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October 14, 2025 15 mins

You’ve put in the hours.
You’ve delivered the work.
But every interaction with that client leaves you drained.

Here’s the truth: keeping every client is self-sabotage. Real leadership is knowing when it’s time to say “no.”

In this episode of The OBM Show, I’m breaking down the five undeniable signs it’s time to walk away from a client, and giving you the exact step-by-step process to offboard with clarity, confidence, and professionalism.

Here’s what we cover:

 • Why fear, scarcity, and people-pleasing keep OBMs stuck with bad-fit clients
 • The 5 red flags that mean a client relationship has expired
 • How to use the “Graceful Exit Protocol” to offboard without drama
 • A real story of an OBM School student who let go of a toxic client - and instantly signed her dream one
 • Why letting go is stepping into leadership - and the key to calling in aligned clients

Whether you’re holding onto a draining client or just want to set stronger boundaries, this episode will give you the clarity and tools to make brave, CEO-level decisions in your business.

Join us for our next round of OBM Week - a three day, LIVE virtual event where we’ll dive deeper into how to step into the OBM role with confidence and clarity. → https://www.obmschool.com/info/

—----------------------------



Thanks for tuning in to The OBM Show - your go-to podcast for Online Business Managers and entrepreneurs who want to scale strategically and sustainably.

If this episode resonated with you, be sure to follow the show and leave a review. It helps more aspiring and established Online Business Managers find this content and grow their businesses with confidence.

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Until next time, keep building the business behind the business.

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Transcript

Episode Transcript

Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Sarah Noked (00:00):
Welcome back to the OBM show.
I'm your host, Sarah No Ked,and today we're talking about
one of the most difficult andprobably gut-wrenching and
powerful decisions you canreally make as a business owner.
And we are talking about firinga client.
I know, even saying it feels alittle harsh, but I want you to
think about a specific clientright now.

(00:20):
You know the one, when you seetheir name pop up in your
messages, your stomach clenches.
You find yourselfprocrastinating on their tasks,
not because the work is hard,but because the energy it takes
to deal with them is draining.
You celebrate when they cancela meeting.
For so many OBMs, we areconditioned to believe, and

(00:42):
because we're heart of service,that keeping every client is a
sign of success.
But the truth is, realleadership, real CEO energy
isn't about who you say yes to.
It's about who you have thecourage to say no to.
And this episode is for everyOBM who is holding onto that

(01:03):
client relationship that hasexpired.
A relationship that is drainingyour energy, disrespecting your
boundaries, and holding yourbusiness back from its next
level of growth.
Today we're going to give youthe clarity to know when it's
time to walk away and astep-by-step plan to do it with
grace, professionalism, andconfidence.

(01:24):
Welcome to the OBM Show, thepodcast that pulls back the
curtain on what it really takesto thrive as an online business
manager and help businessesscale without burning out.
I've been working in the backend of online businesses since

(01:47):
2009, building systems, managingremote teams, and mentoring
OBMs who make businesses runlike clockwork.
Now I've seen what works, whatdoesn't, and the messy middle
that no one talks about.
Here we get real about thetools, strategies, and stories
that drive sustainable success,plus the tech mishaps, growing

(02:11):
pains, and lessons learned alongthe way.
If you're ready to stopspinning your wheels, step into
your leadership role, and seewhat actually happens behind the
scenes of thriving businesses,you're in the right place.
Let's get started.
Let's be honest about why thisis so hard.
The number one reason that wecling to bad fit clients is

(02:34):
fear.
Plain and simple.
From one people pleaser to thenext.
I know we build our careers onbeing helpful and reliable.

(02:56):
And the idea of letting someonedown feels like a failure to
our core identity.
There's also this sunk costfallacy at play.
The feeling that you can'tleave because you're already
investing so much time andenergy, and you have already
invested so much time and energytrying to make it work.

(03:16):
You think to yourself, if Ihave just one more system, or I
try just one more system, or Ihave one more conversation,
maybe it will get better.
But I want to offer you a newperspective.
Offboarding a client who is nolonger a fit isn't a failure,
it's a strategic businessdecision.

(03:37):
It's like pruning a plant.
And you guys know I used tohave a landscaping company back
in the day, almost 15 years ago,and I love my plants.
You have to cut away branchesthat are no longer looking good.
Or if you got some lime treeslike I do, you gotta cut away
the branches that are no longerbearing fruit to make space for

(03:57):
new and healthier growth.
And when you allow a drainingclient to take up space in your
business, you are activelyblocking the energy, the time,
and the mental capacity requiredto call in the dream clients
you are meant to serve.
So, how do you know if you arein just a tough season with a
client or if the relationship isfundamentally broken?

