"But Sean, the issues here involve finding other clients, business, accounts. That's not easy!"

I never said it was going to be easy. It will actually be quite hard; not only hard but painful, and you will usually incur a financial hit-- hopefully temporarily.

Terminating a client could actually end up ruining your firm if it is not done right, that's why it is so rare. I worked for an agency where arrogant pride led to the termination of the largest client. After it happened everyone on the team felt this pride that the agency had the balls to do it, but I believe it caused a cascade effect that eventually led to the agency's closure several years later.

The fundamental difference between this and the client firing you is that the only true effect on the client end is possibly choosing an agency that is not as good, and the amount of time that they now have to train to get that new team up to speed. There is no real substantiated financial risk except a potential downturn in consumer response based on the new work, and that is more likely going to affect the next agency's survival at the client more than it will the internal marketing team at the client.

Keep your eyes on the cost to employees
The agency is only as good as its people. Period. And this applies even more so today.

As the internet ad industry matures, more verticals mature for the client to go to specialized agencies. Specialized verticals often have mediocre people but incredible tools and software that gives them that advantage. (This is truer in digital than with traditional agencies.)

Specialized agencies rely on their systems to squeeze efficiencies out of the system, and they often require fewer people to deliver a superior product. That means that the central agency needs to be more and more the thought leader, and to be the thought leader what do you need? Top-notch-internet-strategy-fundamental-understanding-of-technological-nuance-brand-moving-digital-ideation-seeping-out-of-their-pores people.

I am often amazed, shocked and stunned when an agency is unable to retain top talent. This is a message to all the agencies out there.

Your financial people have had a nice ride since the collapse, when people were cheap and desperate. Guess what? The party is over. The market has tightened up again; it's time to start loosening your checkbooks or you are going to lose all your good people. If they're good, then their phones are already ringing off the hook with recruiters and job offers. (Mine is, and I'm an idiot.)

Who knows, if you lose enough people, you may not have to worry about firing your client-- it will have already been stolen by your former employees.

In order to avoid many of the things that cause, uh, relationship issues with your client, remember: Fast, Cheap, Good.

But you only get to pick two.

There are times when letting a client go is in the best interest of your agency. Look past the money, look past the awards-- look to your people.

Your people are your agency. Without them you are nothing. It is never an ideal situation to contemplate.

So go ahead, fire the clients who aren't working out. If you are not self-absorbed and arrogant about the reasons, you may find a number of agency benefits, and a grateful group of employees with newfound loyalty.