Firing client

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Aug 23, 2009 1:03 am

I have a client that I inherited about 9 months ago and he has several accounts Trust Ira custodian with households of about 750k. About 60k in fee based and rest in a brokerage account. He has threatened me few times that he'll leave if we start charging extra fees. Everytime I call him he makes you feel like i'm bothering him and rarely returns my calls. So the question is do I give this client away to another fa or continue to build a relationship with this client. 9 years in the business and don't really need this client.

Aug 23, 2009 1:09 am
skbroker:

I have a client that I inherited about 9 months ago and he has several accounts Trust Ira custodian with households of about 750k. About 60k in fee based and rest in a brokerage account. He has threatened me few times that he'll leave if we start charging extra fees. Everytime I call him he makes you feel like i'm bothering him and rarely returns my calls. So the question is do I give this client away to another fa or continue to build a relationship with this client. 9 years in the business and don't really need this client.

I think you answered your own question. You keep the clients you want and need, all the rest you shed for someone else to cut their teeth on.

Aug 23, 2009 8:57 am

Yeah,



Every time I fired a client that I didn't want, it felt great!. Free yourself from this guy, it will be worth it.

Aug 25, 2009 12:52 am

While I generally agree with the saying - "If you think you want to fire the client, then definitely fire the client", there's a possibility that the guy is just shell shocked from being called on by other brokers and will eventually warm up to you.
How did the account come to you?

Aug 25, 2009 1:49 am

I inherited a account from a fa that left for lpl. What are your criteria for firing client?   Low revenue? Small account? Too demanding? All of the above?

Aug 28, 2009 7:07 pm

My criteria for firing a client has been different over time. Currently, I'll fire a client if I dread talking to them, think they might ever seek legal recourse, or if they require more than 10 hours a year of attention. This was different when I was in my first few years and when I was older, but still at a wirehouse.

The other group that I will definitely fire - under ANY circumstances - is a client who complains about fees. This is a sure sign of someone who doesn't understand and / or value what I do. 
Aug 28, 2009 7:09 pm

I'm always suspicious of a client who chose to remain with a firm when their advisor left.

Sep 16, 2009 8:44 am
san fran broker:

I'm always suspicious of a client who chose to remain with a firm when their advisor left.

 
Agreed....if they didn't follow the other Advisor to LPL he  might not have been invited since he's a pain and complains about fees. 
 
I left a bunch of clients behind when I went Indy and I pity those that inherited them.
Oct 1, 2009 12:46 am
san fran broker:

I'm always suspicious of a client who chose to remain with a firm when their advisor left.


Most likely, it was the departing advisor's decision.  I left a few turds in the toilet when I went indy...