What types of clients do you “just say no” to? And if you can’t answer that–you should. The April 15 edition of Marketing News talks about how big companies should focus more on “demarketing” during rough economic times. But honestly, demarketing is something small businesses should be doing all the time.

Demarketing is the opposite of target marketing–it’s deciding what types of clients aren’t worth your time and finding ways to avoid marketing to them or to screen them out during the sales process. While it may seem counterintuitive to some to turn away any potential client, remember that turning away potentially bad clients leaves more room for finding and serving the more profitable clients you enjoy.

Insurance companies are notorious for this, especially if you’re buying individual health insurance. If the answers on your medical history questionnaire indicate you’re going to be a heavy user, they’ll turn you down.

The article also cites Apple as an example. The company demarkets its iPhone through pricing. They have the technology to make less expensive versions, but they choose not to because they want the elite smart phone buyers.

So take some time to think about who you don’t want to serve. Who are the PITA clients that take up more time than they’re worth? And how can you start weeding them out through either your marketing or sales process?