I have a referral arrangement with an energy broker in New Jersey. He sends me clients, I pay 15% referral fee on my audit fees. It's been great — until last month. He referred a property management company that turned out to be a nightmare. They wouldn't return calls, took 6 weeks to get LOAs signed, and then complained about the timeline. Now the broker is pressuring me to prioritize this client over my other work. How do I handle this without blowing up the broker relationship?
Broker sent a bad client — how to handle?
Be direct with the broker. Tell him the referral is appreciated but the client isn't cooperating with the process. A good broker will understand and either help move things along or accept that this particular client isn't a fit. If the broker takes the client's side and pressures you to compromise your process, that tells you something about the broker relationship. I've dropped broker partnerships over this — the referral stream isn't worth it if the broker sends difficult clients and then takes their side.
Phil is right. Communication is key. Most broker relationships survive honest conversations about client quality. The broker may not know the client is being difficult — from his perspective he made an introduction and expects you to handle it. Tell him specifically what's happening and ask for his help. If he's a good partner he'll call the client and get things moving. If he dismisses your concerns, reconsider the partnership.
Talked to the broker. He didn't realize the client was being unresponsive. He called them directly and things improved immediately. Lesson learned — communicate early instead of letting frustration build.