Good Clients vs. No Clients vs. Bad Clients
In this episode of the Honor Roll podcast, host Mike Michalowicz (author of The Toilet Paper Entrepreneur and The Pumpkin Plan) thanks his sponsors before delivering a concise business tip about client quality. He categorizes clients into three types in order of desirability: good clients, no clients, and bad clients. Good clients have clear expectations, are thrilled with the work, and pay on time. No clients, while not generating revenue, are preferable to bad clients because they free up time and resources, allowing the business to pursue better prospects. Bad clients, in contrast, consume resources, complain, delay or refuse payment, and can actually cost the business money, dragging it down. Michalowicz argues that it’s better to have no clients than to retain bad ones, as the latter hinder growth and profitability.
