What should you do when your client cancels the website before you’ve even started?

When a client cancels the web design agreement before you’ve even started, it can be an unusual and frustrating experience. This can happen due to ‘buyer’s remorse’ or significant personal or professional disruptions. When this happened to me (fortunately, only once so far), my reaction was a mix of shock, annoyance and frustration. A lot of the annoyance stemmed from the fact that the client had taken a year to agree to the website, had admitted they’d not signed up initially due to a lack of funds, and then a year later called to see if the old quote was still valid and could they accept it. I said yes, and they digitally signed the contract. I know… that was a tonne of red flags!

After they’d signed up, I did as always: I sent them my welcome email, the onboarding document, and an invoice for the deposit. Usually, I expect the client to pay within a few weeks and send me artwork not long after. However, after several months and many follow-up emails and phone calls, the client replied to one of my emails with a single line: they “no longer wish to pursue this”—with ‘this’ being the website. I stared at my screen in shock at how blunt they had been.

So, if this should ever happen to you, here’s my advice based on what I did next. Remember, the client hadn’t paid me, so it wasn’t as messy as it could have been if they’d paid a deposit. My contract, by the way, states that deposits are non-refundable.

Always maintain a professional attitude. While feeling disappointed or frustrated is natural, don’t let these emotions affect your next step. Give yourself time to cool down if you are feeling angry. Politeness and respect should be your guiding principles, even when you are legally in the right. If no information has been given to you about the reason for not proceeding, be especially cautious in how you react, as you have no idea what could be happening with the client. They may be having a terrible time, and the last thing you want to do is jump to conclusions and send a hasty reply. If you need to ‘have a rant’, save that for your colleagues, friends, partner or Facebook peer group. Or better still, just ‘put it in a bubble and let it go’.

Before responding to the client, thoroughly review your contract. Understand your rights and obligations, as well as those of the client, in the event of a contract termination. You might include details about cancellation policies, notice periods, and potential fees. Even if you are well protected in your contract, you still have a decision to make. Do you try to make them pay at least something, or just let it go? In my case, they hadn’t paid the deposit; the only work I’d done was the initial sales meeting, the proposal and the onboarding. So…I just let it go. My philosophy is that there’s enough aggravation in this world, so I try to avoid adding to it. Some people might see that as being ‘too nice’ or being a ‘pushover’, but at the end of the day, it’s your business, your peace of mind, and your reputation and livelihood. I play the long game, which has served me well over many years of solo business entrepreneurship.

Acknowledge the client’s decision to terminate the agreement within a day at least. Make it very clear that the business relationship is now at an end, they don’t owe you any money (unless you are going to enforce a cancellation fee) and you don’t owe them a website or any other ancillary services. Void any unpaid deposit invoices that are sitting in your accounting system.

Here’s my response – feel free to use and adapt it if needed.

Although I consulted with my lawyer about the following email, this should not be considered legal advice. If you are uncertain about how to handle this situation, you should consult your own legal professional.

Dear [Client’s Name],

I acknowledge receipt of your email regarding terminating our web design agreement. I will treat your email as a formal written notice of cancellation for the agreement dated and signed by you on [XXX].

As a result, I will cancel the invoice for the deposit related to this project, and [Client’s Company Name] will no longer owe any monies to [XXX] under the terms of our former agreement. Furthermore, this means that [XXX] is now exempt from any future obligation to provide services to [Client’s Company Name] under this agreement.

From this point forward, our contract is considered terminated, marking the end of our current professional engagement.

I’ve used a question mark because I didn’t seek feedback. I was keen to move on and didn’t want this to drag on or live rent-free in my head. However, in hindsight, understanding why the client cancelled the contract may have been beneficial. I suspect it was a lack of money again.

If you decide to ask, their insights might be valuable and could prevent similar situations in the future.

Quickly shift your focus to other projects. Use the experience as a lesson to enhance your business practices, such as revising your contract or altering your client screening process. In my situation, I have to admit that I did get a vibe from the client when first meeting them, and I probably should have gone with my gut feeling and not provided a proposal. It was a good reminder that when I have doubts, I shouldn’t ignore them.

Dealing with a client who cancels a web design agreement before things get going can be a weird situation. By handling the cancellation professionally, you can protect your business interests and maintain a positive reputation. Always ensure that you have robust contracts and consult with a legal professional when unsure about the best course of action.