Identify and Trade Bad Clients
Make a spreadsheet. List every client's name, age, source, revenue, total assets, future referral potential, enjoyment you get from them and so on. Compare each client to your ideal client using these variables. --Ronald D. Cordes and Richard E. Steiny
So, how do you identify bad clients? It's quite easy, really. Make a spreadsheet. List every client's name, age, source, revenue, total assets, future referral potential, enjoyment you get from them and so on. Compare each client to your ideal client using these variables. Rate how well each client matches your profile on a scale of 1 (low) to 5 (high). It will soon become clear who has to go. "Do they refer us to other people? Do they utilize our capabilities? Do they appreciate what we do for them?" asks Steve Ciepiela, president of Charles Stephen & Co. in Albuquerque, N.M. "We grade them. If they don't make the grade, we'll spend about six months trying to fix the relationship. If it's not fixable, I'll meet with them and say 'We're reviewing what we do for our clients and we don't feel that we are a good fit for you.'"
-Ronald D. Cordes is chairman and Richard E. Steiny is president of AssetMark Investment Services, in Trading Up
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