Getting Rid of Problem Clients

If there's one thing that can undermine a financial advisor, and as a consequence, the health and well being of their business, it's a problematic client. A client who creates problems, is disrespectful to the advisor, or who won't accept the financial advisor's guidance and recommendations for their investment portfolio, is a client you don't need.

Unfortunately, many financial advisors are reluctant to send these problem clients away because they are afraid of losing the assets and the production the client generates, albeit accompanied by pain and aggravation.

I've seen some horrific situations where clients have been blatantly abusive, and disrespectful to the financial advisor and their staff. They have unrealistic expectations, and will never be satisfied and treat everyone badly because they have money. Even more damaging is the consequences of their behavior. The advisor and their assistant get a churning in their stomach when the problem client calls, and as a minimum they groan inwardly at having to deal with them. I've asked many advisors how long it takes for them to recover from the problem client's wrath, and have been told it can take thirty 30 minutes, several hours, and sometimes even a whole day. It's very difficult to be told you're useless or worse, and then pick up the phone or have to meet face to face with another client, and feel confident about who you are and what you do.

The advice is simple. Get rid of them!

Yes, I know you'll miss the assets and the production, but you'll make it up in no time when you feel good about yourself and only deal with clients who appreciate you and value your guidance. And problem clients typically refer other problem clients. You don't need the aggravation!

You know who your problem clients are and so does your sales assistant. If you only have one or two great! If you have more, you have my deepest sympathies. Let's start off with two. In reviewing the specifics of their situation, you may feel that the client could change by reviewing the offences and redefining the relationship. By all means if you feel this way, schedule a meeting with the client to review the relationship, and where you feel changes need to be made. If the client responds favorably, proceed with caution and move forward with the relationship. Don't let anything slip. If the client shows their ugly side with either you or your sales assistant, point it out immediately, and state that you won't tolerate that behavior. If they persist, state very clearly that the relationship is no longer working as it should, and that they need to look for another financial advisor. Follow up this verbal instruction with a letter. Once you have sent the letter, don't take any more calls from the client. Arrange with your branch manager to take the calls and reiterate your instructions to have them move their account elsewhere.

You will feel a huge sense of relief and you will feel much better about yourself! No one enjoys taking verbal abuse. You are no exception! You are a professional and should be treated as one. When you surround yourself with clients who appreciate you and respect you, you will attract more of the same.

Surround yourself with the best clients. You deserve it!

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