How to Tell if a Client will be Terrible!

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Hi there!

About 8 months ago, I climbed the Mount Everest of solopreneur consulting.

An executive sent me a Linkedin message. He needed an independent consultant for a 6-8 month contract, and wanted to speak.

This wasn’t any executive though. He works at one of the biggest and coolest companies in the world. Everyone in the world knows this company.

I’d bet my last dollar that you use their products.

And they wanted to hire me.

Even better, they came to me! I didn’t do any marketing or sales. I didn’t think it could get any better.

Two months later, I fired them as a client.

This was my fault, entirely.

I fell pray to the fancy name and ignored warning signs I should have seen.

Let’s make sure that doesn’t happen to you.

So, today we’re talking about

1. The implications of a bad client

2. Bad client archetypes and warning signs to spot them

3. A rental I almost bought, and the two reasons I didn’t

Here we go!

1. The Implications of a bad client

There’s only two outcomes in a project with a bad client: you gut through the project or fire the client. Both have downsides.

Gutting through the project means you work a ton and miss time with family and friends.

Additionally, there is a joke that “every consultant is two bad projects away from leaving the industry.”

That’s a problem when consulting is lucrative. You WANT to stay in the industry.

The other outcome is firing the client, like I did.

The downside there is you annoy a client and will never work for them, or any of their friends/colleagues again. You also lose the contracted revenue, which hurts.

2. Bad client archetypes and warning signs to spot them

Here are the bad client types I’ve come across, and how you can spot them.

The “Disengaged”

Why they are terrible to work with:

This client will not pay attention during the project.

Then, they’ll pop up right before a big meeting. They want to ensure the work is good so it reflects well on them.

In that process, they’ll blow up everything you’ve done

Waring Signs:

You should talk about process & communication norms with clients before you take projects.

If this client doesn’t seem to care about these, don’t work with them.

The “Idea Guy”

Why they are terrible to work with:

They live in idea land. It’s impossible for them to progress from “throwing out ideas” to getting stuff done. That means you won’t get anything done.

Waring Signs:

This client will turn your pitch calls into mini brainstorm sessions. A little brainstorming is a great way to show your expertise, but it should not be the sole focus of the call.

The “Lacks Authority”

Why they are terrible to work with:

They don’t have the authority to do anything, which means you won’t be able to do anything.

You won’t be able to deliver a good result, through no fault of your own, which will lead to you frustrated and your client disappointed.

Waring Signs:

If the client says they “need to get approval from XYZ, XYZ, and XYZ” to hire you as a consultant, then stay away.

Note: this is distinctly different than the client saying: “You’ll work closely with XYZ on this project, so I want you to meet them too.”

The “Doesn’t Let You Talk To Their Boss”

Why they are terrible to work with:

If their boss will see the result of your project work and evaluate it, then this client is a nightmare.

If you can’t ask the boss what they are looking for, you won’t be able to deliver what they want.

Waring Signs:

The client mentions their boss will be on the “steering committee” or will be a beneficiary of your work. You must ask when you will get to meet with the boss.

If the client tries to dodge this question, run away.

The “Make Me Rich”

Why they are terrible to work with:

This client wants to be wealthy & successful. They expect you to make that happen.

This client is the worst because the goalposts are impossibly large. If they aren’t on Forbes at the end of the project, you failed. (only a slight exaggeration here)

Waring Signs:

There are a couple of warning signs here. The more of these you see, the higher the odds the client is a “make me rich.”

• Never hired a consultant before

• Sub 35 years old

• Aggressively negotiates price

• Runs a startup

• Displays questionable ethics in your first conversation with them

This client will want you to turn them into a billionaire for the low consulting fee of $1,000

Whatever you do, do NOT work for this person. It will end horribly.

2. Why I passed on this rental

We’re in Libertyville, IL this week. That’s a nice suburb of Chicago with an upstart high school.

Last year it was ranked 10/10 on Great Schools. It’s fallen this year to be 7/10.

This house is 3 bed/3 bath, asking $424,000 & completely renovated.

I think I could get $3,400/month for it and cashflow ~$600/month.

It appears to fit my investment thesis but I obviously haven’t bought it.

Here’s why:

#1: Upstart High School:

The high school quickly rose to be 10/10. That’s good, because I only want to invest in elite high school districts.

However, I prefer schools that have always been 10/10. A school that quickly rose to be 10/10 can quickly fall….like it appears this one has.

#2: Build Year 1962: 

Insurance carriers start to get suspicious of homes older than 1970’s. So 10 years from now, carrier’s won’t like homes older than 1980’s

That’s a problem, because I’d optimally like to sell my portfolio in ~10 years to a larger fund.

If that fund cannot profitably insure this home, then they won’t buy it. Therefore I cannot buy it now!

How can I help?

If you reply to this email, it will come directly to me & I’ll respond early next week.

I don’t have any formalized training to help people get started consulting, but will soon. My goal is to make people $350M in consulting (more on that here)

What would be most helpful to read about next week?

Let me know what would be most helpful for you :)

Scholastic Capita;

A rockstar and I are teaming up to start a real estate fund that invests in single family homes in elite school districts. 

If you are interested in investing, or would like to watch a fund creation process, feel free to follow along here!