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Client wants out of agreement - HELP!

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  • detour3
    I have a client who claims he is in a cash flow crunch because a former employee is suing his $7 M in revenue 30-person ad agency and he now needs to come up
    Message 1 of 5 , Jul 2, 2007
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      I have a client who claims he is in a cash flow crunch because a
      former employee is suing his $7 M in revenue 30-person ad agency and
      he now needs to come up with a $15 k beginning retainer to fight the
      lawsuit and hire a "name brand" attorney.

      His retainer is very small with me ($1,250/mo.) Friday he gave me 30
      days notice per our written agreement. Today he asks me via email to
      be a "mensch" and let him out of this month's agreement. He claims in
      his industry, clients hire and fire at will and initially did not
      want to do an agreement with me. I convinced him to do a 12-month
      agreement with a 30 day out. He has paid me on time for two months
      into a 12-month agreement.

      I took both his wife and him out to dinner for $200 just a week and a
      half ago. I've tried to turn this relationship into a friendship as
      well (he went to the same high school I did) and he is a fun guy. I
      believe there may be an opportunity for future business with him or a
      referral from him but he is a lot of smoke and mirrors and false
      promises. (His clients are auto dealers....)

      He is very cheap. I think he thinks he can push me around because I
      am a one-man band firm. How can I politely but firmly hold his feet
      to the fire, have him respect me and not burn bridges? He likes to be
      in command and get his way....

      Daryl
    • Janine Krasicky
      My advice is to just say no to his question and tell him he needs to make the final payment. If he signed the agreement, he is liable for it, whether you re a
      Message 2 of 5 , Jul 2, 2007
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        My advice is to just say no to his question and tell him he needs to make
        the final payment. If he signed the agreement, he is liable for it, whether
        you're a 40-person firm or a solo practitioner. He can only push you around
        if you let him.



        Best regards,

        Janine

        Janine Krasicky
        President
        J9 Media Solutions, LLC
        248.542.3991
        janine@...
        www.j9media.com



        Integrated public relations & marketing communications

        "We make a living by what we get, but we make a life by what we give."
        - Winston Churchill



        _____

        From: prbytes@yahoogroups.com [mailto:prbytes@yahoogroups.com] On Behalf Of
        detour3
        Sent: Monday, July 02, 2007 4:43 PM
        To: prbytes@yahoogroups.com
        Subject: [prbytes] Client wants out of agreement - HELP!



        I have a client who claims he is in a cash flow crunch because a
        former employee is suing his $7 M in revenue 30-person ad agency and
        he now needs to come up with a $15 k beginning retainer to fight the
        lawsuit and hire a "name brand" attorney.

        His retainer is very small with me ($1,250/mo.) Friday he gave me 30
        days notice per our written agreement. Today he asks me via email to
        be a "mensch" and let him out of this month's agreement. He claims in
        his industry, clients hire and fire at will and initially did not
        want to do an agreement with me. I convinced him to do a 12-month
        agreement with a 30 day out. He has paid me on time for two months
        into a 12-month agreement.

        I took both his wife and him out to dinner for $200 just a week and a
        half ago. I've tried to turn this relationship into a friendship as
        well (he went to the same high school I did) and he is a fun guy. I
        believe there may be an opportunity for future business with him or a
        referral from him but he is a lot of smoke and mirrors and false
        promises. (His clients are auto dealers....)

        He is very cheap. I think he thinks he can push me around because I
        am a one-man band firm. How can I politely but firmly hold his feet
        to the fire, have him respect me and not burn bridges? He likes to be
        in command and get his way....

        Daryl





        [Non-text portions of this message have been removed]
      • david davis
        1. Keep him to the 30 day agreement which, by any standards, is more than a reasonable termination period. Your monthly fee was an indication of your
        Message 3 of 5 , Jul 3, 2007
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          1. Keep him to the 30 day agreement which, by any standards, is more than a reasonable termination period. Your monthly fee was an indication of your commitment which he must be made to honour.

          2. Remember clients never tell you the truth...what's the strength of his legal problem?

          3. Never try to convert a client into a friend...they will always be a client and bite you in the neck if it suits their cause, as you have already do discovered.

          4. Never do business with a friend or relative.

          Good luck...

          David Davis


          detour3 <dtoor@...> wrote: I have a client who claims he is in a cash flow crunch because a
          former employee is suing his $7 M in revenue 30-person ad agency and
          he now needs to come up with a $15 k beginning retainer to fight the
          lawsuit and hire a "name brand" attorney.

          His retainer is very small with me ($1,250/mo.) Friday he gave me 30
          days notice per our written agreement. Today he asks me via email to
          be a "mensch" and let him out of this month's agreement. He claims in
          his industry, clients hire and fire at will and initially did not
          want to do an agreement with me. I convinced him to do a 12-month
          agreement with a 30 day out. He has paid me on time for two months
          into a 12-month agreement.

