milestone Three], completed on [date]

Since all major components of the project are complete, this email will serve as your 30-day notice. During these 30 days, you may contact me with questions related to the original project. Work requests outside the original scope will be considered on a case-by-case basis, billed hourly, and invoiced at the end of the 30-day period.

Best of luck in your future endeavors,
[Your Name]

4. Use a professional excuse

Sometimes it’s easier to use an excuse. There’s nothing wrong with a little white lie. Your client doesn’t need to know the real reason you want to terminate the contract, and you’re not obligated to tell them.

Assure your client that this is a business decision, thank them for their business, and wish them luck. Consider using one of these professional excuses:

  • Change in business direction (or pivot)
  • Desire to scale back
  • Change in availability (you’re too busy)
  • No longer offering specific services
  • Securing a larger contract (or better opportunity)
[Client Name],

I hope you and your team are well.

I’m writing to inform you that due to [fill in the blank excuse], as of [date], I will no longer be able to provide services to [client’s company name].

I have enjoyed working with you and your team, and I hope this notice gives you enough time to plan as needed. Let me know if you have any questions.

Sincerely,

[Your Name]

5. Use a personal excuse

If you can’t come up with a professional reason, use a personal one. Possible excuses include:

  • Scaling back the business to spend more time with family
  • Taking an extended vacation or time off
  • Pursuing a personal goal
  • Pursuing higher education
  • Considering a career change
  • Retirement
[Client Name],

I hope you and your team are well.

I’m writing to inform you that I have decided to [fill in the blank excuse]. As of [date], I will no longer be able to provide services to [client’s company name].

I have enjoyed working with you and your team, and I hope this notice gives you enough time to plan as needed. I appreciate your understanding. Please let me know if you have any questions.

Sincerely,
[Your Name]

And remember, no matter which strategy you choose, strive to be the bigger person. Avoid playing the blame game and try to prevent escalating the situation.

Have you dealt with nightmare clients? Are you considering ending a relationship with a toxic client? Let me know in the comments.

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