(04:20):
Let's walk through the signs.
So, the first sign of a clientthat you need to dump is
persistent scope creep and lackof respect for your work.
Now, I know that this seemsobvious, and this is probably
the most common one.
It starts with a quick favorhere, or can you just look into
this?
And soon you find yourselfspending your Sunday afternoon

(04:41):
redesigning a presentation slidethat wasn't in the plan because
they have a last minute meetingon Monday.
Now, when you try to setboundaries or point out that
this request is outside of thescope, you're met with
defensiveness or guilt.
This isn't just about themoney, my friends.
It's a fundamental lack ofrespect for your professional

(05:01):
boundaries and the value of yourtime.
So if a client is constantlypushing the scope, they don't
see you as a strategic partner,they see you as endlessly
available and a resource thatthey can take advantage of.
Not fun.
Now the second sign is there'sa fundamental values

(05:24):
misalignment.
And this is really oftenoverlooked, but it's subtle and
very important.
You believe in calm,systematized growth, but your
client thrives in chaos,last-minute fire drills, and a
company culture of burnout thatthey inflict on you and the
team.
Or, and I've seen this a fewtimes, maybe they're in the

(05:46):
wellness industry, but promoteproducts with questionable
claims that make you feelethically compromised.
You cannot be the operationalleader for a business whose
mission or methods you don'tbelieve in.
I have a lot of other videos onour YouTube channel and
podcasts where I talk about theideal client and I make four

(06:07):
points about this ideal client.
I'm not gonna go into them, buta big one is this value
alignment.
It is so critical to have faithin what your client is doing
because that internal conflict,that feeling of being out of
integrity, it will drain yoursoul faster than anything else.
And it will poison your passionfor the work that you do.

(06:30):
No joke.
Now, the third sign is theyrefuse to be led.
This is another one of my idealOBM client things, but they
have to be able to delegate andthey have to be able to be led.
You were hired to be the onlinebusiness manager, to manage
operations, to lead the team.
But every time you make arecommendation, they second

(06:52):
guess you in front of the team,even.
They micromanage your everymove.
They're asking for updates ontasks you completed yesterday
that go around you to giveconflicting instructions to team
members.
I know it sounds crazy.
They're creating confusion andcompletely undermining your
authority.

(07:12):
That is their goal, is toundermine your authority.
And a client who won't trustyou to do the job they hired you
for is not a partner.
They, my friends, are a damnstrong roadblock.
You cannot lead somebody whorefuses to get out of their car
and let you drive.
Now, the next sign that I seeis that, and this is this is

(07:34):
enough, the relationship drainsyour energy.
This, my friends, is a businessmetric.
I want you to start trackingit.
After a call or an interactionwith a client, do you feel
energized and excited, or do youfeel exhausted, resentful, and
depleted?
Do you get a tension headachejust from opening your email and

(07:55):
seeing something in your inboxfrom them?
Your energy in life and inbusiness is your most valuable
asset.
It is the fuel for yourcreativity and your strategic
thinking for all of yourclients.
It's also the thing that yougive your family, okay?
If one client is consistentlycosting you more in emotional
energy than they are paying youin dollars.

(08:16):
And I'm I don't even know ifthere's a price to put on that.
Your business is operating at anet loss.
Now, the next sign is thatyou've outgrown them.
Simple as that.
This isn't anyone's fault.
It's a natural part of growth.
Maybe you took them on when youwere just starting out, and
your skills and your rates andyour street sheet capabilities
have skyrocketed.

(08:37):
You're now ready to manageseven-figure launches, but they
are still struggling with theirfirst five-figure months.
And the work feelsunchallenging and repetitive.
So continuing to work with aclient like this out of loyalty
is actually, in fact, adisservice to you both.
You're holding back from higherlevel work, and they would be

(09:00):
better served by someone who isprobably a specialist at their
current stage of business.
Now, if you're nodding along totwo, three, or even all five of
these, you need to take a lookat your client roster.
And in addition to that, Ithink that you found your
answer.
It's time.
So now let's talk about how tomake the graceful exit, right?

(09:23):
Graceful exit protocol.
Firing a client doesn't have tobe dramatic unless you want it
to be, right?
Unless you want it to be abridge-burning event, which I do
not want that for you.
So here is a step-by-stepprofessional plan for
respectfully offboardingsomeone.
Now, first things first, reviewyour contract.
Okay.
And I hope you have a contractin place.

(09:45):
Before you do anything, pull upyour agreement.
What does the terminationclause say?
How much notice are yourequired to give?
30 days is pretty standard, butknowing your contractual
obligations gives you a veryfirm logical foundation for this
conversation.
Then the next plan is to createa transition plan.
I do this on my own withoutinvolving the client.