          I took both his wife and him out to dinner for $200 just a week and a
          half ago. I've tried to turn this relationship into a friendship as
          well (he went to the same high school I did) and he is a fun guy. I
          believe there may be an opportunity for future business with him or a
          referral from him but he is a lot of smoke and mirrors and false
          promises. (His clients are auto dealers....)

          He is very cheap. I think he thinks he can push me around because I
          am a one-man band firm. How can I politely but firmly hold his feet
          to the fire, have him respect me and not burn bridges? He likes to be
          in command and get his way....

          Daryl






          [Non-text portions of this message have been removed]
        • laryana@aol.com
          I will just echo the earlier sentiments. Hold him to this 30 days as per the contract.??That is the purpose of a contract.? If he gives you a hard time about,
          Message 4 of 5 , Jul 3, 2007
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            I will just echo the earlier sentiments.



            Hold him to this 30 days as per the contract.??That is the purpose of a contract.? If he gives you a hard time about, ask him to consider if it were one of his clients trying to get out of a payment owed to him.



            While it is nice to try to be friendly with your clients, it is a delicate balance.? In this situation, you might just need to let the "friendship" go - even if you lose this client's business, it doesn't sound like it will be much of a loss.

            Good luck.

            Debbie


            -----Original Message-----
            From: detour3 <dtoor@...>
            To: prbytes@yahoogroups.com
            Sent: Mon, 2 Jul 2007 9.43pm
            Subject: [prbytes] Client wants out of agreement - HELP!




            I have a client who claims he is in a cash flow crunch because a
            former employee is suing his $7 M in revenue 30-person ad agency and
            he now needs to come up with a $15 k beginning retainer to fight the
            lawsuit and hire a "name brand" attorney.

            His retainer is very small with me ($1,250/mo.) Friday he gave me 30
            days notice per our written agreement. Today he asks me via email to
            be a "mensch" and let him out of this month's agreement. He claims in
            his industry, clients hire and fire at will and initially did not
            want to do an agreement with me. I convinced him to do a 12-month
            agreement with a 30 day out. He has paid me on time for two months
            into a 12-month agreement.

            I took both his wife and him out to dinner for $200 just a week and a
            half ago. I've tried to turn this relationship into a friendship as
            well (he went to the same high school I did) and he is a fun guy. I
            believe there may be an opportunity for future business with him or a
            referral from him but he is a lot of smoke and mirrors and false
            promises. (His clients are auto dealers....)

            He is very cheap. I think he thinks he can push me around because I
            am a one-man band firm. How can I politely but firmly hold his feet
            to the fire, have him respect me and not burn bridges? He likes to be
            in command and get his way....

            Daryl





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            [Non-text portions of this message have been removed]
          • kezia_jauron
            Ugh, my husband worked for an advertising agency that had car dealerships as clients. The agency execs were crooks, the clients were crooks...he s probably
            Message 5 of 5 , Jul 3, 2007
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              Ugh, my husband worked for an advertising agency that had car
              dealerships as clients. The agency execs were crooks, the clients
              were crooks...he's probably being sued by an employee who was
              terminated for refusing to do illegal co-op ads.

              I agree with the rest of the gang. The way he gets out is to hand you
              a check for $1250. The 30-day period is for you to replace his
              business - otherwise YOU'LL be the one in trouble, with your mortgage
              company. How he does things in his business isn't relevant. He's
              probably not on a retainer agreement with his clients, but rather
              collecting 15-20% of the ad placements.

              If you want to be a mensch, don't bill him for the dinner.





              --- In prbytes@yahoogroups.com, "detour3" <dtoor@...> wrote:
              >
              > I have a client who claims he is in a cash flow crunch because a
              > former employee is suing his $7 M in revenue 30-person ad agency
              and
              > he now needs to come up with a $15 k beginning retainer to fight
              the
              > lawsuit and hire a "name brand" attorney.
              >
              > His retainer is very small with me ($1,250/mo.) Friday he gave me
              30
              > days notice per our written agreement. Today he asks me via email
              to
              > be a "mensch" and let him out of this month's agreement. He claims
              in
              > his industry, clients hire and fire at will and initially did not
              > want to do an agreement with me. I convinced him to do a 12-month
              > agreement with a 30 day out. He has paid me on time for two months
              > into a 12-month agreement.
              >
              > I took both his wife and him out to dinner for $200 just a week and
              a
              > half ago. I've tried to turn this relationship into a friendship as
              > well (he went to the same high school I did) and he is a fun guy. I
              > believe there may be an opportunity for future business with him or
              a
              > referral from him but he is a lot of smoke and mirrors and false
              > promises. (His clients are auto dealers....)
              >
              > He is very cheap. I think he thinks he can push me around because I
              > am a one-man band firm. How can I politely but firmly hold his feet
              > to the fire, have him respect me and not burn bridges? He likes to
              be
              > in command and get his way....
              >
              > Daryl
              >
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