Getting your Trinity Audio player ready...

Signs Your Client May Leave You 

I remember the feeling of the first time I lost a major client. It was early on in my journey and at that point, the account made up over 40% of my revenue. It completely caught me off guard and I remember beating myself over the fact that I was either too busy or too blind to see it coming. Looking back, I realized that the signs were everywhere and if I had only been paying attention, I could have probably mitigated the situation or at minimum better braced myself for impact. 

In this article, I’m breaking down a few red flags I wish I’d spotted earlier in my career. To bring these scenarios to life (and offer a game plan for handling them) I called on the king of roleplay for MSP sales objections, Robert Gillette from MSP Dojo.

They Make a Significant Leadership Change

There’s nothing that can shake-up a client relationship like a sudden shift in decision making. This is especially true in the case of larger organizations, where your key-point of contact falls to Director or middle Management roles. As MSPs, we put so much energy into nurturing these relationships and collaborating through Quarterly Business Reviews. Unfortunately, in some cases this built up trust is non-transferrable and you can suddenly find yourself having to start from scratch and prove your value all over again. 

As Robert Gillette explains, this scenario is incredibly common because business leaders tend to focus only on the most pressing issues at any given time. When an MSP is brought in to solve a problem and does so effectively, they may paradoxically become a victim of their own success. He says, “This happens all the time because a business leader can only focus on the most important and urgent problems at any given time. So, they hire your organization, you do a really good job solving their problem, and now you’re no longer on their radar. It’s not that you’re bad—it’s actually that you’re too good. But just being really good isn’t enough anymore.” This is why maintaining visibility and engagement is crucial, even after delivering strong results.

Gillette also agrees that when your point of contact changes, the existing trust you’ve built may not transfer automatically to the new decision-maker. “If a leadership change happens, you need to treat that person almost like a brand-new client. Run them through your client acquisition process again as if they hadn’t signed a contract. You need to get emotional and environmental buy-in from the person who is now making decisions about your continued existence as a vendor.” In other words, don’t assume past goodwill will carry over. Take proactive steps to reestablish your value and make sure the work you do is in alignment with the new leadership’s priorities.

They Delay or Avoid Renewal Discussions

While the struggle to get QBRs scheduled with clients is all too common, these meetings become mission critical in the 3-6 months leading up to a renewal. This is when you should be collectively evaluating progress and taking steps toward negotiating the conditions of a renewal. If a client that was otherwise engaged in these meetings suddenly goes silent or avoids the conversation, it could be a sign that they are considering a non-renewal. 

As Gillette explains, one effective way to approach this situation is by using what Chris Voss calls an accusation audit. “If they’re being evasive, one of the best ways to address this is with an accusation audit. Once you get the client on the phone, you say, ‘Hey, it seems like our renewal is coming up, and you may not be renewing. You’re probably thinking this, this, and this.’ Lay out the worst possible reasons they might be hesitant and put them on the table so they have the opportunity to either correct the record or validate what’s actually happening.”

He adds, “The key is to go vulnerable first and share: ‘Hey, it sounds like we had two or three mistakes in the past six months, and that’s really hurt the relationship. That’s why it’s hard for you guys to sign a new agreement. You’re probably already talking to other vendors right now. How close am I?’ By saying something like that, you give them a chance to confirm what’s happening (or deny it) without feeling exposed, because you’ve already taken that step for them.”

They Stop Submitting Help Desk Tickets

It is every MSP’s dream that a customer environment becomes so well engineered that help desk tickets suddenly reduce down to a trickle. If this is a goal that you have been aggressively pursuing and it comes to fruition, then a celebration may be in order. However, if tickets suddenly drop with no improvements made, then there is a chance that there are other factors at play. I can recall this very situation, where a client was disputing a project invoice and decided to tell their entire team not to contact us until it was resolved. The silence was deafening and it certainly worked to get our attention and find a resolution. 

Robert warns that this can be an early sign of dissatisfaction. “This is actually a really good early indicator that you’re not meeting their needs. A great example of this is telehealth visits—I stopped doing them because they’re useless. I hear the same information, I don’t learn anything new, and there are no tests they can run over the phone. If people are having a bad help desk experience, they’ll stop engaging with it.”

He continues, “We can confuse low ticket volume with a better environment, but that’s not always the case. Making sure we’re looking at other indicators like smile-back scores and successful completion rates helps us understand: Are we really good, or are they just tired of not actually being helped? If you see an immediate halt—not a slow drop-off, but a hard stop—something has gone terribly wrong, and you need to put executive eyes on it immediately.”

They Ask For A Copy Of Their Contract

If your client suddenly reaches out to request a copy of their contract in the middle of a term, it could be a sign that they are evaluating the cost of termination. If not to cancel, they could also be in search of details regarding SLAs, availability, and performance. If you’ve had no service issues and there are no other red flags, then there are also some logical explanations that don’t lead to churn. For example, your client may be in the process of being acquired, is undergoing an audit, or is switching legal counsel. All of these are logical explanations and will likely require your cooperation. 

