Should your MSP fire a client for Christmas?

(the big question almost no one asks… but should)

Every year, right around now, some MSP owners start dreaming. Not of presents, mulled wine, or a quiet day with minimal tickets.

No. They start dreaming of firing “that client.” You know the one I mean. Yes… THAT ONE 😃

And honestly? If you find yourself thinking about this a lot, I believe you have to act on it. Let's explore this.

Why this question matters right now

December delivers you two magic ingredients that MSPs rarely get at the same time:

1. Perspective: You can see the year as a whole
2. Momentum towards a deadline: You have just enough time to make changes before taking some time off

Which means that you're thinking, planning, and reviewing. And somewhere in that process, the small number of clients who are annoying enter your head...

• The noisy one
• The energy vampire
• The one who questions every line on every invoice
• The one who is constantly unhappy
• And the one who doesn't talk to your team with any level of respect

And you think:

“Am I REALLY going to put up with that person for another year???”

But then doubt creeps in. You think to yourself: "Wait, hang on. I'm trying to grow the business here. If I fire a client, I'm going backwards. That would be a dumb thing to do."

But did you know that firing a client can actually make your business more profitable?

Here’s something most MSPs don’t realise until they do it: Your worst client costs you more than they pay you.

Read that line again because it's absolutely true.

Sometimes (not always) that cost is financially. But your bad client is DEFINITELY costing you emotionally, mentally, and operationally.

A single difficult client can:

• Demoralise your team
• Drain technician time
• Create chaos in your personal schedule
• Slow down work for good clients
• Trigger staff churn
• Destroy your day with a single ticket

The opportunity cost of a bad client is huge. So, let me make it easy for you to spot one...

The 4 signs a client deserves to be fired

1) Your team groans when their name appears on caller ID

This is the biggest red flag. If your people feel dread, and they're looking at each other hoping someone else picks up the phone... something’s wrong.

2) They argue over everything

Quotes. Invoices. Ticket priorities. Response times. Every conversation feels like a negotiation. That's not what a partnership is supposed to be like

3) They expect champagne service on a lemonade budget

And when you tell them that what they're asking for is at a higher level and higher price, the conversation becomes about how expensive you are. Crazy, right?

4) They don’t follow your process

They won’t log tickets. Won’t approve upgrades. Won’t invest in security. But of course they blame you when things break. Good luck if ever they get breached 😱 Thing is, if a client consistently refuses to work with you… they’ll always feel like they’re working against you.

Still got someone's name in your head? Here's how to fire them without being cruel

I think this time of the year is the best time to fire clients, because you're getting everything in order for a year of growth next year.

Actually, let's change the terminology. Instead of thinking about firing clients, you're going to help them find another home that's better suited to them. In fact, that should be your whole attitude as you talk to them about this.

It's a conversation that's best done on the phone. You can cover off these points in this order :

1. Thank them for their business
2. Explain your MSP is moving in a different direction and you don't feel that your businesses are a good fit for each other anymore
3. Give them formal notice including a date that your service will stop. Of course this should be confirmed in writing
4. Recommend another MSP... I'm not going to be childish enough to suggest you recommend your biggest competitor 🤣
5. Work professionally and formerly to help them migrate without drama

Done right, they walk away annoyed with you but grateful you behaved professionally.

Done wrong, they leave a Google review that looks like a horror story.