(10:07):
But the key to a graceful exitis to make the transition as
smooth as possible for theclient.
This not only demonstrates yourprofessionalism to the very
end, but your transition planshould be a simple document or
dashboard that includesorganized access to all the
files, a list of recurring tasksand their status, key login
information, and a brief videorecording using a tool like Loom

(10:31):
to screencast and explain anycomplex processes.
This shows them that you aren'tleaving them in the lurch.
Now the next step is to scriptthe conversation because I want
you guys coming in feeling easyand breezy.
Don't go into this conversationunprepared.
Write out exactly what you'regonna say.
Feel free to use Chat GPT orsome other AI tool, but it

(10:54):
should be clear, it should bekind, it should be firm, it
should be concise.
Avoid blaming or listing theirfaults.
It serves nobody, right?
And didn't someone ever tellyou if you don't have anything
nice to say, then don't sayanything at all.
Frame the decision as about theprofessional fit, not their
personal failings.

(11:15):
I always, and this is one ofour mantras inside of OBM
school, but you want to leavethe business better off than how
you found it.
So whenever I'm like faced withsomething like this, I always
think about it in the context ofthe business and what the
business needs, right?
So you could say somethinglike, hey dear client, I'm
reaching out to share an updateon our work together.
I have so enjoyed being part ofyour journey to this point.

(11:38):
And I've been looking at thestrategic direction of my
business, and I've realized thatmy services are evolving in a
new direction.
Because of that, I've made thedifficult decision that I'm no
longer the best person tosupport you in reaching your
upcoming goals.
Per our contract, I'm giving my30 days notice, and my last day

(11:59):
will be fill in the date.
I am fully committed to makingthis a smooth transition for
you, and I've already preparedan offwarding plan to ensure you
have everything that you need.
And then this is an importantstep.
This next step, deliver themessage calmly.
Deliver the news over a call ifpossible or via email if that
is your standard form ofcommunication for important

(12:21):
manners.
Stick to your script, beprepared for a reaction.
They may be surprised, they mayyet be upset or defensive.
Don't make it personal.
Do not get drawn into a debateor an argument.
Your role is to hold theboundary with calm and
confidence.
And you definitely don't needto overexplain, or you

(12:44):
definitely don't need to justifyyour decision.
If they push for more, simplyrepeat your core message.
I know that this is difficult,dear client, but my decision is
firm.
My focus now is on ensuringthat you have a smooth and
successful transition over thenext 30 days.
So let me tell you a quickstory about Erin.

(13:06):
She's actually a student that Ipersonally coach with, and I do
this from time to time with ouraccredited students who are
scaling agencies.
So she is scaling an agency,and she had a client who was the
queen of scope, creep, anddisrespect.
She would text her on Sundaymornings and expect her to jump.

(13:27):
She was one of her firstclients and had been with her
for three or four years andpaying a rate that was now less
than half of what she chargesher new clients.
And for some reason, Erin wasstill terrified to let her go.
The final straw was when theclient basically belittled her

(13:49):
on a team meeting call.
And she knew, Erin knew thenthat the cost to her confidence
was far greater than the moneyshe was making.
And inside of our coachingtogether, we walked through this
graceful exit protocol.
She reviewed her contract.
She built a beautifuloffboarding dashboard in Notion,

(14:11):
and she practiced her scriptwith me in our coaching
conversations.
And then she sent the email.
Yes, the client was initiallyannoyed, but actually Erin was
really impressed with how theclient was kind of like vanilla
and whatever about everything,because that was just part of
her vibe.
And she ended up thanking Erinfor her work.

(14:33):
And here's the magical part theweek after she sent that email,
before the 30-day period noticewas over, she got a referral
for a new client, a seven-figurebusiness owner who saw her as a
leader from day one, respectedher boundaries, paid her premium
rate without blinking.
Erin told me that she felt, andI know it to be true, she felt

(14:56):
like the universe had beenwaiting for her to make space.
Letting go of the wrong clientscreates a vacuum and the right
opportunities will rush in tofill it.
So if you're finally ready tomake that brave decision, we are
here to support you.
You can find a bunch ofpractical, easy to use resources
linked below this video, or youcould head on right over to

(15:19):
obmschool.com forward slashresources to grab them all.
So grab those resources andthank you so much for tuning
into the OBM show.
If this episode gave you thecourage you needed, send it to a
fellow OBM who needs to hear ittoo.
Subscribe, leave a review, andremember your business can only
grow to the level that you arebrave enough to lead it.

(15:39):
I'll see you in the nextepisode.
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