Gillette offered a strategic approach to handling this request. “If a client asked me for a copy of my contract, I would not send it. I’d schedule a 30-minute meeting and walk over there to review it with them. That way, we meet their request, but we do it in a way that allows us to place it in the proper context. If you sit with them for 30 minutes and have a conversation about what’s in that contract, you’re probably going to uncover what isn’t working—or at least the reason why they want to talk about it.”

He also warns that if a client refuses to share why they need the contract, it could be a bad sign. “If a client says, ‘I can’t tell you, I’m under NDA,’ that’s bad no matter how you look at it. Either they’re telling the truth—and that’s not good—or they’re lying to you—and that’s not good. Both scenarios should raise suspicion. If I got that response, I’d give them exactly what they want, but I’d also spend the next couple of weeks digging deeper—talking to power users, looking for other signals—to figure out what’s really going on.”

They Request Documentation & Passwords

As an MSP, you become the de-facto source of IT documentation for your clients. While businesses should realistically maintain these records independent of a third party relationship, most SMBs are not mature enough to think this way. This is why a sudden interest in documentation and administrative access could be a red flag that your client is considering pulling the plug on your relationship. These handoffs are never easy and I’ve personally heard stories of hostage-like situations where the losing MSP refuses to give up the information. This is why it is a smart decision for the client to request this access well before they decide to end the relationship. 

When roleplaying this scenario, Robert Gillette advises MSPs to read the room before reacting. “I’d say proceed with suspicion, but act normal. If this is the only thing out of place, it’s probably not a big deal. But if they also denied the last two projects, their smile-back scores are down, and they skipped their net promoter survey, that’s a different story. A single request doesn’t mean they’re leaving, but in combination with other signs, it could be a red flag.”

He emphasizes the importance of understanding the bigger picture when evaluating client behavior. “Think about it like this—if your boss asks you to update your job description, that could just be part of a normal review. But if it happens two weeks after the company announces revenue is down 10%, it suddenly feels different. Context matters, and with client documentation requests, you have to consider the bigger picture.”

They Start Posting IT-Related Job Openings

If you suddenly see your client publicly posting IT related job openings without your input, then this could be a red flag. The exception to this is if it’s a co-managed relationship where the client has an existing internal IT Department that is growing or attempting to cover employee churn. If that’s not the case, then it’s entirely possible that your customer is looking to bring IT in-house or they are bringing on a new decision maker to help manage your relationship. Either way, it is worth taking note and prompting a conversation.

Robert recommends that addressing this situation proactively is key. “If I saw a job post for an IT position and it was a surprise to me, I wouldn’t wait. If I could address it in the next QBR or account management meeting, I would. But if that’s more than a week away, I’d schedule a time to reach out and say, ‘Hey, I saw this job posting—awesome that your team is expanding! How do you envision this new employee fitting into our current structure?’”

He also warns that a client’s response can reveal a lot. “If they’re open and transparent about their plans, great. But if they’re hesitant to answer, that’s a very bad sign. It’s like checking a reference for a job candidate—if they say, ‘I can confirm they worked here,’ and nothing else, that’s telling. But if they say, ‘Oh, Kevin! We miss him so much!’ you know they had a great experience. If you ask how this new IT hire fits into your partnership and they dodge the question, that’s your answer.”

They Stop Paying Their Invoices On Time

It’s important to remember that not all churn is voluntary. Sometimes companies struggle to compete and find themselves in a dire financial situation.This is especially common in the SMB market served by MSPs, where the US Bureau of Labor Statistics suggests that 65% of companies fail after 10 years in business. While your client may not be shutting their doors overnight, they could be experiencing financial difficulties that lead to habitually past due invoices and ultimately a fractured relationship. 

In our conversation, Gillette emphasized that how a client handles these missed payments can be a key indicator of whether the relationship is salvageable. “If someone isn’t paying their invoice—whether it’s late or completely missing—the most important factor is responsiveness and communication. I’m willing to extend a lot of credit to a client that responds immediately, is transparent about what’s happening, and has a clear plan. But if they dodge calls and keep forwarding you to accounts payable, that’s a very different scenario.”

He also warned that if a client remains unresponsive, more drastic measures may become necessary. “If a client isn’t open and responsive, you may need to start suspending services to get their attention. At some point, they need to communicate what’s going on, or we need to take action. It gets really complicated when a client is using critical services like VoIP. If you shut them down, you might literally be shutting down their business, and that could put you in a legal gray area. You have to weigh the financial risk of non-payment against the legal and ethical implications of cutting them off.”

Conclusion 

Clients rarely leave without warning, you simply need to know where to look. By watching for these red flags, you can take action early. This allows you to reestablish trust at the precise moment and avoid being blindsided. If you notice multiple warning signs stacking up, don’t wait. Start a conversation and give yourself a chance to turn things around.